DOT awards $223.7M sole-source contract to Polycon Solutions for administrative management consulting

Contract Overview

Contract Amount: $223,733 ($223.7K)

Contractor: Polycon Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-06

End Date: 2024-09-18

Contract Duration: 378 days

Daily Burn Rate: $592/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS

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 $223,732.74 to POLYCON SOLUTIONS LLC for work described as: CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS Key points: 1. Contract awarded on a sole-source basis, limiting competitive opportunities. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Contract duration of 378 days indicates a medium-term engagement. 4. The contract is for administrative management and general management consulting services. 5. Awarded by the Federal Aviation Administration, a key agency within the Department of Transportation. 6. The contractor, Polycon Solutions LLC, is receiving the full contract value. 7. The contract is not set aside for small businesses.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed price structure provides some cost control, but the absence of competition raises concerns about whether the government secured the best possible pricing. Further analysis would require comparing this contract's rates to similar administrative management consulting services procured competitively by the government or in the private sector.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, Polycon Solutions LLC, was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified vendors. The lack of competition means that price discovery through market forces was not utilized, potentially leading to higher costs than if multiple bids had been received.

Taxpayer Impact: Taxpayers may not be receiving the best value due to the absence of a competitive bidding process. The government did not leverage market competition to drive down prices for these essential consulting services.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving administrative management and general management consulting services. These services are intended to support the operational and administrative functions of the FAA. The geographic impact is concentrated in the District of Columbia, where the contract is registered. The contract supports the workforce within Polycon Solutions LLC, providing employment for consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential for better pricing.
Lack of transparency in the justification for sole-source award.
Potential for cost overruns if pricing was not adequately vetted due to lack of competition.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Contract awarded to a single entity, potentially allowing for focused expertise and efficiency.
Services are critical for administrative functions of a major government agency.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal procurement landscape. Agencies frequently contract for these services to support various operational, strategic, and management functions. Benchmarking this contract's value is challenging without competitive data, but the total value of $223.7 million places it as a substantial award within this service category.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. Therefore, it does not directly contribute to the federal small business contracting goals. The full value of the contract is awarded to Polycon Solutions LLC, a large business, with no explicit provisions for small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the Firm Fixed Price structure, requiring Polycon Solutions LLC to deliver services within the agreed-upon scope and cost. Transparency regarding the sole-source justification and performance metrics would be crucial for public oversight, though specific details are not provided in the summary data.

Related Government Programs

Federal Aviation Administration Administrative Support Contracts
Department of Transportation Management Consulting Services
General Management Consulting Services Federal Contracts
Administrative Management Services Federal Contracts

Risk Flags

Sole-source award
Lack of competitive justification
Potential for non-competitive pricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $223,732.74 to POLYCON SOLUTIONS LLC. CLOSELY ASSOCIATED TO INHERENTLY GOVERNMENTAL FUNCTIONS

Who is the contractor on this award?

The obligated recipient is POLYCON SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $223,732.74.

What is the period of performance?

Start: 2023-09-06. End: 2024-09-18.

What is the specific justification provided by the Federal Aviation Administration for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' which is synonymous with a sole-source award. However, the specific justification for this sole-source determination is not detailed in the summary data. Typically, sole-source awards require a formal justification, such as the unique capability of the contractor, an urgent need that precludes competition, or if only one source is reasonably available. Without this justification, it is difficult to assess the necessity and appropriateness of bypassing the competitive process.

How does the $223.7 million contract value compare to similar administrative management consulting contracts awarded by the FAA or DOT?

Comparing this $223.7 million contract value to similar administrative management consulting contracts requires access to a broader dataset of federal procurements. However, as a sole-source award, it is inherently difficult to establish a direct value comparison based on market rates. If this contract were competed, one would expect to see multiple bids that would inform a competitive price. Without such data, assessing whether this represents a fair and reasonable price is challenging. Further analysis would involve benchmarking against other sole-source or competitively awarded contracts for similar services within the DOT or other large federal agencies.

What are the primary risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risks associated with a sole-source award of this magnitude include the potential for paying a non-competitive price, receiving suboptimal service quality due to a lack of competitive pressure, and the perception of unfairness or lack of transparency in the procurement process. There is also a risk that the government may not be leveraging the full range of innovative solutions available in the market. For a contract valued at $223.7 million, these risks are amplified, underscoring the importance of a robust justification for the sole-source determination and thorough price negotiation.

What specific administrative management and general management consulting services will Polycon Solutions LLC provide under this contract?

The contract is categorized under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. While the summary data does not detail the specific tasks, these services typically encompass a broad range of support, including strategic planning, organizational structure analysis, process improvement, operational efficiency assessments, management policy development, and general business consulting. Given the award is to the Federal Aviation Administration, the services likely support the agency's complex operational and regulatory functions.

What is Polycon Solutions LLC's track record with the federal government, particularly with the Department of Transportation or FAA?

The provided data identifies Polycon Solutions LLC as the contractor for this $223.7 million award. However, it does not offer details on the company's historical performance, past contract awards, or specific track record with the federal government, including the Department of Transportation or the Federal Aviation Administration. A comprehensive assessment of the contractor's reliability and past performance would require accessing broader federal procurement databases and performance review systems.

What is the historical spending pattern for administrative management and general management consulting services by the Federal Aviation Administration?

The provided data focuses on a single contract award and does not offer historical spending patterns for administrative management and general management consulting services by the Federal Aviation Administration (FAA). To analyze historical spending, one would need to query federal procurement databases for all contracts awarded under NAICS code 541611 (and potentially related codes) by the FAA over several fiscal years. This would reveal trends in contract values, types of services procured, and the mix of competitive versus sole-source awards.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1135 LAKE SHORE OVERLOOK, ALPHARETTA, GA, 30005

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $250,000

Exercised Options: $223,733

Current Obligation: $223,733

Actual Outlays: $223,733

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: 693KA821D00012

IDV Type: IDC

Timeline