DOT Awards $6M for Custom Computer Programming to Interactive Process Technology, LLC
Contract Overview
Contract Amount: $6,050,658 ($6.1M)
Contractor: Interactive Process Technology, LLC
Awarding Agency: Department of Transportation
Start Date: 2024-05-29
End Date: 2027-05-31
Contract Duration: 1,097 days
Daily Burn Rate: $5.5K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: EITSS
Place of Performance
Location: BURLINGTON, MIDDLESEX County, MASSACHUSETTS, 01803
Plain-Language Summary
Department of Transportation obligated $6.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC for work described as: EITSS Key points: 1. Contract awarded to a single vendor, Interactive Process Technology, LLC. 2. The contract is for custom computer programming services. 3. The total value is over $6 million. 4. The contract duration is approximately 3 years.
Value Assessment
Rating: questionable
The contract is Time and Materials, which can lead to cost overruns if not managed carefully. Benchmarking against similar custom programming contracts is difficult without more detail on the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under Simplified Acquisition Procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. This suggests a limited competition approach, potentially impacting price discovery and value for money.
Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for these custom computer programming services.
Public Impact
Citizens rely on the FAA for safe air travel, which depends on robust IT systems. This contract supports the development or maintenance of critical software for aviation operations. The use of Time and Materials pricing could lead to higher costs than fixed-price contracts. Lack of competition may limit innovation and cost-saving opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Time and Materials pricing
- Lack of detailed service description
Positive Signals
- Supports critical FAA functions
- Definitive contract structure
Sector Analysis
This contract falls under IT services, specifically custom computer programming. The IT services sector is vast, and spending benchmarks vary widely based on complexity and scope. For custom programming, rates can range significantly.
Small Business Impact
The contract was awarded to INTERACTIVE PROCESS TECHNOLOGY, LLC, and there is no indication that small businesses were involved as subcontractors or partners in this specific award. Further analysis would be needed to determine if small business set-asides were considered.
Oversight & Accountability
The 'NOT COMPETED UNDER SAP' designation warrants further oversight to ensure the justification for limited competition was sound and that the government received fair value. Contract performance monitoring will be crucial given the Time and Materials structure.
Related Government Programs
- Custom Computer Programming Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition raises value concerns.
- Time and Materials pricing increases cost overrun risk.
- Lack of detailed service description hinders assessment.
- Potential for higher costs due to non-competitive award.
Tags
custom-computer-programming-services, department-of-transportation, ma, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $6.1 million to INTERACTIVE PROCESS TECHNOLOGY, LLC. EITSS
Who is the contractor on this award?
The obligated recipient is INTERACTIVE PROCESS TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $6.1 million.
What is the period of performance?
Start: 2024-05-29. End: 2027-05-31.
What specific custom computer programming services are being procured, and how do they align with FAA's strategic IT goals?
The data indicates the contract is for 'Custom Computer Programming Services' (NAICS 541511) awarded to INTERACTIVE PROCESS TECHNOLOGY, LLC. Without a detailed statement of work, it's impossible to know the exact services. These services likely support the Federal Aviation Administration's operational needs, potentially involving software development, system integration, or maintenance for aviation management and safety systems. Understanding the specific deliverables is key to assessing their strategic alignment.
What is the justification for not competing this contract further, and what steps were taken to ensure a fair and reasonable price?
The contract was 'NOT COMPETED UNDER SAP', implying it may have been awarded under other transaction authorities or specific exceptions to full and open competition. The justification for this limited competition is not provided. For a Time and Materials contract of this value, the government should have conducted thorough market research and price analysis to ensure the hourly rates and estimated costs were fair and reasonable, especially given the lack of competitive pressure.
How will the Time and Materials pricing model be managed to prevent cost overruns and ensure effective delivery of services?
Managing a Time and Materials (T&M) contract requires robust government oversight. The FAA must closely monitor the hours charged by Interactive Process Technology, LLC, ensure personnel are working efficiently, and validate that the tasks performed are necessary and within the scope of the contract. Establishing clear labor categories, rates, and potentially setting cost ceilings or award-fee structures can help mitigate the risk of uncontrolled cost growth inherent in T&M agreements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 693KA9-24-R-00011
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Interactive Process Technology LLC
Address: 1500 DISTRICT AVE, BURLINGTON, MA, 01803
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $9,942,979
Exercised Options: $6,050,658
Current Obligation: $6,050,658
Actual Outlays: $4,096,996
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2024-05-29
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-04-10
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