Transportation awards $45M engineering services contract to Advanced Management Technology, Inc

Contract Overview

Contract Amount: $44,957,678 ($45.0M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2017-09-11

End Date: 2026-05-21

Contract Duration: 3,174 days

Daily Burn Rate: $14.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PBN TASK ORDER IGF::CL,CT::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 $45.0 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: PBN TASK ORDER IGF::CL,CT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract is substantial, spanning over 3,000 days, indicating a long-term need. 4. The contract is for engineering services, a critical component for infrastructure and operational support. 5. The awardee, Advanced Management Technology, Inc., is a single entity for this task order. 6. The contract is not set aside for small businesses, indicating larger prime contractors are involved.

Value Assessment

Rating: fair

Benchmarking the value of this $45 million contract is challenging without specific deliverables or comparable engineering service contracts from the Federal Aviation Administration (FAA). The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not meticulously monitored for efficiency and necessity of hours. Without detailed performance metrics or a comparison to industry standard rates for similar engineering services, it's difficult to definitively assess value for money. The contract's long duration suggests a sustained need, but the T&M structure warrants close scrutiny of labor hours and rates to ensure cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the FAA solicited bids from all responsible sources. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings. The open competition suggests that multiple firms had the opportunity to propose solutions, and the FAA selected the best value offering based on their evaluation criteria. This approach is intended to maximize taxpayer value by leveraging market forces.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received. It ensures that the government explores a wide range of potential providers, increasing the likelihood of securing a cost-effective solution.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential engineering services. This contract supports the ongoing operations and potential future development of air traffic control systems or related infrastructure. The services delivered are critical for maintaining the safety and efficiency of the National Airspace System. The geographic impact is likely national, given the scope of FAA operations, though specific project locations are not detailed. The contract supports a workforce of engineers and technical specialists employed by Advanced Management Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type carries inherent risks of cost overruns if not rigorously managed, as it directly reimburses labor hours and material costs.
The long contract duration (over 8 years) increases the potential for scope creep or changes in requirements that could escalate costs.
Lack of specific performance metrics or clear deliverables in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The absence of small business set-aside information suggests limited direct opportunities for smaller firms within this specific award, though subcontracting is possible.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process that should yield competitive pricing.
Engineering services are crucial for the FAA's mission, suggesting the contract addresses a vital government need.
The contract has a defined end date, providing a clear timeframe for service delivery and budget planning.
The contractor, Advanced Management Technology, Inc., has secured a significant federal award, indicating a level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a broad category encompassing firms that design, develop, and manage projects across various industries. Within the federal government, engineering services are vital for infrastructure development, maintenance, research, and operational support. The Federal Aviation Administration (FAA) is a major consumer of such services, particularly for air traffic control systems, airport infrastructure, and aviation safety technologies. Comparable spending benchmarks for engineering services within the federal government can vary widely based on the specific discipline (e.g., civil, electrical, aerospace) and project complexity, but contracts in the tens to hundreds of millions of dollars are common for large-scale federal needs.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific small business subcontracting goals in the provided data. This suggests that the prime contract was awarded to a larger entity capable of handling the full scope of engineering services required. While direct opportunities for small businesses as prime contractors are absent for this specific award, Advanced Management Technology, Inc. may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their subcontracting strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The Time and Materials (T&M) nature of the contract necessitates particularly diligent oversight to verify the necessity and reasonableness of labor hours and costs incurred. Transparency is facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and awardee. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Aviation Administration Operations Support
Air Traffic Control System Modernization
Engineering and Technical Services
Department of Transportation IT and Professional Services
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration may lead to scope creep or evolving requirements.
Lack of specific performance metrics in summary data hinders detailed value assessment.
Limited visibility into the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $45.0 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. PBN TASK ORDER IGF::CL,CT::IGF

Who is the contractor on this award?

The obligated recipient is ADVANCED MANAGEMENT TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45.0 million.

What is the period of performance?

Start: 2017-09-11. End: 2026-05-21.

What is the track record of Advanced Management Technology, Inc. with federal contracts, particularly within the Department of Transportation?

Advanced Management Technology, Inc. (AMT) has a history of receiving federal contracts, including those with the Department of Transportation (DOT). Analyzing their contract portfolio reveals a pattern of providing professional services, often in areas related to logistics, program management, and technical support. While specific details on performance for each contract are not publicly available in summary data, the consistent award of contracts suggests a level of satisfaction or capability recognized by federal agencies. Further investigation into specific past performance reviews or contract close-out reports, if accessible, would provide a more granular understanding of their track record. Their ability to secure a significant task order like this one with the FAA indicates they are a recognized player in the federal contracting space for engineering and related services.

How does the $45 million value of this contract compare to typical engineering service contracts awarded by the FAA?

The $45 million value for this engineering services task order is substantial but falls within a common range for significant federal contracts, especially those supporting long-term operational needs of agencies like the FAA. The FAA frequently awards multi-million dollar contracts for a variety of services, including system engineering, infrastructure development, and technical support for air traffic management. Contracts for major system upgrades or sustainment efforts can easily reach tens or even hundreds of millions of dollars. This particular award, with a duration extending to May 2026, signifies a considerable investment in engineering expertise. Without knowing the specific scope of work, a direct comparison is difficult, but it aligns with the scale of engineering support typically required by an agency managing the complexity of the National Airspace System.

What are the primary risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with Time and Materials (T&M) contracts is the potential for cost overruns, as the government agrees to pay the contractor's actual labor costs (at specified hourly rates) plus the actual cost of materials, plus a fee or profit. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost unless explicitly stated. This can lead to higher-than-anticipated expenditures if the contractor's efficiency is low, if the scope of work expands without proper controls, or if labor hours are not meticulously tracked and justified. For the government, effective oversight is crucial to ensure that all hours billed are necessary, reasonable, and directly related to the contract's objectives. Without strong management and monitoring, T&M contracts can become significantly more expensive than initially projected.

How effective is full and open competition in ensuring value for money for engineering services contracts of this magnitude?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for large engineering services contracts. By allowing all responsible sources to submit bids, the government maximizes the potential for receiving competitive pricing and innovative solutions. This broad solicitation increases the likelihood that multiple capable firms will vie for the contract, driving down costs through market forces. The FAA's use of this method for the $45 million award suggests a commitment to obtaining the best possible outcome for taxpayers. However, the ultimate value for money also depends on the clarity of the solicitation requirements, the effectiveness of the evaluation criteria, and the government's ability to manage the contract post-award, particularly given the T&M pricing structure.

What are the potential implications of the contract's long duration (over 8 years) on its overall cost and effectiveness?

A long contract duration, such as the over 8 years for this $45 million engineering services award, presents both opportunities and risks. On the positive side, it allows for continuity of service and the development of deep expertise by the contractor, which can be beneficial for complex, long-term projects. It also reduces the administrative burden and costs associated with frequent re-competition. However, a lengthy period also increases the risk of scope creep, technological obsolescence, and potential cost increases if the T&M pricing model is not tightly controlled. Furthermore, market conditions and government needs can change significantly over such a long timeframe, potentially making the original contract terms less optimal or requiring costly modifications. Effective contract management and periodic reviews are essential to mitigate these risks and ensure the contract remains aligned with evolving requirements and provides sustained value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1515 WILSON BLVD STE 1100, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $45,457,915

Exercised Options: $44,957,678

Current Obligation: $44,957,678

Actual Outlays: $25,328,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA17D00013

IDV Type: IDC

Timeline