FAA Awards $19.8M Task Order for Quality Management Support to Karsun Solutions LLC

Contract Overview

Contract Amount: $19,809,030 ($19.8M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2017-08-15

End Date: 2027-08-14

Contract Duration: 3,651 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER 0001 PROVIDES FOR QUALITY MANAGEMENT AND PLANNING SUPPORT SERVICES. IGF::OT::IGF

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $19.8 million to KARSUN SOLUTIONS LLC for work described as: TASK ORDER 0001 PROVIDES FOR QUALITY MANAGEMENT AND PLANNING SUPPORT SERVICES. IGF::OT::IGF Key points: 1. Significant contract value for specialized IT support services. 2. Competition method indicates a deliberate choice for full and open competition. 3. Potential risk associated with long-term IT support contracts. 4. IT services sector is a major area of federal spending.

Value Assessment

Rating: good

The contract value of $19.8M over 10 years suggests a reasonable price for ongoing IT support services. Benchmarking against similar IT support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a competitive bidding process. This method generally leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary IT support services.

Public Impact

Ensures continued quality management and planning support for the FAA. Supports critical IT infrastructure and operations within the Department of Transportation. Provides long-term stability for IT service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) may lead to price escalation.
Reliance on a single vendor for critical IT support.
Potential for scope creep over the contract's life.

Positive Signals

Full and open competition promotes fair pricing.
Established vendor with a history of service.
Supports essential FAA operations.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Federal spending in this area is substantial, driven by the need for modernizing and maintaining complex IT systems across agencies.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific task order, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The award was made by the Federal Aviation Administration, a component of the Department of Transportation. Standard federal procurement oversight processes would apply to ensure contract compliance and performance.

Related Government Programs

Other Computer Related Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long-term contract duration (10 years).
Time and Materials pricing structure.
Potential for vendor lock-in.
Reliance on a single vendor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.8 million to KARSUN SOLUTIONS LLC. TASK ORDER 0001 PROVIDES FOR QUALITY MANAGEMENT AND PLANNING SUPPORT SERVICES. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is KARSUN 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 $19.8 million.

What is the period of performance?

Start: 2017-08-15. End: 2027-08-14.

What is the average annual cost for this contract, and how does it compare to industry benchmarks for similar IT support services?

The contract value is $19.8 million over approximately 10 years (3651 days). This averages to roughly $1.98 million per year. Comparing this to industry benchmarks for IT quality management and planning support services would require detailed market research on rates for similar skill sets and service levels, considering geographic location and specific requirements.

What specific risks are associated with a 10-year Time and Materials contract for IT support, particularly regarding cost control and vendor lock-in?

A 10-year Time and Materials (T&M) contract carries risks of cost overruns due to potential inefficiencies or scope creep, as payment is based on hours worked and materials used. Vendor lock-in is also a concern, as the agency may become heavily reliant on Karsun Solutions, potentially hindering future transitions to new technologies or providers and making it difficult to renegotiate terms.

How effectively does the 'full and open competition after exclusion of sources' method ensure optimal value and performance for this IT support task order?

This competition method aims to maximize value by allowing all responsible sources to submit offers, while potentially excluding specific sources deemed unsuitable or unnecessary. This broad competition should drive competitive pricing and encourage high performance standards from bidders, ultimately benefiting the FAA by securing quality IT support services at a reasonable cost.

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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 13655 DULLES TECHNOLOGY DRIVE STE 110, HERNDON, VA, 20171

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,559,490

Exercised Options: $19,809,030

Current Obligation: $19,809,030

Actual Outlays: $11,729,928

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $682,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFACT17D00007

IDV Type: IDC

Timeline