DOT awards $4.76M engineering services contract to Regulus Group, LLC for FAA support

Contract Overview

Contract Amount: $4,758,932 ($4.8M)

Contractor: Regulus Group, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-10-19

End Date: 2026-10-23

Contract Duration: 1,465 days

Daily Burn Rate: $3.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROCUREMENT ACTION PA-23-015-CS, FORMALLY PA-22-039-CS

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $4.8 million to REGULUS GROUP, LLC for work described as: PROCUREMENT ACTION PA-23-015-CS, FORMALLY PA-22-039-CS Key points: 1. Contract awarded on a competitive basis, suggesting potential for good value. 2. Engineering services are critical for maintaining and upgrading aviation infrastructure. 3. The contract duration extends over multiple years, indicating a long-term need. 4. Performance will be monitored to ensure quality and adherence to specifications. 5. The award falls within the broader category of professional engineering services for government agencies. 6. The use of Time and Materials pricing requires careful oversight to manage costs.

Value Assessment

Rating: good

The contract value of $4.76 million for engineering services appears reasonable given the multi-year duration and the critical nature of FAA infrastructure support. Benchmarking against similar engineering service contracts awarded by the Department of Transportation or other federal agencies for comparable tasks would provide a more precise value assessment. The Time and Materials pricing structure necessitates diligent oversight to ensure costs remain aligned with the scope of work and market rates for engineering labor and materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process was utilized. While the specific number of bids received is not detailed, SAP is designed to encourage competition for procurements below certain thresholds. The competitive nature of the award suggests that multiple firms had the opportunity to bid, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages efficient service delivery.

Public Impact

The Federal Aviation Administration (FAA) will benefit from specialized engineering expertise. Services delivered will likely support the maintenance, upgrade, or development of aviation infrastructure. The geographic impact is focused on New Jersey, where the contractor is located. The contract supports the engineering workforce, potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing if not closely monitored.
Ensuring the quality and timeliness of engineering deliverables will be crucial for project success.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Contract duration suggests a stable, long-term need for these engineering services.
Contractor is based in New Jersey, potentially supporting local economic activity.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader professional services market supporting government infrastructure. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) encompasses a wide range of activities, from civil and mechanical engineering to specialized fields like aerospace. Federal spending in this sector is substantial, driven by the need for expertise in designing, building, and maintaining critical national infrastructure, including transportation systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Regulus Group, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. Future analysis could explore whether subcontracting opportunities are being offered to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and technical representatives. The Time and Materials (T&M) pricing structure necessitates robust oversight to ensure that labor hours and material costs are reasonable and allocable to the contract. Transparency will depend on the agency's reporting practices and the availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration Operations
Department of Transportation Engineering Support
Professional Services Contracts
Infrastructure Development and Maintenance

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for robust oversight to ensure quality and efficiency.
Contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.8 million to REGULUS GROUP, LLC. PROCUREMENT ACTION PA-23-015-CS, FORMALLY PA-22-039-CS

Who is the contractor on this award?

The obligated recipient is REGULUS GROUP, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2022-10-19. End: 2026-10-23.

What is the track record of Regulus Group, LLC with federal contracts, particularly with the Department of Transportation?

A review of federal procurement data would be necessary to fully assess Regulus Group, LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract modifications. Understanding their experience with similar engineering services, especially for aviation-related projects, would provide insight into their capabilities and reliability. Specifically, their history with the Department of Transportation and the Federal Aviation Administration would be most relevant to gauge their suitability for this current award and to identify any potential performance risks or strengths.

How does the awarded amount of $4.76 million compare to similar engineering service contracts for aviation infrastructure?

To benchmark the $4.76 million award, one would compare it to contracts for similar engineering services procured by the FAA or other transportation agencies over the past 2-3 years. Key comparison points would include the scope of work (e.g., design, consulting, project management), contract duration, and the specific types of aviation infrastructure involved (e.g., air traffic control systems, airport facilities, navigation aids). If this contract is for a standard set of services over a typical duration, the amount may be considered competitive. However, if it involves highly specialized expertise or a significantly longer period than usual, a higher value might be justified. Without specific comparable contract data, a definitive assessment of value for money is challenging.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services?

The primary risk with a Time and Materials (T&M) contract for engineering services is the potential for cost escalation if not managed effectively. Unlike fixed-price contracts, T&M contracts reimburse the contractor for actual labor hours and material costs incurred, plus a fee or profit. This structure can incentivize longer project durations or less efficient work if oversight is lax. For engineering services, risks include inflated labor rates, unnecessary hours billed, or excessive material markups. To mitigate these risks, the government must implement stringent monitoring of labor hours, require detailed invoicing, establish ceiling prices, and ensure that the scope of work is clearly defined and adhered to. Regular performance reviews and audits are also critical.

What is the expected impact of this contract on the FAA's ability to maintain and upgrade its infrastructure?

This contract is expected to significantly support the FAA's mission by providing essential engineering expertise. The $4.76 million award over approximately four years suggests a commitment to addressing ongoing or upcoming infrastructure needs. The engineering services procured will likely contribute to the modernization of air traffic control systems, airport facilities, or navigation technologies, ultimately enhancing safety, efficiency, and capacity within the National Airspace System. The timely and effective delivery of these services is crucial for the FAA to keep pace with technological advancements and operational demands, ensuring the continued reliability and security of air travel.

How has federal spending on engineering services, particularly for transportation, trended in recent years?

Federal spending on engineering services, particularly within the transportation sector, has generally seen consistent demand, driven by the continuous need to maintain, repair, and upgrade aging infrastructure and to develop new transportation networks. Agencies like the Department of Transportation (DOT), including its sub-agencies like the FAA, are major consumers of these services. Spending trends are often influenced by infrastructure investment initiatives, economic conditions, and national priorities. While specific figures fluctuate annually, there's a persistent requirement for engineering expertise across various modes of transport, including aviation, highways, and public transit, reflecting the critical role these services play in national development and safety.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 238 N MAIN ST, WOODSTOCK, VA, 22664

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $8,018,329

Exercised Options: $4,758,932

Current Obligation: $4,758,932

Actual Outlays: $4,302,037

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA11A00081

IDV Type: BPA

Timeline