Transportation research contract awarded to National Academy of Sciences for over $73 million

Contract Overview

Contract Amount: $73,093,103 ($73.1M)

Contractor: National Academy of Sciences

Awarding Agency: Department of Transportation

Start Date: 2005-10-25

End Date: 2010-06-05

Contract Duration: 1,684 days

Daily Burn Rate: $43.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: ADMINISTER AIRPORT COOPERATIVE RESEARCH PROGRAM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20418

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $73.1 million to NATIONAL ACADEMY OF SCIENCES for work described as: ADMINISTER AIRPORT COOPERATIVE RESEARCH PROGRAM. Key points: 1. Contract focused on cooperative research for airport administration. 2. Long duration of over 4 years suggests a sustained need for research services. 3. Sole-source award indicates limited market options or specific expertise required. 4. Firm fixed-price contract type provides cost certainty for the government. 5. Research likely informs policy and operational improvements within the FAA. 6. High dollar value suggests significant investment in aviation research.

Value Assessment

Rating: fair

The contract's value of over $73 million over approximately 5.5 years represents a substantial investment in research. Benchmarking this specific type of cooperative research program is challenging due to its unique nature. However, the firm fixed-price structure suggests an attempt to control costs. Without more comparable contracts for similar broad-scope airport research, a definitive value-for-money assessment is difficult, but the duration and cost indicate a significant commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor was considered. This typically occurs when a specific entity possesses unique qualifications, capabilities, or intellectual property essential for the requirement. In this case, the National Academy of Sciences is known for its independent, objective research and advisory services, often convened for complex national issues. The lack of competition means potential cost savings from a competitive bidding process were not realized.

Taxpayer Impact: Sole-source awards can sometimes lead to higher prices than competitively bid contracts, as the government does not benefit from market forces driving down costs. Taxpayers may bear a higher cost for the services rendered.

Public Impact

Benefits federal agencies like the FAA by providing research-backed insights for airport administration. Services delivered include research, analysis, and recommendations on various airport-related topics. Geographic impact is national, influencing airport operations and policies across the United States. Workforce implications may include supporting researchers and subject matter experts involved in the studies. The research aims to improve the safety, efficiency, and sustainability of the national airport system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive opportunities and potential cost savings.
Long contract duration may not always align with rapidly evolving research needs.
Lack of transparency in the sole-source justification process can be a concern.

Positive Signals

National Academy of Sciences is a highly respected institution for objective research.
Firm fixed-price contract provides budget certainty.
Sustained funding supports in-depth, impactful research for critical infrastructure.

Sector Analysis

The aviation sector relies heavily on research and development to improve safety, efficiency, and environmental performance. Contracts like this, focused on cooperative research programs, are crucial for advancing knowledge in areas such as airport design, air traffic management, and environmental impact mitigation. The National Academy of Sciences is a key player in providing independent scientific and technical advice to the government, often undertaking studies that inform regulatory and policy decisions within the Federal Aviation Administration and the broader transportation sector.

Small Business Impact

This contract was not competed and did not include small business set-asides. As a sole-source award to a large, established research institution, there are no direct subcontracting opportunities for small businesses indicated within the award details. The focus is on specialized research expertise rather than broad service delivery where small businesses typically participate.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. The National Academy of Sciences, as an independent entity, has its own internal review processes for research integrity and quality. Transparency is generally maintained through the publication of research findings, although the initial sole-source justification process might have limited public visibility. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Airport Improvement Program (AIP)
NextGen Air Transportation System
National Cooperative Highway Research Program (NCHRP)
Aviation Safety Research

Risk Flags

Sole-source award
High contract value
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $73.1 million to NATIONAL ACADEMY OF SCIENCES. ADMINISTER AIRPORT COOPERATIVE RESEARCH PROGRAM.

Who is the contractor on this award?

The obligated recipient is NATIONAL ACADEMY OF SCIENCES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $73.1 million.

What is the period of performance?

Start: 2005-10-25. End: 2010-06-05.

What is the specific scope of research covered under this "Administer Airport Cooperative Research Program" contract?

The "Administer Airport Cooperative Research Program" (ACRP) contract awarded to the National Academy of Sciences (NAS) is designed to facilitate research that addresses challenges facing airport operators and the aviation industry. The scope is broad and typically includes areas such as airport planning and design, environmental impacts, safety and security, infrastructure maintenance, and airport management and finance. The NAS, through its Transportation Research Board (TRB), convenes expert panels to identify research needs, solicit proposals, manage research projects, and disseminate findings. The goal is to provide practical, actionable research results that can be implemented by airports and regulatory bodies to improve operations, enhance safety, and promote sustainability within the national airport system.

How does the National Academy of Sciences' expertise justify a sole-source award for airport research?

The National Academy of Sciences (NAS), particularly through its Transportation Research Board (TRB), is uniquely positioned to administer cooperative research programs due to its long-standing reputation for providing independent, objective, and authoritative scientific and technical advice. Its sole-source justification often stems from its established convening authority, its ability to attract leading experts from academia, industry, and government on a pro bono or low-cost basis, and its proven track record in managing complex research agendas. For programs like the Airport Cooperative Research Program (ACRP), the NAS provides a neutral platform for collaboration among diverse stakeholders (e.g., FAA, airports, airlines) and ensures the integrity and quality of the research process, which are difficult to replicate through competitive means.

What are the potential risks associated with a sole-source award of this magnitude and duration?

A sole-source award of over $73 million for a duration of approximately 5.5 years carries several potential risks. Firstly, the absence of competition means the government may not achieve the lowest possible price for the services, potentially leading to reduced value for taxpayer money. Secondly, without the pressure of competition, there might be less incentive for the contractor to innovate or operate with maximum efficiency. Thirdly, a long-term sole-source contract can create vendor lock-in, making it difficult to switch to alternative providers or adopt new approaches if circumstances change. Finally, the lack of a competitive process can sometimes raise concerns about transparency and fairness, even if the chosen contractor is highly qualified.

How does the firm fixed-price contract type benefit the FAA in this research program?

The firm fixed-price (FFP) contract type provides significant cost certainty for the Federal Aviation Administration (FAA) in this research program. Under an FFP agreement, the contractor, the National Academy of Sciences (NAS), is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This shifts the risk of cost overruns from the government to the contractor. For the FAA, this means they know the total expenditure for the research services upfront, simplifying budget management and financial planning. While it may require a higher initial price compared to cost-reimbursement contracts to account for contractor risk, it protects the government from unexpected cost increases and provides a clear ceiling for the project's financial scope.

What is the historical spending pattern for airport cooperative research programs, and how does this contract compare?

Airport Cooperative Research Programs (ACRPs) are typically funded through a dedicated allocation from airport operating revenues, often managed by the Federal Aviation Administration (FAA). Historical spending has shown a consistent commitment to these programs, reflecting the ongoing need for research to address evolving challenges in airport management, safety, and infrastructure. Contracts for administering these programs, often awarded to institutions like the National Academy of Sciences (NAS), tend to be substantial due to the program's scope and duration. The $73 million awarded over approximately 5.5 years for the ACRP administration is in line with previous significant investments in such foundational research initiatives, indicating a sustained federal priority on advancing airport operations through research.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2101 CONSTITUTION AVE NW, WASHINGTON, DC, 20418

Business Categories: Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Small Business

Financial Breakdown

Contract Ceiling: $75,327,734

Exercised Options: $73,093,103

Current Obligation: $73,093,103

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline