DOT awards $8.8M for Spectrum Engineering and Automation Support to Trillion Technology Solutions Inc

Contract Overview

Contract Amount: $8,883,727 ($8.9M)

Contractor: Trillion Technology Solutions Inc

Awarding Agency: Department of Transportation

Start Date: 2021-12-23

End Date: 2027-01-31

Contract Duration: 1,865 days

Daily Burn Rate: $4.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NEW AWARD, SPECTRUM ENGINEERING AND AUTOMATION SUPPORT (SEAS)

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.9 million to TRILLION TECHNOLOGY SOLUTIONS INC for work described as: NEW AWARD, SPECTRUM ENGINEERING AND AUTOMATION SUPPORT (SEAS) Key points: 1. Value for money appears fair given the Time and Materials contract type and duration. 2. Competition dynamics indicate a moderately competitive environment with 3 bidders. 3. Risk indicators are moderate, with a long contract duration and Time and Materials pricing. 4. Performance context is within custom computer programming services, a common area for federal IT. 5. Sector positioning is within the IT services sector, supporting the FAA's operational needs.

Value Assessment

Rating: fair

The contract's value of $8.8 million over approximately five years for custom computer programming services is within a reasonable range for federal IT support. The Time and Materials (T&M) pricing structure, while offering flexibility, can present challenges in cost control compared to fixed-price contracts. Benchmarking against similar contracts for specialized engineering and automation support would provide a clearer picture of value, but the number of bidders suggests a degree of market competitiveness influencing pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to solicit offers. With three bidders participating, the competition level suggests a moderate degree of market interest and potential for price discovery. While not a large-scale full and open competition, SAP allows for a reasonable number of offers to be considered, which can help ensure fair pricing.

Taxpayer Impact: The moderate competition level achieved through SAP is beneficial for taxpayers, as it likely prevented significantly inflated pricing and encouraged offerors to submit competitive bids.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering and automation support. Services delivered include custom computer programming, crucial for maintaining and enhancing aviation systems. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include the employment of skilled IT professionals by Trillion Technology Solutions Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Contract duration of over 4 years requires ongoing performance monitoring.
Reliance on a single awardee for specialized services could pose a risk if performance falters.

Positive Signals

Awarded under a competitive process (SAP) with multiple bidders.
Contractor, Trillion Technology Solutions Inc., is likely experienced in providing IT services.
The contract supports critical FAA functions, indicating a recognized need for these services.

Sector Analysis

The IT services sector is a significant area of federal spending, with custom computer programming services being a core component. This contract fits within the broader category of IT support for government agencies, enabling the FAA to maintain and upgrade its complex operational systems. Comparable spending benchmarks for similar specialized IT support contracts within the federal government would typically range from several million to tens of millions of dollars, depending on scope and duration.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Trillion Technology Solutions Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice, which could represent a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated by the public availability of contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration IT Support Contracts
Custom Computer Programming Services
Time and Materials IT Contracts
Department of Transportation IT Spending

Risk Flags

Time and Materials Pricing
Long Contract Duration
Potential for Scope Creep
Specialized Technical Expertise Required

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.9 million to TRILLION TECHNOLOGY SOLUTIONS INC. NEW AWARD, SPECTRUM ENGINEERING AND AUTOMATION SUPPORT (SEAS)

Who is the contractor on this award?

The obligated recipient is TRILLION TECHNOLOGY SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.9 million.

What is the period of performance?

Start: 2021-12-23. End: 2027-01-31.

What is the track record of Trillion Technology Solutions Inc. with the federal government, particularly with the FAA?

A thorough review of federal procurement databases (like SAM.gov or FPDS) would be necessary to assess Trillion Technology Solutions Inc.'s track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract disputes or terminations. Understanding their experience with the FAA specifically, and with similar custom computer programming and automation support services, is crucial for evaluating their capability to successfully execute this new award. A history of successful, on-time, and within-budget performance on comparable contracts would be a positive indicator, while a pattern of issues would raise concerns.

How does the awarded price of $8.8 million compare to similar FAA or DOT contracts for custom programming and automation support?

To benchmark the $8.8 million award, one would need to identify comparable contracts awarded by the FAA or other Department of Transportation agencies for similar services (custom computer programming, engineering support, automation) over the past 2-3 years. Key comparison points would include contract duration, scope of work, labor categories, and pricing structures (e.g., Time and Materials vs. Fixed Price). If similar contracts with comparable scope and duration were awarded at significantly lower total prices or with lower hourly rates, it would suggest this award might be on the higher side. Conversely, if the scope is more complex or the duration longer than benchmarks, the price might be justified.

What are the primary risks associated with a Time and Materials (T&M) contract of this duration for specialized IT services?

The primary risk with a T&M contract, especially one valued at $8.8 million and spanning over four years, is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and associated costs, plus a fixed fee or profit. If project scope creeps, or if labor hours are not diligently managed and monitored by the government, costs can escalate beyond initial estimates. For specialized IT services, ensuring that the hours billed are truly necessary and efficient requires robust government oversight and detailed reporting from the contractor. This contract type offers flexibility but demands vigilant management to mitigate financial risks.

How effective is the competition level (3 bidders under SAP) in ensuring optimal price discovery for the FAA?

A competition level of three bidders under Simplified Acquisition Procedures (SAP) generally provides a moderate level of price discovery for the FAA. While more bidders typically lead to more robust competition and potentially lower prices, three offers suggest that the market for these specialized services is not overly constrained. It indicates that the solicitation was visible enough to attract multiple interested parties. However, to truly assess optimal price discovery, one would need to know if these three bidders were highly qualified and if their proposals were significantly different in price. If the prices were clustered closely, it might suggest less aggressive competition than if there were a wider spread.

What are the potential performance challenges for Trillion Technology Solutions Inc. in delivering Spectrum Engineering and Automation Support?

Potential performance challenges for Trillion Technology Solutions Inc. could stem from the specialized nature of 'Spectrum Engineering and Automation Support,' which may require niche technical expertise. Ensuring the availability of qualified personnel throughout the contract's duration (until January 2027) is critical. Furthermore, integrating new automation solutions with existing FAA systems could present technical hurdles and require significant coordination. The success of a T&M contract also hinges on the contractor's ability to accurately track and report labor hours and material costs, and the government's ability to effectively oversee these expenditures to ensure efficiency and prevent waste. Maintaining clear communication and managing scope changes effectively will be paramount.

How does this $8.8M contract fit into the broader IT spending landscape of the Federal Aviation Administration?

This $8.8 million contract for Spectrum Engineering and Automation Support (SEAS) represents a specific, targeted investment within the FAA's overall IT budget. The FAA manages a vast and complex technological infrastructure, including air traffic control systems, communication networks, and data management platforms. Contracts like this, focused on custom programming and automation, are essential for maintaining, modernizing, and enhancing these critical systems. While $8.8 million is a significant sum for a single contract, it is likely a fraction of the FAA's total annual IT expenditure, which can run into the hundreds of millions or even billions of dollars, reflecting the scale of technology required for national airspace management.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1950 ROLAND CLARKE PLACE SUITE 410, RESTON, VA, 20191

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

Financial Breakdown

Contract Ceiling: $16,007,809

Exercised Options: $8,883,727

Current Obligation: $8,883,727

Actual Outlays: $7,408,982

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA17A00053

IDV Type: BPA

Timeline