DOT awards $43M engineering support contract to DigitaliBiz, LLC, with 3 bidders
Contract Overview
Contract Amount: $42,983,098 ($43.0M)
Contractor: Digitalibiz, LLC
Awarding Agency: Department of Transportation
Start Date: 2014-09-19
End Date: 2020-01-21
Contract Duration: 1,950 days
Daily Burn Rate: $22.0K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: EFAST 14-077-C8 CONTRACT AWARD FOR TECHNICAL, ENGINEERING, ADMINISTRATIVE AND PROGRAMMATIC SUPPORT (TEAPS) IGF::CL::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $43.0 million to DIGITALIBIZ, LLC for work described as: EFAST 14-077-C8 CONTRACT AWARD FOR TECHNICAL, ENGINEERING, ADMINISTRATIVE AND PROGRAMMATIC SUPPORT (TEAPS) IGF::CL::IGF Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition level suggests adequate market interest for this type of support. 3. Risk indicators are moderate, with potential for cost overruns in time-and-materials contracts. 4. Performance context is critical for ensuring effective technical and programmatic support. 5. Sector positioning aligns with essential engineering services for aviation infrastructure. 6. The contract was competed under Simplified Acquisition Procedures, indicating a focus on efficiency.
Value Assessment
Rating: good
The contract's total value of approximately $43 million over its 1950-day duration suggests an average annual spend of roughly $7.9 million. This figure needs to be benchmarked against similar technical, engineering, and programmatic support contracts within the Federal Aviation Administration (FAA) and the broader Department of Transportation (DOT). Without specific comparable contract data, a precise value-for-money assessment is challenging. However, the presence of multiple bidders indicates a competitive environment that likely contributed to a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a streamlined procurement process for acquisitions valued below certain thresholds. The award indicates that at least three bidders participated in the competition. A competitive process, even under SAP, generally leads to better price discovery and ensures that the government receives a fair market price. The number of bidders suggests sufficient market interest for these engineering services.
Taxpayer Impact: The competitive nature of this award, even under SAP, is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential engineering and programmatic support.
Public Impact
The Federal Aviation Administration (FAA) benefits from this contract by receiving critical technical, engineering, and programmatic support. Services delivered are essential for the planning, execution, and oversight of aviation-related projects and initiatives. The geographic impact is national, supporting FAA operations across the United States. Workforce implications include the potential for skilled engineers and program managers to be engaged through DigitaliBiz, LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
- Scope creep could increase costs beyond initial estimates without proper management.
- Reliance on a single awardee for critical support functions may pose a risk if performance falters.
Positive Signals
- The contract was competed, indicating a healthy level of market interest and potential for competitive pricing.
- The duration of the contract (1950 days) suggests a stable, long-term need for these services.
- The award to DigitaliBiz, LLC, provides continuity of essential support functions for the FAA.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is a significant segment of the federal contracting market. Engineering services are crucial for government agencies, particularly in areas like transportation infrastructure, where complex projects require specialized expertise. The FAA's reliance on such services highlights the importance of this sector for maintaining and improving national airspace systems. Comparable spending benchmarks would typically involve analyzing other large engineering support contracts awarded by DOT and its sub-agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, DigitaliBiz, LLC, is likely not a small business for the purpose of this award. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether DigitaliBiz, LLC engages small businesses as subcontractors, which is not detailed here.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Federal Aviation Administration (FAA) Operations
- Department of Transportation (DOT) Engineering Support
- Technical and Programmatic Support Services
- Simplified Acquisition Procedures (SAP) Contracts
- Time and Materials Contracts
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Need for robust oversight to manage scope and ensure quality.
- Dependence on a single contractor for critical support functions.
Tags
engineering-services, department-of-transportation, federal-aviation-administration, time-and-materials, competed, large-contract, technical-support, programmatic-support, district-of-columbia, simplified-acquisition-procedures
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $43.0 million to DIGITALIBIZ, LLC. EFAST 14-077-C8 CONTRACT AWARD FOR TECHNICAL, ENGINEERING, ADMINISTRATIVE AND PROGRAMMATIC SUPPORT (TEAPS) IGF::CL::IGF
Who is the contractor on this award?
The obligated recipient is DIGITALIBIZ, LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $43.0 million.
What is the period of performance?
Start: 2014-09-19. End: 2020-01-21.
What is the track record of DigitaliBiz, LLC in performing similar federal contracts?
Assessing the track record of DigitaliBiz, LLC requires a review of its past performance on federal contracts, particularly those involving technical, engineering, and programmatic support. This would involve examining contract histories for on-time delivery, adherence to budget, quality of work, and any past performance issues or disputes. A detailed analysis would look at the size and complexity of previous contracts awarded to DigitaliBiz, LLC, and compare them to the current $43 million DOT contract. Information from sources like the Federal Procurement Data System (FPDS) and contractor performance assessment reporting (CPARS) would be crucial for a comprehensive evaluation of their capabilities and reliability.
How does the pricing of this contract compare to similar engineering support contracts within the FAA?
To compare the pricing of this $43 million contract, one would need to identify comparable contracts awarded by the FAA for similar engineering, technical, and programmatic support services. This involves looking at contracts with similar scopes of work, durations, and labor categories. Benchmarking would focus on the average hourly rates for key personnel, the total contract value relative to the period of performance, and the overall cost-effectiveness. Without access to detailed pricing data for comparable contracts, a definitive assessment of whether this award represents excellent, good, or fair value is difficult. However, the competitive nature of the award suggests that pricing was likely within a reasonable market range.
What are the primary risks associated with this Time and Materials (T&M) contract?
The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. If not managed diligently, this can lead to costs exceeding initial estimates, especially if the scope of work is not clearly defined or if there are inefficiencies in the contractor's performance. Other risks include scope creep, where the project expands beyond its original objectives, and potential quality issues if the focus shifts solely to completing hours rather than achieving specific outcomes. Robust oversight, clear task orders, and regular performance reviews are essential to mitigate these risks.
How effective has DigitaliBiz, LLC been in delivering technical, engineering, and programmatic support in past engagements?
Evaluating the effectiveness of DigitaliBiz, LLC requires examining their past performance data. This would involve reviewing Contractor Performance Assessment Reporting System (CPARS) reports, which provide ratings on factors like technical quality, cost control, schedule adherence, and management of small business subcontracting. Analyzing the outcomes and impact of their previous support services for government agencies would also be key. Were projects completed successfully? Did their support contribute to achieving agency goals? Understanding their historical effectiveness provides insight into the likelihood of success for this current $43 million DOT contract.
What has been the historical spending trend for similar engineering support services at the FAA?
Analyzing historical spending trends for similar engineering support services at the FAA is crucial for contextualizing the $43 million award to DigitaliBiz, LLC. This involves examining aggregate spending data over several fiscal years for contracts categorized under engineering services, technical support, and programmatic management. Understanding whether spending in this area has been increasing, decreasing, or remaining stable can indicate shifts in agency priorities, project pipelines, or contracting strategies. Comparing the current award amount to historical averages and peaks can help determine if this contract represents a typical investment or a significant deviation, potentially signaling new initiatives or increased demand for these services.
What is the significance of this contract being awarded under Simplified Acquisition Procedures (SAP)?
The significance of this contract being awarded under Simplified Acquisition Procedures (SAP) lies in its streamlined nature and the emphasis on efficiency for procurements below certain dollar thresholds (typically $250,000, though specific agency rules may apply, and this contract is significantly larger, suggesting it might have been a BPA call under SAP or a specific exception). SAP aims to reduce administrative burden and expedite the acquisition process. For a contract valued at $43 million, its award under SAP (or a BPA call issued under SAP) suggests that the procurement likely involved pre-competed vehicles or specific justifications for using simplified procedures. This approach prioritizes speed and cost-effectiveness in obtaining necessary services, assuming adequate competition is still sought.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 9210 CORPORATE BLVD STE 410, ROCKVILLE, MD, 20850
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,861,173
Exercised Options: $42,983,098
Current Obligation: $42,983,098
Actual Outlays: $5,144,445
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DTFAWA10A00007
IDV Type: BPA
Timeline
Start Date: 2014-09-19
Current End Date: 2020-01-21
Potential End Date: 2020-05-23 00:00:00
Last Modified: 2025-02-11
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