DOT's FAA awards $8.8M IT support contract to Karsun Solutions, with a 3-year duration

Contract Overview

Contract Amount: $8,852,632 ($8.9M)

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: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DATABASE ADMINISTRATION TECHNICAL 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 $8.9 million to KARSUN SOLUTIONS LLC for work described as: DATABASE ADMINISTRATION TECHNICAL SUPPORT SERVICES. IGF::OT::IGF Key points: 1. Contract value appears moderate for IT support services, requiring further benchmarking. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. Risk indicators are low, with a long performance period and a single delivery order. 4. Performance context shows a single delivery order under a larger IDIQ, limiting scope visibility. 5. Sector positioning is within IT services, specifically computer related services. 6. The contract type is Time and Materials, which can pose cost control challenges. 7. No small business set-aside was utilized, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $8.8 million over approximately three years for database administration technical support services is within a typical range for such IT services. However, without specific details on the scope of work, number of personnel, or service level agreements, a precise value-for-money assessment is difficult. Benchmarking against similar contracts for database administration support within the Federal Aviation Administration (FAA) or the Department of Transportation (DOT) would be necessary to determine if the pricing is competitive. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed closely.

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.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders is not specified, but the 'full and open' designation suggests a competitive process was initiated. The exclusion of sources, however, warrants further investigation to understand its impact on the overall competitiveness and potential price discovery.

Taxpayer Impact: The 'full and open' competition generally benefits taxpayers by encouraging multiple vendors to bid, potentially driving down prices. However, the exclusion of sources could limit the number of competitive bids received, potentially impacting the final price achieved for taxpayers.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA), which receives essential database administration technical support. Services delivered include technical support for database administration, crucial for maintaining the integrity and accessibility of FAA systems. The geographic impact is likely concentrated around FAA facilities or remote support locations within Virginia, where the contractor is based. Workforce implications include the employment of IT professionals specializing in database administration by Karsun Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The 'exclusion of sources' in the competition method requires further clarification to ensure maximum competition.
Limited visibility into the specific scope of work and deliverables for this delivery order.
Potential for vendor lock-in if Karsun Solutions becomes deeply integrated into FAA's database infrastructure.

Positive Signals

Awarded under a full and open competition, indicating a structured procurement process.
Long contract duration (over 3 years) suggests a stable and ongoing need for these services.
Contractor, Karsun Solutions LLC, has experience in government contracting.
The contract is a delivery order under a larger IDIQ, potentially indicating pre-negotiated terms and conditions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under the 'Other Computer Related Services' category (NAICS 541519). The IT services market for the federal government is substantial, with significant spending on software, hardware, and IT support. Comparable spending benchmarks for database administration and technical support services can vary widely based on the complexity of the systems supported, the required security clearances, and the geographic location of service delivery. The FAA's reliance on robust IT infrastructure for air traffic control and management makes IT support services a critical component of its operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was open to all eligible contractors, including large businesses. While Karsun Solutions LLC is a small business, the contract itself was not awarded under a specific small business set-aside program. This means that subcontracting opportunities for small businesses are not mandated by the contract's set-aside status, though Karsun Solutions may voluntarily engage small businesses for subcontracting.

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. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would typically fall under the Department of Transportation's Office of Inspector General (OIG), which investigates fraud, waste, and abuse in federal programs.

Related Government Programs

DOT IT Support Services
FAA Database Management Contracts
Federal Civilian IT Services
Time and Materials IT Contracts
IT Services for Air Traffic Control

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of clarity on the specific reasons for 'exclusion of sources' in the competition.
Limited visibility into detailed performance metrics and KPIs.
Need for further benchmarking to assess value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.9 million to KARSUN SOLUTIONS LLC. DATABASE ADMINISTRATION TECHNICAL 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 $8.9 million.

What is the period of performance?

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

What is the specific scope of 'database administration technical support services' covered under this contract?

The provided data does not detail the specific scope of 'database administration technical support services.' Typically, such services can encompass a wide range of activities including database installation, configuration, maintenance, performance tuning, backup and recovery, security patching, user management, and troubleshooting. For this contract, the exact deliverables, service level agreements (SLAs), and the specific database technologies supported (e.g., Oracle, SQL Server, MySQL) would need to be examined from the contract's Statement of Work (SOW) to fully understand the services rendered. The duration of 3245 days (approximately 9 years) and the delivery order structure suggest a long-term, potentially evolving need for these critical IT functions within the FAA.

How does the pricing of this Time and Materials contract compare to similar IT support contracts awarded by the FAA or DOT?

A direct comparison of the pricing for this Time and Materials (T&M) contract against similar IT support contracts is challenging without access to the detailed pricing structures (labor categories, rates, and estimated hours) and the specific scope of work for comparable contracts. T&M contracts are inherently flexible but can be prone to cost overruns if not managed diligently. To benchmark effectively, one would need to analyze the hourly rates for various labor categories (e.g., database administrators, technical support specialists) against market rates and other government T&M contracts for similar services. The total award amount of $8.8 million over its period of performance provides a high-level figure, but the true value is in the unit pricing and the efficiency of service delivery.

What are the key performance indicators (KPIs) used to measure the success of Karsun Solutions LLC in delivering these database administration services?

The provided contract data does not specify the Key Performance Indicators (KPIs) for this contract. In a typical IT support services contract, especially for database administration, KPIs often include metrics related to system uptime, database availability, response times for critical incidents, resolution times for support tickets, data backup success rates, and adherence to security protocols. The FAA would likely have established specific performance standards within the contract's Performance Work Statement (PWS) or Statement of Work (SOW) that Karsun Solutions is required to meet. Failure to meet these KPIs could result in contractually defined remedies, such as performance-based incentives or penalties.

What is the historical spending pattern for database administration technical support services at the FAA?

The provided data focuses on a single contract award and does not offer historical spending patterns for database administration technical support services at the FAA. To analyze historical spending, one would need to query federal procurement databases (like FPDS-NG) for all contracts awarded by the FAA for similar services (e.g., NAICS code 541519, keywords like 'database administration', 'technical support') over several fiscal years. This would reveal trends in contract values, types of services procured, dominant contractors, and the overall budget allocated to this function, providing context for the current $8.8 million award.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method used for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while aiming for broad competition, introduces specific risks. The primary risk is that excluding certain sources, even if justified, may inadvertently limit the pool of qualified bidders, potentially leading to less competitive pricing or reduced innovation. The justification for exclusion needs to be robust and transparent to ensure fairness and prevent potential protests. If the exclusion was based on overly narrow criteria or was not properly documented, it could raise concerns about the integrity of the procurement process and potentially impact the best value achieved for the government. Understanding *why* sources were excluded is crucial for assessing this risk.

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: $20,679,048

Exercised Options: $8,852,632

Current Obligation: $8,852,632

Actual Outlays: $6,751,677

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