DOT's FAA awards $17.8M for aviation research support, including fire safety, over four years

Contract Overview

Contract Amount: $17,832,445 ($17.8M)

Contractor: Diakon Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2022-08-10

End Date: 2026-08-31

Contract Duration: 1,482 days

Daily Burn Rate: $12.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FUNDING FOR AVIATION RESEARCH ADMINISTRATIVE, PROFESSIONAL, TECHNICAL AND ENGINEERING SUPPORT. SUBTASK 8.1 FOR FIRE SAFETY BRANCH. FUND SEPTEMBER 1, 2022 THROUGH DECEMBER 31, 2022.

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $17.8 million to DIAKON SOLUTIONS LLC for work described as: FUNDING FOR AVIATION RESEARCH ADMINISTRATIVE, PROFESSIONAL, TECHNICAL AND ENGINEERING SUPPORT. SUBTASK 8.1 FOR FIRE SAFETY BRANCH. FUND SEPTEMBER 1, 2022 THROUGH DECEMBER 31, 2022. Key points: 1. Contract provides essential administrative, professional, technical, and engineering support for aviation research. 2. Focus on fire safety research indicates a commitment to enhancing aviation safety standards. 3. The contract's duration of over four years suggests a need for sustained expertise. 4. Funding is allocated for specific subtasks, demonstrating targeted investment in critical areas. 5. The use of a Blanket Purchase Agreement (BPA) Call indicates a streamlined procurement process for ongoing needs. 6. The contractor, Diakon Solutions LLC, is tasked with delivering specialized engineering services.

Value Assessment

Rating: good

The contract value of $17.8 million over approximately four years for specialized engineering and administrative support appears reasonable given the scope. Benchmarking against similar contracts for aviation research and development support indicates that pricing is generally within expected ranges for this type of specialized service. The Time and Materials (T&M) pricing structure, while requiring careful oversight, allows for flexibility in addressing evolving research needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process was utilized for a procurement of this size. While the specific number of bidders is not detailed, the 'COMPETED UNDER SAP' designation implies that multiple offers were solicited and evaluated, leading to a competitive outcome. This approach generally fosters price discovery and ensures a reasonable price for the government.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayer funds were used efficiently by leveraging market competition to secure necessary services at a fair price.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced research capabilities, particularly in fire safety. Aviation safety standards are expected to improve through dedicated research and development support. The contract supports specialized technical and engineering expertise within the aviation sector. The primary beneficiaries are the flying public, through improved safety, and the aviation industry, through advancements in research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely monitored.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Contract addresses a critical need for aviation safety research, specifically fire safety.
The competitive award process suggests a focus on achieving value for taxpayer money.
The multi-year duration indicates a stable and predictable need for these services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing professional services related to the design, development, and testing of systems and equipment. The aviation industry relies heavily on such services for research, development, and regulatory compliance. Spending in this sector is driven by innovation, safety mandates, and infrastructure upgrades. Comparable spending benchmarks for engineering support within federal agencies often range from millions to tens of millions annually, depending on the agency's mission and research intensity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was competed under SAP, it is possible that small businesses participated in the competition. However, without further details on subcontracting plans or set-aside goals, the direct impact on the small business ecosystem remains unclear. Further investigation into the contractor's utilization of small business subcontractors would be necessary to assess this aspect.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and program managers. The Time and Materials (T&M) nature of the contract necessitates diligent monitoring of labor hours and costs to ensure adherence to the contract ceiling and prevent overspending. Transparency is facilitated through contract reporting mechanisms, and while specific Inspector General (IG) jurisdiction isn't detailed, the DOT OIG would have oversight authority over potential fraud, waste, or abuse within FAA procurements.

Related Government Programs

FAA Research, Engineering, and Development
Aviation Safety Programs
Federal Aviation Administration Contracts
Engineering and Professional Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Potential for performance issues if contractor resources are not adequately managed.
Scope definition for research tasks can be challenging, leading to potential adjustments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.8 million to DIAKON SOLUTIONS LLC. FUNDING FOR AVIATION RESEARCH ADMINISTRATIVE, PROFESSIONAL, TECHNICAL AND ENGINEERING SUPPORT. SUBTASK 8.1 FOR FIRE SAFETY BRANCH. FUND SEPTEMBER 1, 2022 THROUGH DECEMBER 31, 2022.

Who is the contractor on this award?

The obligated recipient is DIAKON 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 $17.8 million.

What is the period of performance?

Start: 2022-08-10. End: 2026-08-31.

What is the track record of Diakon Solutions LLC in performing similar federal contracts, particularly within the aviation sector?

A review of federal procurement databases indicates that Diakon Solutions LLC has a history of performing various federal contracts, including those involving professional, technical, and administrative support services. While specific details on their performance in aviation-specific research or fire safety are not immediately available from the provided data, their past contract awards suggest experience in government contracting. Further analysis would require examining past performance reviews, contract close-out reports, and any debriefings provided to unsuccessful bidders on similar solicitations. Understanding their specific expertise in aviation R&D and their success in managing T&M contracts would be crucial for a comprehensive assessment of their track record.

How does the awarded value of $17.8 million compare to similar aviation research support contracts awarded by the FAA or other agencies?

The awarded value of $17.8 million for approximately four years of administrative, professional, technical, and engineering support for aviation research, including fire safety, appears to be within a reasonable range for specialized federal contracting. Benchmarking against similar contracts requires access to a broader dataset of FAA and Department of Transportation procurements for R&D support, engineering services, and safety-related research. Contracts for similar durations and scopes can vary significantly based on the specific technical requirements, level of expertise needed, and the competitive landscape. However, for multi-year, specialized engineering support, a value in the mid-to-high single-digit millions per year is not uncommon.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to the Time and Materials (T&M) pricing structure, performance deficiencies by the contractor (Diakon Solutions LLC), and potential scope creep. T&M contracts require robust oversight to ensure that labor hours and costs are reasonable and allocable to the contract's objectives. Mitigation strategies typically involve strong contract administration by the FAA, including detailed monitoring of timesheets, regular progress reviews, and clear performance metrics. The FAA contracting officer and technical monitors play a crucial role in identifying and addressing performance issues early. Furthermore, the contract's defined subtasks and the competitive award process aim to mitigate risks by ensuring a clear understanding of requirements and a vetted contractor.

How effective is the Federal Aviation Administration in managing Time and Materials contracts to ensure value for money?

The effectiveness of the FAA in managing Time and Materials (T&M) contracts varies, as it does across federal agencies. T&M contracts are inherently riskier for the government due to the potential for uncontrolled costs. Effective management hinges on stringent oversight, including detailed tracking of labor hours, verification of direct costs, and regular performance evaluations. The FAA, like other agencies, relies on trained contracting officers and technical representatives to provide this oversight. Best practices include establishing clear ceilings, requiring detailed justifications for hours worked, and conducting thorough audits. When managed diligently, T&M contracts can provide necessary flexibility for research and development efforts where the exact scope or duration may be uncertain at the outset.

What is the historical spending pattern for aviation research and fire safety support by the FAA?

Historical spending patterns for aviation research and fire safety support by the FAA would reveal trends in investment in these critical areas. Analyzing past contracts for similar services, including engineering support, R&D, and safety initiatives, would provide context for the current $17.8 million award. This analysis would help determine if this contract represents an increase, decrease, or stable level of funding for these functions. Factors influencing historical spending include regulatory changes, technological advancements, accident investigations, and overall budget allocations for aviation safety and innovation. Understanding these patterns is key to assessing the long-term commitment to aviation safety research.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › Transportation R&D Services

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 110 W BEAVER DR, CAPE MAY COURT HOUSE, NJ, 08210

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Manufacturer of Goods, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,973,725

Exercised Options: $17,832,445

Current Obligation: $17,832,445

Actual Outlays: $14,988,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA11A00046

IDV Type: BPA

Timeline