DOT's FAA awards $6.5M R&D management support contract to CHANGEIS, INC. for 4 years

Contract Overview

Contract Amount: $6,518,115 ($6.5M)

Contractor: Changeis, Inc.

Awarding Agency: Department of Transportation

Start Date: 2022-04-27

End Date: 2026-04-28

Contract Duration: 1,462 days

Daily Burn Rate: $4.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: EFAST PA 22-015-C8 RESEARCH & DEVELOPMENT MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $6.5 million to CHANGEIS, INC. for work described as: EFAST PA 22-015-C8 RESEARCH & DEVELOPMENT MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded on a Time and Materials basis, which can pose cost control challenges. 2. The contract was competed under SAP, suggesting a focus on smaller value procurements. 3. The North American Industry Classification System (NAICS) code 541611 indicates a focus on management consulting services. 4. The contract duration of 1462 days (approx. 4 years) provides a stable period for service delivery. 5. The award was made to a single contractor, CHANGEIS, INC., with no indication of small business set-aside. 6. The contract is a BPA Call, indicating it was likely awarded under an existing Blanket Purchase Agreement.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure warrants close monitoring to ensure cost efficiency. Benchmarking against similar R&D management support contracts would be beneficial to assess value for money. Given the relatively modest award ceiling of $6.5 million over four years, it appears to be a moderate investment for the services rendered. Further analysis of the specific tasks and deliverables would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Small Acquisition Program), which typically involves a streamlined process for smaller value procurements. While the specific number of bidders is not detailed, competition under SAP generally aims to foster a competitive environment. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which should contribute to price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Competition under SAP, even for smaller acquisitions, helps ensure that taxpayer dollars are used efficiently by encouraging vendors to offer competitive pricing.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced management support for its Research & Development initiatives. Services delivered include administrative management and general management consulting, crucial for R&D project oversight. The contract's geographic impact is centered in the District of Columbia, where the FAA's primary operations are located. Workforce implications may include the direct employment of consultants by CHANGEIS, INC. to fulfill contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely managed.
Limited information on the specific performance metrics and evaluation criteria.
The contract's scope might be narrowly defined, potentially limiting broader R&D support.
Lack of transparency regarding the number of bidders in the SAP competition.

Positive Signals

The contract was competed, indicating an effort to achieve fair market value.
The duration of the contract provides stability for R&D program continuity.
The contractor, CHANGEIS, INC., is awarded a contract for specialized management consulting services.
The award falls under a BPA Call, suggesting a pre-vetted and potentially efficient procurement vehicle.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management consulting for research and development. The market for R&D management support is driven by government agencies seeking expertise to oversee complex scientific and technological initiatives. Comparable spending benchmarks would involve analyzing other contracts for similar R&D support services across federal agencies, considering factors like contract duration, scope of work, and contractor experience.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there explicit information about subcontracting requirements. The award to CHANGEIS, INC. does not preclude them from utilizing small businesses as subcontractors, which could be a positive outcome for the small business ecosystem. However, without specific subcontracting goals or set-aside provisions, the direct impact on small businesses remains uncertain.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal R&D Spending
Management and Consulting Services
Federal Aviation Administration Contracts
Department of Transportation Procurements
Administrative Support Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited transparency on the number of bidders in the SAP competition.
Need for robust oversight to ensure value for money.
Dependence on contractor performance for R&D project success.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.5 million to CHANGEIS, INC.. EFAST PA 22-015-C8 RESEARCH & DEVELOPMENT MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is CHANGEIS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.5 million.

What is the period of performance?

Start: 2022-04-27. End: 2026-04-28.

What is the track record of CHANGEIS, INC. in performing similar R&D management support services for federal agencies?

CHANGEIS, INC. has a history of providing management and consulting services to various federal agencies. While specific details on their R&D management support track record for the FAA are not fully elaborated in the provided data, their general experience in administrative and management consulting suggests a foundational capability. A deeper dive into their past performance evaluations, contract history with similar agencies, and client testimonials would offer a more comprehensive understanding of their expertise and reliability in executing complex R&D support functions. This would include assessing their success in managing project timelines, budgets, and stakeholder communications in previous engagements.

How does the awarded amount of $6.5 million compare to similar R&D management support contracts awarded by the FAA or other DOT agencies?

The $6.5 million award ceiling over approximately four years for R&D management support services from the FAA is a moderate figure within the federal contracting landscape. To establish a robust comparison, one would need to analyze contracts with similar NAICS codes (e.g., 541611) and service scopes (R&D management, administrative support) awarded by the FAA and other Department of Transportation agencies. Factors such as contract duration, specific deliverables, and the number of bidders in those comparable contracts are crucial. Without this comparative data, it's challenging to definitively state whether this award represents exceptional value, is in line with market rates, or is potentially higher than average. However, the fact that it was competed under SAP suggests it falls within a category of smaller acquisitions.

What are the primary risks associated with the Time and Materials (T&M) contract type for this R&D management support service?

The primary risk associated with a Time and Materials (T&M) contract type for R&D management support services is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and materials used, plus a fixed fee or நிர்ணயம். If the scope of work is not clearly defined, or if project management is weak, the contractor may incur more hours or use more resources than initially anticipated, leading to a higher final cost for the government. Effective oversight, detailed task orders, and robust monitoring of labor hours and material expenditures are critical to mitigate these risks and ensure the government receives good value for its investment.

What is the expected effectiveness of CHANGEIS, INC. in supporting the FAA's R&D objectives given the contract's scope and duration?

The effectiveness of CHANGEIS, INC. in supporting the FAA's R&D objectives will largely depend on the clarity and specificity of the Performance Work Statement (PWS) and the contractor's ability to deliver on those requirements. The contract's four-year duration provides a stable platform for continuity in R&D management support, allowing the contractor to build institutional knowledge and foster strong relationships within the FAA. The company's general expertise in management consulting is a positive indicator. However, the ultimate effectiveness will be measured by the contractor's performance against defined metrics, their contribution to the successful execution and oversight of R&D projects, and their ability to adapt to evolving research needs within the aviation sector.

How has federal spending on R&D management support services, particularly by the FAA, trended over the past five years?

Analyzing federal spending trends on R&D management support services, specifically for the FAA, over the past five years would require access to historical contract databases and budget reports. Generally, federal R&D spending can fluctuate based on national priorities, technological advancements, and agency-specific initiatives. The FAA, being a critical agency for aviation safety and innovation, likely maintains consistent investment in R&D. Trends might show an increase if new aviation technologies or safety research areas are prioritized, or a decrease if certain research programs are completed or re-evaluated. This specific $6.5 million contract represents a portion of that broader spending pattern, and its award in 2022 suggests ongoing investment in R&D management.

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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1301 N TROY ST #702, ARLINGTON, VA, 22201

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, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $7,929,530

Exercised Options: $6,518,115

Current Obligation: $6,518,115

Actual Outlays: $4,935,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA13A00026

IDV Type: BPA

Timeline