DOT awards $31M for Enterprise Architecture and Product Management Technical Support to Karsun Solutions LLC

Contract Overview

Contract Amount: $31,014,396 ($31.0M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2017-09-27

End Date: 2026-08-14

Contract Duration: 3,243 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ENTERPRISE ARCHITECTURE AND PRODUCT MANAGEMENT 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 $31.0 million to KARSUN SOLUTIONS LLC for work described as: ENTERPRISE ARCHITECTURE AND PRODUCT MANAGEMENT TECHNICAL SUPPORT SERVICES. IGF::OT::IGF Key points: 1. Contract value of $31 million over its period of performance. 2. Karsun Solutions LLC is the sole awardee for these services. 3. The contract has a duration of approximately 9 years. 4. Services include enterprise architecture and product management technical support. 5. The contract type is Time and Materials. 6. The award was made under full and open competition after exclusion of sources.

Value Assessment

Rating: fair

The total contract value is $31 million over nearly 9 years, averaging around $3.4 million annually. Without specific benchmarks for enterprise architecture and product management technical support services, it's difficult to definitively assess value for money. The Time and Materials pricing structure can pose a risk for cost control if not managed diligently. Comparison to similar contracts for specialized IT support would be necessary for a more robust assessment.

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.' While this indicates an initial broad solicitation, the 'exclusion of sources' clause suggests specific criteria or limitations were applied, potentially narrowing the field of eligible bidders. The number of bidders is not provided, which limits the assessment of the competitive landscape and its impact on price discovery.

Taxpayer Impact: The 'full and open' aspect is generally positive for taxpayers, aiming to ensure the best possible price through a wide search for qualified contractors. However, the exclusion of sources warrants further scrutiny to ensure it did not unduly restrict competition.

Public Impact

The Federal Aviation Administration (FAA) within the Department of Transportation benefits from this contract. Services provided are crucial for enterprise architecture and product management, supporting the agency's IT infrastructure and strategic planning. The contract is managed by the FAA, implying a focus on aviation-related systems and operations. The workforce implications are likely related to specialized IT and project management roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
The long duration of the contract (nearly 9 years) may reduce flexibility for the agency to adapt to changing technological needs.
Lack of specific details on the 'exclusion of sources' could mask potential limitations in competition.

Positive Signals

Awarded under full and open competition, suggesting a broad initial search for qualified vendors.
The contract supports critical functions like enterprise architecture and product management, indicating strategic importance.
The contractor, Karsun Solutions LLC, is a known entity in the federal IT services space.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on enterprise architecture and product management. The IT services market for the federal government is substantial, with agencies investing heavily in modernizing systems and improving digital services. This contract likely supports the FAA's efforts to manage its complex IT landscape, align technology with business goals, and ensure effective product development and delivery. Benchmarks for similar IT support services can vary widely based on specialization and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. The prime contractor, Karsun Solutions LLC, is likely a mid-to-large-sized business, and their engagement does not inherently benefit small businesses through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Federal Aviation Administration contracting officers and program managers. Accountability measures are inherent in the contract's performance requirements and delivery schedules. Transparency is facilitated through federal procurement databases like FPDS, where contract awards are reported. The Inspector General for the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Professional Services
Enterprise Architecture Support
Product Management Services
Federal Aviation Administration IT Modernization
Department of Transportation IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the long contract duration.
Limited insight into the specific criteria for 'exclusion of sources' impacting competition.
Lack of detailed performance metrics or benchmarks for value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31.0 million to KARSUN SOLUTIONS LLC. ENTERPRISE ARCHITECTURE AND PRODUCT MANAGEMENT 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 $31.0 million.

What is the period of performance?

Start: 2017-09-27. End: 2026-08-14.

What is the track record of Karsun Solutions LLC with the Department of Transportation and the Federal Aviation Administration?

Karsun Solutions LLC has a history of receiving federal contracts, including with the Department of Transportation and its agencies like the FAA. Analyzing their past performance on similar IT support, enterprise architecture, and product management contracts would provide insight into their reliability and effectiveness. Specific metrics such as on-time delivery, adherence to budget, and quality of work on previous DOT/FAA engagements would be crucial. A review of past performance evaluations, if publicly available, would offer a more detailed picture of their capabilities and client satisfaction within these specific agencies.

How does the annual value of this contract compare to typical IT support contracts for agencies of the FAA's size?

The annual value of this contract, averaging approximately $3.4 million ($31M / 9 years), needs to be benchmarked against similar IT support services for agencies comparable to the FAA in size and complexity. The FAA manages a vast and critical infrastructure, requiring significant IT investment. Without specific data on the scope of 'enterprise architecture and product management technical support,' a direct comparison is challenging. However, for specialized IT services, this annual figure could be considered moderate, neither exceptionally high nor low, depending on the specific deliverables and the level of expertise required. Further analysis would involve comparing it to contracts for similar functions within other large federal agencies.

What are the primary risks associated with a Time and Materials (T&M) contract for these services?

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and associated costs, plus a fee. If project scope is not tightly managed, or if efficiency is low, costs can escalate beyond initial expectations. For the FAA, this means the total expenditure could exceed the $31 million ceiling if not diligently overseen. Effective risk mitigation requires robust monitoring of labor hours, rates, and the necessity of the work performed, along with clear task definitions and performance metrics.

How does the 'exclusion of sources' clause in the competition affect price discovery and potential value for taxpayers?

The 'exclusion of sources' clause, while operating within a 'full and open' framework, introduces a layer of specificity that could limit the breadth of competition. If the exclusion criteria are narrowly defined or overly restrictive, it might inadvertently reduce the number of capable bidders. This reduction in competition, even if unintentional, can potentially lead to less aggressive pricing from the remaining bidders compared to a scenario with a wider pool of competitors. For taxpayers, this means there's a risk that the government might not achieve the absolute lowest price achievable in a truly unrestricted market. The justification for the exclusion is therefore critical to understanding its impact on value.

What is the strategic importance of enterprise architecture and product management support for the FAA?

Enterprise Architecture (EA) and Product Management (PM) support are strategically vital for the FAA as they enable the agency to align its complex IT investments with its mission objectives. EA provides a blueprint for how IT systems should be structured and managed to support business strategies, ensuring interoperability, efficiency, and security. Product Management ensures that IT solutions are developed and delivered as products that meet user needs and deliver tangible value. For the FAA, this support is critical for modernizing air traffic control systems, enhancing safety, improving operational efficiency, and adapting to evolving aviation technologies and regulatory requirements.

What are the potential implications of the contract's long duration (nearly 9 years) on technological relevance and adaptability?

A contract duration of nearly nine years for IT services presents both opportunities and risks regarding technological relevance and adaptability. On the positive side, it offers stability and allows the contractor to develop deep expertise and long-term strategic insights. However, the rapid pace of technological change in the IT sector means that systems and approaches current at the start of the contract may become outdated by its end. This extended commitment could potentially lock the FAA into specific technologies or methodologies, making it more challenging and costly to adopt newer, more efficient solutions that emerge during the contract period. Regular reviews and flexibility clauses are essential to manage 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: $33,288,099

Exercised Options: $31,014,396

Current Obligation: $31,014,396

Actual Outlays: $18,153,654

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