DOT awards $2.9M for FAA Academy technical support, highlighting custom programming needs

Contract Overview

Contract Amount: $2,955,253 ($3.0M)

Contractor: Chickasaw Strategic Pointe, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-05-19

End Date: 2026-05-31

Contract Duration: 1,108 days

Daily Burn Rate: $2.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EFAST PA 23-032-C8 TECHNICAL SUPPORT SERVICES FAA ACADEMY, NAS TECHNICAL SERVICES DIVISION (AMA-900)

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $3.0 million to CHICKASAW STRATEGIC POINTE, LLC for work described as: EFAST PA 23-032-C8 TECHNICAL SUPPORT SERVICES FAA ACADEMY, NAS TECHNICAL SERVICES DIVISION (AMA-900) Key points: 1. Contract value appears reasonable given the duration and scope of technical support required. 2. Competition was conducted under SAP, suggesting a streamlined process for smaller procurements. 3. Risk indicators are moderate, with potential for cost overruns in time and materials contracts. 4. Performance context involves critical technical support for the FAA Academy's operational needs. 5. Sector positioning is within IT services, specifically custom computer programming. 6. The award to Chickasaw Strategic Pointe, LLC indicates a focus on specialized technical expertise.

Value Assessment

Rating: good

The contract value of approximately $2.96 million over three years for technical support services at the FAA Academy seems aligned with industry standards for specialized IT services. Benchmarking against similar custom computer programming contracts within the federal government, this award falls within a typical range for a project of this scope and duration. The Time and Materials (T&M) pricing structure, while offering flexibility, warrants close monitoring to ensure cost-effectiveness and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating it was likely a full and open competition among eligible vendors. With 5 bidders participating, the level of competition suggests a healthy market response for these specialized technical support services. The presence of multiple bidders generally contributes to fair price discovery and encourages competitive pricing.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source award would have. The active participation of five bidders indicates that government funds are being used efficiently.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) Academy, which will receive essential technical support to maintain its operations and training programs. Services delivered include custom computer programming and technical support, crucial for the academy's IT infrastructure and specialized systems. The geographic impact is centered in Oklahoma, where the FAA Academy is located, supporting local IT infrastructure. Workforce implications may include the direct employment of skilled IT professionals by the contractor, Chickasaw Strategic Pointe, LLC, contributing to the local tech economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to the Time and Materials (T&M) contract type if not closely managed.
Reliance on a single contractor for critical technical support could pose a risk if performance issues arise.
The specific technical requirements may evolve, necessitating agile contract management to adapt to changing needs.

Positive Signals

The contract was competed, indicating a selection process based on merit and price.
Multiple bidders participated, suggesting a robust market for these services.
The contractor, Chickasaw Strategic Pointe, LLC, is awarded a contract for specialized technical support, implying relevant expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services (NAICS code 541511). The federal IT services market is substantial, with agencies continually investing in maintaining and upgrading their technological infrastructure. This contract represents a small but vital component of the FAA's broader IT spending, ensuring the operational readiness of its training facilities. Comparable spending benchmarks for similar technical support contracts can vary widely based on complexity and duration, but this award appears to be within a reasonable range for specialized support.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the awardee, Chickasaw Strategic Pointe, LLC, is not explicitly identified as a small business in this context. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The impact on the broader small business ecosystem is minimal for this specific award, as it was not designed to promote small business participation.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Aviation Administration (FAA) within the Department of Transportation. The contract's performance will be monitored through standard government contract administration processes, likely involving regular progress reports and performance reviews. Transparency is facilitated by the public nature of federal contract awards, though specific performance metrics and detailed spending breakdowns may not be fully public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FAA Academy Training Support
Federal IT Services Procurement
Custom Computer Programming Contracts
Department of Transportation IT Modernization

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for robust oversight to manage contractor performance and costs.
Dependence on contractor expertise for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.0 million to CHICKASAW STRATEGIC POINTE, LLC. EFAST PA 23-032-C8 TECHNICAL SUPPORT SERVICES FAA ACADEMY, NAS TECHNICAL SERVICES DIVISION (AMA-900)

Who is the contractor on this award?

The obligated recipient is CHICKASAW STRATEGIC POINTE, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2023-05-19. End: 2026-05-31.

What is the track record of Chickasaw Strategic Pointe, LLC in performing similar technical support services for federal agencies?

Information regarding the specific track record of Chickasaw Strategic Pointe, LLC in performing similar technical support services for federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client references. However, the award of this contract by the FAA suggests that the agency has evaluated the contractor's capabilities and found them suitable for the required technical support. Further due diligence might involve checking the Contractor Performance Assessment Reporting System (CPARS) for relevant past performance data, if available, to gauge their reliability and quality of service on previous federal engagements.

How does the awarded amount of $2.96 million compare to similar technical support contracts for aviation training facilities?

The awarded amount of approximately $2.96 million for technical support services at the FAA Academy over approximately three years (May 2023 - May 2026) appears to be within a reasonable range for specialized IT support in the federal sector. Direct comparisons are challenging without knowing the exact scope and complexity of services provided by other facilities. However, for custom computer programming and related technical support, federal contracts can range from hundreds of thousands to several million dollars annually, depending on the criticality and scale of the IT systems involved. The FAA Academy's role in training aviation personnel suggests a need for robust and reliable IT infrastructure, justifying a significant investment. Benchmarking against similar IT support contracts within the Department of Transportation or other agencies with training academies would provide a more precise comparison.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure for this contract is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This can lead to unpredictable costs for the government, especially if the project scope expands or if the contractor's efficiency is lower than anticipated. To mitigate this risk, the FAA will need to implement strong oversight, closely monitor labor hours and material costs, and ensure that the contract includes appropriate ceiling prices and clauses to control expenditures. Regular performance reviews and clear task definitions are crucial to prevent scope creep and ensure value for money.

How effective is the competition level (5 bidders under SAP) in ensuring optimal value for taxpayers?

A competition level of 5 bidders under Simplified Acquisition Procedures (SAP) is generally considered good for ensuring optimal value for taxpayers, especially for procurements of this size. SAP is designed for acquisitions below certain thresholds, and while it streamlines the process, it still allows for competition. Having five distinct offers indicates that multiple vendors were interested and capable of providing the required services. This level of competition typically drives prices down and encourages contractors to offer competitive terms and demonstrate their value proposition. It reduces the risk of overpayment that might occur with fewer bidders or a sole-source award, thereby enhancing the efficient use of taxpayer funds.

What are the potential long-term implications of this contract on the FAA Academy's IT infrastructure modernization?

This contract for technical support services is likely to have positive implications for the FAA Academy's IT infrastructure modernization by ensuring the continued operational stability and functionality of existing systems. By providing essential support, the contractor helps maintain the current infrastructure, allowing the FAA to focus resources on future modernization initiatives. The expertise gained by the contractor in supporting the academy's specific systems could also provide valuable insights for future upgrades or replacements. However, the long-term effectiveness depends on how well the contracted services align with the academy's evolving technological roadmap and whether the contract allows for adaptation to new technologies.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2600 JOHN SAXON BLVD STE 2209, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,922,197

Exercised Options: $2,955,253

Current Obligation: $2,955,253

Actual Outlays: $2,695,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 693KA922A00252

IDV Type: BPA

Timeline