Department of Transportation awards $198.7M contract for computer facilities management to Actionet Inc

Contract Overview

Contract Amount: $198,677,479 ($198.7M)

Contractor: Actionet Inc

Awarding Agency: Department of Transportation

Start Date: 2009-04-09

End Date: 2014-10-06

Contract Duration: 2,006 days

Daily Burn Rate: $99.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: NEW AWARD CONTRACT # DTFAWA-09-C-00009. INITIAL INCREMENTAL FUNDING TO SUPPORT CONTRACT AWARD FOR CLINS 2, 3, 4, 5, 6, 7, 8, 9, 10, 14A, 14B, 15, AND 16. TAS::69 8107::TAS

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22180

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $198.7 million to ACTIONET INC for work described as: NEW AWARD CONTRACT # DTFAWA-09-C-00009. INITIAL INCREMENTAL FUNDING TO SUPPORT CONTRACT AWARD FOR CLINS 2, 3, 4, 5, 6, 7, 8, 9, 10, 14A, 14B, 15, AND 16. TAS::69 8107::TAS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize contractor performance but requires careful oversight. 3. Initial funding is for specific CLINs, indicating a phased approach to contract execution. 4. The contract duration spans over five years, suggesting a long-term need for these services. 5. The contractor, Actionet Inc., has secured this significant award, positioning them within the federal IT services sector. 6. The North American Industry Classification System (NAICS) code 541513 points to computer facilities management services.

Value Assessment

Rating: fair

The initial incremental funding of $198.7 million for a Cost Plus Award Fee contract requires careful monitoring to ensure value for money. Without detailed performance metrics and award fee criteria, it's difficult to benchmark the true cost-effectiveness. Comparing this to similar IT facilities management contracts would be necessary to assess if the pricing is competitive, especially considering the award fee component which can increase the final cost based on performance.

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 likely had the opportunity to submit proposals. The presence of three bidders suggests a moderate level of competition for this requirement. A competitive process is generally expected to drive better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, potentially reducing overall expenditure.

Public Impact

The Federal Aviation Administration (FAA) within the Department of Transportation is the primary beneficiary, receiving essential IT facilities management services. This contract supports the operational infrastructure of the FAA, ensuring the continuity of critical aviation systems. The services delivered are crucial for maintaining the complex computer facilities that underpin air traffic control and other aviation operations. The contract is geographically focused within Virginia, where the contractor is located, implying potential local economic benefits.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to higher final costs if not managed diligently.
The long duration of the contract requires sustained oversight to ensure ongoing performance and value.
Initial funding is for specific CLINs, which could lead to scope creep or additional funding requests for unaddressed needs.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract has a defined period of performance, allowing for structured evaluation.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer facilities management. This is a critical area for government operations, encompassing the maintenance, operation, and support of IT infrastructure. The market for such services is substantial, with numerous federal agencies relying on contractors to manage their complex data centers and computing environments. Benchmarking this contract's value would involve comparing its total potential cost against similar managed IT services contracts awarded by other federal agencies or within the private sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses, although the prime contractor may engage them. The absence of a small business set-aside suggests the requirement was either too large or specialized for small business capabilities, potentially limiting direct ecosystem benefits.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would primarily reside with the contracting officer and the Federal Aviation Administration's program management office. They are responsible for monitoring performance against established award fee criteria and ensuring compliance with contract terms. Transparency is facilitated through contract award databases, but detailed performance reports and award fee determinations are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration IT Services
Department of Transportation IT Infrastructure
Computer Facilities Management Contracts
Cost Plus Award Fee Contracts
IT Operations and Maintenance

Risk Flags

Cost Plus Award Fee contract requires diligent oversight to manage potential cost overruns.
Long contract duration necessitates sustained performance monitoring.
Initial funding is incremental, requiring tracking of total obligated amounts against contract ceiling.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $198.7 million to ACTIONET INC. NEW AWARD CONTRACT # DTFAWA-09-C-00009. INITIAL INCREMENTAL FUNDING TO SUPPORT CONTRACT AWARD FOR CLINS 2, 3, 4, 5, 6, 7, 8, 9, 10, 14A, 14B, 15, AND 16. TAS::69 8107::TAS

Who is the contractor on this award?

The obligated recipient is ACTIONET INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $198.7 million.

What is the period of performance?

Start: 2009-04-09. End: 2014-10-06.

What is the track record of Actionet Inc. in performing similar federal IT facilities management contracts?

Actionet Inc.'s track record in performing similar federal IT facilities management contracts would need to be assessed through their past performance evaluations on previous government awards. This includes reviewing contractor performance assessment reporting tool (CPARS) data, if available, to understand their history of meeting cost, schedule, and performance requirements. A review of their contract portfolio would reveal the scale and complexity of previous IT management services they have delivered. Positive past performance is a strong indicator of their ability to successfully execute this current $198.7 million contract. Conversely, a history of performance issues or contract disputes could raise concerns about their capability to deliver effectively on this significant award.

How does the initial award amount of $198.7 million compare to the total potential value of the contract over its full performance period?

The initial incremental funding of $198.7 million represents the funds obligated at the time of award for specific contract line items (CLINs) and tasks. The total potential value of the contract, which extends from April 9, 2009, to October 6, 2014 (over five years), is not explicitly stated by this initial funding amount alone. Contracts, especially Cost Plus Award Fee types, often have a base amount plus options or award fee potential that can significantly increase the total value. To understand the full scope, one would need to examine the contract's ceiling price, any exercised options, and the potential payout of the award fee. Without this information, it's difficult to assess if the initial funding is proportionate to the expected work or if it signals a potential for substantial future funding increases.

What are the specific award fee criteria, and how are they structured to incentivize performance for Actionet Inc.?

The award fee criteria for this contract are not detailed in the provided data. However, for a Cost Plus Award Fee (CPAF) contract, these criteria are crucial. They typically outline specific performance objectives related to cost control, schedule adherence, technical quality, and customer satisfaction. The contractor, Actionet Inc., earns a base fee plus an award fee based on how well they meet or exceed these predefined metrics, as evaluated by the government. The structure aims to motivate the contractor to go beyond minimum requirements. A well-defined and objective set of award fee criteria is essential for ensuring that the government receives optimal value and that the contractor is appropriately rewarded for superior performance, while also managing the overall cost.

What is the historical spending pattern for computer facilities management services by the Federal Aviation Administration?

Analyzing the historical spending patterns of the Federal Aviation Administration (FAA) for computer facilities management services prior to this $198.7 million award would provide valuable context. This involves examining previous contract awards for similar services, their values, durations, and the contractors involved. Understanding trends in FAA IT spending can reveal whether this contract represents an increase, decrease, or stable level of investment in these capabilities. It can also highlight shifts in contracting strategies, such as a move towards larger, longer-term contracts or a preference for specific contract types. Such analysis helps in assessing the reasonableness of the current award amount and its alignment with the agency's long-term IT infrastructure strategy.

How does the competition level (3 bidders) impact the potential for cost savings and innovation for this contract?

A competition involving three bidders, while indicating some level of market interest, is moderate rather than robust. This level of competition suggests that while there was some price discovery, it might not have reached the optimal point for maximum cost savings or innovation. With more bidders (e.g., five or more), the government could potentially secure lower prices due to increased competitive pressure. Similarly, a larger pool of bidders might introduce more diverse technical approaches and innovative solutions. Therefore, while full and open competition was utilized, the moderate number of bidders might mean that the government could have achieved even greater value through a more intensely contested procurement process.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 2600 PARK TOWER DR STE 1000, VIENNA, VA, 22180

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Woman Owned Business

Financial Breakdown

Contract Ceiling: $3,696,526,759

Exercised Options: $198,677,479

Current Obligation: $198,677,479

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline