DOT awards $19.8M for data architecture support, with significant time remaining on contract

Contract Overview

Contract Amount: $19,818,333 ($19.8M)

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: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: DATA ARCHITECTURE 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 $19.8 million to KARSUN SOLUTIONS LLC for work described as: DATA ARCHITECTURE TECHNICAL SUPPORT SERVICES. IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of data architecture support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Time and Materials) carries inherent risk of cost overruns if not managed closely. 4. Performance is within the Department of Transportation, specifically the Federal Aviation Administration. 5. The NAICS code (541519) indicates services related to computer systems design and related services. 6. The contract has been active since 2017 and extends through August 2026.

Value Assessment

Rating: good

The total award amount of $19.8 million over a potential 9-year period (from 2017 to 2026) suggests a moderate annual spend. Benchmarking against similar data architecture and IT support contracts would be necessary for a precise value-for-money assessment. However, the duration implies a sustained need for these services. The Time and Materials pricing structure, while common for evolving IT needs, warrants close monitoring to ensure costs remain aligned with delivered value and market rates.

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,' indicating that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is beneficial for price discovery and achieving fair market value.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced data architecture and technical support, crucial for its operations. Services delivered likely include the design, implementation, and maintenance of data systems supporting aviation safety and efficiency. The geographic impact is primarily within the Department of Transportation's operational areas, with a focus on Virginia where the contractor is located. Workforce implications include the employment of IT professionals and data architects by Karsun Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently managed and monitored for scope creep.
The long contract duration (potentially up to 9 years) requires ongoing vigilance to ensure continued relevance and value.
Lack of specific performance metrics or KPIs in the provided data makes it difficult to assess contractor performance objectively.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract has been in place since 2017, suggesting a stable and ongoing need for these critical data architecture services.
The contractor, Karsun Solutions LLC, has secured a significant contract, implying a level of established capability and trust.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data architecture and technical support. The market for such services is substantial, driven by government and commercial entities' increasing reliance on robust data management and analytics. The NAICS code 541519, 'Other Computer Related Services,' encompasses a wide range of IT consulting and support activities. Comparable spending benchmarks would typically be found within IT services procurements for federal agencies, particularly those managing large, complex datasets like the FAA.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and the contractor, Karsun Solutions LLC, is likely a mid-to-large-sized business. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often have subcontracting goals that benefit smaller firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction for audits and investigations into potential fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, though detailed performance reports and specific oversight activities are not publicly available.

Related Government Programs

IT Professional Services
Data Management Services
Cloud Computing Services
Software Development
Cybersecurity Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Long contract duration requires sustained oversight.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.8 million to KARSUN SOLUTIONS LLC. DATA ARCHITECTURE 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 $19.8 million.

What is the period of performance?

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

What is the historical spending pattern for this contract since its inception?

The contract was awarded on September 27, 2017, with an estimated completion date of August 14, 2026. The total obligated amount is $19,818,333.42. Without access to the detailed funding history and annual obligations, it's challenging to provide a precise spending pattern. However, the total obligated amount spread over the potential contract period suggests an average annual spend of approximately $2.5 million to $3 million, assuming consistent funding. The 'dur' field, indicating 3243 days, further supports the long-term nature of the contract. Further analysis would require examining the contract's funding history and delivery orders issued over time.

How does the pricing structure (Time and Materials) compare to other similar data architecture support contracts?

Time and Materials (T&M) contracts are common for IT services where the scope of work is not clearly defined at the outset or is expected to evolve. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost escalation if not managed rigorously. For data architecture support, agencies often use T&M for research, development, or ongoing support where specific deliverables are hard to pre-define. Benchmarking T&M rates requires access to data on labor categories, hours, and overhead rates charged by similar contractors on comparable government contracts. Without such granular data, a direct comparison is difficult, but the government typically negotiates ceiling prices and requires detailed justification for hours and materials.

What are the key performance indicators (KPIs) used to evaluate Karsun Solutions LLC's performance on this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or performance metrics for this contract. Typically, government contracts, especially for IT services, will outline performance standards, service level agreements (SLAs), and evaluation criteria in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These might include metrics related to system uptime, response times for technical support, data quality, project completion rates, or adherence to architectural standards. The absence of this information in the summary data suggests that a deeper dive into the contract's SOW or PWS would be necessary to understand how Karsun Solutions' performance is measured and managed.

What is the track record of Karsun Solutions LLC with the Federal Aviation Administration (FAA) and other federal agencies?

Karsun Solutions LLC has secured this significant contract with the FAA, indicating a positive working relationship and demonstrated capability. A broader review of federal procurement data would reveal Karsun Solutions' complete contract history across various agencies. Their ability to win and perform on contracts like this suggests they have a track record of meeting federal requirements. Further investigation into past performance reviews, contract awards, and any past issues or commendations would provide a more comprehensive understanding of their track record.

What is the potential for cost overruns given the Time and Materials contract type and the remaining duration?

The Time and Materials (T&M) contract type inherently carries a risk of cost overruns, especially over a long duration like this contract (ending August 2026). Cost overruns can occur if the scope of work expands beyond initial expectations, if labor rates are higher than anticipated, or if inefficient work practices are employed. The FAA's contracting officers and program managers are responsible for closely monitoring labor hours, material costs, and the overall progress against the contract's ceiling. Robust oversight, regular reporting, and potentially cost-reimbursement controls are crucial to mitigate these risks and ensure the project stays within budget.

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: $20,166,180

Exercised Options: $19,818,333

Current Obligation: $19,818,333

Actual Outlays: $16,241,313

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