DOT's $22.2M IT contract for computer systems design awarded to MAR-TIC JV, with 10 bidders

Contract Overview

Contract Amount: $22,225,023 ($22.2M)

Contractor: Mar-Tic JV

Awarding Agency: Department of Transportation

Start Date: 2021-09-01

End Date: 2026-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FRAMES PROCUREMENT

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $22.2 million to MAR-TIC JV for work described as: FRAMES PROCUREMENT Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition with 10 bidders suggests effective price discovery. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is set by a 5-year duration for essential IT services. 5. Sector positioning is within the IT services domain, a critical area for government operations.

Value Assessment

Rating: good

The contract's value of $22.2 million over five years for computer systems design services appears to be within a reasonable range, especially considering the competitive bidding process. While specific per-unit cost benchmarks are not provided, the presence of 10 bidders suggests that the pricing was likely scrutinized and found competitive. The firm-fixed-price structure further supports value by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition among eligible bidders. The participation of 10 bidders demonstrates a healthy level of market interest and competition for these IT services. This robust competition is a positive sign for price discovery, as it likely drove down costs and ensured the government received competitive offers.

Taxpayer Impact: The high number of bidders suggests that taxpayers benefited from a competitive environment, leading to potentially lower prices than if the contract had been awarded with fewer offers.

Public Impact

Federal Aviation Administration (FAA) personnel benefit from improved computer systems design and support. Essential IT services are delivered, ensuring the smooth operation of critical aviation infrastructure. Geographic impact is concentrated in Maryland, where the contractor is located. Workforce implications include employment opportunities within the IT services sector, particularly for the winning contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competed.
Reliance on a single contractor for critical IT systems design could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract type mitigates cost overrun risks for the government.
Competitive award process with 10 bidders suggests a fair market price was achieved.
Long-term contract (5 years) provides stability for essential IT services.

Sector Analysis

The IT services sector is a significant area of federal spending, encompassing a wide range of needs from software development to systems integration and maintenance. This contract for computer systems design services falls within the broader IT consulting and professional services market. Federal agencies consistently invest in these services to modernize infrastructure, enhance cybersecurity, and improve operational efficiency. Benchmarks for similar contracts vary widely based on scope and duration, but competitive procurement is standard.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify a small business set-aside. While the prime contractor, MAR-TIC JV, is not explicitly identified as a small business, the presence of 10 bidders suggests a potentially diverse pool of participants. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed due to the contract's structure.

Oversight & Accountability

The contract is a firm-fixed-price definitive contract, which typically has defined deliverables and payment schedules, allowing for clear oversight. The Department of Transportation and the Federal Aviation Administration are responsible for monitoring performance and ensuring compliance. Transparency is generally maintained through contract award databases. Inspector General oversight would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design
Federal Aviation Administration IT Contracts
Department of Transportation IT Spending

Risk Flags

Contract duration exceeds typical shorter-term IT service agreements.
Potential for scope creep if requirements are not tightly managed.
Reliance on a single awardee for critical IT design services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $22.2 million to MAR-TIC JV. FRAMES PROCUREMENT

Who is the contractor on this award?

The obligated recipient is MAR-TIC JV.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2021-09-01. End: 2026-08-31.

What is the track record of MAR-TIC JV in performing federal IT contracts?

Information regarding the specific track record of MAR-TIC JV in performing federal IT contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government engagements. Understanding their experience with similar computer systems design services and their ability to meet deadlines and quality standards would be crucial for evaluating their reliability on this $22.2 million contract.

How does the awarded price compare to similar IT services contracts within the federal government?

Direct comparison of the awarded price of $22.2 million for this 5-year computer systems design contract requires access to a broader dataset of similar federal IT procurements. Factors such as the specific services rendered, the complexity of the systems, the level of security required, and the geographic location of performance all influence pricing. However, the fact that the contract was competed under SAP with 10 bidders suggests that the price achieved was likely competitive within the market for these types of services. Further benchmarking against contracts with similar North American Industry Classification System (NAICS) codes (541512) and contract types would provide a more precise valuation.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance issues, such as delays or quality deficiencies in computer systems design, and the risk of vendor lock-in if future needs are not competitively re-procured. Mitigation strategies are primarily embedded in the contract structure. The firm-fixed-price (FFP) nature shifts cost overrun risks to the contractor, incentivizing efficient performance. The 5-year duration provides stability but also necessitates careful monitoring to ensure continued value and to plan for future procurements. Clear performance metrics and regular oversight by the FAA are essential to manage performance risks.

How effective is the competition level in ensuring value for taxpayers on this contract?

The competition level, indicated by 10 bidders for this contract, is a strong positive indicator for ensuring value for taxpayers. A larger number of bidders generally leads to more competitive pricing as companies vie for the award. This process helps the government secure services at or near market rates, preventing potential overpayment. The full and open competition under SAP suggests that a wide range of qualified vendors had the opportunity to participate, further enhancing the likelihood that the selected contractor, MAR-TIC JV, offered the best value proposition in terms of both cost and technical approach.

What is the historical spending trend for computer systems design services by the Federal Aviation Administration?

Analyzing the historical spending trend for computer systems design services by the Federal Aviation Administration (FAA) would require accessing historical procurement data over several fiscal years. This contract, valued at $22.2 million over five years, represents a significant but potentially consistent investment in IT infrastructure. Understanding whether this spending has increased, decreased, or remained stable relative to the FAA's overall budget and IT needs would provide context. Trends could be influenced by modernization initiatives, cybersecurity requirements, or shifts in technology adoption within the aviation sector.

Are there any specific performance metrics or deliverables tied to this contract that indicate program effectiveness?

The provided data does not specify the exact performance metrics or deliverables for this computer systems design services contract. However, as a firm-fixed-price contract, it is expected to have clearly defined requirements and acceptance criteria. Program effectiveness would be measured by the contractor's ability to meet these requirements on time, within budget, and to the satisfaction of the FAA. Key performance indicators (KPIs) likely focus on the successful design, implementation, and potentially support of computer systems, contributing to the operational efficiency and modernization goals of the agency.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7920 NORFOLK AVE STE 920, BETHESDA, MD, 20814

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,286,000

Exercised Options: $22,225,023

Current Obligation: $22,225,023

Actual Outlays: $21,877,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline