FAA's $9.17M Engineering Services Contract Awarded to Diakon Solutions LLC for Aviation Research

Contract Overview

Contract Amount: $9,172,080 ($9.2M)

Contractor: Diakon Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2023-10-30

End Date: 2025-11-30

Contract Duration: 762 days

Daily Burn Rate: $12.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: R&D

Official Description: THE STRUCTURES AND PROPULSION BRANCH (ANG-E28) IS PART OF THE AVIATION RESEARCH DIVISION (ANG-E2) AT THE FAA WILLIAM J. HUGHES TECHNICAL CENTER. THE BRANCH CONDUCTS RESEARCH WHICH INCLUDES DEVELOPING AND EVALUATING TECHNOLOGIES, CONDUCTING LABORAT

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $9.2 million to DIAKON SOLUTIONS LLC for work described as: THE STRUCTURES AND PROPULSION BRANCH (ANG-E28) IS PART OF THE AVIATION RESEARCH DIVISION (ANG-E2) AT THE FAA WILLIAM J. HUGHES TECHNICAL CENTER. THE BRANCH CONDUCTS RESEARCH WHICH INCLUDES DEVELOPING AND EVALUATING TECHNOLOGIES, CONDUCTING LABORAT Key points: 1. Contract awarded to Diakon Solutions LLC for specialized engineering services. 2. Focus on aviation research and technology development within the FAA. 3. Potential for innovation in aviation safety and efficiency. 4. Spending falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: good

The contract value of $9.17M for a duration of 762 days appears reasonable for specialized engineering services. Benchmarking against similar FAA research and development contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being utilized for advanced aviation research, aiming to improve safety and efficiency, which can have long-term economic benefits.

Public Impact

Enhances aviation safety through technology evaluation and development. Supports the FAA's mission to ensure safe and efficient air travel. Potential for advancements in aircraft structures and propulsion systems. Invests in the future of the aviation industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may impact price optimization.
Contract duration is substantial, requiring ongoing oversight.

Positive Signals

Supports critical aviation research and development.
Awarded to a single vendor, potentially indicating specialized expertise.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aviation research and development. Spending benchmarks for R&D in aviation can vary widely, but this value appears aligned with specialized technical services.

Small Business Impact

The data does not indicate if Diakon Solutions LLC is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

Oversight will be crucial to ensure the research objectives are met within budget and timeline. The FAA's Technical Center is responsible for managing this contract.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition
Time and Materials contract type
Potential for scope creep
Reliance on a single vendor for specialized research

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.2 million to DIAKON SOLUTIONS LLC. THE STRUCTURES AND PROPULSION BRANCH (ANG-E28) IS PART OF THE AVIATION RESEARCH DIVISION (ANG-E2) AT THE FAA WILLIAM J. HUGHES TECHNICAL CENTER. THE BRANCH CONDUCTS RESEARCH WHICH INCLUDES DEVELOPING AND EVALUATING TECHNOLOGIES, CONDUCTING LABORAT

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 $9.2 million.

What is the period of performance?

Start: 2023-10-30. End: 2025-11-30.

What specific technological advancements are expected from this contract, and how will they be measured?

The contract aims to develop and evaluate technologies for aviation structures and propulsion. Specific advancements will likely be detailed in project milestones and deliverables outlined in the Statement of Work. Success metrics would typically involve successful prototype testing, validation of new materials or designs, and documented improvements in performance or safety characteristics compared to existing technologies.

What are the primary risks associated with this limited competition contract, and how are they being mitigated?

The primary risk of limited competition is potentially higher costs due to reduced market pressure. Mitigation strategies could include robust negotiation by the contracting officer, clear performance metrics, and potentially incorporating price adjustment clauses. Another risk is the vendor's capacity to deliver on all aspects of the complex research; this is typically managed through phased deliverables and regular progress reviews.

How does this investment in aviation research contribute to overall taxpayer value and the future of air travel?

This investment contributes to taxpayer value by fostering innovation that can lead to safer, more efficient, and potentially more environmentally friendly air travel. Advancements in structures and propulsion can reduce operational costs for airlines, lower emissions, and enhance passenger safety. The long-term economic benefits of a robust and advanced aviation sector justify the initial investment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › Energy 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: $19,997,395

Exercised Options: $9,172,080

Current Obligation: $9,172,080

Actual Outlays: $5,818,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA11A00046

IDV Type: BPA

Timeline