DOT awards $11.5M for ATO mission support, raising questions on value and competition

Contract Overview

Contract Amount: $11,493,129 ($11.5M)

Contractor: Cssi, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-05-15

End Date: 2026-05-17

Contract Duration: 1,098 days

Daily Burn Rate: $10.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW TASK ORDER FOR ATO MISSION SUPPORT SERVICES FOR POLICY AJV-P AND ATO INTERNATIONAL AJV-I

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $11.5 million to CSSI, LLC for work described as: NEW TASK ORDER FOR ATO MISSION SUPPORT SERVICES FOR POLICY AJV-P AND ATO INTERNATIONAL AJV-I Key points: 1. Contract value appears reasonable given the scope of technical support required. 2. Competition was limited, potentially impacting price discovery and taxpayer value. 3. Performance risk is moderate, with a need for close monitoring of deliverables. 4. This contract supports critical aviation safety functions within the FAA. 5. The IT services sector is highly competitive, suggesting potential for better pricing. 6. Contract type (Time and Materials) can lead to cost overruns if not managed tightly.

Value Assessment

Rating: fair

The contract's value of $11.5 million over approximately three years for mission support services seems within a reasonable range for specialized technical assistance. However, without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for ATO mission support is difficult due to the specific nature of the tasks (AJV-P and AJV-I policy and international support). The Time and Materials pricing structure introduces inherent risk for cost escalation, which needs careful oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under a Simplified Acquisition Procedure (SAP), which typically involves fewer bidders than full and open competition. While four bids were received, the specific details of the solicitation and the pool of eligible bidders are not fully disclosed. Limited competition can sometimes lead to higher prices as the contractor faces less pressure to offer the most competitive rates. The SAP process is designed for smaller procurements, and its application here warrants scrutiny to ensure fair market competition was achieved.

Taxpayer Impact: The limited competition suggests that taxpayers may not have received the benefit of the lowest possible price. While four bidders participated, the overall market for these specialized services might be broader, and a more open competition could have driven down costs.

Public Impact

The Federal Aviation Administration (FAA) and its Air Traffic Organization (ATO) benefit from enhanced mission support. Services provided include policy development and international engagement support for ATO. The contract's impact is primarily national, supporting the operational efficiency of air traffic management. Specialized technical expertise is being leveraged, potentially impacting the federal workforce by supplementing existing capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns without strict oversight.
Limited competition may have resulted in a higher price than achievable through broader bidding.
The specific nature of 'mission support' requires clear performance metrics to ensure effectiveness.
Reliance on external contractors for policy and international support could indicate internal capacity gaps.

Positive Signals

Contract supports critical FAA mission functions, ensuring operational continuity.
Multiple bids were received, indicating some level of market interest.
The contract duration provides stability for essential support services.
The contractor, CSSI, LLC, is likely experienced in providing such specialized services.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, specifically supporting the Federal Aviation Administration's Air Traffic Organization. The market for aviation support services is specialized, with a mix of large aerospace firms and smaller, niche consultancies. Spending in this area is driven by the need for continuous modernization, safety enhancements, and operational efficiency within the national airspace system. Comparable spending benchmarks are difficult to establish without more granular data on the specific services rendered, but federal IT and professional services contracts often range from millions to hundreds of millions annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false) and the awardee, CSSI, LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The focus appears to be on acquiring specialized expertise, and the impact on the broader small business ecosystem is likely minimal unless CSSI engages small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Federal Aviation Administration contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to specific deliverables and timelines. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Aviation Systems Support Contracts
Department of Transportation Professional Services Contracts
IT and Engineering Support Services for Government Agencies

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Limited competition may have led to suboptimal pricing.
Need for clear performance metrics to ensure effective service delivery.
Reliance on external contractor for critical policy and international functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.5 million to CSSI, LLC. NEW TASK ORDER FOR ATO MISSION SUPPORT SERVICES FOR POLICY AJV-P AND ATO INTERNATIONAL AJV-I

Who is the contractor on this award?

The obligated recipient is CSSI, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2023-05-15. End: 2026-05-17.

What is the specific breakdown of services CSSI, LLC is providing under this task order, and how do these align with the stated mission support goals for ATO Mission Support Services for Policy AJV-P

The provided data abbreviates the task order description as 'NEW TASK ORDER FOR ATO MISSION SUPPORT SERVICES FOR POLICY AJV-P AND ATO INTERNATIONAL AJV-I'. This suggests CSSI, LLC is providing support related to policy development and international engagement within the Air Traffic Organization (ATO) of the FAA. Specific services likely include research, analysis, documentation, strategic planning, and potentially liaison activities with international aviation bodies. The 'AJV-P' and 'AJV-I' likely denote specific divisions or initiatives within the ATO focused on policy and international affairs, respectively. Without the full Performance Work Statement (PWS), the exact nature and scope of these services remain generalized. However, the contract's objective is to ensure these critical ATO functions receive necessary technical and analytical support to operate effectively and achieve their strategic goals.

How does the $11.5 million contract value compare to historical spending on similar ATO mission support services, and does it represent good value for money?

Comparing this $11.5 million contract value to historical spending on similar ATO mission support services is challenging without access to detailed historical contract data specific to 'Policy AJV-P' and 'ATO International AJV-I'. The Federal Aviation Administration (FAA) procures a wide array of support services, and 'mission support' can encompass diverse functions. The contract duration of approximately three years (May 2023 - May 2026) suggests an average annual spend of around $3.8 million. To assess value for money, one would need to benchmark this against contracts for comparable services, considering factors like the number of personnel, skill sets required, and complexity of tasks. The Time and Materials (T&M) pricing structure introduces a risk element; value for money is contingent on effective cost control and efficient service delivery by CSSI, LLC. A thorough assessment would require analyzing the contractor's proposed labor rates against market benchmarks and evaluating the achieved outcomes against the investment.

What are the key performance indicators (KPIs) or metrics used to evaluate CSSI, LLC's performance under this contract, and what are the potential risks if these are not met?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, typical KPIs for mission support services in policy and international affairs might include timeliness of deliverables (e.g., policy drafts, reports), quality of analysis, effectiveness of stakeholder engagement, adherence to budget, and successful facilitation of international agreements or initiatives. Potential risks if these KPIs are not met include delays in policy implementation, hindered international cooperation, negative impacts on aviation safety or efficiency, and potential cost overruns if corrective actions are inefficient. The FAA's contracting officers would be responsible for monitoring performance against the contract's Performance Work Statement (PWS) and taking corrective action if performance falls short, which could range from requiring remedial actions to potentially terminating the contract.

Given the contract was competed under SAP with four bidders, what does this imply about the level of competition and its potential impact on pricing?

Competing this contract under a Simplified Acquisition Procedure (SAP) with four bidders suggests a moderate level of competition, but likely less than what might be achieved through full and open competition. SAP is generally used for procurements valued below certain thresholds (e.g., $250,000, though this can vary based on agency policies and circumstances). The fact that it reached $11.5 million suggests it might have been structured as a task order under a larger agreement or that specific SAP flexibilities were applied. Four bidders indicate that multiple sources were interested and capable, which is positive. However, the limited scope inherent in SAP processes and potentially restricted solicitation outreach could mean that the full breadth of the market was not engaged. This could lead to prices that are not as competitive as they might be in a broader, more open competition, potentially resulting in less favorable pricing for the government and taxpayers.

What is the track record of CSSI, LLC in performing similar federal contracts, particularly within the FAA or DOT, and does this provide confidence in their ability to execute this task order?

Assessing the track record of CSSI, LLC requires accessing federal procurement databases (like FPDS or SAM.gov) to review their past performance on similar contracts. Without direct access to this data within this context, a definitive statement on their track record cannot be made. However, for a company to be awarded a task order of this value ($11.5 million) for specialized mission support within the FAA, it is reasonable to assume they possess relevant experience and have demonstrated satisfactory performance on previous contracts. Federal agencies typically vet contractors' past performance as part of the source selection process. Confidence in CSSI, LLC's ability to execute this task order would stem from a history of successful delivery on comparable projects, positive past performance reviews, and demonstrated expertise in aviation policy and international affairs support. A review of their contract history would reveal the types, values, and agencies for whom they have previously worked.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Parent Company: Cssi, Inc.

Address: 395 E ST SW, WASHINGTON, DC, 20024

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $17,955,658

Exercised Options: $11,493,129

Current Obligation: $11,493,129

Actual Outlays: $10,554,609

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00086

IDV Type: BPA

Timeline