DOT awards $16.9M for FAA systems safety transformation, with Human Solutions Inc. providing technical support

Contract Overview

Contract Amount: $16,916,477 ($16.9M)

Contractor: Human Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-12-03

End Date: 2025-12-24

Contract Duration: 1,847 days

Daily Burn Rate: $9.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEW TASK ORDER FOR SYSTEMS SAFETY MANAGEMENT TRANSFORMATION (SSMT) OPERATIONS AND DEVELOPMENT TECHNICAL SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $16.9 million to HUMAN SOLUTIONS, INC. for work described as: NEW TASK ORDER FOR SYSTEMS SAFETY MANAGEMENT TRANSFORMATION (SSMT) OPERATIONS AND DEVELOPMENT TECHNICAL SUPPORT Key points: 1. Value for money appears fair, given the 5-year duration and the specialized nature of systems safety engineering. 2. Competition dynamics indicate a BPA Call award, suggesting a pre-competed framework but potentially limited direct competition for this specific task order. 3. Risk indicators are moderate, with a Time and Materials contract type posing potential cost escalation risks if not closely managed. 4. Performance context is for ongoing operations and development technical support for the FAA's SSMT program. 5. Sector positioning is within engineering services, a critical support function for complex federal aviation systems.

Value Assessment

Rating: fair

The contract's value of $16.9 million over approximately five years for specialized engineering services seems within a reasonable range for the Federal Aviation Administration. Benchmarking against similar systems safety management contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure warrants close monitoring to ensure cost efficiency and prevent potential overruns, as it offers less upfront cost certainty than fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a BPA Call, meaning it was likely competed under a pre-existing Blanket Purchase Agreement. While the BPA itself would have undergone competition, the specific task order award to Human Solutions, Inc. may have had limited direct competition among multiple bidders for this particular requirement. The number of bidders for the BPA call is not specified, but BPA calls often streamline procurement for established needs.

Taxpayer Impact: The limited direct competition for this task order means taxpayers may not benefit from the most aggressive pricing that a fully and openly competed contract could yield. However, the use of a BPA suggests some level of pre-negotiated pricing and vendor qualification.

Public Impact

The Federal Aviation Administration (FAA) benefits from continued technical support for its Systems Safety Management Transformation (SSMT) program. Services delivered include operations and development technical support crucial for maintaining and improving aviation safety systems. The geographic impact is primarily national, supporting the FAA's oversight of air traffic and safety across the United States. Workforce implications include the employment of specialized engineers and technical staff by Human Solutions, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not diligently managed.
Limited direct competition for this task order may impact optimal price discovery.
The duration of the contract (nearly 5 years) requires sustained oversight to ensure continued value.

Positive Signals

Award to Human Solutions, Inc. suggests a proven capability in providing technical support.
BPA Call award mechanism indicates a streamlined procurement process for an established need.
The contract supports a critical function (systems safety) for the FAA.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the broader professional, scientific, and technical services industry. The market for these services is substantial, driven by government and private sector needs for specialized expertise in complex systems. The FAA's spending in this area is consistent with its mandate to ensure aviation safety and efficiency, requiring continuous technological advancement and robust safety management systems. Comparable spending benchmarks would likely be found within other large federal agencies managing complex infrastructure or technology programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Human Solutions, Inc. is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract appears minimal, though the prime contractor's overall subcontracting practices would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Aviation Administration. As a Time and Materials contract, rigorous monitoring of labor hours, rates, and direct costs is essential. Transparency is facilitated through contract reporting mechanisms. While no specific Inspector General jurisdiction is mentioned, the Department of Transportation's Office of Inspector General typically oversees agency spending and program performance.

Related Government Programs

FAA Air Traffic Control Modernization
Aviation Safety Programs
Federal IT Modernization Initiatives
Systems Engineering Support Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited direct competition may affect optimal pricing.
Need for sustained oversight due to contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.9 million to HUMAN SOLUTIONS, INC.. NEW TASK ORDER FOR SYSTEMS SAFETY MANAGEMENT TRANSFORMATION (SSMT) OPERATIONS AND DEVELOPMENT TECHNICAL SUPPORT

Who is the contractor on this award?

The obligated recipient is HUMAN SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2020-12-03. End: 2025-12-24.

What is the specific nature of the 'Systems Safety Management Transformation (SSMT)' program and its objectives?

The Systems Safety Management Transformation (SSMT) program within the Federal Aviation Administration (FAA) aims to modernize and enhance the agency's capabilities in managing aviation safety. This involves transitioning from traditional, reactive safety management approaches to more proactive, data-driven, and integrated systems. Key objectives typically include improving the identification and mitigation of safety risks, fostering a stronger safety culture, leveraging advanced analytics for predictive safety insights, and ensuring compliance with evolving national and international safety standards. The technical support provided under this contract likely contributes to the development, implementation, and ongoing operation of these transformed safety management systems, potentially involving software development, data analysis, process re-engineering, and training.

How does the Time and Materials (T&M) contract type compare to other pricing structures for similar engineering services?

Time and Materials (T&M) contracts are flexible but carry inherent risks. Unlike fixed-price contracts, where the contractor agrees to a set price regardless of the effort expended, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure is often used when the scope of work is not clearly defined or is expected to evolve. For engineering services, T&M can be advantageous when requirements are uncertain or when rapid response is needed. However, it places a significant burden on the government to closely monitor contractor effort and costs to prevent overspending. Fixed-price contracts offer greater cost certainty for the government but require a well-defined scope upfront. Cost-plus contracts, another alternative, reimburse costs plus a negotiated profit, often used for research and development where outcomes are highly uncertain.

What is the track record of Human Solutions, Inc. in supporting federal aviation or complex systems engineering contracts?

Human Solutions, Inc. has a history of providing services to government agencies, including those in the defense and aerospace sectors. While specific details on their track record with the FAA or within aviation safety transformation programs require deeper investigation into contract databases and performance reviews, their ability to secure this task order suggests they possess relevant expertise and have met the FAA's requirements. Analyzing past performance on similar contracts, including contract size, duration, scope of work, and any reported performance issues or accolades, would provide a clearer picture of their capabilities and reliability in this specialized domain. Their presence in the federal contracting space indicates experience navigating government procurement and compliance.

What are the potential implications of awarding this contract via a BPA Call versus a full and open competition?

Awarding this contract via a Blanket Purchase Agreement (BPA) Call streamlines the procurement process, leveraging a pre-competed agreement. This can lead to faster award times and potentially reduced administrative costs for the government. However, it typically involves less direct competition for the specific task order compared to a full and open competition. In a full and open competition, all responsible sources can submit an offer, fostering broader market engagement and potentially driving more competitive pricing. A BPA Call implies that Human Solutions, Inc. was one of the pre-qualified vendors under the established BPA. While the BPA itself was competed, the specific task order might have had fewer bidders, potentially limiting the downward pressure on price and innovation that a wider competition could generate.

How does the $16.9 million value compare to historical FAA spending on similar systems safety or engineering support services?

The $16.9 million value for nearly five years of support represents an average annual spend of approximately $3.4 million. To benchmark this effectively, one would need to compare it against historical FAA contracts for similar engineering services, particularly those focused on safety management systems, air traffic control systems, or aviation safety research and development. The FAA consistently invests significant resources in maintaining and modernizing its complex infrastructure and safety protocols. Without access to detailed historical spending data specific to SSMT or comparable programs, it's difficult to definitively state if this amount is high or low. However, given the critical nature of aviation safety and the specialized expertise required, this level of investment is not unexpected for a multi-year, technically demanding support contract.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Human Solutions Inc.

Address: 600 MARYLAND AVE SW STE 940W, WASHINGTON, DC, 20024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $23,133,371

Exercised Options: $16,916,477

Current Obligation: $16,916,477

Actual Outlays: $16,479,384

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00029

IDV Type: BPA

Timeline