DOT awards $3.47M for NextGen technology development program management support to A3 Technology Inc

Contract Overview

Contract Amount: $3,470,650 ($3.5M)

Contractor: A3 Technology Inc

Awarding Agency: Department of Transportation

Start Date: 2022-06-14

End Date: 2026-06-14

Contract Duration: 1,461 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: NEXTGEN TECHNOLOGY DEVELOPMENT PROGRAM MANAGEMENT SUPPORT ANG-C53

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 $3.5 million to A3 TECHNOLOGY INC for work described as: NEXTGEN TECHNOLOGY DEVELOPMENT PROGRAM MANAGEMENT SUPPORT ANG-C53 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 3. The duration of the contract is over 3 years, indicating a long-term need for these services. 4. The awardee, A3 Technology Inc., is a relatively small entity based on the contract value. 5. The services are categorized under Engineering Services, aligning with the program's technical nature. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework.

Value Assessment

Rating: fair

The contract value of $3.47 million over approximately four years for program management support in a complex technological domain like NextGen appears moderate. Without specific benchmarks for similar program management support contracts within the FAA or DOT, a precise value-for-money assessment is challenging. The Time and Materials pricing structure warrants close monitoring to ensure costs remain within reasonable bounds and do not escalate beyond initial expectations. The absence of detailed performance metrics or cost breakdowns makes it difficult to definitively assess efficiency.

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 bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation from offerors seeking to win the contract. The transparency of the bidding process is a positive indicator for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical aviation technology development.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the broader aviation sector, which will receive support for the NextGen technology development program. Services delivered include program management support, crucial for the successful implementation and advancement of the NextGen air traffic system. The geographic impact is national, as NextGen affects air traffic control and operations across the United States. Workforce implications may include the need for specialized program managers and technical experts, potentially benefiting the engineering and IT sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not diligently managed and monitored for scope creep.
Limited public information on the specific deliverables and performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The contract is a delivery order, suggesting it might be part of a larger, potentially less scrutinized, contracting vehicle.

Positive Signals

Awarded through full and open competition, which typically leads to better pricing and selection of qualified contractors.
The contract supports the critical NextGen program, indicating a focus on modernizing vital national infrastructure.
The duration of the contract suggests a stable, long-term need for these services, allowing for consistent support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the development and management of advanced aviation technologies under the FAA's NextGen initiative. The NextGen program represents a significant modernization effort for the U.S. air traffic control system, aiming to improve safety, efficiency, and capacity. Spending in this area is critical for maintaining global competitiveness in aviation and requires specialized expertise in program management and technological integration. Comparable spending benchmarks would typically be found within large-scale government IT and infrastructure modernization programs.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, A3 Technology Inc., is not operating under a small business designation for this award. There is no explicit information regarding subcontracting plans for small businesses. The absence of set-asides means that opportunities for small businesses would likely arise through subcontracting if the prime contractor chooses to engage them, rather than through direct set-aside awards.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the contracting agency. As a delivery order under a potential larger IDIQ or framework, oversight mechanisms would be tied to the terms of that overarching contract. Transparency is limited by the public availability of detailed performance reports and cost breakdowns. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Next Generation Air Transportation System (NextGen)
FAA IT Modernization Programs
Federal Aviation Administration Program Management Support
Engineering Services Contracts
Department of Transportation Technology Development

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of detailed public information on performance metrics and deliverables.
Contract is a delivery order, potentially obscuring details of the parent contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.5 million to A3 TECHNOLOGY INC. NEXTGEN TECHNOLOGY DEVELOPMENT PROGRAM MANAGEMENT SUPPORT ANG-C53

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 $3.5 million.

What is the period of performance?

Start: 2022-06-14. End: 2026-06-14.

What is the track record of A3 Technology Inc. in performing similar program management support contracts for the FAA or other federal agencies?

Information regarding A3 Technology Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history databases (like SAM.gov or FPDS), and any publicly available project outcomes. Without this, it's difficult to gauge their experience and reliability in managing complex technology development programs. Further investigation into their past performance would be crucial for a complete understanding of their capabilities and potential risks associated with this award.

How does the awarded amount of $3.47 million compare to the estimated cost of similar NextGen program management support contracts?

The provided data does not include specific cost estimates or benchmarks for comparable NextGen program management support contracts. The $3.47 million award is for a period of approximately four years. To assess value, one would need to compare this to similar contracts awarded by the FAA or other agencies for comparable services, considering factors like scope, duration, and complexity. The Time and Materials (T&M) nature of the contract also means the final cost could vary based on actual hours worked and material costs, making direct comparison challenging without detailed cost breakdowns and performance data.

What are the key performance indicators (KPIs) or deliverables expected under this contract, and how is performance being measured?

The provided data snippet does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. It only indicates that the contract is for 'NEXTGEN TECHNOLOGY DEVELOPMENT PROGRAM MANAGEMENT SUPPORT.' A thorough analysis would require access to the contract's statement of work (SOW) or performance work statement (PWS), which would outline the specific tasks, milestones, and metrics used to evaluate A3 Technology Inc.'s performance. Without this information, assessing the effectiveness and efficiency of the contractor's support is not possible.

What is the historical spending pattern for program management support related to the NextGen initiative by the FAA?

The provided data focuses on a single contract award and does not offer historical spending patterns for the NextGen initiative's program management support. To analyze historical spending, one would need to query federal procurement databases for all contracts related to NextGen program management over several fiscal years. This would involve identifying relevant contract vehicles, awardees, and total obligated amounts to understand trends, identify major spending periods, and assess the consistency of investment in this area.

Are there any identified risks associated with A3 Technology Inc. as a contractor, or with the Time and Materials contract type for this specific program?

The provided data does not explicitly list risks associated with A3 Technology Inc. However, the Time and Materials (T&M) contract type itself presents inherent risks, primarily related to cost control. T&M contracts can lead to cost overruns if the scope of work is not well-defined or if contractor hours are not closely monitored. For a complex program like NextGen, scope creep or inefficiencies could significantly increase costs beyond initial projections. A risk assessment would also typically involve reviewing the contractor's past performance, financial stability, and any past issues with federal contracts.

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

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: $6,418,608

Exercised Options: $3,470,650

Current Obligation: $3,470,650

Actual Outlays: $2,679,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA922D00003

IDV Type: IDC

Timeline