DOT awards $13.8M for hardware support to ASRC, a 2009 delivery order nearing completion

Contract Overview

Contract Amount: $13,810,260 ($13.8M)

Contractor: Asrc Research and Technology Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2009-06-29

End Date: 2017-06-15

Contract Duration: 2,908 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROVIDE FUNDING FOR SOS7, CONTRACT NUMBER DTFACT-09-D-00010/0006 STA# T7001 HARDWARE SUPPORT STARS LABOR $673,096.68 MATERIAL $1,000 TRAVEL $25,000

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $13.8 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC for work described as: PROVIDE FUNDING FOR SOS7, CONTRACT NUMBER DTFACT-09-D-00010/0006 STA# T7001 HARDWARE SUPPORT STARS LABOR $673,096.68 MATERIAL $1,000 TRAVEL $25,000 Key points: 1. Contract value is $13.8M over 8 years, indicating long-term support needs. 2. ASRC is the sole awardee for this specific delivery order. 3. The contract type is Time and Materials, which can pose cost control risks. 4. The NAICS code 541519 suggests IT-related services, a common government spending area.

Value Assessment

Rating: fair

The total award value of $13.8M over nearly 8 years suggests a significant investment. Benchmarking against similar IT hardware support contracts would be necessary to fully assess value, but the Time and Materials pricing structure warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, this specific delivery order was awarded to a single contractor, ASRC, suggesting potential for limited competition at the task order level.

Taxpayer Impact: While competition was initially broad, the long duration and single awardee for this order may not have yielded the most cost-effective outcome for taxpayers over its lifespan.

Public Impact

Ensures continued operation of critical FAA systems through hardware support. Supports a large IT infrastructure, impacting air traffic control and safety. The long contract duration means sustained taxpayer investment in IT maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns.
Long contract duration (nearly 8 years) may not reflect current market prices.
Lack of specific performance metrics provided.

Positive Signals

Awarded under full and open competition.
Supports critical FAA operations.
Contract is nearing its end date.

Sector Analysis

This contract falls within the IT services sector, specifically computer hardware support. Government spending in this area is substantial, driven by the need to maintain aging infrastructure and adopt new technologies. Benchmarks for similar IT support contracts vary widely based on scope and duration.

Small Business Impact

The contract was awarded to ASRC Research and Technology Solutions LLC, which is not listed as a small business. There is no indication of small business subcontracting goals or achievements within the provided data.

Oversight & Accountability

The contract was awarded by the Federal Aviation Administration (FAA), a component of the Department of Transportation. Oversight would typically involve contract officers and program managers ensuring adherence to terms and performance standards. The long duration suggests ongoing monitoring was required.

Related Government Programs

Other Computer Related Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Time and Materials pricing structure.
Long contract duration.
Single awardee for the delivery order.
Lack of detailed performance metrics.
Potential for cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.8 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC. PROVIDE FUNDING FOR SOS7, CONTRACT NUMBER DTFACT-09-D-00010/0006 STA# T7001 HARDWARE SUPPORT STARS LABOR $673,096.68 MATERIAL $1,000 TRAVEL $25,000

Who is the contractor on this award?

The obligated recipient is ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC.

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: 2009-06-29. End: 2017-06-15.

What was the primary driver for the long, 8-year duration of this hardware support contract?

The long duration likely stems from the need for consistent, long-term support for critical hardware components within the Federal Aviation Administration's infrastructure. Such extended periods are often necessary for specialized equipment that requires specific maintenance expertise and ensures operational stability, minimizing disruptions to essential services like air traffic control.

How did the Time and Materials pricing impact the final cost compared to a fixed-price contract?

Time and Materials (T&M) contracts offer flexibility but can lead to higher costs if not managed closely, as the government pays for actual labor hours and material costs incurred. Without detailed cost breakdowns and performance data, it's difficult to definitively say if T&M was more or less expensive than a fixed-price alternative. However, T&M inherently carries a higher risk of cost escalation.

What is the potential risk associated with awarding a delivery order under 'full and open competition' to a single contractor for an extended period?

While the initial award was competitive, awarding a single delivery order to one contractor for nearly eight years, even under a competitive umbrella, can limit ongoing price discovery and potentially reduce incentives for the contractor to offer the most competitive rates over time. It also concentrates risk with a single provider for a critical service.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)

Address: 6303 IVY LANE STE 130, GREENBELT, MD, 20770

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $24,279,117

Exercised Options: $13,810,260

Current Obligation: $13,810,260

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFACT09D00010

IDV Type: IDC

Timeline