DOT Awards $77.3M for Federal NOTAM System Modernization to Concept Solutions LLC

Contract Overview

Contract Amount: $77,281,459 ($77.3M)

Contractor: Concept Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2023-01-11

End Date: 2027-01-03

Contract Duration: 1,453 days

Daily Burn Rate: $53.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EFAST PA 23-002-SS FEDERAL NOTAM SYSTEM (FNS) MODERNIZATION SUPPORT

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $77.3 million to CONCEPT SOLUTIONS LLC for work described as: EFAST PA 23-002-SS FEDERAL NOTAM SYSTEM (FNS) MODERNIZATION SUPPORT Key points: 1. Significant investment in critical aviation infrastructure modernization. 2. Sole-source award raises questions about competition and potential cost savings. 3. Focus on custom computer programming services indicates a need for specialized IT expertise. 4. Long-term contract (4 years) suggests a sustained need for support.

Value Assessment

Rating: questionable

The contract is Time and Materials, which can lead to cost overruns if not managed tightly. Benchmarking against similar custom computer programming services is difficult without more detailed cost breakdowns, but the total value suggests a need for careful scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition for a contract of this size means taxpayers may not be receiving the best possible price for these critical IT services.

Public Impact

Modernization of the Federal NOTAM System is crucial for aviation safety and efficiency. Potential for improved communication and data management for pilots and air traffic controllers. Long-term reliance on a single vendor could impact future flexibility and innovation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials pricing
Lack of competition

Positive Signals

Modernization of critical infrastructure
Potential for improved aviation safety

Sector Analysis

This contract falls under IT services, specifically custom computer programming. The value is substantial for this category, suggesting a complex and critical system requiring specialized development and support.

Small Business Impact

The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses in the provided data.

Oversight & Accountability

The sole-source nature of this award warrants close oversight from the FAA and DOT to ensure the contractor is delivering value and managing costs effectively within the Time and Materials framework.

Related Government Programs

Custom Computer Programming Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award limits competition.
Time and Materials contract type poses cost control risks.
Lack of small business participation.
Potential for vendor lock-in.
High contract value requires significant oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $77.3 million to CONCEPT SOLUTIONS LLC. EFAST PA 23-002-SS FEDERAL NOTAM SYSTEM (FNS) MODERNIZATION SUPPORT

Who is the contractor on this award?

The obligated recipient is CONCEPT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $77.3 million.

What is the period of performance?

Start: 2023-01-11. End: 2027-01-03.

What specific factors justified the sole-source award for this critical IT modernization, and were alternative competitive strategies considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. For the FNS modernization, the FAA likely assessed that Concept Solutions LLC possessed specific expertise or had prior involvement that made them the only viable option. However, without a detailed justification document, it's difficult to ascertain the full rationale and whether alternative competitive approaches were thoroughly explored and deemed impractical.

How will the Time and Materials contract structure be managed to control costs and ensure the government receives fair value for the $77.3 million investment?

Managing a Time and Materials (T&M) contract requires robust government oversight, including detailed tracking of labor hours, rates, and material costs. The FAA must implement strict monitoring mechanisms, regular performance reviews, and potentially establish cost ceilings or award-fee structures to incentivize efficiency. Regular audits and comparisons against industry benchmarks for similar services will be crucial to validate expenditures and ensure the government is not overpaying.

What are the long-term implications of this sole-source award on the future competitiveness and innovation within the Federal NOTAM System support landscape?

A prolonged sole-source relationship can stifle competition and innovation by creating a vendor lock-in situation. Future modernization efforts or enhancements might be limited by the incumbent's existing architecture and pricing. This could potentially lead to higher costs in the long run and reduce the government's agility in adopting new technologies or seeking more cost-effective solutions from a broader market.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $91,084,797

Exercised Options: $77,281,459

Current Obligation: $77,281,459

Actual Outlays: $70,867,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00084

IDV Type: BPA

Timeline