DOT awards $581K for FAA's AJM-2 Second Level Engineering Support Services to Quecon, Inc

Contract Overview

Contract Amount: $581,029 ($581.0K)

Contractor: Quecon, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-03-23

End Date: 2027-03-31

Contract Duration: 373 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AJM-2 SECOND LEVEL ENGINEERING SUPPORT SERVICES, NAS DOC, PROD AND SRM SUPPORT

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $581,029 to QUECON, INC. for work described as: AJM-2 SECOND LEVEL ENGINEERING SUPPORT SERVICES, NAS DOC, PROD AND SRM SUPPORT Key points: 1. Contract awarded for essential engineering support to FAA's Air Traffic Organization. 2. Quecon, Inc. selected for a 373-day contract valued at $581,029. 3. Contract type is Time and Materials, indicating flexibility for evolving needs. 4. Service area includes production and system readiness management support. 5. Geographic focus on New Jersey, where FAA facilities are located. 6. This award represents a small portion of the FAA's overall IT and support services budget.

Value Assessment

Rating: fair

The contract value of $581,029 for 373 days of support appears reasonable for specialized engineering services. However, without specific details on the labor categories and rates, a direct comparison to similar contracts is difficult. The Time and Materials pricing structure allows for flexibility but can also lead to cost overruns if not closely managed. Benchmarking against industry standards for similar IT support services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests a competitive process but with specific exclusions. The exact reasons for these exclusions are not detailed, making it difficult to assess the breadth of competition. A limited number of bidders, if that was the case, could potentially impact price discovery and lead to less competitive pricing compared to a truly full and open competition.

Taxpayer Impact: While the competition was not fully open, the exclusion of sources implies a rationale that may have been deemed necessary for specialized requirements. Taxpayers benefit from ensuring the selected contractor possesses the specific expertise needed, but the potential for higher costs due to limited competition warrants scrutiny.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring continued support for critical air traffic management systems. Services delivered include engineering support for production and system readiness, crucial for air safety. Geographic impact is primarily within New Jersey, supporting FAA operations in the region. Workforce implications include the employment of specialized engineers and technical staff by Quecon, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials contract type if not managed effectively.
Limited competition may have resulted in a higher price than a fully open solicitation.
Lack of detailed performance metrics in the provided data makes assessing effectiveness challenging.

Positive Signals

Award to a single contractor suggests specialized capabilities aligned with agency needs.
Contract duration of over a year provides stability for ongoing support.
Focus on critical FAA systems indicates alignment with national security and transportation priorities.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically focusing on specialized engineering support for government IT infrastructure. The market for such services is competitive, with numerous firms offering expertise in system engineering, IT support, and program management. The FAA, as a major government agency, represents a significant client within this sector, with substantial spending on maintaining and upgrading its complex technological systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific contract. Therefore, there are no direct small business set-aside provisions or subcontracting requirements evident from this award. The impact on the small business ecosystem is neutral in this instance, as the contract was not specifically targeted towards small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery terms. Transparency is facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA Air Traffic Control Systems Modernization
Federal IT Support Services
Engineering and Technical Services Contracts
Department of Transportation IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may impact price competitiveness.
Lack of detailed performance metrics in public data.
Need for clear justification for 'Exclusion of Sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $581,029 to QUECON, INC.. AJM-2 SECOND LEVEL ENGINEERING SUPPORT SERVICES, NAS DOC, PROD AND SRM SUPPORT

Who is the contractor on this award?

The obligated recipient is QUECON, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $581,029.

What is the period of performance?

Start: 2026-03-23. End: 2027-03-31.

What is Quecon, Inc.'s track record with the Federal Aviation Administration and other government agencies?

A thorough review of Quecon, Inc.'s contract history with the FAA and other federal agencies is necessary to assess their performance and reliability. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. Understanding their experience with similar types of engineering support services, particularly within aviation or complex IT environments, would provide valuable insight into their capabilities and suitability for this role. A positive track record with the FAA would suggest a lower performance risk for this new contract.

How does the awarded amount compare to similar engineering support contracts within the FAA or other transportation agencies?

Benchmarking this $581,029 contract against similar FAA or Department of Transportation contracts for engineering support services is crucial for assessing value for money. This comparison should consider contract duration, scope of work, labor categories, and the level of competition. If comparable contracts for similar services were awarded at a lower cost or for a greater scope, it might indicate that this contract is priced unfavorably. Conversely, if the scope is highly specialized or the competition was limited, a higher price might be justified. Analyzing historical spending patterns for AJM-2 support services would also provide context.

What are the specific risks associated with a Time and Materials contract for this type of service?

Time and Materials (T&M) contracts, like the one awarded to Quecon, Inc., carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can lead to cost overruns if the scope of work is not well-defined or if project timelines extend beyond initial estimates. Effective oversight, detailed tracking of labor hours and material costs, and clear communication are essential to mitigate these risks and ensure the government receives good value. The FAA will need robust project management to monitor expenditures closely.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

The specific Key Performance Indicators (KPIs) for the AJM-2 Second Level Engineering Support Services contract are not detailed in the provided data. Typically, for such engineering support roles, KPIs might include metrics related to system uptime, response times for technical issues, successful implementation of system updates, adherence to project schedules, and quality of technical documentation. The contract's Performance Work Statement (PWS) would outline these KPIs and the methods for measuring contractor performance. Regular performance reviews between the FAA and Quecon, Inc. would be essential to track progress against these metrics and ensure contract objectives are met.

What is the historical spending trend for AJM-2 Second Level Engineering Support Services over the past five years?

Analyzing historical spending for AJM-2 Second Level Engineering Support Services over the past five years would provide valuable context for this $581,029 award. This trend analysis would reveal whether spending has been increasing, decreasing, or remaining relatively stable. Significant fluctuations could indicate changes in program requirements, shifts in contracting strategies, or evolving technological needs within the FAA. Understanding this historical spending pattern can help determine if the current award is in line with past investments or represents a notable deviation, potentially signaling a need for further investigation into the drivers behind such changes.

What specific 'exclusions of sources' were applied in this 'Full and Open Competition After Exclusion of Sources' award, and why?

The designation 'Full and Open Competition After Exclusion of Sources' implies that while the solicitation was intended to be open, certain potential sources were deliberately excluded. The reasons for these exclusions are critical to understanding the competition landscape. Common justifications include the need for highly specialized expertise, proprietary technology, or specific past performance requirements that only a limited number of contractors could meet. Without knowing the specific exclusions, it's difficult to definitively assess the impact on price discovery and overall value for taxpayers. The FAA's justification for these exclusions would need to be documented and defensible.

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

Solicitation ID: 692M15-25-R-00001

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 134 PEYTON ST, FRONT ROYAL, VA, 22630

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,402,427

Exercised Options: $581,029

Current Obligation: $581,029

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 692M1526D00001

IDV Type: IDC

Timeline