DOT awards $4.58M contract for NAS Defense Programs support to SEMCON GROUP LLC

Contract Overview

Contract Amount: $4,580,398 ($4.6M)

Contractor: Semcon Group LLC

Awarding Agency: Department of Transportation

Start Date: 2023-05-30

End Date: 2026-06-04

Contract Duration: 1,101 days

Daily Burn Rate: $4.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: EFAST 23-033-CS NAS DEFENSE PROGRAMS (NDP) SUPPORT IN SUPPORT OF NAS SECURITY AND ENTERPRISE OPERATIONS (NASEO)

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 $4.6 million to SEMCON GROUP LLC for work described as: EFAST 23-033-CS NAS DEFENSE PROGRAMS (NDP) SUPPORT IN SUPPORT OF NAS SECURITY AND ENTERPRISE OPERATIONS (NASEO) Key points: 1. Contract value appears reasonable for specialized engineering services. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Risk indicators are moderate, with performance dependent on contractor expertise. 4. Contract duration aligns with typical support service agreements. 5. Positioned within the critical aviation infrastructure support sector.

Value Assessment

Rating: good

The contract value of approximately $4.58 million over three years for engineering services supporting the National Airspace System (NAS) Defense Programs appears to be within a reasonable range for specialized technical support. Benchmarking against similar contracts for enterprise operations and security support within the Federal Aviation Administration (FAA) would provide a more precise value-for-money assessment. However, given the critical nature of NAS security, the pricing is likely influenced by the need for highly skilled personnel and robust security clearances.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Special Acquisition Procedures (SAP), indicating a competitive process. While the specific number of bidders is not detailed, the 'full-and-open' competition level suggests that multiple qualified offerors had the opportunity to bid. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring the security and enterprise operations of the National Airspace System (NAS). Delivers essential engineering and support services critical for maintaining the integrity of national airspace. Geographic impact is national, given the scope of NAS operations. Workforce implications include the need for specialized engineering and security expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Reliance on contractor expertise necessitates strong performance monitoring.

Positive Signals

Contract awarded through a competitive process, suggesting potential for good value.
Clear contract duration provides predictability for resource planning.
Focus on critical national security infrastructure indicates high importance and oversight.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting critical infrastructure for the Federal Aviation Administration. The market for such specialized support services is characterized by a limited number of highly qualified firms capable of meeting stringent security and technical requirements. Spending in this area is crucial for maintaining the safety and efficiency of the National Airspace System, with comparable contracts often involving significant investment in cybersecurity and operational resilience.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, SEMCON GROUP LLC, may engage small businesses as subcontractors, depending on the specific needs and subcontracting plans outlined in their proposal. Further analysis of subcontracting reports would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including defined deliverables, quality assurance surveillance plans, and reporting requirements. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive due to security implications.

Related Government Programs

National Airspace System Security
FAA Enterprise Operations Support
Aviation Infrastructure Modernization
Critical Infrastructure Protection Contracts

Risk Flags

Time and Materials contract type requires close monitoring to control costs.
Reliance on specialized engineering expertise necessitates strong contractor vetting.
Critical infrastructure support demands high levels of security and reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to SEMCON GROUP LLC. EFAST 23-033-CS NAS DEFENSE PROGRAMS (NDP) SUPPORT IN SUPPORT OF NAS SECURITY AND ENTERPRISE OPERATIONS (NASEO)

Who is the contractor on this award?

The obligated recipient is SEMCON GROUP LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.6 million.

What is the period of performance?

Start: 2023-05-30. End: 2026-06-04.

What is SEMCON GROUP LLC's track record with the Federal Aviation Administration and similar defense/security contracts?

SEMCON GROUP LLC has a history of performing services for government agencies, including the Department of Transportation and the Federal Aviation Administration. While specific details on their track record for NAS Defense Programs support are not immediately available in this summary, their ability to win this contract suggests they meet the necessary qualifications and past performance requirements. A deeper dive into their contract history, including past performance evaluations and any reported issues on previous FAA or similar security-focused contracts, would provide a more comprehensive understanding of their reliability and expertise in this domain. Examining their financial stability and any history of litigation or contract disputes would also be prudent.

How does the $4.58 million contract value compare to similar engineering support contracts for critical infrastructure?

The $4.58 million contract value for three years of engineering support for NAS Defense Programs appears to be within a reasonable range for specialized services. Contracts supporting critical national infrastructure, particularly within aviation security and enterprise operations, often command significant funding due to the high level of expertise, security clearances, and operational continuity required. Benchmarking against contracts for similar services, such as cybersecurity for air traffic control systems or enterprise IT support for defense agencies, would provide a more precise comparison. Factors such as contract duration, scope of work, and the specific technical requirements (e.g., advanced threat detection, system integration) heavily influence pricing. Without direct comparable data, this award seems proportionate to the critical nature of the services.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks associated with this contract include potential technical failures in critical security systems, contractor performance issues leading to service disruptions, and cybersecurity vulnerabilities. Mitigation strategies likely involve stringent performance standards outlined in the contract, regular performance reviews, and robust security protocols mandated for contractor personnel and systems. The FAA's oversight mechanisms, including quality assurance surveillance, are designed to identify and address performance deficiencies early. Furthermore, the competitive nature of the award suggests the FAA selected a contractor with a demonstrated ability to manage these risks. The Time and Materials (T&M) contract type, while offering flexibility, also requires careful monitoring to control costs and prevent scope creep.

What is the expected effectiveness of the services provided under this contract for enhancing NAS security and operations?

The services provided under this contract are expected to be highly effective in enhancing NAS security and enterprise operations by ensuring the integrity and resilience of defense programs. This includes maintaining and potentially upgrading systems that protect against threats, ensuring seamless data flow, and supporting the overall operational readiness of the airspace system. The contractor's role in engineering and support is crucial for the continuous functioning of these vital systems. The effectiveness will be directly tied to the contractor's technical proficiency, adherence to security protocols, and the FAA's ability to manage and oversee the contract effectively. Successful execution should lead to a more secure and reliable national airspace.

What are the historical spending patterns for NAS Defense Programs support, and how does this award fit within that trend?

Historical spending on NAS Defense Programs support has likely been consistent, reflecting the ongoing need to maintain and enhance the security and operational capabilities of the national airspace. The Federal Aviation Administration consistently invests in securing its infrastructure against evolving threats. This $4.58 million award represents a specific allocation for a defined period (2023-2026) and likely fits within the broader trend of sustained investment. Without access to historical spending data for this specific program, it's difficult to determine if this award represents an increase, decrease, or stable level of funding. However, the nature of defense and security programs suggests a continuous, albeit potentially fluctuating, budget allocation.

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

Address: 6712 WASHINGTON AVE STE 310, EGG HARBOR TOWNSHIP, NJ, 08234

Business Categories: Category Business, Emerging Small Business, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,204,345

Exercised Options: $6,120,287

Current Obligation: $4,580,398

Actual Outlays: $3,608,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00216

IDV Type: BPA

Timeline