DOT's $28.3M IT support contract to CSRA LLC awarded via full and open competition

Contract Overview

Contract Amount: $28,346,797 ($28.3M)

Contractor: Csra LLC

Awarding Agency: Department of Transportation

Start Date: 2011-04-06

End Date: 2015-11-30

Contract Duration: 1,699 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR AVIATION MANAGEMENT, MODERNIZATION, AND LOGISTICS

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02142

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $28.3 million to CSRA LLC for work described as: INFORMATION TECHNOLOGY SUPPORT SERVICES FOR AVIATION MANAGEMENT, MODERNIZATION, AND LOGISTICS Key points: 1. Contract awarded to CSRA LLC for IT support services, indicating a need for specialized technical expertise. 2. The contract duration of 1699 days suggests a long-term requirement for sustained IT support. 3. Awarded under a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost control by the contractor while ensuring a defined profit. 5. The contract's focus on aviation management, modernization, and logistics highlights critical operational support for the DOT. 6. The North American Industry Classification System (NAICS) code 541519 suggests a broad range of computer-related services were procured.

Value Assessment

Rating: fair

The total award amount of $28.3 million over approximately 4.6 years for IT support services requires benchmarking against similar contracts. Without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. The CPFF contract type can sometimes lead to higher costs if not managed tightly, but it also allows for flexibility in evolving IT needs. Further analysis would involve comparing the per-hour rates or project-based costs to industry standards for comparable IT support services within the federal government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this IT support requirement. While full and open competition is generally preferred for maximizing price discovery and innovation, the specific number of bidders can influence the final price and the range of solutions considered.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage efficient service delivery. The fact that multiple companies vied for this contract suggests that taxpayers likely received a fair price for the IT support services.

Public Impact

Aviation management and modernization efforts within the Department of Transportation are directly supported, potentially leading to improved operational efficiency and safety. Logistics support for aviation systems benefits from enhanced IT infrastructure and services, ensuring smoother operations. The contract supports critical IT functions, indirectly benefiting air travelers and the broader aviation industry through more reliable systems. Workforce implications may include the need for specialized IT professionals within the contractor's organization to fulfill the contract's requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not meticulously managed and monitored by the agency.
The broad NAICS code (541519) might indicate a wide scope of work, increasing the potential for unforeseen complexities and cost adjustments.
Reliance on a single delivery order under a potential IDIQ structure could concentrate risk if the prime contract has underlying issues.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration of nearly five years indicates a stable, long-term need, allowing for focused IT modernization and support.
The CPFF structure, while carrying risks, can also facilitate adaptation to evolving technological requirements in a dynamic IT landscape.

Sector Analysis

The IT services sector is a significant component of federal spending, with agencies increasingly relying on contractors for specialized support in areas like cloud computing, cybersecurity, and system modernization. This contract falls within the broader IT consulting and integration services market, which is characterized by a mix of large prime contractors and specialized small businesses. Federal spending in this area often benchmarks against commercial IT service rates, with agencies aiming for competitive pricing through various procurement methods. The aviation IT support domain requires specific expertise related to complex legacy systems and modernizing air traffic control and management infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary award went to a large business (CSRA LLC). The absence of set-aside provisions means that opportunities for small businesses to directly participate in this specific contract may be limited, although they could potentially be involved as subcontractors if not explicitly excluded or if the prime contractor voluntarily engages them.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Transportation's contracting officers and program managers. As a delivery order under a potential IDIQ, oversight might be integrated into the broader contract's management framework. Transparency is generally facilitated through contract databases like FPDS, which provide award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Federal Aviation Administration (FAA) IT Modernization Programs
Department of Transportation Enterprise IT Services
Air Traffic Control Systems Modernization
Aviation Logistics and Management Systems

Risk Flags

Potential for cost overruns due to CPFF structure
Scope creep risk in evolving IT modernization projects
Dependence on contractor performance for critical aviation systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $28.3 million to CSRA LLC. INFORMATION TECHNOLOGY SUPPORT SERVICES FOR AVIATION MANAGEMENT, MODERNIZATION, AND LOGISTICS

Who is the contractor on this award?

The obligated recipient is CSRA LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $28.3 million.

What is the period of performance?

Start: 2011-04-06. End: 2015-11-30.

What specific IT modernization and aviation management tasks were performed under this contract?

The provided data indicates the contract was for 'INFORMATION TECHNOLOGY SUPPORT SERVICES FOR AVIATION MANAGEMENT, MODERNIZATION, AND LOGISTICS.' While the specific tasks are not detailed, this suggests services likely included support for software development and maintenance, system integration, network administration, cybersecurity, data management, and potentially help desk support related to aviation systems. Modernization efforts could have involved upgrading legacy systems, implementing new technologies for data analysis, or enhancing the infrastructure supporting aviation management platforms. Logistics support implies IT services aiding in the tracking, management, and optimization of aviation-related resources and supply chains.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types used for similar IT services at DOT?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined at the outset or is expected to evolve, which is common in IT modernization projects. This structure allows the contractor to be reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government to adapt requirements but can carry a higher risk of cost growth if not managed diligently. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF provides a fixed profit margin, potentially offering less incentive for the contractor to exceed performance expectations beyond the baseline scope. DOT, like other agencies, uses a mix of contract types depending on project complexity, risk, and the need for flexibility.

What was the track record of CSRA LLC in delivering IT services to the federal government prior to this award?

CSRA LLC (which later merged with General Dynamics Information Technology) has historically been a significant federal IT contractor. Prior to this specific award in 2011, the company, through its various predecessors and iterations, had a substantial portfolio of contracts across numerous federal agencies, including the Department of Defense, civilian agencies, and intelligence community. Their track record typically involved large-scale IT infrastructure management, system modernization, cybersecurity, and application development. Performance reviews and past performance evaluations from prior contracts would have been a critical factor in the DOT's decision-making process for this award, influencing their perceived capability and reliability.

Were there any significant performance issues or contract modifications during the life of this $28.3M IT support contract?

The provided data does not include details on contract modifications or performance issues. However, a contract duration of 1699 days (approximately 4.6 years) for a CPFF type often involves modifications to adjust scope, funding, or timelines as project needs evolve. Without access to the contract's official modification history or performance reports, it's impossible to definitively state whether there were significant issues. Agencies typically track contractor performance through metrics and past performance databases, which would inform future awards. Significant issues could lead to corrective actions, reduced funding, or termination, none of which are indicated here.

How does the total spending on IT support services for aviation management compare to other DOT IT procurements?

The $28.3 million awarded to CSRA LLC represents a notable investment in IT support for aviation management, modernization, and logistics. To compare this to other DOT IT procurements, one would need to analyze DOT's overall IT spending portfolio. DOT manages a vast array of IT systems, including those for the Federal Highway Administration, Federal Transit Administration, and the National Highway Traffic Safety Administration, each with its own IT support needs. This specific contract's value should be viewed within the context of the FAA's substantial IT budget, which often includes large-scale modernization efforts like NextGen. A comprehensive comparison would require examining total IT obligations across all DOT operating administrations over similar timeframes.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7700 HUBBLE DR, LANHAM SEABROOK, MD, 20706

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

Financial Breakdown

Contract Ceiling: $43,538,482

Exercised Options: $43,538,482

Current Obligation: $28,346,797

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $18,667,487

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRT5710D30023

IDV Type: IDC

Timeline