DOT's FAA awards $3.4M task order for ECG engineering, maintenance, and software support to Sunhilllo Corp

Contract Overview

Contract Amount: $3,443,798 ($3.4M)

Contractor: Sunhillo Corp

Awarding Agency: Department of Transportation

Start Date: 2021-09-23

End Date: 2026-09-26

Contract Duration: 1,829 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: ECG ENGINEERING MAINTENANCE AND SOFTWARE SUPPORT SERVICES; SUNHILLO FOLLOW-ON TASK ORDER

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $3.4 million to SUNHILLO CORP for work described as: ECG ENGINEERING MAINTENANCE AND SOFTWARE SUPPORT SERVICES; SUNHILLO FOLLOW-ON TASK ORDER Key points: 1. The contract is a follow-on task order for essential ECG engineering, maintenance, and software support. 2. Sunhilllo Corp, the incumbent, is awarded this sole-source contract. 3. The contract duration is 5 years, ending in September 2026. 4. The total value is approximately $3.44 million. 5. The contract type is Time and Materials.

Value Assessment

Rating: fair

The Time and Materials contract type can lead to cost overruns if not closely monitored. The pricing needs to be benchmarked against similar support services to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

Ensures continued operation and maintenance of critical ECG systems for the FAA. Supports software updates and engineering services for these systems. Potential for increased costs due to sole-source nature. Long-term reliance on a single vendor for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Time and Materials contract type carries inherent cost overrun risk.
Lack of small business participation.

Positive Signals

Ensures continuity of critical engineering and software support.
Follow-on task order suggests incumbent performance was satisfactory.

Sector Analysis

This contract falls under custom computer programming services, a sector vital for government IT infrastructure. Benchmarks for similar IT support services are crucial for assessing value.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This represents a missed opportunity for small business participation.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost escalations. Regular performance reviews are essential.

Related Government Programs

Custom Computer Programming Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award
Time and Materials contract type
Lack of small business participation
Potential for cost overruns
Limited price discovery

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.4 million to SUNHILLO CORP. ECG ENGINEERING MAINTENANCE AND SOFTWARE SUPPORT SERVICES; SUNHILLO FOLLOW-ON TASK ORDER

Who is the contractor on this award?

The obligated recipient is SUNHILLO CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2021-09-23. End: 2026-09-26.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves unique capabilities or a critical need that only one vendor can fulfill. For this contract, the agency must have documented why competition was not feasible. To ensure fair and reasonable pricing, the agency should have conducted a price analysis, comparing proposed costs to historical data, other contract pricing, or market research.

What are the specific risks associated with the Time and Materials contract type for this service, and how are they being mitigated?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns, as the contractor is reimbursed for direct labor hours and costs. Mitigation strategies include establishing labor hour ceilings, requiring detailed cost reporting, and conducting thorough audits. For this ECG support, the FAA must actively monitor labor hours and material costs to prevent scope creep and ensure efficient service delivery.

How does the performance of this follow-on task order compare to the previous contract, and what is the overall effectiveness of the vendor's support?

As a follow-on task order, it implies that the incumbent vendor, Sunhilllo Corp, likely met or exceeded performance expectations on the previous contract. However, a formal effectiveness assessment would require reviewing performance metrics, user feedback, and any documented issues or successes. The FAA should have established clear performance standards and regularly evaluated Sunhilllo's ability to provide reliable ECG engineering, maintenance, and software support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 444 KELLY DR, WEST BERLIN, NJ, 08091

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

Financial Breakdown

Contract Ceiling: $3,665,268

Exercised Options: $3,443,798

Current Obligation: $3,443,798

Actual Outlays: $3,114,833

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10A00200

IDV Type: BPA

Timeline