Transportation awards $4.6M for IT support, with 11 bidders indicating strong competition

Contract Overview

Contract Amount: $4,602,174 ($4.6M)

Contractor: CTG, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-01-03

End Date: 2027-01-31

Contract Duration: 1,124 days

Daily Burn Rate: $4.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROVIDES FUNDING FOR AOC ATO COMMUNICATIONS SUPPORT TASK ORDER # 693KA9-24-F-00055 EFAST#: 24-006-CS VENDOR: CTGI CO: TBD COR: CAREY YOUNG

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to CTG, INC. for work described as: PROVIDES FUNDING FOR AOC ATO COMMUNICATIONS SUPPORT TASK ORDER # 693KA9-24-F-00055 EFAST#: 24-006-CS VENDOR: CTGI CO: TBD COR: CAREY YOUNG Key points: 1. Contract awarded under a Blanket Purchase Agreement (BPA) Call, suggesting pre-negotiated terms. 2. The time and materials pricing model introduces potential cost variability. 3. Strong competition with 11 bidders suggests a healthy market for these services. 4. The contract duration extends over three years, indicating a need for sustained support. 5. Services fall under 'Other Computer Related Services,' a broad IT category.

Value Assessment

Rating: good

The contract value of $4.6 million over approximately three years appears reasonable given the scope of IT communications support. Benchmarking against similar IT services contracts within the Federal Aviation Administration (FAA) would provide a more precise value-for-money assessment. The time and materials (T&M) pricing structure, while common for IT services, warrants careful monitoring to ensure costs remain within expected parameters and do not escalate due to inefficiencies or scope creep. The number of bidders suggests a competitive environment that likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for full and open competition for procurements below certain thresholds. The presence of 11 bidders signifies robust competition for this requirement. A high number of bidders generally indicates that the market is aware of the opportunity and that multiple vendors possess the capability to perform the work, which can drive down prices and improve overall value.

Taxpayer Impact: The strong competition observed in this procurement is beneficial for taxpayers, as it likely resulted in a more competitive price and a wider range of innovative solutions being considered. This reduces the risk of overpaying for services and ensures that federal funds are used efficiently.

Public Impact

Benefits the Department of Transportation, specifically the Federal Aviation Administration (FAA), by ensuring reliable communications support. Delivers essential IT and communications support services critical for operational efficiency. The geographic impact is primarily within Virginia, where the vendor is located. Supports the IT workforce by providing opportunities for skilled professionals in computer services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not managed closely.
The specific task order details and performance metrics are not fully detailed in the provided data, making it difficult to assess performance risks.
Vendor CTGI CO: TBD indicates that the specific vendor has not yet been finalized, which could introduce some transition risk.

Positive Signals

Strong competition with 11 bidders suggests a healthy and responsive market.
The contract is awarded under a BPA Call, implying that some level of pre-qualification and negotiation has already occurred.
The contract duration of over three years indicates a stable requirement and potential for long-term partnership.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services.' The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract likely supports the FAA's critical communication systems, which are essential for air traffic control and operational management. Comparable spending benchmarks for IT support services within federal agencies often vary based on complexity, security requirements, and service level agreements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While this specific award does not directly benefit small businesses through a set-aside, the competitive nature of the procurement under SAP could still allow for small business participation as subcontractors if the prime contractor, CTGI, Inc., chooses to engage them. Further analysis would be needed to determine subcontracting plans and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) within the FAA, who is responsible for ensuring the contractor meets performance requirements and adheres to contract terms. Transparency is facilitated through contract award databases like FPDS. Accountability measures are embedded in the contract's performance standards and the T&M payment structure, which requires detailed reporting of labor hours and materials. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FAA IT Modernization Programs
Air Traffic Control Communications Systems
Federal Aviation Administration IT Services
Department of Transportation IT Contracts
General Services Administration (GSA) IT Schedule Contracts

Risk Flags

Time and Materials Pricing
Vendor Finalization Pending
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to CTG, INC.. PROVIDES FUNDING FOR AOC ATO COMMUNICATIONS SUPPORT TASK ORDER # 693KA9-24-F-00055 EFAST#: 24-006-CS VENDOR: CTGI CO: TBD COR: CAREY YOUNG

Who is the contractor on this award?

The obligated recipient is CTG, INC..

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: 2024-01-03. End: 2027-01-31.

What is the specific nature of the 'AOC ATO Communications Support' being provided under this task order?

The data indicates this task order, #693KA9-24-F-00055, is for 'AOC ATO Communications Support.' 'AOC' likely refers to the Air Operations Center, and 'ATO' to Air Traffic Operations. Therefore, this support is crucial for the communication systems that enable the FAA's air traffic management functions. This could encompass a range of services, including the maintenance, operation, and potentially upgrade of voice and data communication networks, radio systems, and related IT infrastructure that facilitate seamless communication between air traffic controllers, pilots, and other aviation stakeholders. The exact scope would be detailed in the Statement of Work (SOW) for the task order.

How does the time and materials (T&M) pricing structure compare to fixed-price contracts for similar IT support services?

Time and Materials (T&M) contracts are common for IT services where the scope of work is not clearly defined or is expected to evolve. They allow for flexibility but carry a higher risk of cost overruns for the government compared to fixed-price contracts. In a T&M arrangement, the government pays for the direct labor hours at specified hourly rates and for the cost of materials used. For similar IT support services, fixed-price contracts offer greater cost certainty for the government but require a very well-defined scope of work upfront. If the scope is uncertain or likely to change, T&M can be more appropriate, provided robust oversight is in place to manage labor hours and material costs effectively. The benchmark for value here depends heavily on the contractor's efficiency and the government's ability to manage the T&M aspects.

What are the potential risks associated with the vendor 'CTGI CO: TBD'?

The notation 'CTGI CO: TBD' indicates that the specific vendor, CTGI, Inc., has been identified, but the final award or specific entity within CTGI might still be pending finalization or confirmation. This introduces a minor risk related to vendor readiness and transition. Potential risks include delays in contract initiation if final administrative steps are not completed promptly, or if the selected entity within CTGI requires additional onboarding or setup. However, since CTGI, Inc. is listed as the vendor and the contract was competed, it suggests a level of pre-qualification. The primary risk is a slight delay in the commencement of services or a less seamless initial transition compared to a fully finalized award.

What does the 'BPA CALL' contract award type signify for this procurement?

A 'BPA CALL' signifies that this task order was issued under a pre-existing Blanket Purchase Agreement (BPA). BPAs are established with vendors to streamline the process of acquiring goods or services that are expected to be needed repeatedly. They allow agencies to place orders against the agreement without needing to conduct a full, separate procurement each time. A 'BPA CALL' specifically refers to an order placed against a GSA Schedule BPA. This method typically results in faster delivery and potentially better pricing due to pre-negotiated terms and conditions within the BPA. It indicates that CTGI, Inc. likely holds a GSA Schedule contract under which this BPA was established.

How does the contract's duration of 1124 days (approx. 3 years) impact the assessment of its value and risk?

A contract duration of approximately three years (1124 days) suggests a stable and ongoing need for the communications support services by the FAA. From a value perspective, this longer duration allows for potential economies of scale and the development of a deeper working relationship between the contractor and the agency, potentially leading to improved service delivery and efficiency over time. It also provides the contractor with a predictable revenue stream, which can incentivize investment in specialized resources. From a risk perspective, a longer duration increases the exposure to potential changes in technology, agency requirements, or contractor performance issues. However, it also allows more time for the contractor to demonstrate consistent performance and for the agency to identify and address any emerging risks proactively through contract management and oversight.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 11

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 10461 WHITE GRANITE DR STE 250, OAKTON, VA, 22124

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,211,578

Exercised Options: $4,602,174

Current Obligation: $4,602,174

Actual Outlays: $3,749,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFAWA10A00087

IDV Type: BPA

Timeline