DOT's FAA awards $7.96M contract for ARP business process support to Micro Systems Consultants, Inc

Contract Overview

Contract Amount: $7,964,519 ($8.0M)

Contractor: Micro Systems Consultants, Inc.

Awarding Agency: Department of Transportation

Start Date: 2017-08-02

End Date: 2026-04-10

Contract Duration: 3,173 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF EFAST PA 17-054-NV ARP BUSINESS PROCESS SUPPORT

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 $8.0 million to MICRO SYSTEMS CONSULTANTS, INC. for work described as: IGF::OT::IGF EFAST PA 17-054-NV ARP BUSINESS PROCESS SUPPORT Key points: 1. Contract awarded on a Time and Materials basis, which can pose cost control challenges. 2. The contract duration is substantial, spanning over 8 years, requiring careful performance monitoring. 3. The specific NAICS code (541712) suggests a focus on R&D, but the description points to business process support. 4. The contract was not competed under SAP, raising questions about the procurement process. 5. The award is a single BPA Call, indicating a potentially limited scope or specific need. 6. The contractor, Micro Systems Consultants, Inc., is the sole awardee for this specific BPA Call.

Value Assessment

Rating: questionable

The Time and Materials pricing structure for a contract of this duration and value presents a risk for cost overruns. Without clear performance metrics and robust oversight, it is difficult to benchmark the value for money. Comparing this to similar business process support contracts within the FAA or DOT would be necessary to assess if the pricing is competitive, but the limited competition information makes this challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was not competed under SAP, and the award is a single BPA Call. The specific details of the competition, including whether other quotes were solicited or considered, are not provided. This lack of transparency makes it difficult to assess the level of competition and its impact on price discovery. The 'NOT COMPETED UNDER SAP' designation suggests it may have been a sole-source or limited-source action.

Taxpayer Impact: The limited competition raises concerns for taxpayers as it may have resulted in a higher price than could have been achieved through a more open and competitive bidding process.

Public Impact

The Federal Aviation Administration (FAA) benefits from continued business process support services. The contract aims to ensure the smooth operation of the ARP (likely Airport والرعاية Program or similar) business processes. The primary impact is on the internal operations and efficiency of the FAA. Workforce implications are likely internal to the FAA, with potential reliance on contractor expertise for specific functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure increases cost risk.
Lack of detailed competition information hinders value assessment.
Long contract duration requires sustained oversight.
Potential misalignment between NAICS code and service description.

Positive Signals

Contract awarded to a specific entity for dedicated support.
Long-term award provides stability for service delivery.
Focus on business process support aims to improve operational efficiency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to business process support and potentially R&D given the NAICS code. The federal government is a significant consumer of such services to manage complex operations and research initiatives. Benchmarking would involve comparing the total contract value and duration to other similar support contracts awarded by agencies like the FAA or DOT, considering the specific nature of the ARP business processes.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this contract. Therefore, there is no direct small business set-aside. The implications for the small business ecosystem are minimal in terms of direct award, but it's possible that the prime contractor may engage small businesses for subcontracting, though this is not specified.

Oversight & Accountability

Oversight mechanisms would typically be managed by the contracting officer's representative (COR) within the FAA, responsible for monitoring performance and ensuring compliance with the contract terms. Accountability is tied to the contractor's ability to deliver services as per the Time and Materials agreement. Transparency is limited by the lack of detailed competition information and public reporting on performance metrics.

Related Government Programs

FAA Operations Support Contracts
DOT Business Process Improvement Initiatives
Federal Aviation Management Systems
Research and Development Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of transparency in the procurement process.
Possible mismatch between NAICS code and service description.
Long contract duration increases risk of obsolescence and performance degradation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.0 million to MICRO SYSTEMS CONSULTANTS, INC.. IGF::OT::IGF EFAST PA 17-054-NV ARP BUSINESS PROCESS SUPPORT

Who is the contractor on this award?

The obligated recipient is MICRO SYSTEMS CONSULTANTS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2017-08-02. End: 2026-04-10.

What specific ARP business processes are being supported under this contract?

The provided data does not specify the exact 'ARP' acronym or the detailed business processes covered. However, given the context of the Federal Aviation Administration (FAA), 'ARP' could potentially refer to the Airport والرعاية Program, Airspace الرعاية Program, or a similar operational initiative. The contract likely involves supporting the administrative, operational, or technical functions critical to the success of these programs. This could include tasks such as data management, workflow optimization, system maintenance, reporting, and user support related to the specific ARP functions. Further clarification from the FAA would be needed to ascertain the precise scope of 'ARP business process support'.

How does the Time and Materials (T&M) pricing structure compare to other FAA business process support contracts?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve, allowing for flexibility. However, they carry a higher risk of cost overruns compared to fixed-price contracts. For FAA business process support, T&M can be suitable for ongoing maintenance, undefined troubleshooting, or evolving project phases. Benchmarking against other FAA contracts would require analyzing the average T&M rates for similar labor categories, the total obligated amounts, and the contract durations. Without access to a broader dataset of FAA contracts, it's difficult to definitively state how this specific T&M award compares. However, agencies generally aim to use T&M judiciously and implement strong oversight to control costs.

What are the potential risks associated with a contract duration of over 8 years?

A contract duration exceeding 8 years, as seen with this $7.96M award (August 2017 to April 2026), presents several risks. Firstly, there's the risk of technological obsolescence; the systems or processes supported may become outdated over such a long period, requiring significant adaptation or replacement. Secondly, contractor performance can degrade over time if not actively managed, leading to decreased efficiency or quality. Thirdly, market conditions and pricing can change significantly, potentially making the original pricing uncompetitive. Finally, long-term contracts can reduce agency flexibility to adapt to new requirements or adopt more innovative solutions that may emerge during the contract's life. Robust performance management, regular reviews, and potential for contract modifications are crucial to mitigate these risks.

What does 'NOT COMPETED UNDER SAP' imply for this contract's procurement?

'NOT COMPETED UNDER SAP' typically means the contract was not procured using the Simplified Acquisition Procedures (SAP), which are generally for purchases below a certain threshold (e.g., $250,000, though this can vary). This designation suggests that the contract likely exceeded the SAP threshold and was therefore subject to different, potentially more formal, procurement regulations. It could imply a sole-source award, a limited competition, or a different type of competitive process not falling under the standard SAP framework. Without further details, it's hard to pinpoint the exact procurement method, but it indicates that standard, simplified procedures were not applied, potentially due to the contract's value or specific circumstances.

Is the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) appropriate for 'ARP Business Process Support'?

The NAICS code 541712 is primarily for 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. This code typically covers activities involving systematic study to gain new knowledge, with the expectation that this knowledge will be used for developing new or improved products or processes. 'ARP Business Process Support,' as described, sounds more aligned with professional, administrative, or management consulting services (e.g., NAICS 541611 - Administrative Management and General Management Consulting Services, or NAICS 541512 - Computer Systems Design Services, if IT-related). There appears to be a potential mismatch between the assigned NAICS code and the described service. This discrepancy could indicate an error in classification or that the 'business process support' has a significant R&D component not immediately apparent from the description.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Micro Systems Consultants Inc.

Address: 2785 HARTLAND RD, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Subchapter S Corporation, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,081,996

Exercised Options: $7,964,519

Current Obligation: $7,964,519

Actual Outlays: $6,539,444

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA11A00037

IDV Type: BPA

Timeline