DOT awards $8.67M contract for air traffic data management support to GRA Inc

Contract Overview

Contract Amount: $8,673,382 ($8.7M)

Contractor: GRA Inc

Awarding Agency: Department of Transportation

Start Date: 2020-06-05

End Date: 2027-02-28

Contract Duration: 2,459 days

Daily Burn Rate: $3.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EFAST PA 20-029-CS DATA MANAGEMENT TEAM AIR TRAFFIC BUSINESS MODEL SUPPORT

Place of Performance

Location: JENKINTOWN, MONTGOMERY County, PENNSYLVANIA, 19046

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Transportation obligated $8.7 million to GRA INC for work described as: EFAST PA 20-029-CS DATA MANAGEMENT TEAM AIR TRAFFIC BUSINESS MODEL SUPPORT Key points: 1. Contract provides essential data management and business model support for air traffic operations. 2. GRA Inc. is the sole awardee for this specific task order. 3. The contract utilizes a Time and Materials pricing structure. 4. Performance period extends over 2459 days, indicating a long-term need. 5. The contract falls under the Administrative Management and General Management Consulting Services NAICS code. 6. This award is a BPA Call under a larger Blanket Purchase Agreement.

Value Assessment

Rating: fair

The contract value of $8.67 million over approximately 6.7 years suggests a moderate annual spend for specialized consulting services. Benchmarking against similar contracts for management consulting in the aviation sector would be necessary to fully assess value for money. The Time and Materials pricing structure, while flexible, can sometimes lead to cost overruns if not closely monitored, which warrants careful review of the contractor's performance and billing practices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized for this award. While the specific number of bidders is not provided, competition under SAP generally aims to ensure fair pricing and access for eligible contractors. The BPA Call mechanism suggests that the underlying BPA was likely competed, and this call order was then awarded competitively from that pool.

Taxpayer Impact: Competition under SAP generally leads to better price discovery and value for taxpayers compared to sole-source awards. Ensuring the competitive process was robust within the SAP framework is key to maximizing taxpayer benefit.

Public Impact

Benefits the Federal Aviation Administration (FAA) by providing critical support for air traffic control data management. Services delivered include business model support and data management expertise. Geographic impact is primarily national, supporting the overall U.S. air traffic system. Workforce implications include the potential for specialized consulting roles within GRA Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty if not managed diligently.
Lack of specific bidder count for this BPA Call limits full assessment of competitive intensity.
The long duration of the contract requires sustained oversight to ensure continued value.

Positive Signals

Awarded under a competitive process (SAP), suggesting potential for good value.
Supports a critical function within the FAA, indicating strategic importance.
GRA Inc. is a known entity in government contracting, implying some level of established performance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The Federal Aviation Administration (FAA) is a significant purchaser of such services to support its complex operational and regulatory functions. The market for these services is competitive, with numerous firms offering expertise in areas like data management, strategic planning, and operational efficiency. Benchmarking this contract's value would involve comparing its total value and annual spend to similar consulting engagements within the federal government and the broader aviation industry.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific BPA Call was not explicitly detailed in the provided data. However, the contract was competed under Simplified Acquisition Procedures, which can sometimes include provisions for small business participation. Further investigation into the BPA's terms and conditions would be needed to ascertain specific small business impacts.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is crucial. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Aviation Management Consulting Services
Data Management and Analytics Contracts
Department of Transportation IT and Professional Services

Risk Flags

Potential for cost overruns due to T&M pricing structure.
Need for sustained oversight due to long contract duration.
Limited transparency on specific number of bidders for this BPA Call.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.7 million to GRA INC. EFAST PA 20-029-CS DATA MANAGEMENT TEAM AIR TRAFFIC BUSINESS MODEL SUPPORT

Who is the contractor on this award?

The obligated recipient is GRA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2020-06-05. End: 2027-02-28.

What is GRA Inc.'s track record with the Federal Aviation Administration and similar agencies?

GRA Inc. has a history of performing contracts with various federal agencies, including the Department of Transportation and its sub-agencies like the FAA. Their experience typically spans areas such as program management, technical support, and consulting services. A detailed review of their past performance evaluations, contract history, and any past performance issues or commendations would provide a clearer picture of their reliability and capability in delivering services similar to those required under this data management support contract. Examining their performance on previous BPA calls or task orders under similar agreements would be particularly insightful.

How does the $8.67 million contract value compare to similar data management support contracts within the FAA or DOT?

The $8.67 million contract value, spread over approximately 6.7 years, represents an average annual spend of roughly $1.29 million. To assess value for money, this figure should be benchmarked against comparable contracts for administrative management and general management consulting services within the FAA and the broader Department of Transportation. Factors such as the scope of work, required expertise, contract duration, and pricing structure (Time and Materials in this case) need to be considered. If similar contracts for comparable services have significantly lower or higher values, it could indicate potential overpricing, underfunding, or a difference in scope and complexity.

What are the primary risks associated with a Time and Materials (T&M) contract for data management support?

The primary risk with a Time and Materials (T&M) contract for data management support is the potential for cost escalation if not managed effectively. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This can lead to budget uncertainty and potentially higher overall costs if the project scope expands, inefficiencies arise, or the contractor's billing rates are high. For the FAA, this necessitates robust oversight, including detailed tracking of hours, verification of direct costs, and strong negotiation of labor rates to ensure the government receives good value and stays within budget.

How effective is the Simplified Acquisition Procedures (SAP) competition in ensuring competitive pricing for this type of service?

Simplified Acquisition Procedures (SAP) are designed for purchases up to a certain threshold (currently $250,000, but can be higher for certain categories) and aim to streamline the procurement process while still encouraging competition. For a contract of this magnitude ($8.67 million), it's likely that the underlying Blanket Purchase Agreement (BPA) was competed, and this task order was then awarded competitively from that BPA pool, potentially using SAP principles or other competitive methods. The effectiveness of SAP competition in ensuring competitive pricing depends on the number of qualified bidders, the clarity of the solicitation, and the fairness of the evaluation process. While SAP can be efficient, it might not always yield the same level of price competition as larger, more formal solicitations.

What are the implications of this contract's long duration (2459 days) on program flexibility and contractor performance?

The long duration of this contract, approximately 6.7 years, offers the benefit of continuity and stability for critical data management functions within the FAA. This allows the contractor to develop deep institutional knowledge and potentially achieve greater efficiencies over time. However, it also presents risks. Programmatic needs can evolve significantly over such a long period, potentially making the contract's scope outdated or less relevant. Furthermore, sustained performance requires ongoing vigilance from the government to ensure the contractor remains responsive, innovative, and cost-effective throughout the contract's life. Regular performance reviews and potential contract modifications are essential to manage these long-term implications.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1727 KING ST STE 105, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,561,984

Exercised Options: $8,673,382

Current Obligation: $8,673,382

Actual Outlays: $7,720,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00208

IDV Type: BPA

Timeline