DOT's FAA awards $5.2M engineering services contract to ASRC Federal System Solutions LLC for AJW-1521

Contract Overview

Contract Amount: $5,206,109 ($5.2M)

Contractor: Asrc Federal System Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2025-03-26

End Date: 2026-03-18

Contract Duration: 357 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUNDING SUPPORT FOR AJW-1521

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $5.2 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC for work described as: FUNDING SUPPORT FOR AJW-1521 Key points: 1. Contract awarded to a single, established provider suggests potential for streamlined execution. 2. The firm fixed-price structure aims to control costs and provide budget certainty. 3. Delivery order structure indicates a need for specific, phased engineering support. 4. The contract duration of 357 days aligns with project-based engineering requirements. 5. Geographic location in Oklahoma may indicate regional focus for engineering services. 6. The contract's value is modest, suggesting it supports a specific project rather than a broad program.

Value Assessment

Rating: good

The contract value of $5.2 million for engineering services appears reasonable given the scope of a delivery order. Without specific benchmarks for AJW-1521, direct comparison is limited. However, the firm fixed-price nature suggests a well-defined scope, which typically leads to more predictable costs. The contractor, ASRC Federal System Solutions LLC, has a track record with government contracts, implying familiarity with pricing structures and delivery expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was considered, specific circumstances led to excluding certain potential bidders. The exact reasons for exclusion are not detailed, but it suggests a narrowed field rather than a broad solicitation. This approach can sometimes lead to less competitive pricing compared to full and open competition.

Taxpayer Impact: The exclusion of sources may limit the number of potential bidders, potentially impacting the most competitive pricing for taxpayers. However, it could also be a mechanism to ensure specialized capabilities are met.

Public Impact

The Federal Aviation Administration (FAA) benefits through the acquisition of specialized engineering services. This contract supports the AJW-1521 initiative, likely related to aviation infrastructure or systems. The services will be delivered within Oklahoma, potentially impacting the local engineering workforce. The contract ensures the FAA can access necessary technical expertise for its projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises questions about whether the best possible price was secured.
The specific reasons for excluding sources are not publicly detailed, hindering full transparency.
Dependence on a single contractor for this specific delivery order could pose a risk if performance issues arise.

Positive Signals

The contractor, ASRC Federal System Solutions LLC, is an established entity with government contracting experience.
The firm fixed-price contract type provides cost certainty for the government.
The delivery order structure allows for phased acquisition of services as needed.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of government infrastructure and technology development. The market for federal engineering services is substantial, with agencies like the FAA consistently requiring specialized expertise for complex projects. Spending in this sector is often driven by modernization efforts, safety upgrades, and research and development. Comparable contracts often involve detailed technical specifications and require contractors with proven capabilities in specific engineering disciplines.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, unless ASRC Federal System Solutions LLC voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a delivery order under a larger contract vehicle, it is subject to the terms and conditions of that vehicle. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Air Traffic Control Systems
Department of Transportation Engineering and Design Services
Government Engineering and Technical Support Contracts

Risk Flags

Limited competition may reduce price competitiveness.
Justification for source exclusion not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.2 million to ASRC FEDERAL SYSTEM SOLUTIONS LLC. FUNDING SUPPORT FOR AJW-1521

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL SYSTEM SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-03-26. End: 2026-03-18.

What is the specific nature of the AJW-1521 initiative this contract supports?

The specific nature of the AJW-1521 initiative is not detailed in the provided data. However, given the awarding agency (Federal Aviation Administration) and the contract's classification under Engineering Services (NAICS 541330), it is highly probable that AJW-1521 relates to aviation infrastructure, air traffic management systems, airport development, or related technological advancements. Such initiatives often require specialized engineering expertise for design, analysis, testing, or implementation to ensure safety, efficiency, and compliance with federal regulations. Further details would likely be found in FAA's internal project documentation or public budget justifications.

What are the typical profit margins for engineering services contracts of this size awarded by the FAA?

Typical profit margins for engineering services contracts of this size awarded by the FAA can vary significantly based on factors such as contract type, complexity, competition level, and the specific services required. For firm-fixed-price contracts, which offer cost certainty to the government, contractor profit margins are often built into the overall price. While exact figures are proprietary, industry benchmarks for government engineering services often range from 7% to 15% profit. However, this can be influenced by overhead costs, labor rates, and the perceived risk associated with the project. The 'limited' competition noted for this specific award might influence the achievable profit margin for the contractor.

Has ASRC Federal System Solutions LLC previously held similar contracts with the FAA or other federal agencies?

Yes, ASRC Federal System Solutions LLC has a history of holding contracts with federal agencies, including the FAA. Publicly available contract databases often show extensive records of awards to this contractor across various agencies and service categories. Their experience typically includes providing engineering, IT, and professional services. The fact that they were awarded this delivery order suggests they have a demonstrated track record and existing relationship or familiarity with the FAA's requirements and contracting processes, which is a common positive signal for contract performance.

What are the potential risks associated with a 'limited' competition award for engineering services?

A 'limited' competition award, such as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' carries several potential risks. Primarily, it can lead to reduced price competition, potentially resulting in higher costs for the government compared to a scenario with numerous bidders. There's also a risk that the government might not be exposed to the full spectrum of innovative solutions or specialized expertise available in the market if many capable firms were excluded without clear justification. Furthermore, the justification for excluding sources needs to be robust to ensure fairness and prevent potential protests or perceptions of impropriety. The specific reasons for exclusion in this case are not detailed, which adds to the opacity.

How does the firm-fixed-price contract type benefit the FAA in this scenario?

The firm-fixed-price (FFP) contract type offers significant benefits to the FAA for this engineering services delivery order. FFP establishes a ceiling price that the contractor must not exceed, providing the government with cost certainty and predictability. This structure incentivizes the contractor to manage costs efficiently, as any overruns are absorbed by ASRC Federal System Solutions LLC. For the FAA, this means the budget allocated for AJW-1521 is less likely to be exceeded due to unforeseen cost increases by the contractor. This is particularly advantageous for projects where the scope of work is well-defined, as is often the case with delivery orders.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR STE 100, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $7,028,711

Exercised Options: $5,206,109

Current Obligation: $5,206,109

Actual Outlays: $2,984,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH18D00008

IDV Type: IDC

Timeline