DOT's FAA awards $1.78M contract for aviation safety data analysis to Ernst & Young LLP

Contract Overview

Contract Amount: $1,780,598 ($1.8M)

Contractor: Ernst & Young LLP

Awarding Agency: Department of Transportation

Start Date: 2025-03-26

End Date: 2026-12-31

Contract Duration: 645 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAA USE OF AVIATION SAFETY DATA

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 $1.8 million to ERNST & YOUNG LLP for work described as: FAA USE OF AVIATION SAFETY DATA Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract duration is 645 days, ending in December 2026. 3. Ernst & Young LLP, the contractor, will provide services related to aviation safety data. 4. The contract was awarded under full and open competition. 5. The contract type is Firm Fixed Price, indicating predictable costs. 6. The award was a Delivery Order, suggesting it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $1.78 million for approximately two years of consulting services appears reasonable for specialized aviation safety data analysis. Benchmarking against similar contracts for management consulting services within the federal government, particularly those involving data analysis and regulatory support, would provide a more precise value assessment. However, given the specific nature of aviation safety and the reputation of the contractor, the pricing is likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the open competition suggests a healthy level of market interest and potential for price discovery. This method generally leads to a more competitive environment and potentially better pricing for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive bidding process that drives down costs and encourages innovation.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced aviation safety data analysis. Services delivered will support the FAA's mission to ensure the safety of civil aviation. The geographic impact is national, as aviation safety affects all air travel within the U.S. The contract supports the professional services sector, potentially involving skilled analysts and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or success criteria in the provided data.
Potential for scope creep if the project's requirements are not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor is a well-established firm with expertise in consulting services.

Sector Analysis

The aviation industry is a highly regulated sector where data analysis is critical for safety oversight and operational efficiency. The Federal Aviation Administration (FAA) relies heavily on data to identify trends, assess risks, and implement safety improvements. This contract fits within the broader context of federal spending on professional services to support regulatory functions and enhance public safety. Comparable spending benchmarks would involve other federal agencies procuring similar data analysis and management consulting services for critical infrastructure or regulatory bodies.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside provisions. The prime contractor, Ernst & Young LLP, is a large firm, and any subcontracting would likely be at their discretion for specialized support, not driven by a small business set-aside mandate.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA Aviation Safety Programs
Department of Transportation Management Consulting Services
Federal Data Analysis Contracts
Administrative Management Consulting

Risk Flags

Data Quality Risk
Contractor Performance Risk
Data Security Risk
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.8 million to ERNST & YOUNG LLP. FAA USE OF AVIATION SAFETY DATA

Who is the contractor on this award?

The obligated recipient is ERNST & YOUNG LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $1.8 million.

What is the period of performance?

Start: 2025-03-26. End: 2026-12-31.

What is the specific nature of the aviation safety data to be analyzed under this contract?

The provided data indicates the contract is for 'FAA USE OF AVIATION SAFETY DATA' and falls under the North American Industry Classification System (NAICS) code 541611 for Administrative Management and General Management Consulting Services. While the exact datasets are not specified, it is reasonable to infer that this contract will involve the analysis of various safety-related data streams managed by the FAA. This could include incident reports, accident investigations, aircraft maintenance records, pilot performance data, air traffic control logs, and safety inspection findings. The goal is likely to identify trends, predict potential risks, and inform policy or procedural changes to enhance overall aviation safety.

How does the $1.78 million contract value compare to similar FAA or DOT consulting contracts?

Without access to a comprehensive database of all FAA and DOT consulting contracts, a precise comparison is challenging. However, $1.78 million for approximately two years of specialized consulting services, particularly in a critical area like aviation safety, appears to be within a reasonable range for federal contracts of this nature. Larger, multi-year, or more complex data analysis projects within the federal government can easily reach tens or hundreds of millions of dollars. Conversely, smaller, short-term, or less specialized consulting engagements might be in the hundreds of thousands. The value here suggests a focused scope of work for a significant but not massive project.

What are the primary risks associated with this contract for the FAA?

The primary risks associated with this contract include potential issues with data quality and accessibility, as the effectiveness of the analysis hinges on the integrity and completeness of the safety data provided. There's also a risk of contractor performance not meeting expectations, leading to delays or suboptimal insights, despite the firm-fixed-price structure. Another risk is the potential for misinterpretation of complex safety data, which could lead to flawed recommendations. Finally, ensuring the security and confidentiality of sensitive aviation safety data throughout the analysis process is a critical risk that must be managed.

What is Ernst & Young LLP's track record with federal aviation or data analysis contracts?

Ernst & Young LLP (EY) is a major global professional services firm with extensive experience in management consulting, data analytics, and advisory services across various sectors, including government. While specific details on their past FAA or DOT contracts are not provided in this data snippet, EY has a well-documented history of securing and performing large federal contracts. They frequently engage in complex data analysis, risk management, and strategic consulting for numerous government agencies. Their track record generally indicates a capacity to handle large-scale, data-intensive projects, though performance can vary by specific engagement and team.

How has FAA spending on aviation safety data analysis evolved over recent years?

Historical spending data on aviation safety data analysis by the FAA is not provided in this specific contract award notice. To assess the evolution of spending, one would need to examine multi-year federal procurement databases (like FPDS or USAspending) for contracts categorized under relevant NAICS codes (e.g., 541611, 541511, 541720) and keywords related to aviation safety, data analysis, and research. Such an analysis would reveal trends in investment, identify major contractors, and highlight shifts in the FAA's approach to leveraging data for safety improvements over time.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1101 NEW YORK AVENUE, NW, WASHINGTON, DC, 20005

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,861,836

Exercised Options: $1,780,598

Current Obligation: $1,780,598

Actual Outlays: $1,455,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 693KA919D00004

IDV Type: IDC

Timeline