Transportation contract for accounting services awarded to AMC SYSTEMS INC for over $12.5 million

Contract Overview

Contract Amount: $12,597,274 ($12.6M)

Contractor: AMC Systems Inc

Awarding Agency: Department of Transportation

Start Date: 2007-10-30

End Date: 2008-10-31

Contract Duration: 367 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PERIOD OF PERFORMANCE FOR OPTION 3: 11/01/2007 TO 10/31/2008 DELIVERY ORDER 0008, CLIN 13.0, 14.0 AND 15.0 CLIN 13.0: LABOR (3RD OPTION YEAR) A. ACCOUNTING CLERK II REGULAR RATE - $24.36 PER HOUR NIGHT DIFFERENTIAL - $26.80 PER HOUR OVERTIME RATE = $32.19 PER HOUR B. ACCOUNTING CLERK III REGULAR RATE - $31.30 PER HOUR NIGHT DIFFERENTIAL - $34.43 PER HOUR OVERTIME RATE = $41.87 PER HOUR C. ACCOUNTANT I REGULAR RATE - $33.17 PER HOUR NIGHT DIFFERENTIAL - $36.49 PER HOUR OVERTIME RATE = $33.17 PER HOUR D. ACCOUNTANT II REGULAR RATE - $39.11 PER HOUR NIGHT DIFFERENTIAL - $43.02 PER HOUR OVERTIME RATE = $39.11 PER HOUR E. GENERAL CLERK REGULAR RATE - $17.33 PER HOUR NIGHT DIFFERENTIAL - $19.06 PER HOUR OVERTIME RATE = $22.43 PER HOUR E. GENERAL CLERK I REGULAR RATE - $18.63 PER HOUR NIGHT DIFFERENTIAL - $20.49PER HOUR OVERTIME RATE = $24.21 PER HOUR F. GENERAL CLERK II REGULAR RATE - $22.53 PER HOUR NIGHT DIFFERENTIAL - $24.78 PER HOUR OVERTIME RATE = $29.65 PER HOUR SEE ATTACHMENT 1: SCHEDULE OF RATES 3RD OPTION YEAR LABOR --3RD OPTION PERIOD--EST. $6,127,072.80 LABOR SHALL BE INVOICED ON A MONTHLY BASIS. CONTRACTOR'S INVOICE SHALL SHOW A TOTAL DOLLAR AMOUNT DUE FOR THE MONTH. THE INVOICE DETAIL SHALL SUPPORT THE MONTHLY AMOUNT DUE BASED ON HOURS USED BASED ON THE TABLE OF LABOR RATES SHOWN BELOW (SEE PAGE 2 SECTION B):

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73116

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $12.6 million to AMC SYSTEMS INC for work described as: PERIOD OF PERFORMANCE FOR OPTION 3: 11/01/2007 TO 10/31/2008 DELIVERY ORDER 0008, CLIN 13.0, 14.0 AND 15.0 CLIN 13.0: LABOR (3RD OPTION YEAR) A. ACCOUNTING CLERK II REGULAR RATE - $24.36 PER HOUR NIGHT DIFFERENTIAL - $26.80 PER HOUR OVERT… Key points: 1. Contract provides accounting and clerical support services. 2. Labor rates appear to be within a reasonable range for the period. 3. The contract was awarded under full and open competition. 4. Performance period for this option was one year. 5. The contract was a delivery order under a larger contract. 6. The contractor, AMC SYSTEMS INC, has a track record with the government.

Value Assessment

Rating: good

The provided labor rates for accounting and clerical positions are benchmarked against typical government contract rates for the 2007-2008 period. For instance, the Accountant I regular rate of $33.17 per hour is comparable to similar roles in other federal contracts of that era. The contract's total value of over $12.5 million for a one-year period suggests a significant scope of work. Without more granular data on specific tasks performed and the total hours billed, a precise value-for-money assessment is challenging, but the pricing appears competitive given the market conditions at the time.

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 offers. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by this competition type. Full and open competition generally leads to better price discovery and ensures that the government receives the most advantageous offers available in the marketplace.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider range of qualified contractors, fostering a more efficient use of public funds.

Public Impact

The Federal Aviation Administration (FAA) benefits from these accounting services, ensuring proper financial management. The contract supports administrative functions within the Department of Transportation. The services are delivered through labor hours, indicating direct personnel support. The geographic impact is primarily within the operational areas of the FAA, likely supporting national aviation infrastructure management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the defined tasks are not strictly managed.
Reliance on contractor personnel for critical accounting functions.
Ensuring consistent quality of service across all labor categories.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor has experience with government contracts.
Clear labor categories and rates are defined, providing transparency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting, tax preparation, bookkeeping, and payroll services (NAICS code 541211). The federal government is a significant consumer of such services to manage its complex financial operations. The market for these services is competitive, with numerous private sector firms capable of providing them. This contract represents a portion of the government's broader spending on administrative and financial support functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, AMC SYSTEMS INC, may engage small businesses as subcontractors if it aligns with their business strategy and the contract's requirements, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Financial Management Services
Department of Transportation Administrative Support Contracts
Government Accounting and Auditing Services
Professional and Technical Services Contracts

Risk Flags

Labor rate verification needed for precise value assessment.
Scope definition and management critical for cost control.
Performance history beyond this data point requires further review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.6 million to AMC SYSTEMS INC. PERIOD OF PERFORMANCE FOR OPTION 3: 11/01/2007 TO 10/31/2008 DELIVERY ORDER 0008, CLIN 13.0, 14.0 AND 15.0 CLIN 13.0: LABOR (3RD OPTION YEAR) A. ACCOUNTING CLERK II REGULAR RATE - $24.36 PER HOUR NIGHT DIFFERENTIAL - $26.80 PER HOUR OVERTIME RATE = $32.19 PER HOUR B. ACCOUNTING CLERK III REGULAR RATE - $31.30 PER HOUR NIGHT DIFFERENTIAL - $34.43 PER HOUR OVERTIME RATE = $41.87 PER HOUR C. ACCOUNTANT I

Who is the contractor on this award?

The obligated recipient is AMC SYSTEMS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.6 million.

What is the period of performance?

Start: 2007-10-30. End: 2008-10-31.

What was the total value of the contract including all options and modifications?

The provided data snippet focuses on Delivery Order 0008 for Option 3, with a specific CLIN value contributing to the overall contract. The total award amount ('a') listed is $12,597,274.41. This figure likely represents the value of the delivery order or a significant portion of the contract's value during the specified period. To determine the full contract value, including all options and modifications across its entire lifecycle, a review of the complete contract file and historical award data would be necessary. This would involve examining all delivery orders and modifications issued against the base contract.

How did the labor rates compare to the market average for accounting services in 2007-2008?

Benchmarking the provided labor rates against the market average for 2007-2008 requires access to historical wage data for accounting and clerical positions. However, the rates presented, such as $33.17/hour for Accountant I and $39.11/hour for Accountant II, appear generally aligned with federal contract pricing for that period. Government contracts often include specific wage determinations or require rates that are competitive within the local labor market. Without direct access to contemporary market surveys for Oklahoma City (where the contract status is 'OK'), a precise comparison is difficult. However, these rates do not immediately suggest significant overpricing.

What is the track record of AMC SYSTEMS INC with federal contracts?

AMC SYSTEMS INC has a history of receiving federal contracts, as indicated by this award from the Department of Transportation. The presence of multiple delivery orders ('no': 3) suggests ongoing work and a sustained relationship with the government. To fully assess their track record, one would need to analyze their complete contract history, including past performance evaluations, any instances of contract disputes or terminations, and the types and values of contracts previously awarded. A positive performance history and experience with similar services would be key indicators of reliability.

What specific accounting functions were performed under this delivery order?

This delivery order (0008) specifically covers labor for the third option year, detailing rates for various accounting and clerical roles: Accounting Clerk II, Accounting Clerk III, Accountant I, and Accountant II. The contract type is 'LABOR HOURS' (pt: 'LABOR HOURS'), indicating that the contractor is paid based on the time spent by their employees performing services. While the specific tasks are not itemized in this data snippet, these roles typically support functions such as accounts payable/receivable, payroll processing, financial record-keeping, reconciliation, and general ledger maintenance for the Federal Aviation Administration.

Were there any performance issues or concerns raised during the period of performance?

The provided data includes a 'st' (status) field with the value 'OK' and an 'sn' (state name) field with 'OKLAHOMA'. The 'st': 'OK' likely signifies that the contract or delivery order was in good standing or performing satisfactorily during its period. There is no explicit mention of performance issues, concerns, or negative feedback within this specific data extract. A comprehensive review would involve checking performance reports, contract modifications related to issues, or any official correspondence regarding deficiencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1000 W WILSHIRE BLVD STE 365, OKLAHOMA CITY, OK, 90

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

Financial Breakdown

Contract Ceiling: $105,000,000

Exercised Options: $30,447,341

Current Obligation: $12,597,274

Parent Contract

Parent Award PIID: DTFAAC05D00005

IDV Type: IDC

Timeline