DOT Awards $3.2M for Air Movement Data Services to SEMCON GROUP LLC

Contract Overview

Contract Amount: $3,206,055 ($3.2M)

Contractor: Semcon Group LLC

Awarding Agency: Department of Transportation

Start Date: 2023-08-23

End Date: 2026-08-25

Contract Duration: 1,098 days

Daily Burn Rate: $2.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: EFAST PA 23-030-CS AIR MOVEMENT DATA DISTRIBUTION & SERVICES FOR THE AIR TRAFFIC ORGANIZATION (ATO) NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA PROGRAM

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 $3.2 million to SEMCON GROUP LLC for work described as: EFAST PA 23-030-CS AIR MOVEMENT DATA DISTRIBUTION & SERVICES FOR THE AIR TRAFFIC ORGANIZATION (ATO) NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA PROGRAM Key points: 1. Contract awarded to SEMCON GROUP LLC for critical air movement data distribution and services. 2. The contract falls under Engineering Services (NAICS 541330) within the Federal Aviation Administration. 3. Competition was conducted under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value contracts. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The Time and Materials contract type, while flexible, requires diligent oversight to prevent cost overruns. Benchmarking against similar data distribution contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP, indicating a limited competition approach likely due to the contract value. This method may not always yield the most competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential air traffic control data services. The efficiency of the procurement process and cost management will determine the ultimate taxpayer impact.

Public Impact

Ensures continued operation and modernization of the National Airspace System (NAS). Supports critical functions of the Air Traffic Organization (ATO). Potential for improved air traffic management and safety through data services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns.
Limited competition under SAP may not secure the best value.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Supports essential FAA operations.
Contract duration provides stability for services.
Procurement falls within simplified acquisition thresholds.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is crucial for maintaining and upgrading complex government systems like air traffic control.

Small Business Impact

The contract was awarded to SEMCON GROUP LLC. Further analysis is needed to determine if small business participation was a factor or if subcontracting opportunities exist.

Oversight & Accountability

Oversight will be critical due to the Time and Materials contract type. The FAA must ensure rigorous monitoring of hours and materials to control costs and ensure accountability.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may not yield best value.
Lack of detailed service scope makes independent cost benchmarking difficult.
Reliance on SAP may exclude highly competitive large businesses.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.2 million to SEMCON GROUP LLC. EFAST PA 23-030-CS AIR MOVEMENT DATA DISTRIBUTION & SERVICES FOR THE AIR TRAFFIC ORGANIZATION (ATO) NAS DEFENSE PROGRAMS (NDP) AIR MOVEMENT DATA PROGRAM

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 $3.2 million.

What is the period of performance?

Start: 2023-08-23. End: 2026-08-25.

What specific data distribution and services are included in this contract, and how do they align with current FAA modernization efforts?

The contract details 'Air Movement Data Distribution & Services' for the Air Traffic Organization's National Defense Programs. While specific deliverables are not detailed here, such services typically involve collecting, processing, and disseminating real-time flight data crucial for air traffic management, safety, and potentially defense-related airspace coordination. Its alignment with modernization efforts would depend on whether it supports new technologies or replaces legacy systems.

Given the Time and Materials contract type, what mechanisms are in place to prevent cost overruns and ensure fair pricing for these engineering services?

Time and Materials (T&M) contracts are inherently susceptible to cost overruns. Effective oversight requires the FAA to closely monitor labor hours, material costs, and indirect rates. Establishing clear ceiling prices, requiring detailed progress reports, and conducting regular audits are essential to ensure fair pricing and prevent excessive spending. The agency must also ensure the contractor's efficiency is incentivized.

How does competing under SAP impact the potential for achieving the best value for taxpayer dollars in this engineering services procurement?

Competing under Simplified Acquisition Procedures (SAP) is intended to streamline the procurement process for contracts under the current threshold (typically $250,000, though exceptions exist). While efficient, SAP may limit the pool of potential bidders compared to full and open competition. This can potentially reduce price competition, meaning the government might not always secure the absolute lowest price or the most innovative solution available in the broader market.

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: 4

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: $7,850,209

Exercised Options: $3,206,055

Current Obligation: $3,206,055

Actual Outlays: $2,645,516

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: DTFAWA10A00216

IDV Type: BPA

Timeline