DOT's FAA awards $11.8M contract for custom computer programming services to Dassault Systemes Americas Corp

Contract Overview

Contract Amount: $11,802,110 ($11.8M)

Contractor: Dassault Systemes Americas Corp.

Awarding Agency: Department of Transportation

Start Date: 2019-12-16

End Date: 2026-06-22

Contract Duration: 2,380 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DASSAULT SYSTEMES AMERICAS CORP

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 $11.8 million to DASSAULT SYSTEMES AMERICAS CORP. for work described as: DASSAULT SYSTEMES AMERICAS CORP Key points: 1. Contract value of $11.8M over its period of performance. 2. This contract was awarded under full and open competition. 3. The contract type is Firm Fixed Price, indicating predictable costs. 4. The period of performance spans over 6 years. 5. The contractor, Dassault Systemes Americas Corp., is the awardee. 6. The contract is for custom computer programming services.

Value Assessment

Rating: good

The contract value of $11.8M over approximately 6.5 years suggests a moderate annual spend. Without specific deliverables or comparable contract data, a precise value-for-money assessment is challenging. However, the firm fixed-price nature provides cost certainty for the government. Benchmarking against similar custom programming services contracts would be necessary for a more definitive assessment of pricing.

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 a bid. The data does not specify the number of bidders, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The government sought proposals from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving custom computer programming services. These services are expected to support FAA's operational or developmental needs. The contract is geographically located in the District of Columbia. The contract may have implications for the IT workforce, potentially creating or sustaining jobs in programming and software development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or deliverables makes it difficult to assess the effectiveness of the services.
The broad nature of 'custom computer programming services' could lead to scope creep if not managed carefully.
Reliance on a single contractor for a significant period could pose risks if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost predictability.
Longer contract duration allows for sustained development and integration of services.
Contractor has a established presence, potentially indicating experience in similar services.

Sector Analysis

The Information Technology (IT) sector, specifically custom computer programming services, is a critical component of government operations. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a diverse range of specialized providers. The annual value of this contract, estimated at around $1.8 million, is moderate within the context of large federal IT procurements. Comparable spending benchmarks would typically involve analyzing other contracts for similar custom software development and programming services across federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Dassault Systemes Americas Corp., is likely a large business. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting plans, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officer and program managers. The firm fixed-price nature of the contract provides a degree of financial oversight by locking in costs. Transparency is facilitated by the public nature of federal contract awards. Specific accountability measures would be detailed in the contract's statement of work and performance standards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Aviation Administration IT Services
Custom Software Development Contracts
IT Services for Transportation Agencies
Firm Fixed Price IT Contracts

Risk Flags

Potential for technological obsolescence over the contract's long duration.
Risk of scope creep if requirements are not tightly managed.
Dependence on a single contractor for critical programming services.
Lack of detailed performance metrics in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.8 million to DASSAULT SYSTEMES AMERICAS CORP.. DASSAULT SYSTEMES AMERICAS CORP

Who is the contractor on this award?

The obligated recipient is DASSAULT SYSTEMES AMERICAS CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2019-12-16. End: 2026-06-22.

What is the specific nature of the custom computer programming services being procured?

The contract specifies 'Custom Computer Programming Services' (NAICS code 541511). This broad category typically encompasses designing, developing, and implementing software solutions tailored to the unique needs of the client. It can include activities such as requirements analysis, system design, coding, testing, debugging, and deployment of new software, as well as modifications to existing systems. Without access to the detailed statement of work (SOW), the precise applications or systems this contract supports within the FAA remain unspecified. However, given the agency, it could relate to air traffic control systems, data management, operational efficiency tools, or regulatory compliance software.

How does the contract value of $11.8 million compare to similar FAA IT contracts?

Comparing the $11.8 million contract value requires context on the duration and scope of similar FAA IT procurements. This contract has a period of performance of approximately 6.5 years (December 16, 2019, to June 22, 2026), resulting in an average annual value of roughly $1.8 million. This is a moderate annual spend for IT services within a large agency like the FAA. Larger contracts for enterprise-wide software solutions or major system overhauls could easily reach tens or hundreds of millions of dollars. Conversely, smaller, task-order-based contracts for specific IT support might be in the hundreds of thousands. Therefore, this contract appears to be of a medium scale for specialized programming services.

What are the potential risks associated with a 6.5-year contract for custom programming?

A significant risk with a long-term contract for custom programming is technological obsolescence. Software developed today might be outdated or incompatible with future technologies by the end of the contract period. Another risk is scope creep, where the requirements evolve beyond the initial agreement, potentially leading to cost overruns (though mitigated by the FFP structure) or delays. Contractor performance is also a risk; if Dassault Systemes Americas Corp. fails to deliver quality services or meet deadlines, the FAA could face significant disruptions. Finally, over-reliance on a single vendor for a critical function over an extended period can reduce flexibility and bargaining power for future needs.

What does the 'Firm Fixed Price' (FFP) contract type imply for the FAA?

The Firm Fixed Price (FFP) contract type implies that the contractor, Dassault Systemes Americas Corp., assumes most of the risk regarding cost overruns. The FAA agrees to pay a set price regardless of the contractor's actual costs incurred in fulfilling the contract. This provides the FAA with significant cost certainty and predictability, making budgeting easier. For the contractor, it incentivizes efficiency and cost control. However, FFP contracts are generally best suited for requirements that are well-defined and unlikely to change significantly. If the scope does change, formal contract modifications would be necessary, which can be a complex process.

What is the significance of the contractor, Dassault Systemes Americas Corp., being awarded this contract?

Dassault Systemes Americas Corp. is a subsidiary of the global Dassault Systèmes SE, a company known for its 3D design software, 3D digital mock-up, and product lifecycle management (PLM) solutions. Their expertise often lies in complex engineering, simulation, and manufacturing software. Awarding this contract to them suggests the FAA requires specialized programming services that align with Dassault's core competencies, potentially related to complex data modeling, simulation, or systems engineering software. Their established presence in the market indicates they possess the resources and experience to handle significant government contracts, although the specific nature of the FAA's need is not detailed here.

How does this contract fit into the broader IT spending landscape of the Federal Aviation Administration?

This $11.8 million contract represents a portion of the FAA's overall IT budget, which is substantial given the agency's critical role in managing national airspace. The FAA relies heavily on complex IT systems for air traffic control, flight management, safety monitoring, data analysis, and administrative functions. Contracts for custom programming services like this one are essential for maintaining, upgrading, and developing these systems to meet evolving technological standards and operational demands. While not a mega-contract, it signifies investment in specialized software capabilities necessary for the FAA's mission, complementing larger infrastructure or system-wide procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Dassault Systemes

Address: 175 WYMAN ST, WALTHAM, MA, 02451

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $13,532,334

Exercised Options: $11,802,110

Current Obligation: $11,802,110

Actual Outlays: $10,955,232

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline