DOT's FAA awarded $29M engineering services contract to North Star Group LLC for base year and option periods

Contract Overview

Contract Amount: $28,952,028 ($29.0M)

Contractor: North Star Group LLC

Awarding Agency: Department of Transportation

Start Date: 2010-03-22

End Date: 2014-09-30

Contract Duration: 1,653 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: WA-10-03187 FOR SWIM SEBSS CONTRACT DTFAWA-10-C-00032 PROJECT 21010106 CODE 12282A0100 PLAN #10-AJW5700-0001 POP 3/22/10-9/30/10 FOR BASE YEAR TAS::69 8107::TAS

Place of Performance

Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21202

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $29.0 million to NORTH STAR GROUP LLC for work described as: WA-10-03187 FOR SWIM SEBSS CONTRACT DTFAWA-10-C-00032 PROJECT 21010106 CODE 12282A0100 PLAN #10-AJW5700-0001 POP 3/22/10-9/30/10 FOR BASE YEAR TAS::69 8107::TAS Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract spans over four years, implying a long-term requirement. 4. The contract type is a definitive contract, typically used for complex or long-term projects. 5. The base year value is approximately $29 million, providing a significant financial commitment. 6. The North Star Group LLC is the sole awardee, highlighting their specific capabilities or competitive advantage.

Value Assessment

Rating: fair

The contract value of $29 million for the base year appears substantial for engineering services. Without specific details on the scope of work and deliverables, it is difficult to benchmark against similar contracts. However, the duration of over four years suggests a significant project. Further analysis would require comparing the per-unit costs or labor rates against industry standards and other government contracts for comparable engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this engineering services contract. While not a large number, it implies that the government sought multiple proposals and evaluated them to determine the best value.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering services to support its operations and infrastructure. The contract likely supports projects related to aviation infrastructure, safety, or operational efficiency. The geographic impact is likely concentrated around FAA facilities or projects requiring engineering support, potentially nationwide. The contract may have implications for the engineering workforce, providing employment opportunities for skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Risk of contractor performance issues impacting critical FAA projects.
Dependency on a single contractor for specialized engineering expertise.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
The contractor, North Star Group LLC, has secured a significant contract, indicating a level of trust and capability.
The contract duration suggests a stable, long-term relationship for critical services.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. The market for engineering services supporting government agencies, particularly in aviation, is substantial. The FAA, as a major government entity, frequently procures such services for infrastructure development, maintenance, and regulatory compliance. Benchmarking would involve comparing this contract's value and scope to other large-scale engineering contracts awarded by federal agencies or within the aerospace and defense sectors.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary awardee is likely a large business, and the contract's direct impact on the small business ecosystem may be limited unless North Star Group LLC voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the definitive contract structure, requiring adherence to scope, schedule, and cost. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Department of Transportation Infrastructure Projects
Federal Aviation Systems Engineering Support
Aviation Safety and Security Engineering Contracts

Risk Flags

Potential for cost overruns due to long contract duration.
Contractor performance risk over a multi-year period.
Dependency on a single vendor for critical engineering services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $29.0 million to NORTH STAR GROUP LLC. WA-10-03187 FOR SWIM SEBSS CONTRACT DTFAWA-10-C-00032 PROJECT 21010106 CODE 12282A0100 PLAN #10-AJW5700-0001 POP 3/22/10-9/30/10 FOR BASE YEAR TAS::69 8107::TAS

Who is the contractor on this award?

The obligated recipient is NORTH STAR GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2010-03-22. End: 2014-09-30.

What is the specific scope of engineering services required under this contract?

The provided data indicates the contract is for 'Engineering Services' (NAICS code 541330) awarded to North Star Group LLC by the Federal Aviation Administration (FAA). However, the specific scope of work is not detailed. Typically, engineering services for the FAA can encompass a wide range of activities, including design, analysis, testing, and consultation for aviation systems, infrastructure (like airports and air traffic control facilities), aircraft, and related technologies. This could involve civil, electrical, mechanical, aerospace, or software engineering disciplines, depending on the project's needs. Without further documentation, the precise deliverables and technical requirements remain unspecified.

How does the awarded amount of $29 million compare to similar FAA engineering contracts?

The $29 million base year award for engineering services is a significant sum, suggesting a substantial project or a long-term need. To benchmark this, one would need to compare it against other definitive contracts awarded by the FAA or other agencies for similar engineering services over comparable periods. Factors like the complexity of the engineering required, the duration of the contract, and the specific technical expertise demanded play a crucial role. For instance, contracts for major air traffic control system upgrades or new airport infrastructure design could easily reach or exceed this value. Conversely, smaller, more specialized engineering support contracts might be valued considerably less. A direct comparison requires access to a database of similar contracts with detailed scope and pricing information.

What are the potential risks associated with a four-year engineering services contract?

A four-year contract for engineering services carries several potential risks. Firstly, there's the risk of scope creep, where the project's requirements may expand beyond the initial agreement, potentially leading to cost overruns if not managed properly through contract modifications. Secondly, technological advancements or changes in regulatory requirements during the contract period could necessitate significant redesigns or updates, impacting timelines and budgets. Thirdly, there's the risk associated with contractor performance; if North Star Group LLC faces internal challenges or fails to deliver quality work, it could jeopardize critical FAA projects. Finally, a long-term dependency on a single contractor for specialized expertise can create vulnerabilities if the contractor's capabilities diminish or if unforeseen circumstances lead to their inability to perform.

What does the 'full and open competition' designation imply for the FAA and taxpayers?

The designation 'full and open competition' implies that the FAA solicited proposals from all interested and qualified sources, allowing for a wide range of potential contractors to compete. This process is generally considered the most effective method for achieving fair market prices and ensuring the government receives the best value. For taxpayers, it suggests that the contract price was likely determined through a competitive bidding process, which theoretically drives down costs by encouraging bidders to offer their most competitive rates and solutions. It also promotes transparency and reduces the likelihood of favoritism or inflated pricing that can occur with sole-source or limited-competition contracts.

What is North Star Group LLC's track record with government contracts, particularly with the FAA?

The provided data identifies North Star Group LLC as the awardee of this $29 million FAA contract. However, it does not offer details about their past performance, contract history, or specific track record with the FAA or other government agencies. To assess their track record, one would need to consult government contract databases (like SAM.gov or FPDS) to review previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A strong track record with successful project completion and positive performance reviews would indicate reliability, while a history of issues might raise concerns.

How does the contract's structure as a 'Definitive Contract' influence its management and oversight?

A 'Definitive Contract' is a standard, legally binding agreement that clearly outlines the rights and obligations of both the government and the contractor. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, definitive contracts typically have a specified scope of work, price, and delivery schedule from the outset. This structure generally simplifies management and oversight because the terms are fixed. The FAA would oversee the contractor's adherence to these defined terms, monitoring progress against the schedule, quality of deliverables, and expenditure against the fixed price or estimated cost. Changes would typically require formal contract modifications. This clarity aids in accountability and performance evaluation.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 600 MARYLAND AVE SW, STE 860E, WASHINGTON, DC, 20024

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,086,708

Exercised Options: $28,952,028

Current Obligation: $28,952,028

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline