DOT's FAA awarded $24.7M for software support, with over $174K in labor, material, and travel costs

Contract Overview

Contract Amount: $24,716,799 ($24.7M)

Contractor: Asrc Research and Technology Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2009-07-28

End Date: 2017-06-15

Contract Duration: 2,879 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOFTWARE SUPPORT STARS LABOR $122,728.50 MATERIAL $10,000 TRAVEL $41,223.81

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $24.7 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC for work described as: SOFTWARE SUPPORT STARS LABOR $122,728.50 MATERIAL $10,000 TRAVEL $41,223.81 Key points: 1. Value for money appears fair, given the extended duration of the contract and the specific nature of software support. 2. Competition dynamics indicate a full and open competition, suggesting a robust market for these services. 3. Risk indicators are moderate, with a long contract duration and time-and-materials pricing potentially leading to cost overruns. 4. Performance context is tied to essential software support for the Federal Aviation Administration. 5. Sector positioning is within IT services, specifically computer-related services for a government agency.

Value Assessment

Rating: fair

The total contract value of $24.7 million over nearly 8 years suggests a moderate annual spend. The breakdown of costs shows a significant portion allocated to labor ($122.7K), material ($10K), and travel ($41.2K). Benchmarking against similar IT support contracts is challenging without more specific service details, but the overall value seems aligned with long-term, specialized support needs. The time-and-materials pricing structure warrants scrutiny for potential cost escalation over the contract's lifespan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. The presence of 3 bidders suggests a reasonable level of competition for this type of specialized IT support. A competitive process generally helps in achieving fair market pricing and ensures that the government selects the most capable and cost-effective solution.

Taxpayer Impact: A full and open competition benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from multiple vendors.

Public Impact

The Federal Aviation Administration (FAA) benefits from continuous software support, ensuring the reliability of critical systems. Essential IT services are delivered, maintaining the operational integrity of aviation infrastructure. The geographic impact is primarily national, supporting FAA operations across the United States. Workforce implications include the potential for skilled IT professionals to be engaged in supporting federal aviation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to unpredictable costs if not closely monitored.
The long contract duration (nearly 8 years) increases the risk of technology obsolescence or changing requirements.
Specific details on the software supported are not provided, making a precise value assessment difficult.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract supports critical functions of the Federal Aviation Administration.
The contractor, ASRC Research and Technology Solutions LLC, has a track record of performing government contracts.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer-related services and support. The market for government IT support is substantial, with agencies continually seeking vendors to maintain and upgrade complex systems. Comparable spending benchmarks would typically involve analyzing other long-term IT support contracts awarded by agencies like the FAA or other branches of the Department of Transportation, looking at factors like contract value, duration, and service scope.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor, ASRC Research and Technology Solutions LLC, is likely a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, performance work statements, and delivery schedules. Transparency is facilitated through contract databases like FPDS, which provide public access to contract award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA IT Modernization Programs
Department of Transportation IT Services
Software Development and Maintenance Contracts
Cloud Computing Services for Government

Risk Flags

Potential for cost overruns due to Time and Materials pricing
Risk of technology obsolescence over the contract's long duration
Lack of specific details on software supported hinders precise value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.7 million to ASRC RESEARCH AND TECHNOLOGY SOLUTIONS LLC. SOFTWARE SUPPORT STARS LABOR $122,728.50 MATERIAL $10,000 TRAVEL $41,223.81

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 $24.7 million.

What is the period of performance?

Start: 2009-07-28. End: 2017-06-15.

What is the track record of ASRC Research and Technology Solutions LLC with federal contracts, particularly in IT support?

ASRC Research and Technology Solutions LLC has a history of performing federal contracts, including those related to IT services. Reviewing their past performance on similar contracts, especially those with the Department of Transportation or the FAA, would provide insight into their reliability, quality of service, and ability to meet deadlines. Data from contract databases often shows the number and value of contracts awarded to a company, as well as any performance ratings or past performance evaluations. A positive track record suggests a lower risk for this current contract, while a history of issues might raise concerns about future performance and value for money.

How does the total contract value of $24.7 million compare to similar IT support contracts awarded by the FAA?

Comparing the $24.7 million total contract value requires understanding the scope and duration. This contract spans nearly 8 years, making the average annual value approximately $3.1 million. To assess value, this figure should be benchmarked against other FAA contracts for similar IT support services, considering factors like the complexity of the software, the number of users supported, and the specific services rendered (e.g., maintenance, upgrades, help desk). If similar contracts for comparable services have significantly lower annual values, it might indicate that this contract is priced higher than the market average. Conversely, if the services are highly specialized or critical, the value might be justified.

What are the primary risks associated with the time and materials (T&M) pricing structure used in this contract?

The primary risk with a Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of cost certainty for the government. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This means the total cost can escalate if the project takes longer than anticipated or if more resources are consumed. Effective oversight, detailed tracking of hours and materials, and clear performance standards are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective are the oversight mechanisms for ensuring performance and value for money on this long-term IT support contract?

The effectiveness of oversight mechanisms hinges on the diligence of the contracting officer and the program management team at the FAA. For a long-term contract like this, regular performance reviews, audits of labor hours and material costs, and clear communication channels with the contractor are essential. The contract's performance work statement (PWS) should define measurable outcomes and service level agreements (SLAs). If these oversight processes are robust and consistently applied, they can help ensure the contractor meets performance expectations and that the T&M pricing remains within reasonable bounds, thereby safeguarding value for money.

What is the historical spending trend for similar software support services by the Federal Aviation Administration?

Analyzing historical spending trends for similar software support services by the FAA is crucial for context. This involves examining contract data over several fiscal years to identify patterns in contract values, durations, and the number of awards for IT support. Understanding whether spending in this category has been increasing, decreasing, or remaining stable can inform future budgeting and procurement strategies. Significant year-over-year increases might signal growing needs or potentially rising costs, while consistent spending could indicate stable requirements. This contract's $24.7 million value over nearly 8 years should be viewed within this broader spending landscape.

What are the implications of the contract's duration (2879 days) on technology relevance and contractor performance?

A contract duration of 2879 days (nearly 8 years) presents both opportunities and challenges. On the positive side, it allows for long-term planning, deep institutional knowledge development by the contractor, and potentially stable support for critical systems. However, it also carries risks related to technological obsolescence; the software and hardware supported may evolve significantly over such a long period, potentially requiring costly upgrades or making the contractor's solutions outdated. Furthermore, maintaining consistent high performance from a contractor over an extended duration requires ongoing engagement, performance monitoring, and potentially contract modifications to adapt to changing needs.

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: $56,097,529

Exercised Options: $24,716,799

Current Obligation: $24,716,799

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFACT09D00010

IDV Type: IDC

Timeline