DOT awards $22.6M for GNSS engineering services to Zeta Associates Inc. for WAAS support

Contract Overview

Contract Amount: $22,640,303 ($22.6M)

Contractor: Zeta Associates Inc

Awarding Agency: Department of Transportation

Start Date: 2018-07-27

End Date: 2024-04-30

Contract Duration: 2,104 days

Daily Burn Rate: $10.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS REQUISITION IS TO FUND THE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS) ENGINEERING SERVICES CONTRACT IN SUPPORT OF THE WIDE AREA AUGMENTATION SYSTEM (WAAS).

Place of Performance

Location: FAIRFAX, FAIRFAX CITY County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $22.6 million to ZETA ASSOCIATES INC for work described as: THE PURPOSE OF THIS REQUISITION IS TO FUND THE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS) ENGINEERING SERVICES CONTRACT IN SUPPORT OF THE WIDE AREA AUGMENTATION SYSTEM (WAAS). Key points: 1. Contract provides essential engineering support for the Wide Area Augmentation System (WAAS), crucial for aviation safety. 2. The award to Zeta Associates Inc. represents a significant investment in maintaining and enhancing satellite navigation capabilities. 3. The firm-fixed-price contract type suggests a defined scope and cost structure, potentially limiting cost overruns. 4. A long performance period of over 2100 days indicates a sustained need for these specialized engineering services. 5. The absence of small business participation raises questions about broader economic impact and subcontracting opportunities.

Value Assessment

Rating: fair

The contract value of $22.6 million over approximately 5.7 years for GNSS engineering services appears reasonable given the specialized nature of WAAS support. Benchmarking against similar contracts for satellite navigation system engineering is challenging due to the unique operational requirements of WAAS. However, the firm-fixed-price structure provides cost certainty for the government. Without more detailed cost breakdowns or comparisons to industry-standard rates for highly specialized engineering talent in this niche, a definitive value assessment is difficult.

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 among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities, proprietary knowledge, or is the only source capable of meeting the requirement. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the aviation industry, which rely on the WAAS for enhanced navigation accuracy and safety. Services delivered include critical engineering support for the Global Navigation Satellite System (GNSS), directly impacting the functionality of WAAS. The geographic impact is nationwide, as WAAS serves all airspace within the United States and parts of Canada. Workforce implications include the employment of specialized engineers and technical personnel required for complex satellite navigation systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source award limits opportunities for other qualified small and large businesses.
Long contract duration without re-competition could reduce incentives for continuous innovation or cost efficiency.

Positive Signals

Contract ensures continued, critical support for the WAAS, a vital aviation safety system.
Firm-fixed-price contract provides cost predictability for the government.
Zeta Associates Inc. likely possesses specialized expertise required for this unique system.

Sector Analysis

The Global Navigation Satellite System (GNSS) engineering sector is highly specialized, focusing on the development, maintenance, and enhancement of satellite-based positioning, navigation, and timing services. This contract fits within the broader aerospace and defense technology market, which is characterized by high barriers to entry due to technical complexity and stringent regulatory requirements. The Wide Area Augmentation System (WAAS) is a critical component of the U.S. National Airspace System, providing performance-based navigation services that improve accuracy and integrity for aircraft. Spending in this niche is often driven by national security, aviation safety, and the need for reliable infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. The sole-source nature of the award further limits the potential for small business participation. This means that opportunities for small businesses to contribute to this critical aviation support service are likely minimal, potentially impacting the broader small business ecosystem within the aerospace and defense technology sector.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the contracting agency. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases, but detailed performance metrics and cost justifications for sole-source awards are not always publicly disclosed. The Inspector General for the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

GPS Modernization Programs
Air Traffic Control Systems Modernization
Satellite Navigation Services
Aeronautical Information Management

Risk Flags

Sole-source award
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $22.6 million to ZETA ASSOCIATES INC. THE PURPOSE OF THIS REQUISITION IS TO FUND THE GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS) ENGINEERING SERVICES CONTRACT IN SUPPORT OF THE WIDE AREA AUGMENTATION SYSTEM (WAAS).

Who is the contractor on this award?

The obligated recipient is ZETA ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.6 million.

What is the period of performance?

Start: 2018-07-27. End: 2024-04-30.

What is the specific technical expertise Zeta Associates Inc. possesses that justifies a sole-source award for WAAS engineering services?

The justification for a sole-source award typically stems from unique capabilities, proprietary knowledge, or a lack of viable alternatives. For the WAAS GNSS Engineering Services contract, Zeta Associates Inc. likely possesses deep, institutional knowledge of the WAAS system's architecture, operational intricacies, and historical development. This could include specific software, hardware, or integration expertise that is not readily available from other contractors. The FAA would have conducted a market research analysis to determine if other firms could meet the requirement, and if not, would have documented the rationale for sole-sourcing. This often involves highly specialized, niche engineering skills critical for maintaining and upgrading a complex, safety-of-life system like WAAS.

How does the $22.6 million contract value compare to historical spending on WAAS engineering support?

Comparing the $22.6 million contract value to historical spending requires access to detailed historical contract data for WAAS engineering services. Without that specific data, a direct comparison is difficult. However, the duration of the contract (over 2100 days, approximately 5.7 years) suggests an average annual spend of roughly $3.96 million. This figure needs to be contextualized against the complexity and criticality of the WAAS system. If previous contracts for similar services were in a comparable range, it might indicate consistent investment. Conversely, a significant deviation could warrant further investigation into the reasons for increased or decreased spending, such as system upgrades, changes in service requirements, or shifts in contracting strategy.

What are the key performance indicators (KPIs) used to measure the success of Zeta Associates Inc.'s engineering services for WAAS?

Key Performance Indicators (KPIs) for engineering services supporting a critical system like WAAS would likely focus on system availability, reliability, performance, and responsiveness. Specific KPIs could include: uptime of WAAS ground and space segments, accuracy and integrity of navigation signals, successful implementation of system upgrades or modifications, resolution time for reported anomalies or issues, and adherence to project schedules and budgets for specific tasks. The Federal Aviation Administration (FAA) would establish these KPIs in the contract's Performance Work Statement (PWS) and monitor Zeta Associates Inc.'s performance against them throughout the contract period. Meeting these KPIs is crucial for ensuring the continued safety and effectiveness of the WAAS.

What are the potential risks associated with a sole-source contract for essential aviation infrastructure support?

The primary risk associated with a sole-source contract for essential aviation infrastructure support is the potential for reduced value for money due to the lack of competition. This can manifest as higher prices than might be achieved in a competitive environment. Additionally, there's a risk of vendor lock-in, where the government becomes overly reliant on a single provider, potentially stifling innovation and making it difficult to switch contractors even if performance issues arise. Another risk is complacency; without competitive pressure, the contractor might have less incentive to proactively seek efficiencies or introduce cutting-edge solutions. Ensuring robust oversight and clear performance standards becomes even more critical in sole-source situations to mitigate these risks.

How does this contract contribute to the overall modernization and future development of the U.S. air traffic management system?

This contract is integral to the ongoing modernization and future development of the U.S. air traffic management (ATM) system, particularly through its support of the Wide Area Augmentation System (WAAS). WAAS is a key component of the Next Generation Air Transportation System (NextGen), which aims to transition from ground-based navigation aids to satellite-based capabilities. By providing essential engineering services, Zeta Associates Inc. helps ensure WAAS remains a reliable and accurate navigation source, enabling performance-based navigation (PBN) procedures. This, in turn, allows for more efficient flight paths, reduced delays, and enhanced safety, all critical elements of a modernized ATM system. Continued investment in WAAS engineering is foundational for realizing the full benefits of NextGen.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 10302 EATON PLACE STE 500, FAIRFAX, VA, 22030

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

Financial Breakdown

Contract Ceiling: $24,083,400

Exercised Options: $22,640,303

Current Obligation: $22,640,303

Actual Outlays: $18,754,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline