DOT awards $1.27M for software engineering support, extending existing contract for FAA

Contract Overview

Contract Amount: $1,271,012 ($1.3M)

Contractor: Arctic Slope Technical Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-28

End Date: 2026-04-30

Contract Duration: 245 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00150.

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $1.3 million to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: SOFTWARE ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00150. Key points: 1. Contract value represents a continuation of services, suggesting established performance and need. 2. The contract type (Time and Materials) can pose cost control challenges if not managed closely. 3. Competition was full and open after exclusion of sources, indicating a broad initial search. 4. The duration of 245 days is relatively short, implying potential for future modifications or renewals. 5. The specific NAICS code (541519) covers a broad range of computer-related services. 6. The awardee, Arctic Slope Technical Services, Inc., has a history with this type of work. 7. The contract is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract value of $1.27 million for approximately 8 months of software engineering support appears reasonable on its face, but a true value assessment requires benchmarking against similar Time and Materials contracts for comparable services. Without more detailed scope of work and labor category rates, it's difficult to definitively assess pricing efficiency. The continuation nature suggests the government found the previous iteration acceptable, but ongoing vigilance on labor hours and rates is crucial for Time and Materials contracts to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the initial solicitation was broad, certain sources may have been excluded based on specific criteria or prior relationships, which is a nuanced form of competition. The number of bidders is not provided, making it difficult to assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: The 'full and open' aspect is generally positive for taxpayers, as it aims to maximize the pool of potential offerors and drive competitive pricing. However, the 'after exclusion of sources' qualifier warrants further scrutiny to ensure no viable competitors were unfairly barred.

Public Impact

The Federal Aviation Administration (FAA) benefits from continued software engineering support, crucial for maintaining and developing aviation systems. Services delivered likely include software development, maintenance, testing, and technical support for critical FAA platforms. The geographic impact is primarily within the operational sphere of the FAA, potentially supporting national aviation infrastructure. Workforce implications may involve specialized IT professionals and engineers, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for labor hours and rates.
The 'exclusion of sources' in the competition process could limit the breadth of competitive pricing.
Limited duration (245 days) may indicate a need for frequent re-competition or contract modifications, adding administrative burden.

Positive Signals

Continuation of an existing contract suggests satisfactory performance and a stable working relationship.
Full and open competition, even with exclusions, aims to provide a competitive environment.
The awardee, Arctic Slope Technical Services, Inc., is likely experienced in providing these specialized services.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on software engineering. The IT services market is vast and highly competitive, with significant government spending allocated to software development, maintenance, and support. Comparable spending benchmarks would involve analyzing other government contracts for similar software engineering support services, particularly those awarded by agencies like the FAA or other transportation-related entities. The market size for federal IT services is in the hundreds of billions annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside benefits. Subcontracting opportunities for small businesses may exist at the discretion of the prime contractor, Arctic Slope Technical Services, Inc., but are not mandated by this specific award. The impact on the small business ecosystem is neutral to potentially negative, as this large contract did not prioritize small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA IT Modernization Programs
Software Development Services
IT Support Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited visibility into the specific reasons for 'exclusion of sources' in competition.
Need for robust oversight to manage labor hours and rates effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.3 million to ARCTIC SLOPE TECHNICAL SERVICES, INC.. SOFTWARE ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00150.

Who is the contractor on this award?

The obligated recipient is ARCTIC SLOPE TECHNICAL SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $1.3 million.

What is the period of performance?

Start: 2025-08-28. End: 2026-04-30.

What is the historical spending trend for software engineering support services by the FAA?

Analyzing historical spending trends for software engineering support services by the FAA is crucial for understanding budget allocation and identifying potential patterns of increased or decreased investment in this area. While specific historical data for this exact contract continuation isn't provided, the FAA, like many federal agencies, has consistently invested significant funds in IT infrastructure and software development to maintain and modernize its complex systems. This includes air traffic control systems, data management platforms, and operational software. Examining past contract awards for similar services, including their values, durations, and awardees, can reveal whether spending has been steady, increasing, or decreasing, and whether there's a trend towards specific types of software support (e.g., legacy system maintenance vs. new development). This context helps in evaluating the current $1.27 million award as part of a larger, ongoing commitment or a potential shift in strategy.

How does the awarded price compare to market rates for similar software engineering support services?

Benchmarking the awarded price of $1.27 million against market rates for similar software engineering support services is essential for assessing value for money. This comparison requires analyzing the specific labor categories, skill sets, and experience levels required for the contract, as well as the geographic location of service delivery (New Jersey in this case). Market rates can be estimated using data from commercial IT service providers, industry salary surveys, and publicly available data on similar government contracts. Factors such as the Time and Materials (T&M) pricing structure, which can vary significantly based on negotiated labor rates and overhead, must be considered. A detailed analysis would involve comparing the average hourly rates for different roles (e.g., software engineers, project managers) against commercial benchmarks and other government T&M contracts. Without specific labor category details, a precise comparison is difficult, but the overall value hinges on whether the total cost reflects efficient resource utilization and competitive labor pricing.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for this software engineering support services contract are critical for ensuring the Federal Aviation Administration (FAA) receives the expected value and quality of service. While specific KPIs are not detailed in the provided data, typical metrics for such contracts often include software defect rates, on-time delivery of milestones, system uptime and performance, adherence to coding standards, and user satisfaction. For a Time and Materials contract, KPIs might also focus on the efficient utilization of labor hours and the effective management of project scope. The FAA contracting officer and technical representatives would monitor these KPIs throughout the contract period. Regular performance reviews, status reports, and potentially formal quality assurance processes would be employed to track progress against these indicators and ensure the contractor meets or exceeds performance expectations.

What is the track record of Arctic Slope Technical Services, Inc. in delivering similar software engineering support to federal agencies?

Arctic Slope Technical Services, Inc. (ASTS) has a history of performing IT and engineering support services for federal agencies. Their track record in delivering similar software engineering support is a key factor in the FAA's decision to award this continuation contract. Publicly available contract data often shows ASTS has been awarded numerous contracts across various agencies, including those involving technical services, IT support, and engineering solutions. To fully assess their track record for this specific type of work, one would examine past performance evaluations, any past performance questionnaires (PPQs) submitted during the bidding process, and the overall history of contract awards and task orders related to software development and engineering. A review of their performance on previous FAA contracts, if any, would be particularly relevant to gauge their reliability and capability in supporting critical aviation systems.

What are the potential risks associated with the 'full and open competition after exclusion of sources' contracting approach?

The 'full and open competition after exclusion of sources' approach, while aiming for broad participation, introduces specific risks. The primary risk is that legitimate, capable competitors might be excluded based on criteria that are not clearly defined or are overly restrictive, potentially limiting the diversity of solutions and driving up prices due to reduced competition. This approach can also raise concerns about fairness and transparency if the reasons for exclusion are not well-documented or justifiable. Taxpayers could face higher costs if the excluded sources would have offered more competitive pricing or innovative solutions. Furthermore, it might signal a pre-existing relationship or preference for certain types of contractors, potentially undermining the principle of a truly open market. Careful justification and documentation of exclusion criteria are vital to mitigate these risks and ensure the government obtains the best value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,346,981

Exercised Options: $1,271,012

Current Obligation: $1,271,012

Actual Outlays: $528,248

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT17D00004

IDV Type: IDC

Timeline