DOT awards $7M contract for ATC ASTI support services to Quecon, Inc

Contract Overview

Contract Amount: $7,009,835 ($7.0M)

Contractor: Quecon, Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-03-07

End Date: 2027-03-06

Contract Duration: 1,825 days

Daily Burn Rate: $3.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SUPPORT SERVICES FOR ATC ASTI

Place of Performance

Location: ELMENDORF AFB, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Transportation obligated $7.0 million to QUECON, INC. for work described as: SUPPORT SERVICES FOR ATC ASTI Key points: 1. Contract awarded for administrative and management consulting services. 2. Long-term contract duration of 5 years. 3. Firm Fixed Price contract type suggests predictable costs. 4. Awarded under a Blanket Purchase Agreement Call. 5. Contractor Quecon, Inc. has a single award history. 6. Services to be performed in Alaska.

Value Assessment

Rating: fair

The total contract value is $7,000,983.47 over five years. Without specific performance metrics or benchmarks for 'ATC ASTI support services', it is difficult to definitively assess value for money. The firm fixed-price nature provides cost certainty, but the absence of comparable contract data or detailed cost breakdowns makes a precise value assessment challenging. The contract's value appears moderate for a five-year support services agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition among eligible vendors. While the specific number of bidders is not provided, SAP is designed to promote competition for contracts below certain thresholds. This method generally allows for a reasonable level of price discovery and ensures that multiple vendors have an opportunity to bid.

Taxpayer Impact: A competed contract under SAP suggests that taxpayers are likely receiving a fair price due to the competitive bidding process, which encourages vendors to offer their best terms.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by receiving essential support services for Air Traffic Control (ATC) ASTI. These services are crucial for the operational efficiency and effectiveness of air traffic management. The geographic impact is focused on Alaska (AK), indicating support for ATC operations within that specific region. The contract supports the federal workforce by providing necessary administrative and management expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it hard to gauge effectiveness.
Limited public information on the specific nature of 'ATC ASTI support services'.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Competed under SAP, suggesting a competitive process.
Long-term duration allows for stable support.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing a wide range of professional services aimed at improving organizational efficiency and management. The market for such services is large and competitive, with numerous firms offering specialized expertise. This specific contract supports a critical government function within the aviation industry, a sector heavily reliant on specialized technical and administrative support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The competition was likely open to a broader range of businesses, including larger firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are inherent in the contract's firm fixed-price structure and performance requirements. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Traffic Control Operations
Aviation System Support
Federal Aviation Administration Contracts
Management Consulting Services
Government Support Services

Risk Flags

Limited Contractor Track Record
Geographic Concentration (Alaska)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.0 million to QUECON, INC.. SUPPORT SERVICES FOR ATC ASTI

Who is the contractor on this award?

The obligated recipient is QUECON, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2022-03-07. End: 2027-03-06.

What is the specific nature of 'ATC ASTI support services' and how are they measured?

The provided data does not specify the exact nature of 'ATC ASTI support services' beyond the general classification of Administrative Management and General Management Consulting Services. ASTI typically refers to 'Air Traffic System Technology Integration' or similar concepts related to the modernization and support of air traffic control systems. Performance metrics and measurement criteria are not detailed in the award information. Understanding these specifics would require reviewing the contract's Statement of Work (SOW) and performance standards, which are not publicly available in this summary. Without this, it's difficult to assess the effectiveness or efficiency of the services provided beyond the contractor's adherence to the contract terms.

How does the $7M contract value compare to similar support services for ATC systems?

Comparing the $7M contract value for 'ATC ASTI support services' to similar contracts is challenging without more specific data points. The contract is for five years, making the annual value approximately $1.4M. This figure needs to be contextualized by the scope of services, the specific technologies involved, and the geographic region (Alaska). General management consulting services can vary widely in price. However, for specialized technical and administrative support within a critical infrastructure sector like aviation, this annual value appears moderate. A more precise comparison would require access to a database of comparable FAA or DOT contracts for similar support functions, including their duration, scope, and pricing structures.

What are the potential risks associated with Quecon, Inc. performing this contract?

The primary risk indicator from the provided data is that Quecon, Inc. has only one prior contract award listed. While this doesn't inherently mean poor performance, a limited track record can suggest less experience with larger or more complex government contracts. Potential risks include the contractor's ability to scale resources, manage unforeseen challenges, or adapt to evolving requirements within the five-year duration. Without a broader history of successful contract completions, there's a slightly elevated risk of performance issues compared to a contractor with a diverse and extensive portfolio. However, the firm fixed-price nature and competed award may mitigate some financial risks.

How effective is the Simplified Acquisition Procedures (SAP) competition for ensuring value in this contract?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for contracts below certain dollar thresholds, promoting efficiency and competition. For a contract of this size ($7M over 5 years), SAP is generally considered an effective method for ensuring value. It allows for a broader range of vendors to participate compared to highly complex, formal solicitations, potentially leading to more competitive pricing. The firm fixed-price (FFP) contract type further enhances value by shifting risk to the contractor and providing cost certainty to the government. While SAP might not involve the same depth of analysis as larger procurements, it strikes a balance between competition, efficiency, and cost-effectiveness for contracts in this range.

What is the historical spending trend for similar ATC support services by the FAA?

The provided data does not include historical spending trends for similar ATC support services by the FAA. To analyze this, one would need access to historical contract databases that track spending by agency, service type (e.g., NAICS code 541611), and potentially keywords related to ATC systems or support. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable over time, and how the current $7M award fits within that broader context. It would also help identify major contractors in this space and the typical contract values and durations.

What are the implications of the contract being performed in Alaska?

Performing the contract in Alaska (AK) has several implications. Firstly, it suggests the support services are specifically needed for ATC operations within that state, which may have unique geographical or logistical challenges. Secondly, it could imply higher operational costs due to the remote location and potentially higher labor rates. The contractor, Quecon, Inc., must have the capability to establish and maintain operations in Alaska. This geographic focus might also limit the pool of potential bidders who have existing infrastructure or experience operating in such a region, although the contract was still competed under SAP.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 134 PEYTON ST STE 134D, FRONT ROYAL, VA, 22630

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,660,909

Exercised Options: $7,009,835

Current Obligation: $7,009,835

Actual Outlays: $5,987,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693KA918A00177

IDV Type: BPA

Timeline