DOT awards $7M+ contract for acquisition support services to Trevor L Newman LLC, a sole-source award

Contract Overview

Contract Amount: $6,981,051 ($7.0M)

Contractor: Trevor L Newman LLC

Awarding Agency: Department of Transportation

Start Date: 2023-08-23

End Date: 2027-09-24

Contract Duration: 1,493 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ACQUISITION AND CONTRACTING SUPPORT SERVICES TO REGIONAL ACQUISITION DIVISION AAQ-500 LOCATED AT THE FAA SOUTHWEST REGIONAL OFFICE, FORT WORTH, TX

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $7.0 million to TREVOR L NEWMAN LLC for work described as: ACQUISITION AND CONTRACTING SUPPORT SERVICES TO REGIONAL ACQUISITION DIVISION AAQ-500 LOCATED AT THE FAA SOUTHWEST REGIONAL OFFICE, FORT WORTH, TX Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies and market competition. 2. The contract duration of nearly five years suggests a long-term need for these administrative services. 3. The value of the contract, while significant, needs benchmarking against similar support services to assess value for money. 4. The specific services provided are administrative and office support, which are generally not high-risk areas. 5. The award to a single vendor may limit opportunities for small businesses to participate in subcontracting. 6. The geographic location of the FAA Southwest Regional Office in Fort Worth, TX, indicates a regional focus for these services.

Value Assessment

Rating: fair

The contract value of over $7 million for nearly five years of acquisition and contracting support services appears substantial. Without specific benchmarks for similar administrative support contracts within the FAA or DOT, it is difficult to definitively assess value for money. The sole-source nature of the award also prevents direct comparison with competitively bid contracts, which typically yield better pricing. Further analysis would require understanding the specific tasks and deliverables included in the 'Acquisition and Contracting Support Services' to compare against industry standards and pricing for similar roles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was awarded on a sole-source basis. This means that only one vendor, Trevor L Newman LLC, was solicited and awarded the contract. The lack of competition means that the government did not explore offers from multiple potential providers, which could lead to higher prices and reduced innovation compared to a fully competed contract. The rationale for the sole-source award is not provided, but it typically implies specific circumstances such as unique capabilities or urgent needs.

Taxpayer Impact: The sole-source award means taxpayers did not benefit from the price discovery and potential cost savings that typically arise from a competitive bidding process. This could result in a higher overall cost to the government for these administrative support services.

Public Impact

The primary beneficiaries are the FAA's Regional Acquisition Division AAQ-500, which will receive administrative and contracting support. The services delivered will include office administrative support, aiding in the efficiency of acquisition processes within the Southwest Regional Office. The geographic impact is focused on the FAA Southwest Regional Office located in Fort Worth, Texas. The contract supports administrative roles, potentially impacting a small number of personnel within the contractor organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for taxpayers.
Lack of transparency regarding the justification for sole-source procurement.
Contract duration of nearly five years may indicate a lack of flexibility in adapting to changing needs.
No clear indication of small business subcontracting goals or performance.

Positive Signals

Contract provides essential administrative support to a key regional acquisition division.
Awarding to a single entity may ensure continuity of service for a specific function.
The contract is a definitive contract, suggesting a clear scope and terms.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the broader transportation sector, which involves significant government spending on infrastructure, operations, and support services. Acquisition and contracting support services are crucial for the efficient functioning of agencies like the FAA, enabling them to procure necessary goods and services. The market for such administrative support services is broad, with many firms capable of providing these functions. However, the specific context here is a sole-source award within a government agency, which bypasses the typical market dynamics of competitive bidding.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). Therefore, there are no direct set-aside benefits for small businesses. The sole-source nature of the award also limits opportunities for small businesses to participate as prime contractors. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but given the administrative nature of the services, the potential for significant subcontracting may be limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Office of Inspector General (OIG) and the Federal Aviation Administration's internal oversight mechanisms. As a definitive contract, it should have defined deliverables and performance standards that can be monitored. Transparency regarding the justification for the sole-source award and the contractor's performance would be key aspects of effective oversight. The contract's duration and value necessitate regular reviews to ensure continued adherence to terms and conditions.

Related Government Programs

FAA Acquisition Management
DOT Administrative Services
Regional Acquisition Support Contracts
Office Administrative Services Contracts
Sole-Source Government Contracts

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of transparency regarding the justification for sole-source procurement.
Contract duration is long, potentially limiting flexibility.
No explicit small business subcontracting requirements mentioned.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.0 million to TREVOR L NEWMAN LLC. ACQUISITION AND CONTRACTING SUPPORT SERVICES TO REGIONAL ACQUISITION DIVISION AAQ-500 LOCATED AT THE FAA SOUTHWEST REGIONAL OFFICE, FORT WORTH, TX

Who is the contractor on this award?

The obligated recipient is TREVOR L NEWMAN LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2023-08-23. End: 2027-09-24.

What is the specific justification for awarding this contract on a sole-source basis to Trevor L Newman LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. Without further documentation from the Department of Transportation or the Federal Aviation Administration, the rationale remains unknown. This lack of transparency is a concern, as it prevents an independent assessment of whether competitive procedures were truly impracticable and if the government obtained fair and reasonable pricing under the circumstances. Further inquiry with the contracting agency would be necessary to obtain this critical information.

How does the cost of this contract compare to similar acquisition support services procured competitively by the FAA or other DOT agencies?

Direct cost comparison is challenging due to the sole-source nature of this award and the lack of detailed service descriptions. Competitively procured contracts for similar acquisition and administrative support services often yield lower per-unit labor costs or overall contract values due to market competition. To perform a robust comparison, one would need to identify comparable contracts, analyze their scope of work, labor categories, rates, and total value, and then adjust for differences in contract duration, geographic location, and specific service requirements. Benchmarking against industry data for administrative support services in the government sector would also be informative, but the specific nuances of 'Acquisition and Contracting Support' require careful consideration.

What are the key performance indicators (KPIs) and deliverables associated with this contract, and how will performance be monitored?

The provided data summary does not detail the specific Key Performance Indicators (KPIs) or deliverables for this 'Acquisition and Contracting Support Services' contract. As a definitive contract, it is expected to have a defined scope of work, service level agreements, and reporting requirements. Performance monitoring would typically be conducted by a Contracting Officer's Representative (COR) within the FAA's Regional Acquisition Division AAQ-500. This monitoring would involve assessing the contractor's adherence to the contract terms, timely completion of tasks, quality of work, and overall responsiveness. Without access to the contract's statement of work, a precise evaluation of performance metrics and oversight is not possible.

What is the track record of Trevor L Newman LLC in performing similar government contracts, particularly with the FAA or DOT?

Information regarding the specific track record of Trevor L Newman LLC in performing similar government contracts, especially with the FAA or DOT, is not available in the provided data summary. A comprehensive assessment of the contractor's past performance would require accessing federal procurement databases (like SAM.gov or FPDS) to review their contract history, including contract types, values, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or disputes. Understanding their experience with acquisition support services and their performance history is crucial for evaluating the risk associated with this sole-source award and ensuring the government receives quality services.

What is the historical spending pattern for acquisition and contracting support services within the FAA's Southwest Regional Office?

The provided data does not offer historical spending patterns for acquisition and contracting support services at the FAA's Southwest Regional Office. To analyze historical spending, one would need to query federal procurement databases for contracts awarded to this specific office or for similar services within the region over several fiscal years. This analysis would reveal trends in contract values, types of services procured, and the number of vendors utilized (competitive vs. sole-source). Understanding these patterns can help contextualize the current $7 million, five-year award, identifying if it represents an increase or decrease in spending, or a shift in procurement strategy for these essential support functions.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Office Administrative Services › Office Administrative Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-23-R-00377

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: T L Newman Incorporated

Address: 309 S NEW YORK RD, GALLOWAY, NJ, 08205

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $6,981,051

Exercised Options: $6,981,051

Current Obligation: $6,981,051

Actual Outlays: $5,182,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline