Department of Transportation awards $37M for web server and tool development, with significant contract duration

Contract Overview

Contract Amount: $37,068,832 ($37.1M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2017-09-25

End Date: 2026-08-14

Contract Duration: 3,245 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: WEB SERVER AND TOOL DEVELOPMENT SUPPORT. IGF::OT::IGF

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $37.1 million to KARSUN SOLUTIONS LLC for work described as: WEB SERVER AND TOOL DEVELOPMENT SUPPORT. IGF::OT::IGF Key points: 1. Contract value of $37M over nearly 9 years suggests a substantial, long-term need for these services. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT support. 3. A delivery order under a larger contract structure implies potential for follow-on work or task flexibility. 4. The contract's Time and Materials pricing model warrants scrutiny for cost control and efficiency. 5. The duration of the contract (3245 days) is considerably long, raising questions about adaptability to evolving technology. 6. The exclusion of sources in the competition type suggests specific justifications were likely required. 7. The absence of small business set-aside flags indicates this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

The total contract value of $37,068,832.44 over a period of 3245 days (approximately 8.9 years) indicates a significant investment by the Federal Aviation Administration. Benchmarking this against similar long-term IT support contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common for evolving IT needs, can present risks for cost overruns if not meticulously managed and monitored. The absence of a specific contract award value for this delivery order makes direct comparison difficult, but the overall duration suggests a substantial commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial solicitation was open, certain sources were excluded, suggesting a specific rationale or pre-qualification process. The exact number of bidders is not provided, but the 'exclusion of sources' implies a potentially narrowed competitive pool compared to a truly unrestricted full and open competition. This could impact price discovery, as fewer potential offerors might have been involved in the final bidding.

Taxpayer Impact: For taxpayers, the exclusion of sources may mean that the government did not receive the benefit of the lowest possible price that could have been achieved through the widest possible competition. However, if the exclusion was based on specific technical requirements or past performance, it might have led to a more suitable solution, potentially reducing long-term costs.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving support for its web server and tool development. This contract likely supports critical IT infrastructure and operational tools necessary for the FAA's mission. The services delivered are expected to enhance the functionality and reliability of web-based systems used by the agency. The contract is geographically focused within Virginia, where the contractor, Karsun Solutions LLC, is located. The contract supports a workforce skilled in IT services, including web development and server management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing model can lead to cost overruns if not closely managed.
The long contract duration (nearly 9 years) may result in the use of outdated technologies or processes.
The 'exclusion of sources' in the competition type could limit the range of innovative solutions and potentially higher prices.
Lack of specific performance metrics or KPIs makes it difficult to assess the true value and effectiveness of the services.
The broad NAICS code (541519) might obscure the specific nature and criticality of the services being procured.

Positive Signals

The contract is awarded to Karsun Solutions LLC, indicating a potentially established relationship or positive past performance.
The substantial contract value suggests the FAA has a significant and ongoing need for these services.
The long duration implies a stable requirement, potentially leading to efficiencies through contractor familiarity.
The delivery order structure allows for flexibility in tasking and resource allocation over the contract period.
The contract is associated with the Department of Transportation, a major federal agency with critical infrastructure responsibilities.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer related services. The market for IT services supporting government operations is vast and highly competitive. This contract for web server and tool development support is likely part of the broader digital transformation efforts within federal agencies. Comparable spending benchmarks for similar long-term IT development and support contracts can vary widely based on scope, complexity, and duration, but a nearly 9-year contract valued at $37M represents a significant investment in maintaining and enhancing critical IT infrastructure.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (sb: false). Furthermore, the 'ss' (small business subcontracting) flag is also false, suggesting no specific small business subcontracting goals were mandated for this particular award. This means that opportunities for small businesses to participate in this contract, either as prime contractors or subcontractors, were not explicitly prioritized through set-aside provisions. The prime contractor, Karsun Solutions LLC, will determine any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a delivery order under a larger contract, oversight would focus on task order execution, performance monitoring, and adherence to the Time and Materials pricing structure. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

IT Services and Support Contracts
Web Development Services
Server Management and Maintenance
Software Development Support
Department of Transportation IT Modernization Efforts
Federal Aviation Administration IT Infrastructure

Risk Flags

Long contract duration may lead to technology obsolescence.
Time and Materials pricing increases risk of cost overruns.
Exclusion of sources may limit competition and price discovery.
Lack of specific performance metrics makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $37.1 million to KARSUN SOLUTIONS LLC. WEB SERVER AND TOOL DEVELOPMENT SUPPORT. 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 $37.1 million.

What is the period of performance?

Start: 2017-09-25. End: 2026-08-14.

What is the specific nature of the 'web server and tool development support' being provided under this contract?

The provided data indicates the NAICS code is 541519, 'Other Computer Related Services,' and the description is 'WEB SERVER AND TOOL DEVELOPMENT SUPPORT.' This broad classification suggests the contract could encompass a wide range of activities, from maintaining existing web server infrastructure to developing new software tools that leverage these servers. Without more detailed task orders or statements of work, it's difficult to pinpoint the exact services. However, it likely involves ensuring the availability, performance, and security of web servers, as well as creating or enhancing applications and utilities that run on or interact with this infrastructure. This could include anything from content management systems and internal applications to data processing tools and user interfaces.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly during performance, which is common in IT development. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government if not managed diligently. Compared to firm-fixed-price (FFP) contracts, T&M can be less predictable in terms of final cost. However, for rapidly evolving IT needs where requirements are fluid, T&M can be more appropriate than FFP, provided robust oversight and cost controls are in place to prevent excessive spending and ensure value for money.

What are the potential risks associated with the long contract duration of nearly 9 years?

A contract duration of 3245 days (approximately 8.9 years) presents several potential risks for the government. Firstly, technology evolves rapidly in the IT sector; by the end of this contract, the systems and tools developed or supported may be significantly outdated, requiring costly modernization or replacement. Secondly, long-term contracts can sometimes lead to complacency or reduced innovation from the contractor, as the immediate pressure to compete on price or performance may lessen. Thirdly, it can be challenging to maintain consistent oversight and ensure the contractor remains aligned with the agency's evolving strategic goals over such an extended period. Finally, if the initial requirements were not perfectly defined, the T&M structure over this long duration increases the potential for cumulative cost increases.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the competitive landscape and pricing?

This contract type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests a nuanced approach to procurement. It implies that the initial solicitation was broadly advertised (full and open competition), but specific criteria or circumstances led to the exclusion of certain potential bidders before the final award. This exclusion could be based on factors like specific technical capabilities, security clearances, past performance requirements, or geographic limitations. While it aims to ensure qualified contractors are considered, it inherently narrows the competitive pool compared to a completely unrestricted competition. This reduced competition might lead to less aggressive pricing than could be achieved with a wider range of bidders, although the government likely justified the exclusion based on specific needs or risks.

How does the $37M contract value compare to typical IT support spending for agencies like the FAA?

The $37 million contract value over nearly nine years for web server and tool development support is a substantial investment, but not necessarily out of line for a major federal agency like the Federal Aviation Administration (FAA). The FAA manages complex air traffic control systems, operational tools, and extensive public-facing websites, all of which require significant IT support. The total spending on IT services across the federal government runs into the tens of billions annually. For a specific function like web server and tool development, a contract of this magnitude over its duration suggests a critical and ongoing need. Benchmarking requires comparing it to similar scope contracts within the FAA or other transportation-related agencies, considering factors like the number of users supported, the criticality of the systems, and the specific technologies involved.

What is the track record of Karsun Solutions LLC in performing federal IT contracts?

Karsun Solutions LLC is a federal IT contractor. While the provided data confirms they are the awardee for this specific contract, a comprehensive assessment of their track record would require examining their performance on previous federal contracts. This includes reviewing contract histories for on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. Information available through public databases like the Federal Procurement Data System (FPDS) or SAM.gov can provide insights into the types and values of contracts they have held, the agencies they have served, and potentially their performance ratings. A positive history with the Department of Transportation or similar agencies would be a strong indicator of capability for this contract.

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: $50,653,852

Exercised Options: $37,068,832

Current Obligation: $37,068,832

Actual Outlays: $29,864,316

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $92,778

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