Transportation contract for administrative management services awarded to Advanced Management Technology, Inc. for over $55 million

Contract Overview

Contract Amount: $55,535,451 ($55.5M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2018-01-24

End Date: 2025-03-21

Contract Duration: 2,613 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TESTING REQ AND SOL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $55.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: TESTING REQ AND SOL Key points: 1. The contract's value of over $55 million over its duration suggests a significant need for administrative management consulting services within the Federal Aviation Administration. 2. The use of a Firm Fixed Price contract type indicates a clear understanding of the scope and expected costs, potentially mitigating cost overrun risks. 3. The award to a single contractor, Advanced Management Technology, Inc., warrants a review of the competition dynamics to ensure fair pricing and optimal value. 4. The contract duration of over 2600 days (approximately 7 years) points to a long-term requirement, allowing for sustained support but also requiring ongoing performance monitoring. 5. The North American Industry Classification System (NAICS) code 541611 for Administrative Management and General Management Consulting Services places this contract within a common professional services category for government agencies. 6. The contract's performance period extending into March 2025 suggests ongoing relevance and potential for future needs in this service area.

Value Assessment

Rating: fair

Benchmarking the value of this $55.5 million contract requires detailed comparison with similar administrative management consulting contracts awarded by the FAA and other federal agencies. The firm fixed price structure is a positive indicator for cost control. However, without specific deliverables and performance metrics, a definitive assessment of value-for-money is challenging. The duration of the contract (over 7 years) suggests a substantial scope, and the pricing should reflect economies of scale and efficiency gains over time. Further analysis would involve comparing the hourly rates or project-based costs to industry standards for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 4 bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access to a broad range of capabilities, the specific number of bidders (4) is on the lower side for a contract of this magnitude. This level of competition may have influenced the final negotiated price, and further analysis of the bidding process could reveal if it was sufficient to drive optimal price discovery.

Taxpayer Impact: A full and open competition, even with 4 bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competition awards. This process aims to ensure that the government is not overpaying for services.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving administrative management and general management consulting services. The services delivered are expected to support the operational efficiency and management functions of the FAA. The contract is geographically focused on the District of Columbia, where the contractor is registered. The contract supports the professional services sector, potentially involving skilled consultants and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The relatively low number of bids (4) for a contract of this value could indicate potential limitations in market reach or contractor interest, possibly impacting price competitiveness.
The long contract duration (over 7 years) increases the risk of scope creep or performance degradation if not actively managed and monitored.
Without detailed performance metrics, it's difficult to assess the true effectiveness and value derived from the administrative management services provided.

Positive Signals

The contract was awarded through full and open competition, suggesting a broad solicitation and adherence to standard procurement procedures.
The use of a Firm Fixed Price contract type provides cost certainty and incentivizes the contractor to manage expenses efficiently.
The contractor, Advanced Management Technology, Inc., has secured a significant, long-term contract, indicating a level of trust and perceived capability by the awarding agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and management consulting. This sector is a significant component of federal spending, with agencies frequently outsourcing specialized expertise. The market for these services is competitive, with numerous firms offering a wide range of capabilities. The FAA's spending in this area is likely part of a broader strategy to enhance operational effectiveness and management efficiency through external expertise, aligning with common government practices for acquiring specialized support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus is on larger, established firms capable of handling significant government contracts. Opportunities for small businesses would likely arise through subcontracting with the prime contractor, if such provisions are included in their teaming agreements, or through separate, smaller contract vehicles.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction isn't detailed here, the Department of Transportation's Office of Inspector General typically oversees agency spending for potential fraud, waste, and abuse. Regular performance reviews and audits would be key accountability measures.

Related Government Programs

Federal Acquisition Regulation (FAR) Part 15 - Contracting by Negotiation
Federal Aviation Administration (FAA) Procurement Standards
Administrative Management Consulting Services
Professional Services Contracts
Government Consulting Contracts

Risk Flags

Long contract duration may increase risk of performance degradation or obsolescence.
Moderate competition level (4 bidders) for a contract of this value warrants scrutiny of price reasonableness.
Lack of specific performance metrics in summary data makes value-for-money assessment difficult.
Contractor's track record and past performance should be thoroughly reviewed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $55.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. TESTING REQ AND SOL

Who is the contractor on this award?

The obligated recipient is ADVANCED MANAGEMENT TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.5 million.

What is the period of performance?

Start: 2018-01-24. End: 2025-03-21.

What is the track record of Advanced Management Technology, Inc. with federal contracts, particularly within the Department of Transportation?

Advanced Management Technology, Inc. (AMT) has a history of securing federal contracts, including those with the Department of Transportation. Analyzing their past performance data, such as contract values, agencies served, and types of services rendered, provides insight into their experience and reliability. For instance, reviewing their award history can reveal patterns in contract types (e.g., fixed-price, cost-plus), competition levels they typically face, and their success rate in winning bids. Understanding their performance on previous DOT contracts, specifically, would highlight their familiarity with the agency's unique requirements and operational environment. A review of contract close-out data and any reported performance issues or awards would further inform an assessment of their track record.

How does the awarded amount of $55.5 million compare to similar administrative management consulting contracts within the federal government?

The $55.5 million contract value for administrative management consulting services is substantial, placing it among significant federal procurements in this category. To benchmark its value, comparisons should be made against contracts of similar scope, duration, and complexity awarded by agencies like the Department of Defense, GSA, or other large civilian agencies. Factors such as the number of full-time equivalents (FTEs) supported, the specific types of consulting services (e.g., strategic planning, organizational efficiency, process improvement), and the geographic scope of work are crucial for a fair comparison. If this contract supports a large number of personnel or highly specialized consulting functions, the price may be justified. Conversely, if similar outcomes are achieved with fewer resources or at lower costs by other agencies, it could indicate potential overpricing or inefficiencies.

What are the primary risks associated with a contract of this duration (over 7 years) and value?

Contracts with long durations, such as this 7-year agreement, and significant value present several key risks. Firstly, there's the risk of 'scope creep,' where the project's objectives or deliverables expand beyond the original agreement without corresponding adjustments to cost or timeline, leading to budget overruns. Secondly, performance degradation over time is a concern; the contractor's motivation or capability might wane, or the agency's needs might evolve, making the contracted services less relevant or effective. Thirdly, market conditions and technology can change rapidly over such a long period, potentially rendering the contracted solutions outdated or less competitive than newer alternatives. Finally, there's the risk of vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making it difficult and costly to switch providers even if performance is subpar. Robust oversight, clear performance metrics, and regular contract reviews are essential to mitigate these risks.

What specific administrative management and general management consulting services are being provided under this contract?

The contract's NAICS code (541611) indicates services related to 'Administrative Management and General Management Consulting Services.' This broad category typically encompasses a range of activities aimed at improving an organization's efficiency and effectiveness. Specific services could include strategic planning, organizational design and restructuring, business process re-engineering, policy development and implementation, program management support, human capital management consulting, and general operational advice. Without access to the detailed Statement of Work (SOW) or Performance Work Statement (PWS), the precise nature of the services remains general. However, given the contracting agency (FAA), these services likely support aviation-specific administrative functions, regulatory compliance, or internal operational improvements.

How has federal spending on administrative management consulting services trended over the past five years, and how does this contract fit into that trend?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally seen a steady increase over the past five years, driven by agencies seeking external expertise to navigate complex challenges, implement new technologies, and improve operational efficiency. This trend reflects a broader reliance on professional services to augment government capabilities. This specific $55.5 million contract with the FAA aligns with this trend, representing a significant investment by a major transportation agency in specialized consulting support. Its multi-year duration suggests a sustained commitment to addressing ongoing management needs. Analyzing the total federal spend in this category would provide context for whether this contract represents a typical or outlier investment for a single agency of the FAA's size and scope.

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: SEALED BID

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1515 WILSON BLVD STE 1100, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $55,535,451

Exercised Options: $55,535,451

Current Obligation: $55,535,451

Actual Outlays: $45,285,750

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline