Transportation contract for engineering services awarded to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC for over $13.8M

Contract Overview

Contract Amount: $13,810,254 ($13.8M)

Contractor: Management & Engineering Technologies International Inc

Awarding Agency: Department of Transportation

Start Date: 2003-10-21

End Date: 2007-08-07

Contract Duration: 1,386 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79925

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $13.8 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of nearly 4 years indicates a significant, long-term need. 4. Fixed-price contract type may offer cost certainty for the government. 5. The award was made to a single entity, MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC. 6. Geographic location of performance in Texas is noted.

Value Assessment

Rating: good

The contract's total value of approximately $13.8 million over a period of nearly four years suggests a moderate annual spend. Without specific benchmarks for comparable engineering services contracts within the FAA or DOT, a precise value-for-money assessment is challenging. However, the firm fixed-price structure implies that the contractor assumed the risk for cost overruns, which can be a positive indicator for the government if the work is completed within budget. The number of bids received (3) is a factor in assessing competitive pricing, but further analysis would be needed to determine if this resulted in optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. Three bids were received for this solicitation. While three bidders represent some level of competition, it is on the lower end for a contract of this magnitude and duration. A higher number of bidders typically suggests a more robust competitive landscape, potentially leading to more aggressive pricing and innovative solutions. The limited number of bids might warrant further investigation into market dynamics or barriers to entry for other potential contractors.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it aims to solicit the best possible offers. However, with only three bids, there is a possibility that the government did not receive the full benefit of a highly competitive market, potentially leading to a higher-than-optimal price.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering expertise to support its mission. Services delivered likely include technical analysis, design, and project management related to aviation infrastructure or systems. The primary geographic impact is in Texas, where the contractor is located and services were performed. The contract supports skilled engineering jobs within the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (3) could indicate potential issues with market reach or contractor interest.
Contract duration of nearly 4 years requires ongoing monitoring to ensure continued value and performance.
Firm Fixed Price contracts can sometimes lead to scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, maximizing potential sources.
Firm Fixed Price contract type provides cost predictability for the government.
Contractor MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC has a track record with government contracts.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including infrastructure development, research, and operational support. The market for engineering services is competitive, with numerous firms offering specialized expertise. The value of this contract, over $13.8 million, positions it as a significant award within its specific niche, likely related to aviation engineering given the awarding agency.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC, a company not explicitly identified as a small business in the provided data, suggests it may be a larger entity. Further investigation into the contractor's size and subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration (FAA) Engineering Support Contracts
Department of Transportation Professional Services Contracts
Management and Technical Consulting Services

Risk Flags

Potential for limited competition due to only 3 bidders.
Need for robust oversight due to long contract duration.
Risk of scope creep in firm fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.8 million to MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is MANAGEMENT & ENGINEERING TECHNOLOGIES INTERNATIONAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2003-10-21. End: 2007-08-07.

What specific engineering services were provided under this contract?

The contract data indicates the primary service category is 'Engineering Services' (NAICS code 541330). While the specific nature of the engineering work is not detailed in the provided summary, typical services under such contracts for the FAA could include design, analysis, testing, and project management for aviation infrastructure, air traffic control systems, aircraft, or related technologies. The duration of nearly four years suggests a substantial project or ongoing support requirement rather than a short-term task.

How does the contract value of $13.8 million compare to similar FAA engineering contracts?

Benchmarking this $13.8 million contract against similar FAA engineering services contracts requires access to a broader dataset of historical awards. However, for a nearly four-year duration, this value suggests a moderate annual expenditure per year (approximately $3.5 million). Contracts for complex aviation systems or large infrastructure projects could easily exceed this amount, while smaller, more specialized engineering tasks might be valued lower. The firm fixed-price nature and the fact that it was competed suggest an effort to obtain competitive pricing for a defined scope of work.

What are the potential risks associated with a firm fixed-price contract of this duration?

A primary risk with firm fixed-price (FFP) contracts, especially those spanning nearly four years, is the potential for scope creep if the contract requirements are not clearly defined or if changes are not managed through a formal modification process. The contractor bears the risk of cost overruns, which could incentivize them to cut corners on quality if not adequately monitored. Conversely, if the scope is well-defined and the contractor is efficient, the government benefits from cost certainty. The FAA's program management and quality assurance teams play a crucial role in mitigating these risks.

What does the limited number of bidders (3) imply about the market for these services?

Receiving only three bids for a contract valued at over $13.8 million and lasting nearly four years could suggest several market conditions. It might indicate a specialized niche where only a few companies possess the required expertise and capacity. Alternatively, it could point to potential barriers to entry, such as stringent pre-qualification requirements, complex proposal processes, or insufficient market outreach by the agency. While competition is present, a larger pool of bidders often leads to more competitive pricing and a wider range of innovative solutions for the government.

What is the historical spending pattern for engineering services by the FAA?

Historical spending on engineering services by the FAA is substantial, reflecting the agency's continuous need for technical expertise in areas like air traffic control modernization, airport infrastructure development, and safety research. Annual spending can fluctuate based on major program initiatives and budget allocations. Contracts like this one, awarded under full and open competition, are typical for procuring specialized engineering support. Analyzing multi-year spending trends would reveal patterns in demand for specific engineering disciplines and the average contract values within the sector.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8600 BOEING DR, EL PASO, TX, 16

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $282,868,559

Exercised Options: $17,511,518

Current Obligation: $13,810,254

Parent Contract

Parent Award PIID: DTFA0202D12127

IDV Type: IDC

Timeline