DOT's FAA awarded $30.7M for systems engineering support, highlighting a need for specialized IT services

Contract Overview

Contract Amount: $30,688,742 ($30.7M)

Contractor: FSC Edge Corp.

Awarding Agency: Department of Transportation

Start Date: 2007-04-08

End Date: 2008-09-30

Contract Duration: 541 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SYSTEMS ENGINEERING SERVICES AND SUPPORT CONTRACT FOR SYSTEM OPERATIONS PROGRAMS (VENDOR & CONTRACT NUMBER TO BE DETERMINED). ALG #'S: 07-AJRTFMM-7002; PERIOD OF PERFORMANCE APRIL 09, 2007 THRU APRIL 9, 2008

Place of Performance

Location: BOULDER, BOULDER County, COLORADO, 80305

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $30.7 million to FSC EDGE CORP. for work described as: SYSTEMS ENGINEERING SERVICES AND SUPPORT CONTRACT FOR SYSTEM OPERATIONS PROGRAMS (VENDOR & CONTRACT NUMBER TO BE DETERMINED). ALG #'S: 07-AJRTFMM-7002; PERIOD OF PERFORMANCE APRIL 09, 2007 THRU APRIL 9, 2008 Key points: 1. Contract awarded for essential systems engineering and support services for critical FAA operations. 2. The contract duration of 541 days indicates a focused, short-term need for specific technical expertise. 3. Awarded via full and open competition, suggesting a robust market for these services. 4. The cost-plus-fixed-fee structure implies potential for cost overruns if not managed carefully. 5. This contract falls under 'Other Computer Related Services,' a broad category within IT. 6. The vendor, FSC EDGE CORP., has secured a significant award for specialized support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more granular data on the specific services rendered. The cost-plus-fixed-fee (CPFF) pricing structure can sometimes lead to higher costs than fixed-price contracts if not tightly managed. However, CPFF is often used when the scope of work is not fully defined at the outset, allowing for flexibility. Comparing this to similar systems engineering contracts awarded by the FAA or other agencies would provide better context on whether the $30.7 million represents a fair price for the services delivered over its 541-day period of performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. This process generally fosters a competitive environment, encouraging vendors to offer competitive pricing and innovative solutions. The presence of three bidders (no: 3) suggests a reasonable level of interest in the contract, though a higher number of bidders could potentially drive prices down further. The agency's choice of full and open competition is a positive sign for market engagement.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider range of technical solutions, maximizing the value of federal dollars.

Public Impact

The Federal Aviation Administration (FAA) benefits directly through enhanced systems engineering and operational support. This contract supports the ongoing operations and potential upgrades of critical aviation systems. The primary beneficiaries are the FAA's program managers and technical staff who rely on this expertise. Workforce implications are likely limited to the contractor's personnel, with no direct federal hiring expected.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to cost overruns if not closely monitored.
Short contract duration (541 days) might indicate a temporary need or a precursor to a larger, undefined requirement.
Limited public information on the specific deliverables makes assessing performance difficult.
The 'Other Computer Related Services' NAICS code is very broad, obscuring the precise nature of the work.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and competitive pricing.
The contract addresses a clear need for specialized systems engineering and support within the FAA.
The vendor, FSC EDGE CORP., has been selected to provide critical services, indicating a level of trust and capability.

Sector Analysis

This contract falls under the 'Other Computer Related Services' (NAICS 541519) sector, which is a component of the broader Information Technology (IT) services market. This market is characterized by rapid technological advancements and a high demand for specialized expertise in areas like systems engineering, software development, and IT support. The FAA, as a major government entity, frequently procures such services to maintain and modernize its complex operational infrastructure. Comparable spending benchmarks for similar systems engineering contracts within the federal government can vary widely based on scope, duration, and complexity.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss: false, sb: false). As such, the primary contractor, FSC EDGE CORP., will likely manage the entire scope of work. There is no explicit information provided regarding subcontracting plans or requirements for small business participation. This means that opportunities for small businesses to engage with this specific contract are likely limited unless the prime contractor voluntarily includes them in their supply chain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA) contracting officers and program managers. As a cost-plus-fixed-fee contract, rigorous oversight of expenditures and performance is crucial to ensure cost control and value for money. Transparency is facilitated through standard federal procurement reporting mechanisms. While specific Inspector General (IG) jurisdiction isn't detailed here, the DOT OIG generally has oversight over FAA programs and contracts, investigating fraud, waste, and abuse.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Department of Transportation IT Services
Federal Systems Engineering Support Contracts
Cost-Plus-Fixed-Fee IT Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Broad NAICS code limits specificity of services.
Short performance period may indicate project instability or limited scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $30.7 million to FSC EDGE CORP.. SYSTEMS ENGINEERING SERVICES AND SUPPORT CONTRACT FOR SYSTEM OPERATIONS PROGRAMS (VENDOR & CONTRACT NUMBER TO BE DETERMINED). ALG #'S: 07-AJRTFMM-7002; PERIOD OF PERFORMANCE APRIL 09, 2007 THRU APRIL 9, 2008

Who is the contractor on this award?

The obligated recipient is FSC EDGE CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $30.7 million.

What is the period of performance?

Start: 2007-04-08. End: 2008-09-30.

What specific systems engineering tasks were performed under this contract?

The provided data does not detail the specific systems engineering tasks performed. The NAICS code 541519 ('Other Computer Related Services') is broad and encompasses a wide range of IT support activities. To understand the precise deliverables, one would need to consult the contract's Statement of Work (SOW) or performance reports. These tasks could range from requirements analysis, system design, integration, testing, and lifecycle support for various FAA operational systems. Without the SOW, it's impossible to ascertain the exact nature of the services rendered for the $30.7 million awarded.

How does the $30.7 million cost compare to similar FAA systems engineering contracts?

Direct comparison of the $30.7 million cost is difficult without knowing the specific scope, duration, and complexity of the services rendered. However, the contract's duration was approximately 1.5 years (541 days). If we consider the total value, the average monthly cost was roughly $567,000 ($30.7M / 18 months). This figure needs to be benchmarked against other FAA contracts for similar systems engineering and IT support services, considering factors like the criticality of the systems supported, the level of expertise required, and the number of personnel involved. A detailed analysis would require access to a broader dataset of comparable FAA contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for systems engineering?

The primary risk with a CPFF contract is the potential for cost overruns. While the 'fixed fee' provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed estimates due to inefficiencies, scope creep not properly managed, or unforeseen technical challenges, the government bears the financial burden. For the FAA, this could mean paying more than initially budgeted for systems engineering support. Effective oversight, clear performance metrics, and stringent cost controls are essential to mitigate these risks.

What was the historical spending trend for systems engineering services at the FAA prior to this contract?

The provided data only includes details for this specific contract (2007-2008). To analyze historical spending trends for FAA systems engineering services, one would need access to historical procurement data covering multiple fiscal years. This would involve querying federal procurement databases (like USASpending.gov or FPDS) for contracts awarded by the FAA under relevant NAICS codes (e.g., 541519, 541330 - Engineering Services) and service categories related to systems engineering. Analyzing these trends would reveal patterns in spending, identify major vendors, and highlight shifts in technology or program priorities.

What is the track record of FSC EDGE CORP. in providing similar services to the federal government?

The provided data identifies FSC EDGE CORP. as the contractor but does not offer details on their track record. To assess their performance history, one would need to research their past federal contract awards, including contract values, performance ratings (if available), and any past performance issues or commendations. Databases like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting tools (e.g., CPARS) would be valuable resources. Understanding their experience with similar systems engineering and IT support contracts, particularly within aviation or similarly complex environments, is crucial for evaluating their capability to fulfill this FAA requirement.

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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2555 55TH ST STE 100D, BOULDER, CO, 80301

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $1,126,597,897

Exercised Options: $30,688,742

Current Obligation: $30,688,742

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline