DOT's FAA awards $24.6M for adaptive maintenance technical support to Karsun Solutions LLC

Contract Overview

Contract Amount: $24,615,585 ($24.6M)

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: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ADAPTIVE MAINTENANCE TECHNICAL SUPPORT SERVICESIGF::OT::IGF

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $24.6 million to KARSUN SOLUTIONS LLC for work described as: ADAPTIVE MAINTENANCE TECHNICAL SUPPORT SERVICESIGF::OT::IGF Key points: 1. Contract value represents a significant investment in ongoing IT support. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The contract duration of over 8 years indicates a long-term need for these services. 4. Performance is categorized under 'Other Computer Related Services', a broad IT sector. 5. The contract is a delivery order under a larger indefinite-delivery vehicle. 6. Karsun Solutions LLC is the sole awardee for this specific delivery order.

Value Assessment

Rating: good

The total award of $24.6 million over approximately 8 years suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular data on the specific services provided. However, the Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed. The contract's value appears reasonable for the extended duration and scope of technical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely considered or had the opportunity to bid. The specific mechanism 'after exclusion of sources' might imply a prior sole-source or limited competition phase that was then opened up. The level of competition is generally positive for price discovery.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially driving down costs for the government.

Public Impact

The Federal Aviation Administration (FAA) benefits from continuous technical support for its systems. This contract ensures the maintenance and upkeep of critical IT infrastructure. The services delivered are essential for the operational efficiency of air traffic control and related systems. The primary beneficiaries are the FAA's IT operations and, indirectly, the safety and efficiency of the national airspace system. Workforce implications include the potential for Karsun Solutions LLC to employ technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation with Time and Materials pricing if not managed stringently.
Long contract duration could lead to vendor lock-in if not periodically re-evaluated.
Dependence on a single vendor for this delivery order may pose continuity risks if the vendor faces challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract supports critical FAA operations, indicating a recognized need and value.
Karsun Solutions LLC has a track record with government contracts, implying some level of established capability.

Sector Analysis

The IT services sector, particularly computer-related services, is a significant area of federal spending. This contract falls under the broad category of IT support and maintenance, which is crucial for agencies like the FAA to maintain complex operational systems. Comparable spending benchmarks would typically involve analyzing IT support contracts across various federal agencies, with a focus on those supporting mission-critical infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and is not a small business set-aside (ss: false). Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. The primary contractor, Karsun Solutions LLC, is likely a mid-to-large-sized business, and its engagement does not directly foster small business participation through set-asides.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing the Time and Materials aspects to control costs. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Software Maintenance Services
Cloud Computing Services
Network Infrastructure Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration may limit flexibility and increase vendor lock-in.
Dependence on a single vendor for this delivery order could pose continuity risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.6 million to KARSUN SOLUTIONS LLC. ADAPTIVE MAINTENANCE TECHNICAL SUPPORT SERVICESIGF::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 $24.6 million.

What is the period of performance?

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

What is Karsun Solutions LLC's track record with the Department of Transportation and the FAA?

Karsun Solutions LLC has a history of receiving contracts from the Department of Transportation, including the Federal Aviation Administration. Reviewing their contract history reveals multiple awards for IT services, technical support, and software development. For instance, they have been involved in projects related to enterprise IT, cloud migration, and application modernization. Their performance on previous contracts, as indicated by past performance evaluations and award data, suggests a consistent ability to deliver IT solutions. However, a deeper dive into specific past performance reviews would be necessary to fully assess their reliability and effectiveness for this particular adaptive maintenance technical support role.

How does the $24.6 million value compare to similar FAA IT support contracts?

The $24.6 million award over approximately 8 years translates to an average annual spend of roughly $3 million. This figure is moderate when compared to the vast IT spending landscape within the FAA, which often involves multi-million dollar contracts for enterprise-wide solutions, system modernization, and large-scale infrastructure projects. However, for specialized technical support services like adaptive maintenance, this value could be significant, especially if it covers a niche area or a critical set of systems. Benchmarking requires comparing it to contracts with similar scope, duration, and service complexity, which can be difficult without more detailed service descriptions. It is not an exceptionally large contract in the context of the FAA's overall IT budget but represents a substantial commitment for the specific services procured.

What are the primary risks associated with a Time and Materials (T&M) contract of this nature?

The primary risk with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials. If the scope of work is not well-defined, or if project management is lax, contractors may incur higher labor hours or material costs than anticipated, leading to the government paying more than initially budgeted. Effective oversight, clear task orders, and diligent monitoring of labor hours and material usage are crucial to mitigate these risks. The long duration of this contract amplifies this risk, necessitating continuous vigilance from the FAA.

How effective is 'full and open competition after exclusion of sources' in ensuring value for taxpayers?

The 'full and open competition after exclusion of sources' approach aims to balance the benefits of broad competition with potential efficiencies or specific needs that might have initially led to a limited solicitation. By opening the competition broadly after an initial exclusion, the government seeks to leverage a wider pool of vendors, thereby enhancing price discovery and potentially securing better value. This method suggests that while there might have been initial considerations for specific capabilities or existing relationships, the final award was made through a process where all qualified vendors could compete. This generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation.

What is the historical spending trend for adaptive maintenance technical support services at the FAA?

Analyzing historical spending trends for 'adaptive maintenance technical support services' specifically at the FAA requires access to detailed procurement data over multiple fiscal years. General trends in federal IT spending show a consistent and increasing allocation towards maintenance, support, and modernization of existing systems. As systems evolve and become more complex, the need for adaptive maintenance—which implies support for systems that are changing or require ongoing adjustments—grows. It is likely that the FAA has maintained or increased its spending in this area to ensure the reliability and security of its critical aviation infrastructure. This $24.6 million award suggests a sustained or elevated level of investment in this specific service category.

What are the potential performance implications of awarding a delivery order under an IDV for this service?

Awarding a delivery order under an Indefinite Delivery Vehicle (IDV) for adaptive maintenance technical support means that the foundational contract (IDV) likely established terms, conditions, and potentially pre-negotiated rates. The specific delivery order then defines the scope, quantity, and delivery schedule for a particular requirement. This approach offers flexibility for the FAA to procure services as needed over the IDV's life. For adaptive maintenance, this allows the agency to respond to evolving technical needs without initiating a full procurement each time. The performance implications depend heavily on how well the IDV was structured and how effectively individual delivery orders are managed to ensure the contractor meets performance expectations.

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: $28,763,045

Exercised Options: $24,615,585

Current Obligation: $24,615,585

Actual Outlays: $18,341,361

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