FAA awards $2M+ contract for IT strategy and performance support to Rigil Corporation

Contract Overview

Contract Amount: $2,039,866 ($2.0M)

Contractor: Rigil Corporation

Awarding Agency: Department of Transportation

Start Date: 2022-11-09

End Date: 2025-09-30

Contract Duration: 1,056 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FEDERAL AVIATION ADMINISTRATION (FAA) TECHNICAL MANAGEMENT SUPPORT (TMS) SERVICES FOR THE OFFICE OF INFORMATION AND TECHNOLOGY (AIT) STRATEGY & PERFORMANCE SERVICE (ASP)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.0 million to RIGIL CORPORATION for work described as: FEDERAL AVIATION ADMINISTRATION (FAA) TECHNICAL MANAGEMENT SUPPORT (TMS) SERVICES FOR THE OFFICE OF INFORMATION AND TECHNOLOGY (AIT) STRATEGY & PERFORMANCE SERVICE (ASP) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration extends over 1000 days, indicating a significant, long-term need. 3. Focus on IT strategy and performance suggests critical support for the agency's technological infrastructure. 4. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract is for labor hours, allowing flexibility in resource allocation. 7. The contractor, Rigil Corporation, has secured this significant award, indicating their capability in this domain.

Value Assessment

Rating: good

The contract value of approximately $2 million over its period of performance appears reasonable for specialized IT strategy and management consulting services. Benchmarking against similar contracts for IT management support within federal agencies would provide a more precise value-for-money assessment. The labor hours pricing structure allows for flexibility, but requires careful monitoring to ensure efficient use of resources and prevent cost overruns. Without specific details on the scope of work and deliverables, a definitive value assessment is challenging, but the award amount seems aligned with the complexity of supporting an agency's IT strategy.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, which typically involves a broad solicitation to all eligible responsible sources. This approach generally fosters a competitive environment, encouraging multiple bidders to submit proposals. The number of bidders is not specified, but the full and open nature suggests a robust competition was intended, which can lead to better pricing and innovative solutions for the government.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and diverse offerings from multiple contractors.

Public Impact

The Federal Aviation Administration's Office of Information and Technology (AIT) will benefit from enhanced strategic planning and performance management. Services delivered will support the modernization and efficiency of FAA's IT systems and operations. The geographic impact is primarily national, as FAA operations are nationwide. The contract supports a workforce of IT professionals and management consultants, potentially creating or sustaining jobs in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the specific tasks and deliverables are not tightly managed.
Reliance on labor hours could lead to increased costs if not carefully monitored for efficiency.
Ensuring the contractor's proposed solutions align with long-term FAA IT goals requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration suggests a stable, long-term need for these critical IT services.
Focus on strategy and performance implies a commitment to improving IT effectiveness.
The contractor, Rigil Corporation, is likely experienced in providing such specialized services.

Sector Analysis

The IT consulting and management services sector is a significant component of federal spending, with agencies increasingly relying on external expertise to navigate complex technological landscapes. This contract fits within the broader category of professional services supporting government IT modernization efforts. Comparable spending benchmarks for IT strategy and management support within agencies like the FAA often range from hundreds of thousands to several million dollars annually, depending on the scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside criterion (ss: false, sb: false). This suggests that the competition was open to all eligible businesses, including large and small enterprises. While there is no explicit subcontracting requirement mentioned, large prime contractors often engage small businesses for specialized support. The absence of a small business set-aside means the direct impact on the small business ecosystem is limited unless Rigil Corporation voluntarily includes them in their subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring the contractor to meet specific deliverables and performance standards. Transparency is generally maintained through contract award databases and public reporting, although detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA IT Modernization Programs
DOT IT Strategy and Planning Contracts
Federal IT Consulting Services
Management and Administrative Support Services

Risk Flags

Potential for cost overruns due to labor hour pricing model.
Risk of misalignment between contractor's strategy and FAA's long-term IT goals.
Dependency on contractor expertise requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.0 million to RIGIL CORPORATION. FEDERAL AVIATION ADMINISTRATION (FAA) TECHNICAL MANAGEMENT SUPPORT (TMS) SERVICES FOR THE OFFICE OF INFORMATION AND TECHNOLOGY (AIT) STRATEGY & PERFORMANCE SERVICE (ASP)

Who is the contractor on this award?

The obligated recipient is RIGIL CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2022-11-09. End: 2025-09-30.

What is Rigil Corporation's track record in providing IT strategy and management support to federal agencies, particularly within the aviation sector?

Rigil Corporation has a documented history of providing IT and management consulting services to various federal agencies. While specific details on their involvement with the FAA's IT strategy and performance prior to this award are not explicitly detailed in the provided data, their ability to secure this contract suggests a relevant background. Federal procurement databases often list past performance information, which would detail their experience with similar contracts, client satisfaction, and adherence to timelines and budgets. A deeper dive into their contract history would reveal the extent and success of their previous engagements, particularly in areas related to IT strategy, system modernization, and performance improvement within complex government organizations like the FAA.

How does the awarded amount of approximately $2 million compare to similar IT strategy and performance support contracts within the FAA or other Department of Transportation agencies?

The awarded amount of approximately $2 million for IT strategy and performance support services over a period of roughly three years (November 2022 to September 2025) appears to be within a reasonable range for specialized federal IT consulting. For context, similar contracts for IT management, strategic planning, and system performance analysis within large federal agencies can range from several hundred thousand to tens of millions of dollars, depending heavily on the scope, duration, and complexity of the agency's IT environment. Given the FAA's critical role and extensive technological infrastructure, a $2 million contract for focused strategic support is not unusually high. Benchmarking against contracts with similar NAICS codes (541611) and service descriptions within the DOT or other large civilian agencies would provide a more precise comparison point for value for money.

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

Primary risks associated with this contract include potential scope creep, where the project's objectives expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the effective management of labor hours to ensure efficiency and prevent inflated costs. Ensuring the contractor's proposed strategies align with the FAA's long-term IT vision and security requirements is also critical. Mitigation strategies likely involve robust contract management by the FAA, including detailed performance work statements (PWS), regular progress reviews, clear change control processes, and performance metrics to track contractor output. The use of a delivery order under an IDIQ contract may also provide some flexibility while requiring careful task order management.

How effective is the 'full and open competition' approach likely to be in ensuring the FAA receives optimal value for these IT strategy services?

The 'full and open competition' approach is generally considered the most effective method for the government to obtain optimal value, as it maximizes the pool of potential bidders and encourages competitive pricing and innovative solutions. By allowing any responsible source to submit an offer, the FAA increases the likelihood of receiving proposals that are not only cost-effective but also technically superior. This competitive pressure incentivizes bidders to offer their best capabilities and pricing to win the contract. The success of this approach hinges on the clarity of the solicitation requirements and the thoroughness of the evaluation process to ensure the selected contractor truly offers the best overall value, balancing technical merit, past performance, and price.

What are the historical spending patterns for IT strategy and management support services within the Federal Aviation Administration?

Historical spending patterns for IT strategy and management support services within the Federal Aviation Administration (FAA) typically reflect the agency's ongoing need to modernize its complex air traffic control systems, enhance cybersecurity, and improve operational efficiency through technology. The FAA consistently invests in IT services, including strategic planning, system integration, data management, and performance optimization. Spending in this category can fluctuate based on major modernization initiatives, technological shifts, and budget allocations. While specific historical dollar amounts for this precise service category are not provided, the FAA's overall IT budget is substantial, and contracts for strategic support are a recurring component of ensuring its technological infrastructure remains effective and secure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 4800 WESTFIELDS BLVD, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,443,895

Exercised Options: $2,039,866

Current Obligation: $2,039,866

Actual Outlays: $2,039,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 692M1518D00026

IDV Type: IDC

Timeline