DOT awards $876K for automation engineering support, continuing existing services

Contract Overview

Contract Amount: $875,972 ($876.0K)

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: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AUTOMATION ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00151.

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $875,971.5 to ARCTIC SLOPE TECHNICAL SERVICES, INC. for work described as: AUTOMATION ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00151. Key points: 1. Contract value represents a continuation of services, suggesting established needs and performance. 2. The contract type (Time and Materials) can pose cost control challenges if not managed closely. 3. Limited duration of 245 days may indicate a need for future re-competition or contract modification. 4. The specific NAICS code (541519) points to a niche service within the broader IT sector. 5. Geographic location in New Jersey may have implications for local workforce and economic impact.

Value Assessment

Rating: fair

The awarded amount of $875,971.50 for approximately 8 months of service appears reasonable for specialized automation engineering support. However, without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging. Comparing this to similar, ongoing contracts for automation engineering within the FAA or other transportation agencies would provide better context for pricing and efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was intended, certain sources may have been excluded for specific reasons, potentially related to prior performance or specialized capabilities. The limited nature of this competition could impact price discovery, as fewer bidders may have participated compared to a truly open solicitation.

Taxpayer Impact: Taxpayers benefit from specialized services being procured, but the exclusion of sources warrants scrutiny to ensure the best possible pricing was achieved.

Public Impact

The Federal Aviation Administration (FAA) benefits from continued automation engineering support, crucial for maintaining and improving its operational systems. Services delivered likely involve the enhancement, maintenance, or development of automated systems within the FAA's infrastructure. The contract's impact is primarily within the operational and technological domains of the FAA, rather than a broad geographic or public-facing service. Workforce implications may include the need for specialized engineering talent, potentially sourced from the contractor's existing pool or requiring local hiring in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited competition may have resulted in a higher price than a fully open solicitation.
The specific nature of 'automation engineering' requires specialized skills, potentially limiting the pool of qualified bidders.

Positive Signals

Continuation of services suggests the contractor is meeting the FAA's needs.
Awarding to a specific entity implies a level of trust and established working relationship.
The contract addresses a critical operational need for the FAA.

Sector Analysis

This contract falls within the Information Technology and Professional Services sector, specifically focusing on specialized engineering support. The market for such services is competitive, with numerous firms offering expertise in automation and systems engineering. The FAA, as a major government entity, represents a significant client within this sector, and contracts like this contribute to the overall spending on IT and engineering services within the federal government, which can be in the billions annually.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Arctic Slope Technical Services, Inc., is likely not a small business for this award. There is no explicit mention of subcontracting goals for small businesses, which could limit opportunities for the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be tied to the delivery of specified automation engineering support services and adherence to the Time and Materials contract terms. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

FAA IT Modernization Programs
Air Traffic Control System Modernization
Aviation Systems Engineering Support
Federal IT Services Procurement

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may impact price competitiveness.
Need for specialized skills could pose staffing challenges for the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $875,971.5 to ARCTIC SLOPE TECHNICAL SERVICES, INC.. AUTOMATION ENGINEERING SUPPORT SERVICES - CONTINUATION OF SUPPORT FROM TO 692M15-24-F-00151.

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 $875,971.5.

What is the period of performance?

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

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

Analyzing historical spending for automation engineering support services by the FAA requires access to detailed contract databases over several fiscal years. Typically, such services are procured through a mix of contract vehicles, including task orders under larger IT services contracts or specific, competitively awarded contracts like this one. Spending can fluctuate based on modernization initiatives, system upgrades, and the lifecycle of existing automation technologies. Without specific historical data for this exact service category, it's difficult to provide precise figures, but the FAA consistently invests significant resources in maintaining and upgrading its complex technological infrastructure, which includes automation.

How does the pricing of this Time and Materials contract compare to industry benchmarks for similar engineering services?

Assessing the pricing of this Time and Materials (T&M) contract against industry benchmarks requires detailed labor category rates and overhead applied by the contractor, which are not fully disclosed in the provided data. T&M contracts are inherently variable, and their value is determined by the hours worked and the rates charged. To benchmark effectively, one would need to compare the contractor's proposed hourly rates for specific engineering roles (e.g., senior automation engineer, junior technician) against published industry surveys or rates paid on comparable government contracts. The FAA's contracting office would have performed some level of price analysis, but external validation would involve comparing these rates to market data for similar skill sets and experience levels in the New Jersey region.

What are the specific risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type presents a moderate risk. While it aims for broad competition, the exclusion of certain sources implies that either those sources were deemed non-responsive, lacked necessary qualifications, or were excluded based on specific criteria outlined in the solicitation (e.g., past performance issues, inability to meet technical requirements). The risk lies in whether this exclusion inadvertently limited the competitive pool, potentially leading to a less optimal price or solution for the government. Effective risk mitigation involves ensuring the exclusion criteria were justified, documented, and that the remaining competition was robust enough to ensure fair market value.

What is the expected impact of this contract on the FAA's automation capabilities?

This contract is expected to ensure the continuity and potential enhancement of the FAA's automation capabilities. By providing dedicated engineering support, it helps maintain the operational integrity of existing automated systems and may contribute to the development or integration of new automation technologies. This is crucial for areas such as air traffic management, system monitoring, and operational efficiency. The specific impact will depend on the tasks performed under the contract, but the underlying goal is to support the reliable functioning and advancement of the FAA's automated infrastructure.

Are there any performance concerns related to Arctic Slope Technical Services, Inc. on previous contracts?

To determine performance concerns related to Arctic Slope Technical Services, Inc. on previous contracts, a review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary. The provided data does not include this information. However, the fact that they were awarded this continuation contract, especially under a competitive process (even if limited), suggests that their past performance was likely deemed acceptable or satisfactory by the agency for the services previously rendered under the prior contract (692M15-24-F00151). Agencies typically consider past performance as a significant factor in award decisions.

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: $1,207,002

Exercised Options: $875,972

Current Obligation: $875,972

Actual Outlays: $451,850

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