DOT's FAA awards $21.4M engineering support contract to Zeta Associates Inc. over 5 years

Contract Overview

Contract Amount: $21,445,824 ($21.4M)

Contractor: Zeta Associates Inc

Awarding Agency: Department of Transportation

Start Date: 2013-02-02

End Date: 2018-07-31

Contract Duration: 2,005 days

Daily Burn Rate: $10.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GNSS ENGINEERING SUPPORT IGF::CL::IGF

Place of Performance

Location: FAIRFAX, MARIN County, CALIFORNIA, 94930

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $21.4 million to ZETA ASSOCIATES INC for work described as: GNSS ENGINEERING SUPPORT IGF::CL::IGF Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Long contract duration of 5 years may not reflect current market agility. 3. Engineering services sector is competitive, suggesting potential for better pricing through broader solicitation. 4. Fixed-price contract type offers cost certainty but may limit flexibility for evolving needs. 5. No small business set-aside indicates a focus on specialized capabilities rather than broad market inclusion.

Value Assessment

Rating: fair

The contract's value of $21.4 million over five years averages to approximately $4.28 million annually. Without comparable contract data for similar GNSS engineering support services, it is difficult to definitively benchmark the value. However, the sole-source nature of the award suggests that a competitive bidding process, which typically drives down prices, was not utilized. This raises concerns about whether the government secured the most cost-effective solution available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Federal Aviation Administration (FAA) likely determined that Zeta Associates Inc. was the only responsible source capable of meeting the specific requirements. This lack of competition limits the government's ability to leverage market forces to achieve optimal pricing and may indicate a reliance on a single provider for critical services.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to reduce bids. This limits the opportunity for cost savings that could be realized through a more open procurement process.

Public Impact

The Federal Aviation Administration benefits from specialized engineering support for its Global Navigation Satellite System (GNSS) infrastructure. This contract ensures the continued operation and potential enhancement of critical air traffic management systems. The services provided are essential for maintaining the safety and efficiency of the National Airspace System. The contract supports a specialized engineering workforce, likely contributing to the expertise within the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Long-term contract may not adapt to rapidly evolving technology.
Lack of small business participation could limit innovation and broader economic impact.

Positive Signals

Fixed-price contract provides cost predictability.
Zeta Associates Inc. likely possesses specialized, critical expertise for GNSS engineering.
Contract ensures continuity of essential engineering support for FAA operations.

Sector Analysis

The engineering services sector, particularly within aerospace and defense, is characterized by high technical barriers to entry and specialized knowledge. Contracts like this support the development and maintenance of complex systems critical to national infrastructure. The FAA's reliance on specialized engineering support for GNSS aligns with broader trends in government procurement seeking expert providers for mission-critical functions. Benchmarking against similar sole-source engineering contracts would be necessary for a more precise value assessment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Zeta Associates Inc., a single entity, suggests a focus on specialized capabilities that may be concentrated in larger or more established firms within this niche engineering field. This approach may limit opportunities for small businesses to participate in critical FAA projects and contribute to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officer and program management. The Department of Transportation's Inspector General would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally maintained through contract award databases, though the specifics of sole-source justifications may have limited public visibility.

Related Government Programs

Federal Aviation Administration Air Traffic Control Systems
Global Navigation Satellite System (GNSS) Development
Engineering Services Procurement
Department of Transportation IT and Infrastructure Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Long contract duration may not align with technological evolution.
Potential for vendor lock-in due to specialized nature of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.4 million to ZETA ASSOCIATES INC. GNSS ENGINEERING SUPPORT IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is ZETA ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2013-02-02. End: 2018-07-31.

What specific technical expertise does Zeta Associates Inc. possess that justified a sole-source award for GNSS engineering support?

The justification for a sole-source award typically rests on unique capabilities, proprietary technology, or specialized knowledge that only one contractor can provide. For GNSS engineering support, this could include deep expertise in satellite signal processing, advanced algorithm development for navigation accuracy, integration with existing air traffic control systems, or specific knowledge of FAA's legacy systems and future modernization plans. Without the specific justification documentation, it's presumed Zeta Associates Inc. demonstrated a level of specialized skill or proprietary knowledge in GNSS engineering that the FAA deemed essential and unavailable from other sources within the required timeframe or technical parameters.

How does the $4.28 million annual average cost compare to similar sole-source engineering support contracts within the FAA or other federal agencies?

Benchmarking the $4.28 million annual average cost against similar sole-source engineering support contracts is challenging without access to a comprehensive database of comparable awards and their specific scopes of work. Sole-source contracts, by their nature, bypass the competitive process that typically establishes market-driven price points. However, for specialized engineering services in the aerospace sector, annual contract values can range significantly based on complexity, duration, and the criticality of the systems supported. A value of $4.28 million annually for specialized GNSS engineering could be considered reasonable if the scope involves highly complex R&D, system integration, or sustainment of mission-critical infrastructure, but it warrants scrutiny due to the lack of competitive validation.

What are the potential risks associated with a five-year sole-source contract for evolving GNSS technology?

A five-year sole-source contract for evolving GNSS technology presents several risks. Firstly, technology in the GNSS field can advance rapidly, potentially rendering the contracted solutions outdated or suboptimal before the contract term concludes. Secondly, the lack of competition means the government is locked into a single provider, potentially missing out on innovations or more cost-effective solutions that emerge from the broader market during the contract period. Thirdly, if the contractor's performance or pricing becomes unsatisfactory, the government has limited recourse without incurring significant costs and delays associated with initiating a new sole-source justification or a full competitive procurement. This long-term commitment without competitive pressure can stifle innovation and lead to suboptimal technological adoption.

What performance metrics or oversight mechanisms are in place to ensure Zeta Associates Inc. delivers effective GNSS engineering support?

While the provided data does not detail specific performance metrics, federal contracts typically include clauses for performance standards, quality assurance surveillance plans (QASPs), and delivery schedules. The FAA's contracting officer and designated technical representatives would be responsible for monitoring Zeta Associates Inc.'s performance against these contractual requirements. Regular progress reviews, technical evaluations, and acceptance criteria for deliverables would be employed. The Department of Transportation's Inspector General also provides an independent oversight function, investigating potential performance issues, fraud, waste, or abuse, ensuring accountability throughout the contract lifecycle.

Has Zeta Associates Inc. previously held significant contracts with the FAA or other federal agencies for similar engineering services?

To assess Zeta Associates Inc.'s track record, a review of federal procurement databases (like FPDS or SAM.gov) would be necessary. Companies that secure sole-source awards for specialized services often have a history of successful performance on prior contracts, demonstrating their capability and reliability. If Zeta Associates Inc. has a history of performing well on similar FAA or Department of Defense contracts, particularly those involving complex engineering or navigation systems, it strengthens the rationale for their selection. Conversely, a history of performance issues or contract disputes could raise concerns about the suitability of a sole-source award, even with specialized expertise.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp (UEI: 834951691)

Address: 10302 EATON PL STE 500, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,972,577

Exercised Options: $21,445,824

Current Obligation: $21,445,824

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline