Spatial Front Inc. awarded $23.7M for FAA IT services, with 6 bidders indicating moderate competition

Contract Overview

Contract Amount: $23,671,392 ($23.7M)

Contractor: Spatial Front Inc

Awarding Agency: Department of Transportation

Start Date: 2020-11-03

End Date: 2026-12-12

Contract Duration: 2,230 days

Daily Burn Rate: $10.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NEW TASK ORDER DSS PORTFOLIO SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $23.7 million to SPATIAL FRONT INC for work described as: NEW TASK ORDER DSS PORTFOLIO SERVICES Key points: 1. The contract's Time and Materials (T&M) pricing structure may pose a risk of cost overruns if not closely managed. 2. Competition was moderate with 6 bidders, suggesting potential for price discovery but not necessarily the lowest possible cost. 3. The contract's duration extends to late 2026, indicating a long-term need for these IT services. 4. This task order falls under a broader BPA, suggesting a pre-vetted contractor and potentially streamlined procurement. 5. The NAICS code 541519 (Other Computer Related Services) is broad, making direct cost comparisons challenging without more specific service details. 6. The contractor, Spatial Front Inc., has a history with federal contracts, warranting a review of past performance.

Value Assessment

Rating: fair

The total award of $23.7 million over approximately six years represents a significant investment in IT services for the FAA. Benchmarking this contract is difficult without knowing the specific services rendered under the 'Other Computer Related Services' NAICS code. However, the Time and Materials (T&M) pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The contract's value appears reasonable given the duration and scope, but a detailed cost-benefit analysis of the services provided would be necessary for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under SAP (Small Acquisition Procedures), which typically involves a broader range of potential bidders than sole-source or limited competition. The presence of 6 bidders suggests a healthy level of interest and competition for this specific task order. While not a full and open competition in the broadest sense, SAP allows for multiple offers and promotes price discovery. The number of bidders indicates that the FAA likely received competitive proposals, which should have influenced pricing.

Taxpayer Impact: The moderate competition level suggests that taxpayers benefited from a degree of price negotiation, avoiding the potential overpayment associated with sole-source awards. However, the use of SAP might not have attracted the absolute maximum number of potential bidders compared to a large-scale full and open competition.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential IT portfolio services. These services are critical for the operational efficiency and modernization of the FAA's IT infrastructure. The contract supports IT professionals and potentially other roles within Spatial Front Inc., impacting the federal IT workforce. The geographic impact is primarily within the operational scope of the FAA, likely supporting its national mission.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not managed with strict oversight and clear performance metrics.
The broad NAICS code (541519) makes it difficult to assess the specific value and efficiency of the services without further detail.
The contract duration of over 6 years necessitates ongoing monitoring to ensure continued relevance and cost-effectiveness.
The BPA call mechanism, while efficient, might limit the visibility of competition compared to a standalone solicitation.

Positive Signals

The contract was competed, indicating an effort to achieve fair pricing and avoid sole-source awards.
The participation of 6 bidders suggests a reasonable level of market interest and potential for competitive pricing.
Spatial Front Inc. is an established entity in the federal contracting space, potentially bringing relevant experience.
The task order is part of a larger BPA, which can streamline service delivery and potentially leverage pre-negotiated terms.

Sector Analysis

The federal IT services sector is a vast and critical component of government operations, encompassing a wide range of services from software development to network management. Spending in this sector is consistently high, driven by the need for modernization, cybersecurity, and efficient data management. This contract, falling under 'Other Computer Related Services,' fits within the broader IT consulting and support market. Comparable spending benchmarks are difficult to establish without specific service details, but the overall federal IT spending runs into the hundreds of billions annually.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Spatial Front Inc., is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses within this task order. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular award is likely minimal, though Spatial Front Inc. may engage small businesses as part of its broader operations.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and program managers. As a task order under a BPA, the underlying BPA likely has its own oversight mechanisms. Transparency is facilitated by contract databases like FPDS, where this award is recorded. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

IT Portfolio Management Services
IT Consulting Services
Cloud Computing Services
Software Development Services
Network Infrastructure Support
Cybersecurity Services

Risk Flags

Potential for cost overruns due to T&M pricing
Broad NAICS code limits specific cost benchmarking
Long contract duration requires sustained oversight
Reliance on BPA call may reduce transparency compared to open competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.7 million to SPATIAL FRONT INC. NEW TASK ORDER DSS PORTFOLIO SERVICES

Who is the contractor on this award?

The obligated recipient is SPATIAL FRONT INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2020-11-03. End: 2026-12-12.

What is the track record of Spatial Front Inc. with federal contracts, particularly those involving IT portfolio services?

Spatial Front Inc. has a history of receiving federal contracts across various agencies, including the Department of Transportation (which oversees the FAA). Their contract portfolio often includes IT services, software development, and related technical support. Analyzing their past performance on similar Time and Materials (T&M) contracts is crucial. This involves reviewing metrics such as on-time delivery, adherence to budget (where applicable for T&M), quality of deliverables, and any past performance issues or awards. A review of their contract history in FPDS and SAM.gov can provide insights into their experience, the types of services they have provided, and their overall reputation as a federal contractor. Understanding their past success rates and any documented issues can help assess the risk associated with this current award.

How does the $23.7 million award compare to similar IT portfolio services contracts awarded by the FAA or other transportation agencies?

Comparing the $23.7 million award requires understanding the scope and duration. This contract is for approximately 6 years (November 2020 to December 2026). To benchmark, one would look for other FAA or DOT contracts for 'IT Portfolio Services' or 'Other Computer Related Services' (NAICS 541519) with similar durations. For instance, a 3-year contract at $10 million might be comparable to this one on an annual basis ($3.33M/year vs. ~$3.95M/year). However, the specific services are key. If this contract includes complex system integration or large-scale modernization efforts, the price might be justified. Conversely, if it's for routine maintenance and support, it could be on the higher side. Without detailed service descriptions, a precise comparison is difficult, but the annual average suggests a substantial, ongoing IT support requirement.

What are the primary risks associated with the 'Time and Materials' (T&M) pricing structure for this contract?

The primary risk of a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred. If not managed rigorously, contractors may extend timelines or increase resource utilization beyond what is strictly necessary, driving up the total cost to the government. For this $23.7 million contract, risks include inefficient task execution, scope creep that isn't adequately controlled, and a lack of strong incentives for the contractor to complete work quickly or cost-effectively. Effective oversight, detailed tracking of hours and materials, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value for its investment.

How effective is the competition level (6 bidders) in ensuring fair pricing and value for taxpayers on this contract?

Having 6 bidders for this task order, competed under SAP, indicates a moderate level of competition. This is generally positive for taxpayers as it suggests that multiple companies vied for the contract, providing the agency with options and likely driving prices down compared to a sole-source award. However, the effectiveness depends on the specific market dynamics and the clarity of the solicitation. If the requirements were highly specialized, 6 bidders might represent a significant portion of the qualified market. If the market is broader, more bidders could potentially lead to even more competitive pricing. The T&M structure also means that while the initial 'rate' might be competitive, the final cost is heavily influenced by actual hours worked, making the T&M aspect a key factor in overall value realization beyond just the initial bid.

What are the potential implications of the broad NAICS code (541519 - Other Computer Related Services) on assessing contract value and performance?

The broad NAICS code 541519, 'Other Computer Related Services,' presents a challenge in precisely assessing the value and performance of this $23.7 million contract. This category encompasses a wide array of services, from IT consulting and systems integration to data processing and disaster recovery planning. Without a more specific classification, it's difficult to benchmark costs against industry standards or compare the contract's value to similar, more narrowly defined IT service contracts. It also makes it harder to evaluate the contractor's specific expertise and the effectiveness of the services delivered. For analysts, this necessitates digging deeper into the contract's statement of work (SOW) and performance reports to understand the actual services rendered and their impact, rather than relying solely on the broad category code.

What is the historical spending pattern for IT portfolio services at the FAA, and how does this award fit within it?

Analyzing historical spending patterns for IT portfolio services at the FAA is crucial for context. This involves examining previous years' budgets and contract awards related to IT management, support, and modernization. If the FAA has consistently spent significant amounts on similar services, this $23.7 million award might represent a continuation of established needs or a planned investment. Conversely, if this award is substantially higher than previous spending, it could indicate a new initiative, an expansion of services, or potentially inflated costs. Understanding trends—whether spending is increasing, decreasing, or stable—helps determine if this contract aligns with the agency's strategic IT goals and resource allocation priorities. It also helps identify potential areas for efficiency improvements or consolidation in future procurements.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 1568 SPRING HILL ROAD, SUITE 300, MCLEAN, VA, 22102

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, 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: $58,048,314

Exercised Options: $23,671,392

Current Obligation: $23,671,392

Actual Outlays: $21,552,259

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA11A00185

IDV Type: BPA

Timeline