DOT's FAA awards $12.5M for AJR-G performance reporting tool development and international analysis

Contract Overview

Contract Amount: $12,543,555 ($12.5M)

Contractor: GRA Inc

Awarding Agency: Department of Transportation

Start Date: 2023-01-06

End Date: 2027-01-31

Contract Duration: 1,486 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACT PROCUREMENT EFAST PA 23-017-CS. THIS IS INITIAL FUNDING FOR F&E SUPPORTED AJR-G PERFORMANCE REPORTING TOOL DEVELOPMENT AND INTERNATIONAL PERFORMANCE REPORTING AND ANALYSIS.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $12.5 million to GRA INC for work described as: CONTRACT PROCUREMENT EFAST PA 23-017-CS. THIS IS INITIAL FUNDING FOR F&E SUPPORTED AJR-G PERFORMANCE REPORTING TOOL DEVELOPMENT AND INTERNATIONAL PERFORMANCE REPORTING AND ANALYSIS. Key points: 1. Contract focuses on developing a performance reporting tool and international analysis capabilities. 2. The contract is a Time and Materials type, which can pose cost control challenges. 3. GRA Inc. is the contractor, with a history of federal contracts. 4. The contract duration is over four years, indicating a significant, long-term need. 5. This award falls under Administrative Management and General Management Consulting Services. 6. The contract was competed under SAP, suggesting a streamlined procurement process.

Value Assessment

Rating: fair

The contract's Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. While T&M offers flexibility, it can lead to cost overruns if not managed diligently. Benchmarking against similar IT development and consulting services contracts would be beneficial to assess if the estimated $12.5 million over four years represents a reasonable investment for the expected deliverables. The specific nature of 'AJR-G performance reporting tool development' and 'international performance reporting and analysis' makes direct cost comparisons challenging without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process within the simplified acquisition threshold. While the specific number of bidders is not provided, competition under SAP generally aims to ensure fair pricing and access for eligible vendors. The use of SAP suggests that the agency sought to leverage efficient procurement methods while still allowing for multiple offers.

Taxpayer Impact: Competition under SAP aims to provide taxpayers with value by encouraging multiple vendors to offer competitive pricing and innovative solutions, even for smaller contract values.

Public Impact

The Federal Aviation Administration (FAA) will benefit from improved performance reporting tools. The development of an international performance reporting and analysis capability will enhance global aviation oversight. The project is located in Virginia, potentially impacting the local workforce in administrative and IT support roles. The ultimate beneficiaries are the flying public, through potentially more efficient and effective aviation regulation and safety oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely managed.
Lack of specific performance metrics in the provided data makes it difficult to assess expected outcomes.
The 'AJR-G performance reporting tool' is not clearly defined, posing a potential scope creep risk.

Positive Signals

Contract was competed, suggesting a degree of market validation and potential for competitive pricing.
Long contract duration (over 4 years) indicates a sustained need and potential for building specialized expertise.
The award to GRA Inc. suggests a contractor with existing capabilities and potentially a positive past performance record.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas like IT development, strategic planning, and operational efficiency. The market for such services is large and competitive, with numerous firms capable of supporting federal agencies. The FAA's investment in performance reporting tools aligns with broader government trends towards data-driven decision-making and accountability.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem may be limited unless GRA Inc. plans to utilize small business subcontractors, which is not detailed in this initial information.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The Time and Materials nature of the contract necessitates close monitoring of labor hours and costs to ensure adherence to the contract ceiling and prevent overspending. Transparency will depend on the FAA's internal reporting practices and any public disclosures related to the AJR-G tool's development and implementation.

Related Government Programs

Federal IT Modernization Programs
Government Performance Management Systems
International Aviation Standards and Reporting
Administrative Management Consulting Services

Risk Flags

Cost Overrun Risk (T&M Contract)
Scope Creep Potential
Definition of 'AJR-G' unclear
Reliance on Contractor Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.5 million to GRA INC. CONTRACT PROCUREMENT EFAST PA 23-017-CS. THIS IS INITIAL FUNDING FOR F&E SUPPORTED AJR-G PERFORMANCE REPORTING TOOL DEVELOPMENT AND INTERNATIONAL PERFORMANCE REPORTING AND ANALYSIS.

Who is the contractor on this award?

The obligated recipient is GRA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2023-01-06. End: 2027-01-31.

What is the specific functionality and scope of the 'AJR-G performance reporting tool' and 'international performance reporting and analysis'?

The provided data offers limited detail on the specific functionalities of the 'AJR-G performance reporting tool' and the scope of 'international performance reporting and analysis.' Typically, performance reporting tools aim to collect, analyze, and visualize data related to program objectives, key performance indicators (KPIs), and operational metrics. For the FAA, this could involve tracking safety metrics, operational efficiency, regulatory compliance, or financial performance. The 'international' aspect suggests a focus on global aviation trends, standards, and the FAA's role in international collaborations. A more detailed statement of work (SOW) or contract award justification would be necessary to fully understand the technical requirements, expected outputs, and the specific international bodies or regions involved.

How does the $12.5 million estimated cost compare to similar IT development and consulting contracts within the FAA or other federal agencies?

Directly comparing the $12.5 million cost without a detailed Statement of Work (SOW) is challenging. However, for a four-year contract involving the development of a custom reporting tool and analytical capabilities, this figure appears within a reasonable range for federal IT and consulting services. Contracts for similar custom software development and management consulting can range from several million to tens of millions of dollars, depending on complexity, duration, and the number of users. Factors like the level of customization required, integration with existing systems, data security mandates, and the specific expertise needed (e.g., aviation domain knowledge, international relations) significantly influence the overall cost. Benchmarking would ideally involve comparing contracts with similar NAICS codes (541611) and contract types (Time and Materials) for projects of comparable scope and duration.

What are the primary risks associated with a Time and Materials (T&M) contract for this type of project?

The primary risk with a Time and Materials (T&M) contract for developing a performance reporting tool and analytical capabilities is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project scope is not tightly defined, or if project management is weak, contractors may incur more hours or use more expensive resources than initially anticipated, driving up the total cost beyond the initial estimate or ceiling. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and control scope creep. Another risk is the potential for less incentive for the contractor to innovate or complete the work efficiently, as their profit is tied to the hours worked rather than the successful completion of defined milestones.

What is GRA Inc.'s track record with the Federal Aviation Administration and similar federal agencies?

GRA Inc. has a history of federal contracting, as indicated by the award data. To assess their track record specifically with the FAA and similar agencies, a deeper dive into contract databases like FPDS or SAM.gov would be necessary. This would reveal past performance ratings, any contract disputes or terminations, and the types of services they have previously provided. A positive history with the FAA or other agencies in developing IT solutions, performance reporting systems, or providing management consulting would be a strong indicator of their capability to successfully execute this contract. Conversely, any negative past performance could signal potential risks.

How will the success of this contract be measured, and what are the key performance indicators (KPIs)?

The success of this contract will likely be measured by the successful development, testing, and deployment of the 'AJR-G performance reporting tool' and the 'international performance reporting and analysis' capabilities. Key Performance Indicators (KPIs) would typically be defined in the contract's Performance Work Statement (PWS) or SOW. These might include metrics related to the tool's functionality (e.g., accuracy of data, speed of reporting), user satisfaction, adherence to project timelines and budget, and the ability of the tool to provide actionable insights for FAA decision-making. For the international analysis component, KPIs could relate to the comprehensiveness of the data gathered, the quality of the analysis produced, and its utility in supporting international aviation policy or engagement.

What is the historical spending pattern for administrative management and general management consulting services by the FAA?

Historical spending by the FAA on NAICS code 541611 (Administrative Management and General Management Consulting Services) can be accessed through federal procurement data systems. This spending typically supports a wide range of functions, including strategic planning, organizational improvement, IT consulting, and program management. The FAA, like many large federal agencies, relies on these services to enhance operational efficiency, implement new technologies, and manage complex programs. Analyzing past spending trends would reveal the typical contract values, durations, and the types of consulting services most frequently procured. This context helps in understanding whether the $12.5 million award for the AJR-G tool is consistent with or an outlier compared to previous investments in similar service categories.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1727 KING ST STE 105, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,651,353

Exercised Options: $12,543,555

Current Obligation: $12,543,555

Actual Outlays: $7,842,267

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00208

IDV Type: BPA

Timeline