Department of Transportation awards $4.3M contract for Air Movement Data Technical Support to Objectstream Inc

Contract Overview

Contract Amount: $4,346,805 ($4.3M)

Contractor: Objectstream Inc

Awarding Agency: Department of Transportation

Start Date: 2021-08-09

End Date: 2026-08-09

Contract Duration: 1,826 days

Daily Burn Rate: $2.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EFAST PA 21-042-CS NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA (AMD) TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.3 million to OBJECTSTREAM INC for work described as: EFAST PA 21-042-CS NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA (AMD) TECHNICAL SUPPORT Key points: 1. Contract awarded for computer systems design services, indicating a need for specialized IT support. 2. The contract duration of 1826 days suggests a long-term requirement for these services. 3. Objectstream Inc. is the sole awardee, raising questions about the extent of competition. 4. The contract type is Time and Materials, which can sometimes lead to cost overruns if not closely managed. 5. Awarded under SAP (Simplified Acquisition Procedures) suggests the value was below certain thresholds, potentially limiting broader competition. 6. The geographic location of performance is Washington D.C., a common hub for federal contracts.

Value Assessment

Rating: fair

The contract value of $4.3 million over approximately five years averages to roughly $860,000 annually. Without specific benchmarks for Air Movement Data technical support, it's difficult to definitively assess value for money. However, the Time and Materials pricing structure warrants close monitoring to ensure costs remain within reasonable bounds and align with industry standards for similar IT support services. The number of bids received (4) is a positive indicator, but the specific pricing details would be needed for a more robust comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source but may not reach the full and open competition level. Four bids were received, indicating some level of interest and competition. However, the specific details of the solicitation and evaluation process would be necessary to determine if the competition was truly robust and if all potential qualified vendors had an equal opportunity to bid.

Taxpayer Impact: The limited competition under SAP may mean that taxpayers did not benefit from the most aggressive pricing that could have been achieved through a full and open competition. While four bids are better than one, it's possible that more vendors could have been engaged to drive down costs further.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by receiving essential technical support for its Air Movement Data systems. This support is crucial for maintaining the operational integrity and efficiency of air traffic management systems. The services delivered will likely ensure the reliability of data used in flight planning, tracking, and safety. The primary geographic impact is within the operational domain of the FAA, likely centered around its data processing and command centers. The contract supports the IT workforce, potentially creating or sustaining jobs in computer systems design and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not managed diligently.
Limited competition under SAP might not yield the best possible pricing for taxpayers.
The specific technical expertise required may limit the pool of qualified bidders, impacting future competition.
Dependence on a single contractor for critical data support could pose a risk if performance issues arise.

Positive Signals

Awarding to a single vendor (Objectstream Inc.) suggests they met all technical and performance requirements.
The contract duration indicates a stable, long-term need for these services, providing continuity.
Four bids received demonstrate a degree of market interest and vendor capability.
The contract falls under the Federal Aviation Administration, a critical agency with established oversight processes.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The Federal Aviation Administration (FAA) relies heavily on sophisticated IT systems for managing air traffic and related data. Spending in this area is critical for national infrastructure and safety. Comparable spending benchmarks for similar technical support contracts within government agencies can vary widely based on complexity and scope, but contracts in the multi-million dollar range are common for specialized IT functions.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, Objectstream Inc., is not identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business focus in this particular award means that opportunities for small business participation are not explicitly mandated through this contract vehicle.

Oversight & Accountability

The Department of Transportation, specifically the Federal Aviation Administration, is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, milestone tracking, and financial audits to ensure compliance with contract terms and conditions. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any potential fraud, waste, or abuse were suspected.

Related Government Programs

FAA Air Traffic Control Systems
Aviation Data Management Systems
Federal IT Services Contracts
Computer Systems Design Services
Department of Transportation IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited competition under Simplified Acquisition Procedures may impact price discovery.
Dependence on a single contractor for critical data support.
Need for robust government oversight to manage T&M contract effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.3 million to OBJECTSTREAM INC. EFAST PA 21-042-CS NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA (AMD) TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is OBJECTSTREAM INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

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

What is Objectstream Inc.'s track record with the federal government, particularly with the FAA?

Objectstream Inc. has a history of contracting with the federal government, including the FAA. Analyzing their past performance on similar contracts is crucial. Records indicate they have received previous awards for IT services and support. A deeper dive into contract performance reports, past performance questionnaires, and any documented issues or commendations would provide a clearer picture of their reliability and capability. Understanding their experience with Air Movement Data or related aviation systems specifically would be a key factor in assessing their suitability for this current contract. Their ability to consistently meet deadlines, manage budgets, and deliver quality technical solutions on prior engagements is paramount.

How does the $4.3 million contract value compare to similar FAA contracts for technical support?

Benchmarking the $4.3 million contract value requires comparing it to similar contracts awarded by the FAA or other agencies for Air Movement Data technical support or comparable IT services. Without access to a comprehensive database of such contracts, a precise comparison is difficult. However, contracts for specialized IT support within large federal agencies often range from hundreds of thousands to several million dollars, depending on the scope, duration, and complexity of the services. The Time and Materials (T&M) nature of this contract means the final cost can fluctuate based on actual hours worked and material costs, making direct comparisons challenging unless the estimated hours and rates are known. The average annual cost of approximately $860,000 should be evaluated against industry standards for similar IT support roles.

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

The primary risk with a Time and Materials (T&M) contract, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours expended and the cost of materials used. If the contractor's efficiency is low, or if the scope of work expands without proper controls, the total cost can exceed initial estimates. For the government, this necessitates robust oversight and management to ensure that the hours billed are reasonable and allocable, and that the materials purchased are necessary and cost-effective. Without diligent monitoring, T&M contracts can become more expensive than anticipated, diminishing the overall value for money.

How effective are Simplified Acquisition Procedures (SAP) in ensuring fair competition for IT services?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below certain dollar thresholds (typically $250,000, but can be higher for specific categories). While SAP aims to increase efficiency and reduce administrative burden, its effectiveness in ensuring fair competition can be variable. For IT services, especially those requiring specialized expertise, SAP may limit the pool of potential bidders compared to full and open competition. While four bids were received in this instance, indicating some level of competition, SAP processes might not always attract the widest possible range of vendors or encourage the most aggressive pricing. Agencies must still adhere to principles of fair opportunity and transparency within the SAP framework.

What is the historical spending trend for Air Movement Data technical support within the FAA?

To assess historical spending trends for Air Movement Data technical support within the FAA, one would need to analyze procurement data over several fiscal years. This would involve identifying all contracts related to AMD technical support, regardless of the specific awardee or contract vehicle. Key metrics to examine would include the total annual spending, the number of contracts awarded, the average contract value, and the types of contract vehicles used (e.g., IDIQs, BPA calls, sole-source). Understanding these trends can reveal whether spending is increasing, decreasing, or remaining stable, and whether the FAA is consolidating or diversifying its support providers. This context is vital for evaluating the current $4.3 million award within a broader financial and strategic framework.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 7725 W RENO AVE STE 307, OKLAHOMA CITY, OK, 73127

Business Categories: 8(a) Program Participant, Category Business, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,593,758

Exercised Options: $4,346,805

Current Obligation: $4,346,805

Actual Outlays: $4,021,477

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $377,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA11A00108

IDV Type: BPA

Timeline