DOT's $29.5M contract for remote maintenance systems engineering support awarded to ENROUTE COMPUTER SOLUTIONS INC

Contract Overview

Contract Amount: $29,555,494 ($29.6M)

Contractor: Enroute Computer Solutions Inc

Awarding Agency: Department of Transportation

Start Date: 2009-07-16

End Date: 2017-06-30

Contract Duration: 2,906 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TO ESTABLISH THE INITIAL DELIVERY ORDER FOR THE REMOTE MAINTENANCE SYSTEMS ENGINEERING TEAM (RMSET)SUPPORT UNDER THE SOS-8 CONTRACT.

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $29.6 million to ENROUTE COMPUTER SOLUTIONS INC for work described as: TO ESTABLISH THE INITIAL DELIVERY ORDER FOR THE REMOTE MAINTENANCE SYSTEMS ENGINEERING TEAM (RMSET)SUPPORT UNDER THE SOS-8 CONTRACT. Key points: 1. Value for money appears fair given the 8-year duration and the nature of specialized engineering support. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Risk indicators are moderate, with a long performance period potentially leading to scope creep or cost overruns if not managed closely. 4. Performance context shows this is a delivery order under a larger SOS-8 contract, indicating a phased approach to service acquisition. 5. This contract falls within the IT services sector, specifically focusing on computer-related services. 6. The contract's value is spread over a significant period, making direct year-over-year comparisons less straightforward.

Value Assessment

Rating: fair

The contract's total value of approximately $29.5 million over nearly 8 years suggests an average annual spend of around $3.7 million. Benchmarking this against similar IT engineering support contracts is challenging without more specific service details. However, the duration and the nature of specialized engineering services indicate a potentially reasonable, though not exceptionally low, cost. The Time and Materials (T&M) pricing structure, while flexible, can pose a risk for cost control if not diligently monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this specific delivery order. While more than one bidder participated, the exact number of potential bidders and the intensity of the competition are not detailed, which could influence price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service quality.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering support for remote maintenance systems. Services delivered likely include system design, integration, testing, and ongoing technical support for critical aviation infrastructure. The geographic impact is primarily within New Jersey, where the contractor is located, but the systems supported are likely national. Workforce implications include the employment of skilled engineers and technical personnel by ENROUTE COMPUTER SOLUTIONS INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed and monitored.
The long contract duration (nearly 8 years) increases the risk of scope creep and potential inefficiencies.
Lack of specific performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract is a delivery order under a larger IDIQ, which can sometimes obscure the true total cost and scope of work.

Positive Signals

Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contractor, ENROUTE COMPUTER SOLUTIONS INC., has secured a significant contract, indicating a level of trust and capability.
The contract supports critical FAA systems, contributing to the safety and efficiency of air traffic control.
The long-term nature of the contract provides stability for both the agency and the contractor.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically under the 'Other Computer Related Services' NAICS code (541519). This category encompasses a wide range of IT support, including systems engineering, integration, and maintenance. The market for such services is highly competitive, with numerous firms offering specialized expertise. The FAA's spending in this area is crucial for maintaining and upgrading complex air traffic management systems, representing a significant portion of the agency's IT budget.

Small Business Impact

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

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. The contract's performance would be monitored against the terms and conditions outlined in the delivery order and the parent SOS-8 contract. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

SOS-8 Contract
FAA IT Support Services
Air Traffic Control Systems Engineering
Remote Maintenance Systems

Risk Flags

Time and Materials Pricing
Long Contract Duration
Lack of Specific Performance Metrics
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $29.6 million to ENROUTE COMPUTER SOLUTIONS INC. TO ESTABLISH THE INITIAL DELIVERY ORDER FOR THE REMOTE MAINTENANCE SYSTEMS ENGINEERING TEAM (RMSET)SUPPORT UNDER THE SOS-8 CONTRACT.

Who is the contractor on this award?

The obligated recipient is ENROUTE COMPUTER SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.6 million.

What is the period of performance?

Start: 2009-07-16. End: 2017-06-30.

What is the track record of ENROUTE COMPUTER SOLUTIONS INC. with federal contracts, particularly with the FAA?

ENROUTE COMPUTER SOLUTIONS INC. has a history of securing federal contracts, including those with the Department of Transportation and its agencies like the FAA. Analyzing their past performance on similar IT services and systems engineering contracts would provide insight into their reliability, quality of work, and ability to manage complex projects. A review of their contract history might reveal patterns in contract types (e.g., T&M vs. fixed-price), award values, and any reported performance issues or successes. Understanding their experience with Time and Materials contracts specifically is important, as this pricing model requires robust oversight to ensure cost efficiency and prevent overruns. Their success in winning this nearly $30 million delivery order suggests a competitive capability and a positive past performance record with the government.

How does the cost of this contract compare to similar IT engineering support services procured by the FAA or other federal agencies?

Directly comparing the cost of this $29.5 million contract for remote maintenance systems engineering support is challenging without detailed service level agreements and specific deliverables. However, the average annual cost of approximately $3.7 million ($29.5M / ~8 years) can be benchmarked against industry rates for specialized IT engineering talent. The Time and Materials (T&M) pricing structure means the final cost is dependent on the hours worked and the rates charged. To assess value for money, one would need to compare the contractor's labor rates against market averages for similar skill sets and analyze the efficiency and effectiveness of the services delivered against the total expenditure. A deeper dive into the specific tasks performed and the personnel hours billed would be necessary for a precise value assessment.

What are the primary risks associated with this Time and Materials (T&M) contract, and how are they being mitigated?

The primary risk with this Time and Materials (T&M) contract is the potential for cost overruns due to a lack of a fixed ceiling on total expenditure. Without careful monitoring and management, the contractor could incur significant hours, driving up the total cost beyond initial expectations. Scope creep is another significant risk, where the project's requirements expand over the long duration without corresponding adjustments to budget or schedule. Mitigation strategies typically involve strong contract oversight by the FAA, including detailed review of timesheets, regular progress reports, clearly defined task orders, and established not-to-exceed (NTE) limits within the contract. Effective communication and performance management are crucial to ensure the contractor remains focused on the defined objectives and delivers value within reasonable cost parameters.

How effective has ENROUTE COMPUTER SOLUTIONS INC. been in delivering services under this contract, based on available performance data?

Assessing the effectiveness of ENROUTE COMPUTER SOLUTIONS INC. under this specific contract is difficult without access to detailed performance metrics, quality reviews, or user feedback. The provided data indicates the contract duration and value but lacks specific performance indicators or outcomes. Typically, contract effectiveness is measured against pre-defined objectives, key performance indicators (KPIs), and service level agreements (SLAs). For a contract of this nature, effectiveness might be gauged by system uptime, reduction in maintenance-related disruptions, successful implementation of system upgrades, or responsiveness to technical issues. Without such data, a definitive assessment of effectiveness cannot be made solely from the contract award information.

What has been the historical spending pattern for remote maintenance systems engineering support by the FAA, and how does this contract fit in?

Analyzing historical spending patterns for similar services by the FAA is crucial for context. This $29.5 million contract, awarded in 2009 and ending in 2017, represents a significant investment over its 8-year period. To understand its place in historical spending, one would need to examine FAA budgets allocated to IT services, systems engineering, and maintenance support over that timeframe. Comparing the annual average spend of ~$3.7 million to previous or subsequent contracts for similar functions would reveal whether this represented a typical, increased, or decreased level of investment. Understanding these patterns helps in evaluating whether the FAA's resource allocation for such critical support functions has been consistent or has fluctuated based on evolving needs or budget constraints.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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

Address: 2511 FIRE RD STE A4, EGG HARBOR TOWNSHIP, NJ, 08234

Business Categories: Category Business, Government, U.S. National Government, Small Business

Financial Breakdown

Contract Ceiling: $40,861,282

Exercised Options: $29,555,494

Current Obligation: $29,555,494

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFACT09D00012

IDV Type: IDC

Timeline