DOT's FAA awards $2.58M bridge contract to SMART1 for management consulting, enabling future competition

Contract Overview

Contract Amount: $2,581,398 ($2.6M)

Contractor: Smart1 Management Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2024-09-25

End Date: 2026-09-25

Contract Duration: 730 days

Daily Burn Rate: $3.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEE PR FOR SMART1. THIS FUNDING IS FOR A NEW CONTRACT WITH SMART 1 FOR A BRIDGE CONTRACT TO ALLOW TO FOR A FULL AND OPTION COMPETITION FOR A 5-YEAR AWARD. IT IS A ONE-YEAR BASE WITH A 1-YEAR OPTION ALLOWS CONTINUED SERVICE WITHOUT A BREAK IN SERVICE.

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 $2.6 million to SMART1 MANAGEMENT SOLUTIONS LLC for work described as: SEE PR FOR SMART1. THIS FUNDING IS FOR A NEW CONTRACT WITH SMART 1 FOR A BRIDGE CONTRACT TO ALLOW TO FOR A FULL AND OPTION COMPETITION FOR A 5-YEAR AWARD. IT IS A ONE-YEAR BASE WITH A 1-YEAR OPTION ALLOWS CONTINUED SERVICE WITHOUT A BREAK IN SERVICE. Key points: 1. This contract serves as a bridge to a larger, future competition, ensuring continuity of essential management consulting services. 2. The award to SMART1 Management Solutions LLC is a one-year base with a one-year option, totaling up to two years of service. 3. The contract type is Firm Fixed Price, providing cost certainty for the services rendered. 4. The North American Industry Classification System (NAICS) code 541611 indicates a focus on administrative and general management consulting. 5. The contract is not competed, highlighting a need for immediate service continuation rather than a lengthy procurement process. 6. The geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

This is a bridge contract intended to maintain service continuity while a larger, full competition is prepared. As such, direct value-for-money assessment is limited. The $2.58 million over two years (if the option is exercised) is for administrative management and general management consulting services. Benchmarking is difficult without knowing the specific scope of services, but the duration and purpose suggest it's a placeholder rather than a long-term strategic investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating it was awarded directly to SMART1 Management Solutions LLC. This approach is often used for bridge contracts to prevent a lapse in essential services while a more comprehensive, competitive solicitation is developed. The lack of competition means that pricing and service level were likely negotiated directly with the incumbent or a selected vendor, rather than being determined through a market-driven bidding process.

Taxpayer Impact: Taxpayers may not receive the benefit of competitive pricing due to the sole-source nature of this bridge award. However, it prevents potential disruptions that could lead to greater costs or service degradation.

Public Impact

The Federal Aviation Administration (FAA) benefits from uninterrupted administrative and management consulting services. This contract supports the operational continuity of critical FAA functions. The services are delivered in Washington D.C., impacting federal administrative operations in the capital. The contract supports the workforce within SMART1 Management Solutions LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potential cost savings for taxpayers.
Bridge contracts, by nature, are short-term and do not represent a long-term strategic commitment or value assessment.
The specific deliverables and performance metrics are not detailed in the provided data, making it hard to assess performance outcomes.

Positive Signals

Ensures continuity of essential services, preventing potential disruptions to FAA operations.
Provides a clear path towards a future full and open competition, which is expected to yield better value.
Firm Fixed Price contract type offers budget predictability.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape. Agencies rely on these services for strategic planning, operational efficiency, and program management. Spending in this sector can vary widely based on agency needs and priorities. This contract, while relatively small in dollar amount, fits within the broader trend of agencies seeking specialized expertise to support their missions, particularly as they prepare for larger, more complex procurements.

Small Business Impact

This contract was not competed and does not appear to have a small business set-aside. SMART1 Management Solutions LLC's size status is not provided. There is no explicit indication of subcontracting requirements for small businesses within this specific award. The focus on a bridge contract suggests that future, larger procurements will likely address small business participation more comprehensively.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is limited due to the sole-source nature and the bridge contract designation; detailed performance reports and audits would be internal to the agency unless specific Inspector General investigations are initiated.

Related Government Programs

Federal Aviation Administration Management and Consulting Services
Department of Transportation Administrative Support Contracts
Management and Consulting Services for Federal Agencies

Risk Flags

Lack of Competition
Bridge Contract
Potential for Extended Service Without Full Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.6 million to SMART1 MANAGEMENT SOLUTIONS LLC. SEE PR FOR SMART1. THIS FUNDING IS FOR A NEW CONTRACT WITH SMART 1 FOR A BRIDGE CONTRACT TO ALLOW TO FOR A FULL AND OPTION COMPETITION FOR A 5-YEAR AWARD. IT IS A ONE-YEAR BASE WITH A 1-YEAR OPTION ALLOWS CONTINUED SERVICE WITHOUT A BREAK IN SERVICE.

Who is the contractor on this award?

The obligated recipient is SMART1 MANAGEMENT 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 $2.6 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-09-25.

What is the specific scope of work for SMART1 Management Solutions LLC under this bridge contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS 541611). However, the precise scope of work, deliverables, and specific tasks are not detailed in the summary. Bridge contracts are typically designed to maintain existing service levels or provide essential support functions without introducing new or significantly expanded requirements. The full scope would be detailed in the contract's statement of work, which is not publicly available in this summary. This contract's primary purpose is to allow the FAA to continue receiving these services without interruption while a more comprehensive, long-term contract is procured through full and open competition.

Why was this contract not competed, and what are the implications for future competition?

This contract was not competed because it is designated as a 'bridge contract.' Bridge contracts are used to provide essential services for a limited period, typically to prevent a lapse in service, while a new, larger contract is being solicited and awarded through a full and open competition. The implication is that this award is temporary, and the FAA intends to compete the follow-on requirement. This approach ensures service continuity but means that the government did not leverage competitive market forces to determine the best price and value for this specific interim period. The future competition is expected to yield a more robustly priced and potentially higher-quality solution.

What is the track record of SMART1 Management Solutions LLC with the Department of Transportation or FAA?

The provided data identifies SMART1 Management Solutions LLC as the awardee. While the data confirms this specific award, it does not offer details on the company's broader track record, past performance history, or previous contracts with the Department of Transportation (DOT) or the Federal Aviation Administration (FAA). A comprehensive assessment of the contractor's track record would require accessing historical contract databases, performance evaluations (like Contractor Performance Assessment Reporting System - CPARS), and potentially other public records. Without this additional information, it's impossible to evaluate their past performance specifically for the FAA or DOT.

How does the $2.58 million value compare to typical spending on similar management consulting services by the FAA?

The $2.58 million award for a one-year base with a one-year option (totaling up to two years) for administrative and general management consulting services is a moderate amount for a federal agency like the FAA. However, without a detailed breakdown of the specific services rendered, it's challenging to make a precise comparison. The FAA utilizes a wide range of consulting services, from strategic planning to operational support. This amount could represent a significant portion of a specific functional area's consulting budget or a smaller component of the agency's overall consulting expenditure. Benchmarking would require comparing it against contracts with similar scopes of work, durations, and service levels within the FAA or other large federal agencies.

What are the potential risks associated with awarding a bridge contract like this?

The primary risks associated with bridge contracts include potential overpayment due to the lack of competition, the possibility of vendor 'lock-in' if the bridge extends significantly, and the risk that the contractor may not be incentivized to perform at peak efficiency knowing the contract is temporary. There's also a risk that the delay in full competition could postpone the implementation of new strategies or efficiencies that a new, competitively awarded contract might bring. Furthermore, if the bridge period is mismanaged, it could lead to service disruptions or a failure to meet critical operational needs.

What is the expected duration and total value if the option is exercised?

The contract has a one-year base period with a one-year option. The provided duration (dur) is 730 days, which equates to exactly two years. The award amount (a) is $2,581,398. This amount likely represents the total value for the base period and potentially the maximum value if the option is exercised, or it could be the value for the base period with the option having its own ceiling. Assuming the $2.58 million covers the full two years, the average annual value would be approximately $1.29 million. The contract end date (ed) is September 25, 2026, confirming the two-year potential duration.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14414 OLD MILL RD STE 201, UPPER MARLBORO, MD, 20772

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Joint Venture Economically Disadvantaged Women Owned Small Business, Joint Venture Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Other 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: $3,718,237

Exercised Options: $2,581,398

Current Obligation: $2,581,398

Actual Outlays: $1,757,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline