DOT awards $10.7M for flight procedures automation, with Karsun Solutions LLC managing technical support

Contract Overview

Contract Amount: $10,742,583 ($10.7M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2017-09-26

End Date: 2026-08-14

Contract Duration: 3,244 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INSTRUMENT FLIGHT PROCEDURES AUTOMATION (IFPA) 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 $10.7 million to KARSUN SOLUTIONS LLC for work described as: INSTRUMENT FLIGHT PROCEDURES AUTOMATION (IFPA) TECHNICAL SUPPORT SERVICES. IGF::OT::IGF Key points: 1. Contract value appears moderate for specialized IT support in aviation. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. Performance period extends through August 2026, indicating a long-term need. 4. The contract type is Time and Materials, which can pose cost control challenges. 5. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 6. The North American Industry Classification System (NAICS) code 541519 covers a broad range of computer-related services.

Value Assessment

Rating: fair

The contract value of $10.7 million over its period of performance is modest for a federal IT support contract. Benchmarking against similar contracts for technical support services in the aviation sector would be necessary for a precise value-for-money assessment. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed diligently, compared to fixed-price contracts. Without specific performance metrics or detailed cost breakdowns, it's difficult to definitively assess if this represents excellent value.

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 based on certain criteria prior to the main solicitation. The number of bidders is not specified, but the 'full and open' nature suggests a reasonable level of competition, which generally aids in price discovery and achieving fair market value.

Taxpayer Impact: A competitive award process, even with exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and technical solutions, potentially leading to cost savings.

Public Impact

The Federal Aviation Administration (FAA) benefits from continuous technical support for its Instrument Flight Procedures Automation (IFPA) systems. This contract ensures the ongoing functionality and maintenance of critical aviation infrastructure. The services delivered are essential for air traffic management and flight safety. The primary geographic impact is within the operational domains managed by the FAA, likely nationwide. Workforce implications include the employment of IT professionals and subject matter experts 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.
Lack of specific details on competition level (number of bidders) limits full assessment of price discovery.
The broad NAICS code (541519) makes direct cost comparisons challenging without more granular service descriptions.

Positive Signals

Awarded under full and open competition, indicating a structured procurement process.
Long performance period suggests a stable, ongoing requirement and potential for contractor expertise development.
Contractor (Karsun Solutions LLC) is likely experienced in providing IT support services to the federal government.

Sector Analysis

The Instrument Flight Procedures Automation (IFPA) Technical Support Services contract falls within the broader Information Technology (IT) and Aerospace/Defense sectors. The market for specialized aviation IT support is driven by stringent regulatory requirements, safety imperatives, and the need for continuous technological upgrades. Comparable spending benchmarks would typically be found within IT services contracts awarded by agencies like the FAA, NASA, or the Department of Defense for similar mission-critical systems.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate in this specific contract are limited unless they are subcontractors to the prime contractor, Karsun Solutions LLC. The absence of set-asides may impact the direct flow of federal dollars to the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and program managers. Accountability measures are typically embedded within the contract's performance work statement (PWS), requiring adherence to service level agreements and technical specifications. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

FAA Air Traffic Control Systems Modernization
NextGen Air Transportation System (NextGen)
Aviation IT Infrastructure Support
Federal IT Services Contracts
Department of Transportation IT Procurement

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of technological obsolescence over the long contract duration.
Need for robust government oversight to manage contractor performance and costs.
Limited visibility into the specific number of bidders in the 'full and open' competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.7 million to KARSUN SOLUTIONS LLC. INSTRUMENT FLIGHT PROCEDURES AUTOMATION (IFPA) 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 $10.7 million.

What is the period of performance?

Start: 2017-09-26. End: 2026-08-14.

What is the specific nature of the 'Instrument Flight Procedures Automation (IFPA)' systems being supported, and what are the key technical challenges?

The Instrument Flight Procedures Automation (IFPA) systems are critical components of the air traffic management infrastructure, responsible for the design, validation, and dissemination of instrument flight procedures. These procedures guide aircraft safely through airspace, especially in low visibility conditions. Key technical challenges often include ensuring system reliability and availability (99.999% uptime is common), integrating with evolving air traffic control systems (like NextGen), cybersecurity threats, managing vast amounts of data related to procedures, and adapting to changes in airspace design and regulatory requirements. The technical support likely involves software maintenance, system upgrades, database management, user support, and ensuring interoperability with other aviation systems.

How does the Time and Materials (T&M) contract type compare to other contract types in terms of cost efficiency for IT support 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. They reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of the contractor's actual costs. For IT support services where requirements can evolve, T&M can be suitable, but it necessitates robust government oversight to manage labor hours and material costs effectively. Cost-Plus contracts are another alternative, but T&M is generally considered less risky for the government than cost-plus-fee types, provided diligent oversight is maintained.

What does 'full and open competition after exclusion of sources' imply about the procurement process and potential bidder pool?

This procurement method signifies that the solicitation was initially intended for all responsible sources ('full and open competition'). However, prior to the main solicitation, certain sources were excluded based on specific, documented justifications (e.g., national security, unique capabilities, or prior performance issues). This implies that while the competition was broad, it was not entirely unrestricted. The number of bidders who ultimately responded is crucial for assessing the effectiveness of the competition. If only a few bidders participated despite the 'full and open' nature, it might suggest market limitations or specific requirements that narrowed the field significantly, potentially impacting price discovery.

What is Karsun Solutions LLC's track record with federal IT contracts, particularly within the Department of Transportation or FAA?

Karsun Solutions LLC has a history of performing IT services for various federal agencies. A review of federal procurement data (like FPDS) would reveal the extent and nature of their past performance. Specifically for the Department of Transportation (DOT) and its agencies like the Federal Aviation Administration (FAA), their track record would indicate their experience with aviation-specific IT systems, compliance requirements, and the scale of previous contracts. Assessing their performance on prior contracts, including on-time delivery, budget adherence, and technical execution, is vital for understanding their capability to fulfill the IFPA technical support requirements effectively.

Are there any comparable federal IT support contracts that could serve as benchmarks for the value and performance of this IFPA contract?

Identifying comparable contracts requires searching federal procurement databases (e.g., FPDS, SAM.gov) for IT support services, particularly those related to aviation systems, air traffic management, or complex software automation. Key comparison points include the agency (FAA, DOT), contract type (T&M, FFP), scope of work (e.g., software development, maintenance, system integration), contract value, period of performance, and the number of bidders. For instance, contracts supporting FAA's NextGen initiatives or other critical IT infrastructure projects could offer insights. Benchmarking would involve comparing hourly rates, total contract values relative to duration, and reported performance metrics, while accounting for differences in complexity and market conditions.

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

A contract duration spanning from September 2017 to August 2026 (over 8 years) presents several potential risks. Technological obsolescence is a significant concern; IT systems and solutions can become outdated rapidly. The contractor's ability to maintain expertise and adapt to new technologies over such a long period is critical. There's also a risk of contractor complacency or reduced innovation if competition is limited throughout the period. For the government, long-term T&M contracts can escalate in cost if not managed proactively. Furthermore, changes in agency priorities or budget constraints could impact the contract's continuation or scope. Ensuring flexibility and regular performance reviews are key mitigation strategies.

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: $12,912,198

Exercised Options: $10,742,583

Current Obligation: $10,742,583

Actual Outlays: $7,651,112

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