Agriculture Department Awards $6.7M for Air Transportation Services Under Full and Open Competition

Contract Overview

Contract Amount: $6,735,711 ($6.7M)

Contractor: Concur Technologies, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2013-01-25

End Date: 2027-06-03

Contract Duration: 5,242 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IGF::CL::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Agriculture obligated $6.7 million to CONCUR TECHNOLOGIES, INC. for work described as: IGF::CL::IGF Key points: 1. Contract awarded to CONCUR TECHNOLOGIES, INC. for scheduled passenger air transportation. 2. The contract has a duration of 5242 days, spanning from January 2013 to June 2027. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Firm Fixed Price, providing cost certainty. 5. The agency is the Department of Agriculture, Office of the Chief Financial Officer.

Value Assessment

Rating: fair

The contract value is $6.7 million over a long duration. Without specific per-unit data or benchmarks for air transportation services, a precise value assessment is difficult. However, the duration suggests a need for ongoing services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to secure the best value.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for service providers.

Public Impact

Ensures government employees can travel for official business. Supports departmental operations and mission fulfillment through necessary transportation. Long-term contract provides stability for service provision and budgeting. Potential for cost savings due to competitive bidding process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to price escalation if not managed.
Lack of specific performance metrics or unit costs makes value assessment challenging.
Dependence on a single vendor for a critical service over many years.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type offers cost predictability.
Long-term award provides service continuity.

Sector Analysis

This contract falls under the transportation sector, specifically scheduled passenger air travel. Government spending in this area is crucial for agency operations, and benchmarks often focus on cost per passenger mile or total travel expenditure.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Office of the Chief Financial Officer. Oversight would involve monitoring contract performance, adherence to terms, and financial accountability throughout the contract's lifecycle.

Related Government Programs

Scheduled Passenger Air Transportation
Department of Agriculture Contracting
Office of the Chief Financial Officer Programs

Risk Flags

Long contract duration (over 14 years).
Firm Fixed Price contract type.
Lack of specific unit cost data for benchmarking.
Potential for price volatility in the air transportation market.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $6.7 million to CONCUR TECHNOLOGIES, INC.. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is CONCUR TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $6.7 million.

What is the period of performance?

Start: 2013-01-25. End: 2027-06-03.

What is the average annual cost of this contract, and how does it compare to government travel spending benchmarks?

The total contract value is $6.7 million over approximately 14.5 years (5242 days). This averages to roughly $462,000 per year. Comparing this to government travel spending benchmarks requires detailed data on the volume and type of travel, passenger miles, and specific routes. Without this granular information, a direct comparison to industry or government-wide averages for air transportation is difficult.

What are the potential risks associated with a firm fixed-price contract for air transportation over such a long duration?

A primary risk is that market prices for air travel could significantly increase over the 14.5-year period, potentially making the fixed price disadvantageous for the government if not structured with appropriate escalation clauses or review periods. Conversely, if prices decrease, the vendor might seek renegotiation. Ensuring the initial price accurately reflects anticipated market conditions and includes provisions for adjustments is crucial for mitigating this risk.

How effectively does this contract support the Department of Agriculture's mission, and what metrics are used to measure its success?

This contract likely supports the Department of Agriculture's mission by enabling employees to conduct official travel for inspections, meetings, and program oversight. Effectiveness is typically measured by on-time performance, adherence to booking procedures, traveler satisfaction, and cost control. The specific metrics and performance standards would be detailed within the contract's statement of work and performance requirements.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › RELOCATION OR TRAVEL AGENT 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

Parent Company: SAP SE

Address: 601 108TH AVE NE STE 1000, BELLEVUE, WA, 98004

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

Financial Breakdown

Contract Ceiling: $6,867,838

Exercised Options: $6,867,838

Current Obligation: $6,735,711

Actual Outlays: $2,486,192

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FY0026

IDV Type: IDC

Timeline