FAA Awards $2.5M for IFT Conversion Across 6 Locations to PureTech Systems Inc

Contract Overview

Contract Amount: $2,521,002 ($2.5M)

Contractor: Puretech Systems Inc

Awarding Agency: Department of Transportation

Start Date: 2024-07-26

End Date: 2025-02-28

Contract Duration: 217 days

Daily Burn Rate: $11.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IFT CONVERSION OF 6 LOCATIONS

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85027

State: Arizona Government Spending

Plain-Language Summary

Department of Transportation obligated $2.5 million to PURETECH SYSTEMS INC for work described as: IFT CONVERSION OF 6 LOCATIONS Key points: 1. Contract awarded for software publishers (NAICS 511210). 2. PureTech Systems Inc. is the sole provider for this specific solution. 3. The contract duration is 217 days. 4. This is a delivery order under an existing contract. 5. The award is for firm fixed price.

Value Assessment

Rating: fair

The contract value of $2.5M for a 217-day duration appears reasonable for specialized software conversion services. Benchmarking against similar IT conversion projects is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This approach may limit price discovery and potentially lead to higher costs compared to a competitive process.

Taxpayer Impact: Taxpayer funds are being utilized for this software conversion, with potential for increased cost due to the lack of competition.

Public Impact

Enhances operational efficiency for the Federal Aviation Administration. Supports modernization of critical infrastructure at six key locations. Ensures continued functionality of essential aviation systems. Potential for improved data management and system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Sole-source nature limits transparency in cost justification.
Dependency on a single vendor for critical system conversion.

Positive Signals

Addresses a specific operational need for the FAA.
Utilizes a firm fixed-price contract, providing cost certainty.
Clear delivery timeline established.

Sector Analysis

The Information Technology sector, specifically software publishers, is characterized by rapid innovation and specialized solutions. The $2.5M award falls within a moderate range for IT modernization projects, but the lack of competition warrants scrutiny.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. The focus appears to be on a specialized solution provided by a single vendor.

Oversight & Accountability

Oversight is crucial given the sole-source nature of this award. The FAA should ensure thorough justification for the lack of competition and monitor performance closely to ensure value for taxpayer money.

Related Government Programs

Software Publishers
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award
Potential for overpricing
Lack of competitive benchmarking
Dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to PURETECH SYSTEMS INC. IFT CONVERSION OF 6 LOCATIONS

Who is the contractor on this award?

The obligated recipient is PURETECH SYSTEMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-07-26. End: 2025-02-28.

What is the specific nature of the 'IFT Conversion' and why is PureTech Systems Inc. uniquely qualified to perform it?

The 'IFT Conversion' likely refers to the transformation or migration of Integrated Flight Tracking systems across six Federal Aviation Administration (FAA) locations. PureTech Systems Inc. may possess proprietary technology, unique expertise, or existing intellectual property related to the specific software or hardware being converted, making them the sole viable option without extensive re-development by another vendor.

What are the potential risks associated with awarding a sole-source contract for critical aviation software conversion?

Sole-source contracts carry inherent risks, including the potential for inflated pricing due to the absence of competitive pressure. There's also a risk of vendor lock-in, reduced innovation, and a lack of transparency in cost justification. For critical systems like flight tracking, vendor performance issues or financial instability could pose significant operational risks to the FAA.

How will the effectiveness of this $2.5M investment be measured, particularly given the limited competition?

Effectiveness will be measured by the successful completion of the IFT conversion within the 217-day timeframe and adherence to the firm fixed price. Key performance indicators should include system uptime post-conversion, data integrity, and user acceptance testing. The FAA should also conduct a post-award review to assess the value obtained despite the sole-source award.

Industry Classification

NAICS: Information › Software Publishers › Software Publishers

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2038 W LONE CACTUS DR, PHOENIX, AZ, 85027

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,521,002

Exercised Options: $2,521,002

Current Obligation: $2,521,002

Actual Outlays: $2,521,002

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 6973GH21D00056

IDV Type: IDC

Timeline