Transportation contract for engineering services awarded to ADVANCED MANAGEMENT TECHNOLOGY, INC. for over $13M

Contract Overview

Contract Amount: $13,003,883 ($13.0M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2017-09-27

End Date: 2026-05-21

Contract Duration: 3,158 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF

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 $13.0 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: IGF::CT::IGF Key points: 1. Value for money appears fair given the contract duration and scope. 2. Competition dynamics indicate a full and open competition. 3. Risk indicators are moderate, with a long contract duration. 4. Performance context is within engineering services for the FAA. 5. Sector positioning is within professional services for government agencies.

Value Assessment

Rating: fair

The contract value of $13,008,383.24 over approximately 8 years suggests a moderate annual spend. Benchmarking against similar engineering services contracts is difficult without more specific task order details. However, the duration implies a sustained need for these services. The Time and Materials pricing structure can sometimes lead to cost overruns if not closely managed, but it also offers flexibility for evolving requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the designation implies a robust competitive process. This level of competition is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive marketplace, potentially leading to lower overall costs.

Public Impact

Benefits the Federal Aviation Administration (FAA) by providing essential engineering services. Services delivered likely include design, analysis, and technical support for aviation infrastructure and systems. Geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications involve skilled engineers and technical professionals employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to potential cost increases due to inflation or scope creep if not managed effectively.
Time and Materials (T&M) contract type can pose a risk of cost overruns if not diligently monitored and controlled by the agency.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
Contractor ADVANCED MANAGEMENT TECHNOLOGY, INC. has secured a significant award, suggesting a level of established performance.
The contract supports critical FAA operations, indicating alignment with government mission objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. This sector is a significant component of federal contracting, supporting a wide range of agency missions. The market for engineering services is competitive, with many firms capable of performing such work. The FAA, as a major government entity, regularly procures these types of services to maintain and improve its complex aviation systems.

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 for small businesses stemming from a set-aside requirement. The prime contractor, ADVANCED MANAGEMENT TECHNOLOGY, INC., is likely a mid-to-large-sized business. The absence of a small business set-aside means opportunities for small business participation would depend on the prime contractor's subcontracting strategy, which is not detailed here.

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, approving invoices, and ensuring compliance with contract terms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Aviation Administration Engineering Services
Department of Transportation Professional Services Contracts
Engineering and Technical Support Services
Time and Materials Contracts

Risk Flags

Long contract duration may increase risk of cost escalation.
Time and Materials contract type requires diligent oversight to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.0 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ADVANCED MANAGEMENT TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2017-09-27. End: 2026-05-21.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 541330, which corresponds to Engineering Services. While the specific tasks are not detailed, engineering services for the FAA typically encompass a broad range of activities. These can include the design, development, testing, and maintenance of air traffic control systems, airport infrastructure, aircraft safety technologies, and related IT systems. It may also involve technical consulting, feasibility studies, environmental impact assessments, and project management for aviation-related capital improvements or modernization efforts. The exact scope would be defined in the individual delivery orders issued against this contract.

How does the total contract value compare to typical engineering services contracts for the FAA?

The total contract value of approximately $13 million over nearly 8 years translates to an average annual value of roughly $1.6 million. This is a moderate-sized contract within the context of federal engineering services. The FAA procures a wide spectrum of engineering support, from small, specialized task orders to large, multi-year programs. Contracts of this magnitude are common for providing ongoing technical expertise or support for specific projects or system sustainment. Larger, more complex infrastructure projects or system-wide modernizations would likely involve significantly higher contract values, potentially in the tens or hundreds of millions.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk with a Time and Materials (T&M) contract is the potential for cost overruns if not managed rigorously. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure can incentivize longer task durations or higher labor hours if the government's oversight is insufficient. To mitigate this risk, the FAA must closely monitor the hours charged by contractor personnel, ensure the necessity of the work performed, validate labor rates, and scrutinize material costs. Establishing clear ceilings and requiring detailed justifications for hours and expenses are crucial.

What does the 'full and open competition' designation imply about the contractor's selection process?

The 'full and open competition' designation signifies that the Federal Aviation Administration (FAA) followed statutory requirements to solicit offers from all qualified sources and award the contract to the responsible offeror submitting the lowest price, technically acceptable proposal, or best value proposal. This means the agency did not restrict the competition to specific categories of businesses (like small businesses) or use other-than-full-and-open methods (like sole-sourcing). It implies that a broad range of potential contractors had the opportunity to compete, and the selection was based on merit and competitive pricing, which is generally considered the most advantageous approach for the government.

How has ADVANCED MANAGEMENT TECHNOLOGY, INC. performed on previous federal contracts?

Assessing the performance of ADVANCED MANAGEMENT TECHNOLOGY, INC. requires access to detailed contract performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS) and historical award data, which are not directly provided in the abbreviated data. However, securing a multi-year contract valued at over $13 million from a major agency like the FAA suggests a track record deemed satisfactory or better. Companies that consistently win significant federal contracts typically demonstrate reliability, technical competence, and the ability to manage complex projects within budget and schedule constraints. Further due diligence would involve reviewing CPARS reports and other performance metrics available through federal procurement databases.

What is the historical spending trend for engineering services by the FAA?

Historical spending on engineering services by the FAA is substantial and fluctuates based on infrastructure needs, modernization programs, and regulatory changes. The FAA consistently procures engineering support for air traffic control systems, airport development, safety enhancements, and environmental compliance. Annual spending can range from hundreds of millions to over a billion dollars, depending on major capital initiatives. This specific $13 million contract represents a portion of that overall spending, likely allocated to specific, ongoing technical support or project-based engineering requirements rather than a large-scale program.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1515 WILSON BLVD STE 1100, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,563,715

Exercised Options: $13,003,883

Current Obligation: $13,003,883

Actual Outlays: $8,346,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA17D00013

IDV Type: IDC

Timeline