FAA's $155M IT support contract awarded to CNI Global Solutions, raising questions about value and competition

Contract Overview

Contract Amount: $154,594,625 ($154.6M)

Contractor: CNI Global Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2015-06-17

End Date: 2020-12-31

Contract Duration: 2,024 days

Daily Burn Rate: $76.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: "FEDERAL AVIATION ADMINISTRATION OFFICE OF INFORMATION AND TECHNOLOGY BUSINESS PARTNERSHIP SERVICES DIRECTORATE SERVICE CENTER DIVISION INTERIM HELPDESK&DESKSIDE SUPPORT CONTRACT " IGF::OT::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 $154.6 million to CNI GLOBAL SOLUTIONS, LLC for work described as: "FEDERAL AVIATION ADMINISTRATION OFFICE OF INFORMATION AND TECHNOLOGY BUSINESS PARTNERSHIP SERVICES DIRECTORATE SERVICE CENTER DIVISION INTERIM HELPDESK&DESKSIDE SUPPORT CONTRACT " IGF::OT::IGF Key points: 1. The contract's significant value suggests a need for robust performance metrics and cost-efficiency analysis. 2. Limited details on competition dynamics warrant a closer look at the procurement process. 3. The duration and firm-fixed-price nature of the contract present potential risks and rewards for both parties. 4. Understanding the specific IT services delivered is crucial for assessing their impact on FAA operations. 5. Benchmarking this contract against similar IT support services in the federal space is essential for value assessment.

Value Assessment

Rating: fair

The contract's total value of approximately $155 million over its lifespan is substantial for IT support services. Without specific performance data or detailed cost breakdowns, it's challenging to definitively assess value for money. Comparing this to similar IT helpdesk and desk-side support contracts across federal agencies would provide a better benchmark. The firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be beneficial for the government if managed effectively, but could also lead to reduced service quality if not properly monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was intended, certain sources were excluded. The number of bidders is not explicitly stated, but the 'limited' competition designation implies fewer than a full and open competition. This type of award can sometimes lead to less competitive pricing compared to a truly open process, as the pool of potential offerors is restricted. Further investigation into the reasons for excluding sources is warranted.

Taxpayer Impact: A limited competition may result in higher costs for taxpayers if it restricts the number of capable vendors and reduces price pressure.

Public Impact

FAA personnel benefit from reliable IT helpdesk and desk-side support, ensuring operational continuity. Essential IT services are delivered across the FAA, supporting critical aviation safety and management functions. The contract's impact is primarily concentrated within the District of Columbia, where the FAA's headquarters and key operational centers are located. The contract supports IT professionals employed by CNI Global Solutions, contributing to the federal IT services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for reduced service quality if contractor prioritizes profit over performance under fixed-price terms.
Limited competition may have led to a higher price than a fully open solicitation.
Lack of detailed performance metrics makes it difficult to assess contractor effectiveness and value.
The 'exclusion of sources' clause requires scrutiny to ensure fairness and prevent undue restrictions on competition.

Positive Signals

Firm-fixed-price contract shifts cost overrun risk to the contractor.
Long-term contract provides stability and continuity of essential IT support services for the FAA.
The contract was awarded to a single entity, potentially simplifying management and oversight.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT support and maintenance. The federal IT services market is highly competitive and diverse, encompassing a wide range of specialized services. Contracts like this are common across government agencies to ensure the smooth functioning of their technological infrastructure. Benchmarking against similar IT support contracts within the federal government, particularly those for large agencies like the FAA, would provide context for the pricing and scope of services.

Small Business Impact

The data indicates that 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 set-aside provision. The primary contractor, CNI Global Solutions, LLC, is responsible for fulfilling the contract requirements. Analysis of CNI Global Solutions' own small business subcontracting plan, if applicable, would be necessary to understand any indirect impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction to investigate potential fraud, waste, or abuse related to this contract. Transparency is generally facilitated through contract award databases like FPDS-NG, but detailed performance reports and audits are often internal or subject to specific disclosure rules.

Related Government Programs

FAA IT Infrastructure Support
Federal IT Helpdesk Services
Department of Transportation IT Contracts
Computer Related Services Contracts
IT Services for Aviation Agencies

Risk Flags

Limited competition raises concerns about potential price inflation.
Lack of detailed performance metrics hinders value assessment.
Contract duration may pose risks if contractor performance degrades over time.
Exclusion of sources requires justification to ensure fairness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $154.6 million to CNI GLOBAL SOLUTIONS, LLC. "FEDERAL AVIATION ADMINISTRATION OFFICE OF INFORMATION AND TECHNOLOGY BUSINESS PARTNERSHIP SERVICES DIRECTORATE SERVICE CENTER DIVISION INTERIM HELPDESK&DESKSIDE SUPPORT CONTRACT " IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CNI GLOBAL SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $154.6 million.

What is the period of performance?

Start: 2015-06-17. End: 2020-12-31.

What specific IT services were included under this contract, and how did they align with the FAA's operational needs?

The contract, identified by NAICS code 541519 (Other Computer Related Services), likely encompassed a range of IT support functions. This typically includes helpdesk services for user support, troubleshooting, incident resolution, and potentially desk-side support for hardware and software issues. Given the FAA's critical mission, these services would be essential for maintaining the operational readiness of IT systems that support air traffic control, aviation safety, and administrative functions. The specific scope would be detailed in the contract's Statement of Work (SOW), outlining deliverables, service levels, and performance standards. Without access to the SOW, a precise breakdown is not possible, but the contract title suggests a focus on end-user computing support.

How does the $155 million contract value compare to similar IT support contracts awarded by the FAA or other large federal agencies?

The $155 million total contract value is significant and places it among larger IT support service contracts within the federal government. To benchmark effectively, one would need to compare it against contracts with similar scope (helpdesk, desk-side support) and duration (approximately 5.5 years). For instance, other large agencies like the Department of Defense or NASA often award multi-year IT support contracts in the tens or hundreds of millions of dollars. The Federal Aviation Administration itself likely has other contracts for IT services, though their specific nature and value would need to be examined. A preliminary comparison suggests this contract is substantial, but its value-for-money depends heavily on the specific services rendered, performance levels achieved, and the prevailing market rates for such services at the time of award.

What were the specific reasons for the 'exclusion of sources' in the competition for this contract, and what impact did this have on pricing?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that the agency intended to compete the contract broadly but subsequently excluded certain potential offerors. The Federal Acquisition Regulation (FAR) outlines specific circumstances under which sources may be excluded, such as when a contract requires specialized capabilities or when only a limited number of responsible sources can fulfill the requirement. Without further documentation (e.g., Justification and Approval for Other Than Full and Open Competition), the precise reasons for exclusion remain unclear. This exclusion likely limited the number of bidders, potentially reducing price competition and possibly leading to a higher contract price than if the competition had been entirely open to all qualified sources.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration for IT support services?

A firm-fixed-price (FFP) contract, while shifting cost risk to the contractor, can present several risks for IT support services. For a contract valued at $155 million over nearly six years, the contractor (CNI Global Solutions, LLC) assumes the risk of cost overruns. However, if the initial price was set too high or if unforeseen technical challenges arise, the contractor might seek to reduce costs by cutting corners on service quality, staffing levels, or response times. Conversely, if the contractor significantly underestimates costs, they could face financial losses, potentially impacting their ability to fulfill the contract long-term. For the government, the risk lies in potentially paying a premium for services if the contractor's risk assessment was overly conservative, or in experiencing degraded service if the contractor struggles financially or prioritizes profit margins over service delivery.

How has CNI Global Solutions, LLC performed on previous federal contracts, particularly those involving IT support?

Assessing CNI Global Solutions, LLC's past performance is crucial for understanding the potential risks and reliability associated with this contract. A review of federal contract databases (like FPDS or SAM.gov) would reveal their award history, contract types, and performance ratings, if available. Information on past contract values, durations, and the agencies they served would provide context. Specifically, looking for similar IT support or helpdesk contracts would offer the most relevant insights. Any history of performance issues, contract disputes, or successful project completions would inform an assessment of their capability to deliver on the FAA's requirements. Without specific past performance data readily available in the provided snippet, a deeper dive into their contract history is necessary.

What are the implications of this contract for the broader federal IT services market and competition dynamics?

This contract represents a significant award within the federal IT services market, particularly for end-user support. The award to CNI Global Solutions, LLC, under a limited competition, suggests a specific market dynamic where certain companies may have advantages due to existing relationships, specialized capabilities, or past performance recognized by the agency. The substantial value indicates a concentrated portion of the IT support budget. The limited competition aspect might discourage new entrants or smaller firms from bidding on similar future opportunities if they perceive barriers to entry. It also highlights the ongoing need for agencies to balance the desire for specialized expertise with the imperative to foster robust competition to ensure fair pricing and innovation across the federal IT landscape.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chickasaw Nation

Address: 2600 JOHN SAXON BLVD STE 2200, NORMAN, OK, 73071

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $167,449,065

Exercised Options: $154,594,625

Current Obligation: $154,594,625

Actual Outlays: $8,847,472

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $443,064

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline