DOT awards $4.6M for NIDS software engineering, a sole-source contract with a 5-year duration

Contract Overview

Contract Amount: $4,645,498 ($4.6M)

Contractor: ADB Safegate Americas LLC

Awarding Agency: Department of Transportation

Start Date: 2023-12-22

End Date: 2028-12-31

Contract Duration: 1,836 days

Daily Burn Rate: $2.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IDSR NIDS SOFTWARE ENGINEERING SERVICES SUPPORT

Place of Performance

Location: SACRAMENTO, SACRAMENTO County, CALIFORNIA, 95834

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to ADB SAFEGATE AMERICAS LLC for work described as: IDSR NIDS SOFTWARE ENGINEERING SERVICES SUPPORT Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Time and Materials pricing structure may pose cost control challenges. 3. Long contract duration of 5 years could lead to scope creep or price escalation. 4. Engineering services are critical for FAA's infrastructure modernization. 5. Contract value is modest relative to broader FAA IT spending. 6. Performance is in California, impacting regional workforce and economy.

Value Assessment

Rating: fair

The contract value of $4.6 million over five years is relatively modest for engineering services. However, the sole-source nature and Time and Materials (T&M) pricing raise concerns about value for money. Without competitive bidding, it's difficult to benchmark pricing against market rates. The T&M structure, while offering flexibility, can lead to cost overruns if not managed tightly. A comparison to similar sole-source engineering contracts would be necessary for a more definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, or in specific emergency situations. The lack of competition means there were no other bidders, and therefore no opportunity for price negotiation or comparison among multiple vendors. This can limit the government's ability to secure the best possible pricing.

Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the cost savings that typically arise from a competitive bidding process. This can result in higher overall costs for the government.

Public Impact

The Federal Aviation Administration (FAA) benefits through the acquisition of essential software engineering services. The contract supports the National Airspace System (NAS) modernization efforts. Services are delivered in California, potentially impacting the local tech and engineering workforce. The contract ensures the continued development and maintenance of critical air traffic control software.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration may increase risk of scope creep and price escalation.
Lack of transparency in pricing due to sole-source nature.

Positive Signals

Addresses critical engineering needs for FAA's software systems.
Long-term contract provides stability for service delivery.
Focus on essential infrastructure support for air traffic control.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT infrastructure for the Federal Aviation Administration. The market for specialized engineering services supporting government IT systems is competitive, but sole-source awards bypass this dynamic. The FAA's overall IT spending is substantial, and contracts like this, while individually modest, contribute to the broader ecosystem of technology providers serving federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officer and program management. As a definitive contract, it is subject to standard federal procurement regulations. Transparency is limited due to the sole-source award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA IT Modernization Programs
Air Traffic Control Systems Engineering
Software Development Services
Federal IT Infrastructure Support

Risk Flags

Sole-source award
Time and Materials pricing
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to ADB SAFEGATE AMERICAS LLC. IDSR NIDS SOFTWARE ENGINEERING SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is ADB SAFEGATE AMERICAS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2023-12-22. End: 2028-12-31.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED' and is a 'SOLE SOURCE'. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source is available or capable of meeting the requirement. This often occurs when a unique capability, proprietary technology, or specialized expertise is necessary that cannot be obtained through a competitive process. The Federal Aviation Administration would have documented the specific justification for this sole-source award, likely related to the unique nature of the NIDS software engineering services required and the contractor's specific qualifications or existing role with the system.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, offering flexibility. However, they carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. For engineering services, fixed-price or cost-plus-fixed-fee contracts are often preferred when requirements are well-defined, as they provide better cost certainty. The FAA's choice of T&M for this sole-source contract suggests either a highly dynamic scope or a potential lack of leverage in negotiating a more cost-controlled structure due to the non-competitive award.

What are the potential risks associated with the 5-year duration of this contract?

A 5-year contract duration (1836 days) for software engineering services presents several risks. Firstly, technology evolves rapidly; by the end of the contract, the software and engineering practices may be outdated. Secondly, long-term contracts can lead to 'scope creep,' where the project's objectives expand beyond the original intent without corresponding adjustments in price or schedule, especially with T&M pricing. Thirdly, without periodic re-competition, there's less incentive for the contractor to maintain competitive pricing or innovate throughout the contract period. Finally, the government's ability to adapt to changing requirements or adopt new solutions is constrained for the duration.

What is the historical spending pattern for NIDS software engineering services by the FAA?

The provided data only details this specific contract (ID: IDSR NIDS SOFTWARE ENGINEERING SERVICES SUPPORT, Award: $4.6M, Award Date: 2023-12-22). To assess historical spending patterns, one would need to analyze prior contracts for NIDS software engineering support awarded by the FAA. This would involve searching federal procurement databases (like FPDS or USASpending) for similar contract actions over previous fiscal years, looking at the total amounts awarded, the number of contracts, the types of contract vehicles used (competitive vs. sole-source), and the incumbent contractors. Without this historical data, it's impossible to determine if this $4.6M award represents an increase, decrease, or consistent level of spending for these services.

How does the contractor, ADB SAFEGATE AMERICAS LLC, perform on other federal contracts?

The provided data identifies ADB SAFEGATE AMERICAS LLC as the contractor for this specific $4.6 million contract. To assess their track record on other federal contracts, a comprehensive search of federal procurement databases (e.g., FPDS, SAM.gov) would be required. This search should identify all contracts awarded to ADB SAFEGATE AMERICAS LLC across various agencies, noting contract values, performance periods, contract types, and any reported performance issues or awards. Analyzing past performance, including on-time delivery, quality of work, and adherence to budget, is crucial for understanding the contractor's reliability and capability.

What are the potential implications of this contract for cybersecurity within the FAA's NIDS system?

Software engineering services directly impact the cybersecurity posture of the NIDS system. If the engineering support focuses on developing new features or maintaining existing code without robust cybersecurity best practices (secure coding, vulnerability testing, threat modeling), it could introduce or leave exploitable weaknesses. Conversely, if the engineering services include dedicated cybersecurity enhancements, code reviews for vulnerabilities, and adherence to secure development lifecycles, it would strengthen the system's defenses. The effectiveness of cybersecurity depends heavily on the specific tasks performed under this contract and the contractor's expertise in secure software development.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: ADB Safegate Belgium

Address: 700 SCIENCE BLVD, GAHANNA, OH, 43230

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

Financial Breakdown

Contract Ceiling: $9,954,719

Exercised Options: $4,645,498

Current Obligation: $4,645,498

Actual Outlays: $3,990,329

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline