DOT's FAA awarded $18.9M for custom programming, with 8 bidders competing

Contract Overview

Contract Amount: $18,921,348 ($18.9M)

Contractor: Dassault Systemes Americas Corp.

Awarding Agency: Department of Transportation

Start Date: 2010-03-01

End Date: 2019-12-22

Contract Duration: 3,583 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: COMPUTER PROGRAMMING SERVICES

Place of Performance

Location: WAYNE, ADAMS County, PENNSYLVANIA, 19087

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Transportation obligated $18.9 million to DASSAULT SYSTEMES AMERICAS CORP. for work described as: COMPUTER PROGRAMMING SERVICES Key points: 1. Value for money appears fair given the 8 bidders and contract duration. 2. Competition dynamics were strong with a full and open solicitation. 3. Risk indicators are moderate, with a Cost Plus Fixed Fee structure. 4. Performance context is a long-term contract for essential IT services. 5. Sector positioning is within the custom computer programming services sub-sector.

Value Assessment

Rating: fair

The contract's total value of $18.9 million over nearly 10 years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts is challenging without more specific service details. However, the presence of 8 bidders in a full and open competition indicates a potentially competitive pricing environment, which could lead to reasonable value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The solicitation attracted 8 bidders, indicating a healthy level of interest and competition for this type of service. This robust competition is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: Taxpayers likely benefited from a competitive bidding process that aimed to secure the best possible price for the required custom computer programming services.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving custom computer programming services. These services likely support critical aviation systems and infrastructure management. The geographic impact is national, supporting FAA operations across the United States. Workforce implications may include IT professionals and programmers involved in software development and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Long contract durations (nearly 10 years) may lead to technology obsolescence if not managed proactively.

Positive Signals

Full and open competition suggests a wide pool of potential contractors was considered.
The presence of 8 bidders indicates significant market interest and potential for competitive pricing.
The contract was awarded to a single entity, suggesting a clear selection process.

Sector Analysis

The custom computer programming services sector (NAICS 541511) is a significant part of the IT services industry. Federal spending in this area supports the development and maintenance of specialized software for government operations. This contract fits within the broader category of IT services procured by federal agencies to meet unique operational needs, often involving complex systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside. The primary contractor, DASSAULT SYSTEMES AMERICAS CORP., is likely a large business, and the contract's value suggests it was awarded to a significant player in the IT services market.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the FAA. Accountability measures would be defined in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may not be.

Related Government Programs

IT Services
Software Development
Custom Programming
Federal Aviation Administration IT Procurement
Department of Transportation IT Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Cost Plus Fixed Fee contracts require diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18.9 million to DASSAULT SYSTEMES AMERICAS CORP.. COMPUTER PROGRAMMING SERVICES

Who is the contractor on this award?

The obligated recipient is DASSAULT SYSTEMES AMERICAS CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2010-03-01. End: 2019-12-22.

What specific types of custom computer programming services were procured under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511). However, it does not detail the specific nature of these services. Typically, this category encompasses designing, developing, and testing software and systems for clients. For the FAA, these services could range from air traffic control system enhancements, data analysis tools, simulation software, to internal administrative system development. Further details would be found in the contract's Statement of Work (SOW).

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact cost control compared to other contract types?

A Cost Plus Fixed Fee (CPFF) contract type, like the one used here, reimburses the contractor for allowable costs plus a fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as they don't earn more profit by spending more), it generally offers less cost control for the government compared to fixed-price contracts. If costs escalate beyond initial estimates, the government still pays the actual costs incurred, plus the predetermined fee. This structure is often used when the scope of work is not precisely defined or involves significant uncertainty, but it requires diligent government oversight to manage potential cost overruns.

What is the significance of the contract's duration (3583 days) in terms of technological relevance and potential risks?

A contract duration of 3583 days, approximately 9.8 years, is substantial in the fast-paced IT sector. This long duration poses a risk of technological obsolescence, where the software or systems developed may become outdated before the contract ends or shortly after. To mitigate this, the contract likely includes provisions for updates, upgrades, or phased replacements. Effective program management would involve continuous assessment of emerging technologies and ensuring the contracted services remain relevant and secure throughout the contract's lifecycle. It also implies a stable, long-term need for these specific programming services by the FAA.

How does the number of bidders (8) compare to typical competition levels for similar federal IT contracts?

Eight bidders for a federal IT contract, especially one awarded under full and open competition, generally indicates a healthy level of market interest. While 'typical' competition can vary significantly based on the specific service, agency, and contract value, eight bidders suggests that the opportunity was attractive to a reasonable number of companies. This level of competition is usually sufficient to drive competitive pricing and allow the government to select from a good range of qualified offerors. Lower numbers of bidders might raise concerns about market liquidity or the attractiveness of the solicitation.

What does the 'PA' (Pennsylvania) state code signify in the context of this contract award?

The 'PA' code likely indicates the state where the contractor, DASSAULT SYSTEMES AMERICAS CORP., has a significant presence, such as a primary office or where the contract work is substantially performed. Federal contract data often includes location codes for contractors. While this specific contract was awarded by the Department of Transportation (FAA), the 'PA' designation points to a geographical link for the contractor, potentially influencing local economic impact or state-level reporting, though it doesn't directly affect the federal program's execution.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dassault Systemes

Address: 175 WYMAN ST, WALTHAM, MA, 02451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $35,430,991

Exercised Options: $18,921,348

Current Obligation: $18,921,348

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline