DOT's FAA awards $15.5M for air traffic simulation tool development and maintenance

Contract Overview

Contract Amount: $15,460,608 ($15.5M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-07-31

End Date: 2026-05-21

Contract Duration: 2,120 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DEVELOPMENT, VALIDATION AND MAINTENANCE OF THE TERMINAL AREA ROUTE GENERATION AND TRAFFIC SIMULATION (TARGETS) TOOL.

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 $15.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DEVELOPMENT, VALIDATION AND MAINTENANCE OF THE TERMINAL AREA ROUTE GENERATION AND TRAFFIC SIMULATION (TARGETS) TOOL. Key points: 1. Contract focuses on critical air traffic management technology. 2. Advanced Management Technology, Inc. is the sole awardee. 3. The contract duration extends over six years. 4. This task order falls under engineering services. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. No small business set-aside was utilized. 7. The contract was awarded via full and open competition.

Value Assessment

Rating: fair

The total award amount of $15.5 million over approximately six years for the TARGETS tool represents a significant investment in air traffic management technology. Benchmarking this specific type of development and maintenance contract is challenging due to its specialized nature. However, the Time and Materials pricing structure, while flexible for evolving requirements, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without more granular data on labor rates and hours, a definitive value-for-money assessment is difficult, but the extended duration suggests a need for sustained support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the process suggests a competitive environment was established. This approach is generally favored for ensuring fair pricing and access to the best available solutions. The agency's decision to use this method implies confidence in the market's ability to provide qualified contractors for this specialized engineering service.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential air traffic management system development and maintenance.

Public Impact

The Federal Aviation Administration (FAA) benefits through the development and maintenance of the TARGETS tool. Aviation safety and efficiency are enhanced by improved air traffic simulation capabilities. The project supports the modernization of air traffic control systems. Workforce implications include the need for specialized engineering and software development expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Lack of specific bidder count makes it difficult to fully assess the degree of competition.
The specialized nature of the TARGETS tool may limit the pool of qualified contractors.
Long contract duration requires ongoing vigilance to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Focus on a critical system (TARGETS) for air traffic management indicates strategic investment.
The contract provides for sustained development and maintenance, ensuring tool longevity.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the aerospace and aviation industry. The market for air traffic management systems and related software development is highly specialized, often dominated by a few key players with deep expertise. The FAA's investment in the TARGETS tool aligns with broader government efforts to modernize air traffic control infrastructure, enhance safety, and improve efficiency through advanced technological solutions. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of simulation tools.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of a larger prime contractor's team. The absence of set-aside provisions suggests the agency assessed that the specialized nature of the work might be better suited for larger, established firms or that competition among large businesses was sufficient.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. The contract's Time and Materials nature necessitates rigorous oversight of labor hours, rates, and material costs to ensure adherence to the awarded ceiling and prevent unnecessary expenditures. Performance metrics and regular reporting requirements, typical for such task orders, will be crucial for accountability. The FAA's contracting officer and program managers will be responsible for monitoring progress and ensuring the contractor meets the defined objectives for the TARGETS tool.

Related Government Programs

Air Traffic Control Systems Modernization
Aviation Safety Programs
Software Development Services
Engineering Consulting Services

Risk Flags

Cost Control Risk (Time and Materials)
Technology Obsolescence Risk (Long Duration)
Requirement Volatility Risk (Long Duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $15.5 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE DEVELOPMENT, VALIDATION AND MAINTENANCE OF THE TERMINAL AREA ROUTE GENERATION AND TRAFFIC SIMULATION (TARGETS) TOOL.

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 $15.5 million.

What is the period of performance?

Start: 2020-07-31. End: 2026-05-21.

What is the specific functionality and importance of the TARGETS tool?

The TARGETS (Terminal Area Route Generation and Traffic Simulation) tool is crucial for the Federal Aviation Administration (FAA) as it enables the development, validation, and ongoing maintenance of systems used to simulate and manage air traffic within terminal areas. This includes generating optimal flight routes and simulating traffic flow, which is vital for testing new air traffic control procedures, assessing the impact of infrastructure changes, and training controllers. The tool's accuracy and reliability directly contribute to the safety and efficiency of the National Airspace System (NAS). Its maintenance ensures that the FAA has up-to-date and effective simulation capabilities to support its mission of managing the nation's air traffic.

How does the Time and Materials (T&M) contract type compare to other contract types for this type of service?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined at the outset or is expected to evolve, as is common in development and validation projects. Unlike fixed-price contracts, T&M reimburses the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For specialized engineering services like the TARGETS tool, T&M can be advantageous if managed diligently with strict oversight on labor hours and rates to ensure cost-effectiveness and prevent scope creep. Other contract types, like Cost-Plus-Fixed-Fee (CPFF), might offer more predictability but less flexibility.

What are the potential risks associated with a six-year contract duration for software development and maintenance?

A six-year duration for a software development and maintenance contract like the one for the TARGETS tool presents several potential risks. Firstly, technology evolves rapidly; by the end of the contract, the system might be based on outdated technologies, requiring significant rework or modernization. Secondly, requirements can change substantially over such a long period due to shifts in aviation policy, operational needs, or emerging threats. Thirdly, maintaining consistent performance and quality from the contractor over an extended period can be challenging, potentially leading to complacency or a decline in service. Finally, long-term contracts can sometimes lock the government into a specific solution or vendor, potentially hindering the adoption of more innovative or cost-effective alternatives that may emerge during the contract's life. Robust oversight and clear performance metrics are essential to mitigate these risks.

What is the track record of Advanced Management Technology, Inc. with the FAA or similar agencies?

Advanced Management Technology, Inc. (AMT) has a history of contracting with U.S. federal agencies, including the Department of Transportation (DOT) and its various administrations like the Federal Aviation Administration (FAA). Their contract portfolio often includes services related to engineering, program management, and technical support, aligning with the nature of the TARGETS tool task order. While specific performance details for past contracts are not publicly detailed in this summary, AMT's continued awards suggest a satisfactory performance history and capability to meet government requirements. Further due diligence would involve reviewing past performance evaluations and contract histories for specific indicators of success or challenges in similar projects.

How does the $15.5 million award compare to historical spending on similar air traffic management simulation tools?

Direct comparisons for the $15.5 million awarded to Advanced Management Technology, Inc. for the TARGETS tool are challenging without access to a comprehensive database of similar, specialized air traffic simulation and development contracts. The TARGETS tool is a specific application within the broader air traffic management domain. However, the FAA has historically invested billions in modernizing its air traffic control systems (e.g., NextGen initiatives). This $15.5 million task order represents a focused investment in a critical component of that modernization effort – simulation and validation capabilities. The cost is spread over approximately six years, making the annual expenditure around $2.6 million, which seems reasonable for specialized engineering services supporting a vital national system, especially considering the complexity and long-term nature of such tools.

What are the implications of awarding this contract via 'full and open competition' for taxpayer value?

Awarding the TARGETS tool contract via 'full and open competition' is generally beneficial for taxpayer value. This process allows any responsible source that meets the qualification requirements to submit a bid, thereby maximizing the number of potential offerors. A larger pool of bidders typically leads to more competitive pricing, encourages innovation as companies vie for the contract, and ensures the government selects the best value solution available in the market. While the specific number of bidders isn't detailed here, the principle of full and open competition aims to prevent monopolies, reduce the likelihood of inflated prices, and ensure that taxpayer funds are used efficiently to procure necessary services for critical infrastructure like air traffic management.

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: $16,034,540

Exercised Options: $15,460,608

Current Obligation: $15,460,608

Actual Outlays: $14,468,916

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