DOT's FAA awards $31.8M for DUAT Service to Data Transformation Corp, raising questions on value and competition

Contract Overview

Contract Amount: $31,782,781 ($31.8M)

Contractor: Data Transformation Corp

Awarding Agency: Department of Transportation

Start Date: 2008-10-01

End Date: 2015-04-16

Contract Duration: 2,388 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DIRECT USER ACCESS TERMINAL (DUAT) SERVICE

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $31.8 million to DATA TRANSFORMATION CORP for work described as: DIRECT USER ACCESS TERMINAL (DUAT) SERVICE Key points: 1. The contract awarded to Data Transformation Corp for DUAT services represents a significant investment of $31.8 million. 2. Competition details are unclear, with 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggesting potential limitations. 3. The fixed-price contract structure aims to control costs, but the overall value and effectiveness require scrutiny. 4. The IT sector, specifically computer facilities management, is the focus of this significant federal expenditure.

Value Assessment

Rating: questionable

The $31.8 million awarded for DUAT services needs comparison against similar IT infrastructure contracts. Without benchmarks for computer facilities management services, assessing the pricing's fairness is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a non-standard competitive process. This method may have limited the pool of potential bidders and impacted price discovery.

Taxpayer Impact: The $31.8 million expenditure represents taxpayer funds. The effectiveness of the procurement process in securing the best value for money is a key concern.

Public Impact

Citizens rely on the FAA for safe air travel, and the underlying IT infrastructure is critical. The duration of the contract (over 6 years) suggests a long-term reliance on the awarded services. Transparency in federal IT spending is crucial for public trust and accountability. The specific nature of DUAT services impacts pilots and air traffic control operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition concerns
Lack of clear value assessment
Potential for cost overruns despite fixed price

Positive Signals

Fixed-price contract aims for cost control
Established vendor for a critical service

Sector Analysis

This contract falls within the IT sector, specifically Computer Facilities Management Services. Federal spending in this area is substantial, and benchmarks for similar services are essential for evaluating cost-effectiveness.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract by the FAA is crucial to ensure service delivery meets requirements and that the $31.8 million investment provides adequate value. Accountability for performance and cost management should be clearly defined.

Related Government Programs

Computer Facilities Management Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition may have inflated costs.
Lack of clear per-unit cost benchmark.
Potential for vendor lock-in due to specialized services.
Long contract duration requires ongoing value assessment.
Insufficient information on small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31.8 million to DATA TRANSFORMATION CORP. DIRECT USER ACCESS TERMINAL (DUAT) SERVICE

Who is the contractor on this award?

The obligated recipient is DATA TRANSFORMATION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.8 million.

What is the period of performance?

Start: 2008-10-01. End: 2015-04-16.

What specific IT services does DUAT entail, and how do they contribute to the FAA's mission?

The DIRECT USER ACCESS TERMINAL (DUAT) service likely provides critical data and communication links for pilots and air traffic control. Its function is to ensure pilots have access to essential flight information, weather data, and filing capabilities, directly supporting aviation safety and efficiency. The $31.8 million investment suggests a significant operational role within the FAA's broader IT infrastructure.

How did the 'exclusion of sources' in the competition impact the final price and service quality?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause suggests that while the competition was intended to be open, certain sources were initially excluded. This could have limited the number of bidders, potentially reducing competitive pressure and impacting the final price. It raises questions about whether the FAA received the most advantageous offer possible or if specific capabilities were prioritized over broader market access.

What metrics are in place to measure the effectiveness and value of the DUAT service over its contract life?

Given the fixed-price nature of the contract, effectiveness is likely measured by service uptime, data accuracy, and user satisfaction. However, the $31.8 million expenditure necessitates a clear framework for assessing long-term value. Without defined performance metrics and regular reviews, it's challenging to ascertain if the investment is yielding optimal results for the FAA and taxpayers.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Data Transformation Corp.

Address: 1010 WAYNE AVE STE 1100, SILVER SPRING, MD, 20910

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $46,762,153

Exercised Options: $33,049,711

Current Obligation: $31,782,781

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline