DOT awards $8.99M engineering services contract to ENROUTE COMPUTER SOLUTIONS INC for future concepts integration

Contract Overview

Contract Amount: $8,988,070 ($9.0M)

Contractor: Enroute Computer Solutions Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-07

End Date: 2026-09-15

Contract Duration: 1,104 days

Daily Burn Rate: $8.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FUTURE CONCEPTS INTEGRATION (FCI) SETIS TORP #2335.

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $9.0 million to ENROUTE COMPUTER SOLUTIONS INC for work described as: FUTURE CONCEPTS INTEGRATION (FCI) SETIS TORP #2335. Key points: 1. Contract value of $8.99M for engineering services represents a significant investment in future concepts integration. 2. The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process. 3. The delivery order has a duration of 1104 days, suggesting a medium-term project. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a specialized field. 5. The contract is a Time and Materials type, which can pose cost control challenges if not managed closely. 6. The awardee, ENROUTE COMPUTER SOLUTIONS INC, will be responsible for integrating future concepts within the FAA's operational framework.

Value Assessment

Rating: good

The contract value of $8.99M for engineering services appears reasonable given the scope of integrating future concepts. Benchmarking against similar large-scale engineering integration projects within the Federal Aviation Administration (FAA) would provide further context. The Time and Materials (T&M) pricing structure, while common for evolving requirements, necessitates diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This typically means that the solicitation was broadly advertised, but specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or prior performance. The fact that it was open competition suggests that multiple bidders were likely considered, which generally promotes price discovery and can lead to more competitive pricing for the government. The number of bidders is not specified, but the 'full and open' nature implies a robust competitive environment.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It reduces the risk of overpayment and encourages contractors to offer their best value solutions.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, gaining enhanced capabilities for future operational concepts. The contract will deliver engineering services crucial for the integration and development of advanced aviation technologies. The geographic impact is primarily within New Jersey (ST/SN), where the contractor is located, but the benefits extend to national airspace operations. The contract supports a specialized engineering workforce, potentially creating or sustaining high-skilled jobs in the technology and aerospace sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored for scope and efficiency.
The 'exclusion of sources' clause in the competition type warrants further investigation to understand the rationale and potential impact on competition breadth.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's potential for successful delivery.
The project's focus on 'future concepts' implies inherent technical risks and potential for evolving requirements.

Positive Signals

Awarded through full and open competition, suggesting a competitive market price was likely achieved.
The contractor, ENROUTE COMPUTER SOLUTIONS INC, is likely selected based on relevant expertise in engineering services.
The contract duration of over 1000 days indicates a commitment to a significant, potentially impactful project.
The project aims to advance critical 'future concepts' for the FAA, indicating a forward-looking investment.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the aerospace and defense industries. The market for specialized engineering services supporting aviation modernization and future concept development is highly competitive, driven by government investment in technological advancement. Comparable spending benchmarks would typically involve other large-scale integration and system engineering contracts within the FAA or Department of Defense, often ranging from millions to tens of millions of dollars, depending on complexity and duration.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions. However, the prime contractor may still engage small businesses as subcontractors based on their own procurement strategies and the availability of specialized services within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officer and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

FAA Next Generation Air Transportation System (NextGen)
FAA Air Traffic Control Modernization Programs
Department of Transportation Research and Development Initiatives
Aerospace Engineering Services Contracts
Future Aviation Technology Integration Projects

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage scope and ensure efficiency.
Complexity of integrating 'future concepts' may introduce technical risks.
Importance of clearly defined performance metrics for success evaluation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.0 million to ENROUTE COMPUTER SOLUTIONS INC. FUTURE CONCEPTS INTEGRATION (FCI) SETIS TORP #2335.

Who is the contractor on this award?

The obligated recipient is ENROUTE COMPUTER SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2023-09-07. End: 2026-09-15.

What is the track record of ENROUTE COMPUTER SOLUTIONS INC with the Federal Aviation Administration or Department of Transportation?

A thorough review of federal procurement data would be necessary to fully assess ENROUTE COMPUTER SOLUTIONS INC's track record with the FAA and DOT. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Without access to this specific historical data, it's challenging to provide a detailed assessment. However, the award of this $8.99M contract suggests the agency has confidence in the company's capabilities to handle complex engineering integration tasks. Further due diligence would typically involve reviewing past performance questionnaires and any debriefings from previous competitive procurements.

How does the $8.99M contract value compare to similar engineering services contracts for aviation concept integration?

Benchmarking the $8.99M contract value requires comparing it to similar 'future concepts integration' or 'aerospace engineering services' contracts awarded by the FAA or other aviation authorities. Contracts for large-scale system integration, research and development, or advanced technology implementation within the aviation sector can vary significantly in cost, often ranging from a few million to tens of millions of dollars, depending on the scope, duration, and technological complexity. Given the 1104-day duration, this award appears to be a substantial, medium-term investment. A direct comparison would necessitate identifying contracts with similar objectives, such as developing and integrating new air traffic management technologies or advanced operational frameworks.

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

The primary risk associated with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not managed rigorously. For the government, risks include difficulty in accurately forecasting the total project cost and potential for scope creep, where the project expands beyond its original intent without a corresponding increase in the contract's ceiling price. Effective oversight, clear task definitions, and strong project management are crucial to mitigate these risks.

How will the success of this 'future concepts integration' contract be measured?

The success of this 'future concepts integration' contract will likely be measured against specific performance metrics and milestones defined within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These metrics could include the successful integration of specified technologies, the development of required documentation, adherence to project timelines, and the achievement of defined technical objectives related to the future concepts. The FAA's program office and contracting officer will be responsible for monitoring progress, conducting regular reviews, and evaluating the contractor's performance against these established criteria. Successful completion would ultimately be determined by whether the integrated concepts meet the FAA's operational and strategic goals.

What is the historical spending trend for engineering services within the Federal Aviation Administration?

Analyzing historical spending trends for engineering services within the Federal Aviation Administration (FAA) requires examining aggregate data over several fiscal years. The FAA consistently invests in engineering services to support its mission of modernizing air traffic control systems, enhancing safety, and integrating new technologies. Spending in this category can fluctuate based on major program initiatives, such as the Next Generation Air Transportation System (NextGen), and overall budget allocations. While specific figures for 'future concepts integration' are not readily available without deeper analysis, the FAA's overall budget for engineering and technical services typically runs into hundreds of millions of dollars annually, reflecting the complexity and scale of its operations and modernization efforts.

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: 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: 2511 FIRE RD STE A4, EGG HARBOR TOWNSHIP, NJ, 08234

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

Financial Breakdown

Contract Ceiling: $18,269,783

Exercised Options: $8,988,070

Current Obligation: $8,988,070

Actual Outlays: $6,245,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA823D00005

IDV Type: IDC

Timeline