DOT Awards $8.6M Engineering Services Contract to A3 TECHNOLOGY INC for FAA

Contract Overview

Contract Amount: $8,623,000 ($8.6M)

Contractor: A3 Technology Inc

Awarding Agency: Department of Transportation

Start Date: 2023-12-06

End Date: 2026-12-05

Contract Duration: 1,095 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Engineering Services

Official Description: WA-24-01427

Place of Performance

Location: EGG HARBOR CITY, ATLANTIC County, NEW JERSEY, 08215

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $8.6 million to A3 TECHNOLOGY INC for work described as: WA-24-01427 Key points: 1. Contract value of $8.6M for engineering services. 2. Competition was full and open after exclusion of sources. 3. Risk assessment is fair due to Time and Materials pricing. 4. Sector is Engineering Services, supporting the FAA.

Value Assessment

Rating: fair

The contract is Time and Materials, which can lead to cost overruns if not managed closely. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. However, the Time and Materials pricing structure may limit price discovery and control.

Taxpayer Impact: Taxpayers may face increased costs if the Time and Materials contract is not effectively managed to prevent scope creep or inefficiencies.

Public Impact

Ensures continued engineering support for critical FAA operations. Supports a New Jersey-based company, A3 TECHNOLOGY INC. Potential for cost variability due to Time and Materials contract type.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Potential for cost overruns
Limited price discovery

Positive Signals

Full and open competition
Supports critical FAA functions

Sector Analysis

Engineering services are crucial for infrastructure projects and operational support. The FAA relies heavily on these services for safety and efficiency. Benchmarks vary widely based on project complexity and duration.

Small Business Impact

The contract was awarded to A3 TECHNOLOGY INC, a company located in New Jersey. There is no indication that small businesses were specifically involved as subcontractors or partners in this award.

Oversight & Accountability

Oversight will be critical to manage the Time and Materials aspect of this contract, ensuring that costs remain within reasonable bounds and that the scope of work is adhered to.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Time and Materials pricing structure
Potential for cost overruns
Limited price discovery
Exclusion of sources may limit competition breadth

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.6 million to A3 TECHNOLOGY INC. WA-24-01427

Who is the contractor on this award?

The obligated recipient is A3 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 $8.6 million.

What is the period of performance?

Start: 2023-12-06. End: 2026-12-05.

What specific engineering services are being procured under this contract, and how do they align with FAA's strategic priorities?

The contract is for engineering services under NAICS code 541330. While the specific services aren't detailed, they likely support the Federal Aviation Administration's mission related to air traffic control systems, infrastructure maintenance, or aviation safety initiatives. Alignment with strategic priorities would depend on the FAA's current modernization and operational enhancement plans.

What measures are in place to mitigate the risks associated with a Time and Materials contract, particularly regarding cost escalation?

Effective oversight by the FAA contracting officer is paramount. This includes rigorous monitoring of labor hours, material costs, and task order progress. Establishing clear ceilings, requiring detailed justifications for hours worked, and conducting regular performance reviews can help mitigate risks and control costs.

How does the 'exclusion of sources' clause in the full and open competition impact the overall value and potential for innovation?

The 'exclusion of sources' clause suggests that while the competition was broadly open, certain specific sources were intentionally excluded, perhaps due to prior performance issues or specialized requirements. This could potentially limit the pool of bidders and reduce the breadth of innovation compared to a completely unrestricted open competition, though it may ensure a more suitable set of qualified bidders.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 327 W WHITE HORSE PKE, EGG HARBOR CITY, NJ, 08215

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,169,806

Exercised Options: $8,623,000

Current Obligation: $8,623,000

Actual Outlays: $5,929,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA822D00026

IDV Type: IDC

Timeline