FAA Awards $3.88M Engineering Support Contract to A3 Technology Inc

Contract Overview

Contract Amount: $3,881,044 ($3.9M)

Contractor: A3 Technology Inc

Awarding Agency: Department of Transportation

Start Date: 2024-05-09

End Date: 2025-12-31

Contract Duration: 601 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Engineering Services

Official Description: TO SUPPORT AIMM SYSTEMS ENGINEERING AND ANALYTICAL SUPPORT FOR AERONAUTICAL INFORMATION SYSTEMS.

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 $3.9 million to A3 TECHNOLOGY INC for work described as: TO SUPPORT AIMM SYSTEMS ENGINEERING AND ANALYTICAL SUPPORT FOR AERONAUTICAL INFORMATION SYSTEMS. Key points: 1. Contract awarded for Aeronautical Information Systems engineering and analytical support. 2. A3 Technology Inc. secures the delivery order. 3. The contract spans 601 days, concluding in December 2025. 4. This award falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract value of $3.88M for 601 days suggests a daily rate of approximately $6,458. This appears to be on the higher end compared to typical engineering services contracts of similar scope, warranting further scrutiny of the pricing structure.

Cost Per Unit: $6,458

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing details and the justification for the Time and Materials contract type need to be reviewed to ensure optimal price discovery.

Taxpayer Impact: Taxpayers are impacted by the $3.88M expenditure, with the effectiveness of this spending dependent on the quality of services delivered and the competitive pricing achieved.

Public Impact

Ensures continued support for critical aeronautical information systems. Supports the Federal Aviation Administration's operational capabilities. Potential for technological advancements in aviation data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type.
Benchmarking of the daily rate against similar contracts is crucial.

Positive Signals

Awarded through full and open competition.
Supports essential aviation infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aviation systems. Spending in this sector is critical for national infrastructure and safety, with benchmarks varying widely based on specialization and project complexity.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight will be crucial to ensure that the Time and Materials contract is managed effectively, preventing scope creep and ensuring that the $3.88M is utilized efficiently for the intended engineering and analytical support.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

High daily rate compared to benchmarks.
Time and Materials contract type carries inherent cost overrun risk.
Lack of small business participation.
Need for detailed review of labor rates and hours.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.9 million to A3 TECHNOLOGY INC. TO SUPPORT AIMM SYSTEMS ENGINEERING AND ANALYTICAL SUPPORT FOR AERONAUTICAL INFORMATION SYSTEMS.

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 $3.9 million.

What is the period of performance?

Start: 2024-05-09. End: 2025-12-31.

What is the specific breakdown of labor categories and rates within the Time and Materials contract, and how do they compare to industry standards for similar engineering support services?

A detailed breakdown of labor categories and their associated hourly rates is essential for a thorough price assessment. Without this granular data, it's challenging to definitively benchmark against industry standards. However, the overall daily rate of $6,458 suggests that senior-level expertise is likely involved, and the rates should align with specialized skills required for complex aeronautical information systems.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effective delivery of engineering and analytical support?

Effective delivery will be measured through defined KPIs related to system performance, accuracy of analytical reports, timely completion of engineering tasks, and adherence to project milestones. The FAA's contracting officer's representative (COR) will be responsible for monitoring these KPIs and ensuring that A3 Technology Inc. meets the contract's technical requirements and objectives.

Given the Time and Materials contract type, what mechanisms are in place to control costs and prevent potential overruns, especially considering the 601-day duration?

Cost control mechanisms for Time and Materials contracts typically include established labor rate ceilings, limitations on total contract value, and rigorous oversight by the COR. Regular progress reviews and detailed invoicing requirements help track expenditures against the ceiling and identify any potential deviations early on, allowing for corrective actions.

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: $6,458,925

Exercised Options: $3,881,044

Current Obligation: $3,881,044

Actual Outlays: $2,853,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA922D00003

IDV Type: IDC

Timeline