DOT's FAA spent over $20M on NextGen project management support, raising value-for-money questions

Contract Overview

Contract Amount: $20,181,508 ($20.2M)

Contractor: Digitalibiz, LLC

Awarding Agency: Department of Transportation

Start Date: 2014-09-24

End Date: 2019-12-24

Contract Duration: 1,917 days

Daily Burn Rate: $10.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEXTGEN PRE-IMPLEMENTATION PROJECT MANAGEMENT SUPPORT&PORTFOLIO COORDINATION IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $20.2 million to DIGITALIBIZ, LLC for work described as: NEXTGEN PRE-IMPLEMENTATION PROJECT MANAGEMENT SUPPORT&PORTFOLIO COORDINATION IGF::CL::IGF Key points: 1. The contract's duration of nearly 2 years and time-and-materials pricing structure may have contributed to higher costs. 2. While competed, the limited number of bidders (3) warrants further scrutiny of the pricing and value received. 3. The lack of specific performance metrics or clear deliverables in the provided data makes assessing effectiveness challenging. 4. This contract falls within the 'Engineering Services' NAICS code, indicating a focus on technical and project management expertise. 5. The significant expenditure on support services highlights the complexity and resource demands of large-scale federal IT modernization efforts.

Value Assessment

Rating: questionable

The total award amount of over $20 million for project management support over approximately 1917 days (nearly 5.3 years) appears substantial. Without detailed task orders or performance reports, it's difficult to benchmark the value for money. The time-and-materials pricing model, while flexible, can sometimes lead to cost overruns if not tightly managed. Comparing this to similar project management support contracts for large IT initiatives within the federal government would be necessary for a more definitive assessment of its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was intended for smaller procurements, though the award amount is significant. Three bidders participated in this competition. While competition existed, the limited number of bidders for a contract of this value might indicate potential barriers to entry or a specialized market. Further details on the bidding process and evaluation criteria would be needed to fully assess the impact on price discovery.

Taxpayer Impact: For taxpayers, a competitive process, even with a limited number of bidders, is generally preferable to a sole-source award. However, the effectiveness of this competition in driving down costs is uncertain without more information on the bids received and the final negotiated price.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and its NextGen air traffic control modernization program, which receives crucial project management and coordination support. The services delivered include project management, portfolio coordination, and potentially strategic guidance for the complex NextGen initiative. The geographic impact is primarily within the District of Columbia, where the contractor is located, but the ultimate impact is on national airspace safety and efficiency. The contract supports a workforce of professionals skilled in project management, IT, and aviation systems, contributing to specialized federal contracting employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time-and-materials pricing can lead to unpredictable costs if not closely monitored.
The duration of the contract (nearly 5.3 years) is quite long, increasing the potential for scope creep or evolving requirements.
Limited number of bidders (3) in a competed contract of this size raises questions about the breadth of competition.
Lack of specific performance metrics makes it hard to gauge the contractor's effectiveness and value.
The contract is for 'support' services, which can sometimes be less clearly defined than direct service delivery.

Positive Signals

The contract was competed, indicating an effort to achieve fair pricing through market mechanisms.
The contractor, DIGITALIBIZ, LLC, was awarded the contract, suggesting they met the necessary qualifications.
The services provided are critical for the complex and important NextGen program.

Sector Analysis

This contract falls under the Engineering Services (NAICS 541330) sector, which encompasses firms providing engineering consulting and project management for various infrastructure and technology projects. The federal government is a major consumer of these services, particularly for large-scale modernization efforts like the FAA's NextGen program. Spending in this category often involves significant sums due to the complexity and long-term nature of the projects. Comparable spending benchmarks would typically look at the total cost of project management support across similar large-scale federal IT or infrastructure initiatives.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a competed contract under SAP, it's possible small businesses could have bid, but the award went to DIGITALIBIZ, LLC. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem. Without specific set-aside goals or subcontracting requirements, the direct impact on small businesses is unclear, though they may participate as subcontractors if required by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration (FAA) contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance reports and task order specifics are often not publicly available.

Related Government Programs

FAA NextGen Program
Air Traffic Control Modernization
Federal IT Project Management Support
Engineering Consulting Services
Department of Transportation IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing
Long contract duration may exceed actual needs or lead to scope creep
Limited competition (3 bidders) for a significant contract value
Lack of specific performance metrics makes value assessment difficult

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.2 million to DIGITALIBIZ, LLC. NEXTGEN PRE-IMPLEMENTATION PROJECT MANAGEMENT SUPPORT&PORTFOLIO COORDINATION 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 $20.2 million.

What is the period of performance?

Start: 2014-09-24. End: 2019-12-24.

What was the specific scope of work and key deliverables for this 'NEXTGEN PRE-IMPLEMENTATION PROJECT MANAGEMENT SUPPORT&PORTFOLIO COORDINATION' contract?

The provided data offers only the contract title and award amount, not the detailed scope of work or specific deliverables. Typically, 'Pre-Implementation Project Management Support & Portfolio Coordination' for a program like NextGen would involve activities such as strategic planning, requirements definition, risk management, stakeholder coordination, budget tracking, and portfolio analysis to ensure the foundational elements of the NextGen program were effectively managed before full-scale implementation. Without access to the contract's Statement of Work (SOW) or task orders, the precise nature of the services rendered and the expected outcomes remain undefined.

How does the $20.18 million award compare to typical spending on similar project management support contracts within the FAA or DOT?

Benchmarking this $20.18 million award requires comparing it to contracts with similar scopes (project management, portfolio coordination) and durations (nearly 5.3 years) within the FAA or Department of Transportation. Large-scale IT modernization programs often require substantial support, and costs can range widely based on complexity, duration, and the specific services required. Without access to a database of comparable contracts, it's difficult to definitively state if this amount is high or low. However, given the critical nature and scale of the NextGen program, significant investment in management support is expected, but value-for-money assessments would necessitate detailed performance data and comparison points.

What were the primary risks identified during the solicitation and award process for this contract, and how were they mitigated?

The provided data does not include information on the risks identified during the solicitation and award process. For a contract competed under SAP with three bidders, potential risks could include insufficient competition leading to higher prices, contractor performance issues, or challenges in defining the precise requirements for pre-implementation support. Mitigation strategies would typically involve thorough market research, clear solicitation documents, robust evaluation criteria, and contract management plans. The long duration and time-and-materials nature of the contract might also present risks related to cost control and scope management, which would ideally be addressed through strong oversight and defined ceilings.

What is the track record of DIGITALIBIZ, LLC in performing federal contracts, particularly those related to large-scale IT or infrastructure projects?

The provided data identifies DIGITALIBIZ, LLC as the contractor but does not offer details on their past performance or track record with federal contracts. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported issues, and the types and values of previous awards. Understanding their experience with similar projects, especially within the FAA or DOT, would be crucial for evaluating their capability to deliver on the NextGen support contract. Without this historical data, it's challenging to assess their reliability and expertise.

How has federal spending on air traffic control modernization, specifically the NextGen program, evolved over the past decade, and where does this contract fit in?

Federal spending on air traffic control modernization, particularly the NextGen program, has been a multi-billion dollar, multi-year endeavor aimed at replacing the legacy system with satellite-based technology. This contract, awarded in late 2014 and ending in late 2019, represents a portion of the overall investment in the program's foundational stages ('Pre-Implementation'). It falls under the broader category of IT and engineering services supporting this massive technological overhaul. Tracking historical spending patterns would involve analyzing appropriations and obligations for NextGen across various agencies and contract types over time to understand the allocation of funds towards different components, including project management support.

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 130, 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: $20,640,938

Exercised Options: $20,181,508

Current Obligation: $20,181,508

Actual Outlays: $2,501,209

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA10A00007

IDV Type: BPA

Timeline