DOT awards $66M engineering services contract to Advanced Management Technology, Inc. for NAVTAC II

Contract Overview

Contract Amount: $65,937,024 ($65.9M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2019-08-27

End Date: 2026-05-21

Contract Duration: 2,459 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NAVTAC II CONTRACT SBAS TASK ORDER 22

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $65.9 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: NAVTAC II CONTRACT SBAS TASK ORDER 22 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed effectively. 3. The duration of nearly 7 years indicates a long-term need for these engineering services. 4. The award is a Delivery Order under the NAVTAC II contract, implying a broader framework agreement. 5. The small business status of the contractor is not indicated, requiring further investigation into subcontracting. 6. The contract is for engineering services, a critical component for infrastructure and operational support.

Value Assessment

Rating: fair

The total award amount is $65.9 million over a period of approximately 7 years. Without specific deliverables or comparable Time and Materials contracts for similar engineering services, a precise value-for-money assessment is challenging. The Time and Materials pricing structure necessitates close monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations. Benchmarking against similar engineering service contracts within the Federal Aviation Administration (FAA) or Department of Transportation (DOT) would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, which limits the ability to fully assess the intensity of the competition. However, full and open competition generally fosters price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: A competitive bidding process like full and open competition is generally favorable for taxpayers as it aims to secure services at the best possible price through market forces.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving critical engineering support. Services delivered are expected to support the NAVTAC II program, likely related to air traffic management or navigation systems. The contract is geographically focused on the District of Columbia, where the contractor is located. The contract may have implications for the engineering workforce, potentially creating or sustaining jobs in this sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Long contract duration of nearly 7 years may present risks related to evolving technological needs or changing program requirements.
Lack of specific details on deliverables makes it difficult to assess performance metrics and potential value.
The specific nature of the engineering services is not detailed, making it hard to gauge the criticality and potential impact of any performance issues.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contract supports a significant federal agency (FAA), indicating alignment with national priorities.
The contractor, Advanced Management Technology, Inc., has secured a substantial contract, implying a level of established capability.

Sector Analysis

Engineering services represent a significant segment of federal contracting, encompassing a wide range of specialized expertise. This contract falls within the broader professional, scientific, and technical services sector. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) is a common category for such awards. Federal spending in this area is often driven by infrastructure development, modernization efforts, and operational support for complex systems, such as those managed by the FAA.

Small Business Impact

The provided data indicates that the contractor is not a small business (sb: false) and the contract was not set aside for small businesses (ss: false). This means that large businesses were eligible and likely competed for this award. Further analysis would be needed to determine if there are subcontracting opportunities for small businesses within this contract, which could be a mechanism for them to participate in federal projects.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation and the Federal Aviation Administration. Specific oversight mechanisms would likely include contract performance reviews, financial audits, and adherence to reporting requirements. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours and material costs to ensure compliance and prevent overspending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NAVTAC II Program
Federal Aviation Administration Engineering Services
Department of Transportation Professional Services Contracts
Time and Materials Contracts

Risk Flags

Time and Materials contract type
Long contract duration
Lack of specific deliverable details

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $65.9 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. NAVTAC II CONTRACT SBAS TASK ORDER 22

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 $65.9 million.

What is the period of performance?

Start: 2019-08-27. End: 2026-05-21.

What is the track record of Advanced Management Technology, Inc. with federal contracts, particularly with the FAA or DOT?

A review of Advanced Management Technology, Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar contracts, including their ability to meet deadlines, stay within budget, and deliver quality services. Specifically, looking at their history with the Federal Aviation Administration (FAA) and the Department of Transportation (DOT) would provide relevant context. A strong performance history with these agencies would indicate a lower risk for this current NAVTAC II task order. Conversely, a history of performance issues, contract disputes, or cost overruns could raise concerns about their capability to successfully execute this $66 million contract over its nearly seven-year duration.

How does the pricing structure (Time and Materials) compare to other engineering service contracts awarded by the FAA?

The Time and Materials (T&M) pricing structure for this $66 million contract requires careful comparison with similar engineering service contracts awarded by the FAA. T&M contracts can be advantageous when the scope of work is not well-defined or is expected to change frequently, allowing for flexibility. However, they also carry a higher risk of cost escalation compared to fixed-price contracts. Benchmarking would involve analyzing the average hourly rates for various labor categories (e.g., engineers, technicians) and the typical markup on materials for comparable FAA contracts. If the rates and markups in this award are significantly higher than the established benchmarks, it could indicate potential overpricing or a less competitive bid, warranting further scrutiny of the contractor's cost proposals and the agency's negotiation process.

What are the specific engineering services to be provided under this NAVTAC II task order, and what is their criticality?

The provided data identifies the contract as being for 'Engineering Services' under the NAVTAC II contract, with NAICS code 541330. However, the specific nature and criticality of these services are not detailed. Understanding the exact deliverables—whether they pertain to system design, maintenance, testing, research, or operational support for air traffic control, navigation, or communication systems—is crucial for assessing the contract's impact and risk. For instance, services directly supporting flight safety systems would be considered highly critical, demanding rigorous oversight and performance standards. Conversely, more general support services might carry lower immediate criticality but still require efficient execution to ensure program objectives are met within the allocated $66 million budget over the contract's lifespan.

What is the historical spending pattern for engineering services under the NAVTAC II contract vehicle?

Analyzing the historical spending patterns under the NAVTAC II contract vehicle is essential for contextualizing this $66 million task order. This would involve examining the total amount spent on NAVTAC II since its inception, the number and value of previous task orders, and the types of engineering services procured. Understanding the typical award values, contract durations, and competition levels for previous NAVTAC II awards can help determine if this specific task order is an outlier or representative of the program's spending. For example, if NAVTAC II has historically seen numerous smaller awards, a single large award like this might warrant closer examination. Conversely, if it's a common practice to issue large task orders, it suggests a consistent demand for engineering services under this framework.

What are the potential risks associated with the long duration (nearly 7 years) of this contract?

The nearly seven-year duration of this $66 million engineering services contract presents several potential risks. Firstly, technological advancements in areas like air traffic management and navigation systems could outpace the services being provided, potentially rendering them outdated or less effective before the contract concludes. Secondly, program requirements or strategic priorities within the FAA or DOT might shift over such a long period, necessitating contract modifications or potentially leading to misalignment between the contract's scope and the agency's current needs. Thirdly, long-term contracts can sometimes lead to complacency in performance or price management if oversight is not consistently rigorous. Finally, economic fluctuations or changes in federal budgeting could impact the sustained funding necessary to fulfill the contract's entire duration.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $69,540,777

Exercised Options: $65,937,024

Current Obligation: $65,937,024

Actual Outlays: $63,227,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA17D00013

IDV Type: IDC

Timeline