DOT's FAA awards $4M contract for advanced safety analysis, raising questions about competition

Contract Overview

Contract Amount: $4,059,247 ($4.1M)

Contractor: Cyberdata Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2021-11-29

End Date: 2026-11-25

Contract Duration: 1,822 days

Daily Burn Rate: $2.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EFAST PA 22-029-N8 FLIGHT STANDARDS SAFETY ANALYSIS PROGRAM OFFICE (SAPO) ADVANCED SAFETY ANALYSIS CONTRACT

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.1 million to CYBERDATA TECHNOLOGIES, INC. for work described as: EFAST PA 22-029-N8 FLIGHT STANDARDS SAFETY ANALYSIS PROGRAM OFFICE (SAPO) ADVANCED SAFETY ANALYSIS CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's duration of over 5 years suggests a long-term need for these services. 3. The use of Time and Materials pricing introduces potential for cost overruns if not closely managed. 4. The specific services under the 'Advanced Safety Analysis' are not detailed, making performance assessment difficult. 5. Cyberdata Technologies, Inc. is the sole awardee, indicating a potential lack of market research for other capable vendors. 6. The contract value is moderate, but the lack of competition warrants scrutiny for value for money.

Value Assessment

Rating: questionable

The contract value of approximately $4 million over five years is moderate. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed with strict oversight and defined labor categories. The absence of competition means there's no external validation of whether this price represents a fair and reasonable value for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that the Federal Aviation Administration (FAA) did not solicit bids from multiple vendors. This approach bypasses the standard competitive process, which typically involves a solicitation, proposal evaluation, and selection of the best value offer. The justification for a sole-source award often relates to unique capabilities, urgent needs, or the unavailability of other sources, but these reasons are not detailed here.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from the price reductions and innovations that often arise from a competitive environment. It also limits opportunities for other businesses to secure federal contracts.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving services to enhance aviation safety. The contract supports the Flight Standards Safety Analysis Program Office (SAPO) in its mission. Improved safety analysis is expected to benefit the broader aviation industry and the flying public. The contract's impact on the workforce is likely internal to the FAA or the contractor, with no immediate public-facing workforce implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a contract of this duration and value.
Use of Time and Materials pricing can lead to cost overruns without strict oversight.
Limited transparency regarding the specific services and performance metrics.
Potential for missed opportunities to engage small businesses if not properly considered in sole-source justification.

Positive Signals

Contract supports a critical safety function within the FAA.
Awardee, Cyberdata Technologies, Inc., is presumably capable of performing the required services.
Contract has a defined period of performance, allowing for future reassessment.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the broader transportation sector, with a significant focus on IT and professional services to support its regulatory and operational mandates. This contract for advanced safety analysis falls under the category of specialized professional services, likely involving data analysis, risk assessment, and the development of safety protocols. Comparable spending in this area often involves significant investments in data analytics, cybersecurity, and systems engineering to ensure the safety and efficiency of the national airspace system.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates the awardee is not a small business. There is no information provided regarding subcontracting plans for small businesses. The sole-source nature of the award further limits the opportunity for small businesses to participate unless they are specifically identified as a subcontractor by the prime.

Oversight & Accountability

Oversight for this contract would typically reside with the Federal Aviation Administration's contracting officers and program managers. The effectiveness of oversight depends on the rigor of performance monitoring, invoice review, and adherence to the terms of the Time and Materials contract. Transparency is limited by the lack of public detail on the specific services and performance metrics. There is no explicit mention of Inspector General jurisdiction for this specific award, though the IG generally has oversight over federal spending.

Related Government Programs

FAA Safety Programs
Aviation Safety Analysis
Federal IT Services
Professional Services Contracts
Transportation Department Contracts

Risk Flags

Sole-source award lacks competitive justification.
Time and Materials pricing increases cost overrun risk.
Lack of detailed service description hinders performance assessment.
Limited transparency on competition rationale.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.1 million to CYBERDATA TECHNOLOGIES, INC.. EFAST PA 22-029-N8 FLIGHT STANDARDS SAFETY ANALYSIS PROGRAM OFFICE (SAPO) ADVANCED SAFETY ANALYSIS CONTRACT

Who is the contractor on this award?

The obligated recipient is CYBERDATA TECHNOLOGIES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2021-11-29. End: 2026-11-25.

What specific safety analysis tasks are encompassed by this contract, and what are the key performance indicators (KPIs) for success?

The provided data does not detail the specific safety analysis tasks or Key Performance Indicators (KPIs) for this contract. The description 'Advanced Safety Analysis Contract' is broad. Typically, such contracts could involve analyzing accident/incident data, identifying emerging safety trends, developing predictive safety models, assessing the safety impact of new technologies or procedures, and recommending mitigation strategies. Without further documentation (like the SOW or PWS), it's impossible to define the precise deliverables or how Cyberdata Technologies, Inc.'s performance will be measured. This lack of specificity makes it challenging to assess the contract's effectiveness and value for money.

What was the justification for awarding this contract on a sole-source basis, and were alternative vendors considered?

The justification for the sole-source award is not provided in the given data. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. However, for a contract of this duration and value, a thorough market research effort would typically be expected to identify potential sources. The absence of this justification raises concerns about whether the government received the best possible value and if other capable vendors were overlooked. Further investigation into the contract file would be necessary to understand the rationale.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar safety analysis services, and what are the associated risks?

Time and Materials (T&M) contracts are generally used when the scope of work is not clearly defined or when there is uncertainty about the level of effort required. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. For safety analysis services, which can sometimes be projectized or have defined deliverables, a firm-fixed-price or cost-plus-fixed-fee contract might offer better cost certainty. The primary risk with T&M is the potential for inefficient performance or inflated labor hours if not rigorously monitored by the government's contracting officer's representative (COR).

What is Cyberdata Technologies, Inc.'s track record with the FAA or other government agencies for similar safety analysis or professional services contracts?

Information regarding Cyberdata Technologies, Inc.'s specific track record with the FAA or other government agencies for similar safety analysis contracts is not included in the provided data. To assess their capability and past performance, one would need to consult government databases like the Contractor Performance Assessment Reporting System (CPARS) or review their contract history. A positive track record with relevant agencies and successful completion of similar projects would increase confidence in their ability to deliver on this contract. Conversely, a history of poor performance or contract disputes would be a significant red flag.

How does the total contract value of approximately $4 million compare to historical FAA spending on aviation safety analysis programs?

The provided data does not offer historical spending figures for FAA aviation safety analysis programs, making a direct comparison difficult. However, $4 million over five years (averaging $800,000 annually) represents a moderate investment. The FAA's overall budget is substantial, and safety-related expenditures are a high priority. To contextualize this $4 million, it would be beneficial to compare it against the total budget allocated to the Flight Standards Service or the broader aviation safety mission. Understanding the proportion this contract represents within the agency's safety portfolio would provide better insight into its significance.

Are there any specific risks identified by the FAA related to the performance or management of this contract?

The provided data does not explicitly list any specific risks identified by the FAA for this contract. However, based on the contract type (T&M) and the sole-source award, inherent risks can be inferred. These include the risk of cost overruns due to the T&M structure, the risk of suboptimal performance if oversight is weak, and the risk of not achieving the best value due to the lack of competition. Without access to internal FAA risk assessments or contract management plans, a definitive list of identified risks is unavailable.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 455 SPRINGPARK PL STE 300, HERNDON, VA, 20170

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

Financial Breakdown

Contract Ceiling: $4,365,273

Exercised Options: $4,059,247

Current Obligation: $4,059,247

Actual Outlays: $3,276,063

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA10A00055

IDV Type: BPA

Timeline