DOT Awards $23.4M for FAA Technical Support Services to Karsun Solutions LLC

Contract Overview

Contract Amount: $23,411,076 ($23.4M)

Contractor: Karsun Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2018-03-20

End Date: 2025-09-19

Contract Duration: 2,740 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ITAR-18-2201 SLI#: 31357 ATOMS TECHNICAL SUPPORT SERVICES IAW THE SOW

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $23.4 million to KARSUN SOLUTIONS LLC for work described as: ITAR-18-2201 SLI#: 31357 ATOMS TECHNICAL SUPPORT SERVICES IAW THE SOW Key points: 1. Contract awarded to Karsun Solutions LLC for technical support services. 2. The contract has a total value of $23.4 million. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract duration is 2740 days, ending in September 2025. 5. The NAICS code is 541519 (Other Computer Related Services).

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, combined with a lack of specific cost benchmarks, makes a direct value assessment challenging. The awarded amount of $23.4M over nearly 7.5 years suggests a moderate annual spend.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates a limited initial competition, potentially impacting price discovery. While open, the exclusion of certain sources may have restricted the pool of bidders.

Taxpayer Impact: The total taxpayer impact is $23.4 million over the contract's life, spread across the Federal Aviation Administration's operational needs.

Public Impact

Ensures continued technical support for the Federal Aviation Administration's critical systems. Supports aviation safety and efficiency through IT services. Contract funds are directed to Karsun Solutions LLC, a private sector entity. The duration of the contract impacts long-term IT service planning for the FAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may not yield the best price.
Time and Materials contract type can lead to cost overruns.
Lack of specific performance metrics in provided data.
Contract duration is quite long, potentially leading to outdated technology.

Positive Signals

Awarded to a single, established vendor.
Supports a critical government function (FAA).
Contract is for a significant duration, providing stability.

Sector Analysis

This contract falls under IT services, specifically 'Other Computer Related Services'. The annual spend of approximately $3.1 million is within the typical range for specialized technical support contracts for federal agencies of the FAA's size.

Small Business Impact

The provided data does not indicate any specific set-asides for small businesses. Therefore, it is unclear what, if any, portion of this contract value benefits small businesses.

Oversight & Accountability

Oversight would typically be managed by the Federal Aviation Administration contracting officer and program managers. The long duration necessitates regular performance reviews and contract modifications to ensure continued relevance and value.

Related Government Programs

Other Computer Related Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition
Time and Materials pricing
Long contract duration
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.4 million to KARSUN SOLUTIONS LLC. ITAR-18-2201 SLI#: 31357 ATOMS TECHNICAL SUPPORT SERVICES IAW THE SOW

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 $23.4 million.

What is the period of performance?

Start: 2018-03-20. End: 2025-09-19.

What specific technical support services are included in the Statement of Work, and how do they align with current FAA needs?

The Statement of Work (SOW) details the specific technical support services required by the FAA. These likely encompass areas such as system maintenance, troubleshooting, software updates, and potentially hardware support for IT infrastructure critical to aviation operations. A thorough review of the SOW is necessary to confirm alignment with evolving FAA technological requirements and to ensure the services remain relevant throughout the contract's extended period.

How does the 'Full and Open Competition After Exclusion of Sources' method ensure fair pricing and prevent potential vendor lock-in?

This method allows for full and open competition but permits the exclusion of specific sources based on defined criteria, such as past performance or specialized capabilities. While intended to ensure qualified vendors participate, the exclusion aspect can limit the competitive pool. Effective price discovery relies on robust evaluation criteria and potentially market research to ensure the selected vendor's pricing is competitive despite the source exclusion.

What mechanisms are in place to manage cost risks associated with the Time and Materials (T&M) contract type over its 7.5-year duration?

Managing T&M risks over a long period requires stringent oversight. Mechanisms should include detailed labor category pricing, strict monitoring of hours worked, regular reviews of material costs, and clear definitions of what constitutes billable time. The FAA should implement regular performance reviews and potentially establish cost ceilings or incentivize efficiency to mitigate the inherent risk of cost escalation in T&M contracts.

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: $23,452,617

Exercised Options: $23,411,076

Current Obligation: $23,411,076

Actual Outlays: $20,579,715

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