DOT awards $19.3M IT contract for annual QT license renewal to Microtechnologies LLC

Contract Overview

Contract Amount: $19,290 ($19.3K)

Contractor: Microtechnologies LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-09

End Date: 2027-04-08

Contract Duration: 364 days

Daily Burn Rate: $53/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE ANNUAL QT LICENSE RENEWAL.

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $19,290 to MICROTECHNOLOGIES LLC for work described as: THE ANNUAL QT LICENSE RENEWAL. Key points: 1. Contract focuses on essential IT services for license renewals, indicating a stable operational need. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. A firm-fixed-price structure helps mitigate cost overruns for the government. 4. The contract duration of one year aligns with typical software license renewal cycles. 5. The vendor, Microtechnologies LLC, is a provider of IT services, fitting the contract's scope. 6. The contract is for Computer Systems Design Services, a common IT support category.

Value Assessment

Rating: good

The contract value of $19.3 million for a one-year IT license renewal appears reasonable given the scope of Computer Systems Design Services. Without specific details on the 'QT license' and its criticality, a direct comparison is challenging. However, the firm-fixed-price nature of the contract provides cost certainty. Benchmarking against similar annual IT service contracts for government agencies would offer further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This suggests a robust bidding process where multiple vendors likely had the opportunity to compete. The level of competition, while not explicitly detailed by the number of bidders, generally leads to better price discovery and potentially more favorable terms for the government.

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

Public Impact

The Federal Aviation Administration (FAA) benefits from the continued availability of essential IT services. The contract ensures the renewal of 'QT licenses', critical for operational functions within the agency. Services are delivered in New Jersey, impacting the local IT support ecosystem. The contract supports the IT workforce involved in maintaining and managing these systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if 'QT license' is proprietary and renewal is the only option.
Reliance on a single vendor for a critical IT function could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides budget predictability.
Awarded through full and open competition, suggesting a competitive market for these services.
Contract duration is limited to one year, allowing for periodic re-evaluation of needs and vendors.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The IT services market for government agencies is substantial, with significant spending on software licenses, maintenance, and support. This contract represents a typical expenditure for maintaining essential software and systems within a federal agency, aligning with broader trends in government IT modernization and operational support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Microtechnologies LLC, the awardee, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on their own business practices and the nature of the services required.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award. Transparency is facilitated through contract databases like FPDS, which record award details. Performance monitoring by the Federal Aviation Administration contracting officer's representative (COR) is crucial for ensuring compliance and satisfactory service delivery.

Related Government Programs

IT Support Services
Software Licensing and Maintenance
Computer Systems Design
Federal Aviation Administration IT Procurement
Department of Transportation IT Contracts

Risk Flags

Potential for cost escalation in future renewals if not managed proactively.
Dependence on a single vendor for critical software could pose operational risks.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19,290 to MICROTECHNOLOGIES LLC. THE ANNUAL QT LICENSE RENEWAL.

Who is the contractor on this award?

The obligated recipient is MICROTECHNOLOGIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $19,290.

What is the period of performance?

Start: 2026-04-09. End: 2027-04-08.

What specific 'QT license' is being renewed, and what is its criticality to the FAA's operations?

The provided data does not specify the exact nature of the 'QT license'. However, given the awardee's designation as a Computer Systems Design Services provider and the contract's value, it is likely a critical software license essential for the Federal Aviation Administration's (FAA) operational functions. This could range from air traffic management software to data analysis platforms or administrative systems. The criticality implies that uninterrupted access to this software is paramount for the agency's mission. Further investigation into FAA's IT asset inventory or system architecture would be needed to pinpoint the exact software and its role. The annual renewal suggests a subscription-based model or a maintenance agreement for proprietary software.

How does the $19.3 million annual cost compare to previous renewals or similar government contracts?

The annual cost of $19.3 million for this IT license renewal needs to be benchmarked against historical data for the same 'QT license' and comparable contracts. If this represents a significant increase or decrease from previous years, it warrants investigation into the reasons. Comparing this figure to contracts for similar software licenses or IT support services procured by other federal agencies of comparable size and mission scope would provide valuable context. Factors such as market inflation, changes in software features, or shifts in vendor pricing strategies can influence year-over-year costs. Without this comparative data, assessing whether $19.3 million represents excellent, fair, or questionable value is difficult.

What is the track record of Microtechnologies LLC in delivering similar IT services to the federal government?

Microtechnologies LLC's track record is crucial for assessing the risk associated with this $19.3 million contract. Information on their past performance, including contract history, past performance evaluations (e.g., CPARS reports), and any history of contract disputes or terminations, should be reviewed. Understanding their experience with similar Computer Systems Design Services, particularly for agencies like the FAA, will indicate their capability to meet the requirements. A history of successful, on-time, and within-budget delivery of comparable services would be a positive signal, while past performance issues would raise concerns about potential risks to the renewal of the 'QT license'.

What are the specific performance metrics and deliverables outlined in the contract?

The contract details should specify key performance metrics (KPIs) and deliverables that Microtechnologies LLC must meet to ensure the successful renewal and support of the 'QT license'. These might include uptime guarantees for the software, response times for technical support, patch management schedules, and reporting requirements. The Federal Aviation Administration (FAA) will likely have a Contracting Officer's Representative (COR) responsible for monitoring these metrics. The effectiveness of the contract hinges on clearly defined, measurable, and achievable performance standards, and the agency's ability to rigorously track and enforce them.

Are there any potential risks associated with the firm-fixed-price (FFP) contract type for this specific service?

A firm-fixed-price (FFP) contract is generally advantageous for the government as it shifts most of the risk to the contractor. For an annual license renewal, FFP provides cost certainty. However, potential risks could arise if the scope of the 'QT license' renewal or associated support services is not precisely defined. If unforeseen technical issues or scope creep occur, the contractor might be incentivized to cut corners to maintain profitability, or conversely, seek change orders if the contract is poorly defined. The government must ensure the SOW is comprehensive to mitigate these risks.

What is the historical spending trend for this 'QT license' renewal or similar services within the FAA?

Analyzing historical spending trends for this specific 'QT license' renewal or comparable IT services within the FAA is essential for context. A consistent spending pattern over several years might indicate stable requirements and predictable costs. However, significant year-over-year fluctuations could signal changes in software usage, pricing strategies, or contract scope. Understanding these trends helps in evaluating the current $19.3 million award as either an anomaly or a continuation of established spending patterns, aiding in budget forecasting and identifying potential cost-saving opportunities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - APLLICATIONS

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: 8330 BOONE BLVD STE 600, VIENNA, VA, 22182

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,290

Exercised Options: $19,290

Current Obligation: $19,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 697DCK22D00002

IDV Type: IDC

Timeline