DOT's FAA awards $2.7M contract for acquisition support services to Savi Solutions, Inc

Contract Overview

Contract Amount: $273,000 ($273.0K)

Contractor: Savi Solutions, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-08-11

End Date: 2026-09-28

Contract Duration: 413 days

Daily Burn Rate: $661/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AAQ 460 ACQUISITION SUPPORT SERVICES

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 $273,000 to SAVI SOLUTIONS, INC. for work described as: AAQ 460 ACQUISITION SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting potential cost savings from competition. 2. The contract's duration of over a year suggests a need for ongoing support. 3. Pricing structure is Time and Materials, which can pose budget risks if not closely managed. 4. The service category, 'All Other Professional, Scientific, and Technical Services,' is broad and requires specific performance metrics for evaluation. 5. The contractor, Savi Solutions, Inc., is receiving a significant award for this type of service. 6. Geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of $2.7 million for acquisition support services over approximately 1.5 years appears within a reasonable range for specialized professional services. However, without specific benchmarks for 'acquisition support services' within the FAA or comparable agencies, a definitive value-for-money assessment is challenging. The Time and Materials pricing model introduces a degree of uncertainty regarding the final cost, as it is dependent on the hours worked and labor rates. This contrasts with fixed-price contracts, which offer greater cost predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis. This indicates that the FAA identified a specific contractor, Savi Solutions, Inc., deemed capable of meeting the requirement without soliciting offers from other potential vendors. The lack of competition means that the government did not benefit from a competitive bidding process, which typically drives down prices and encourages innovation.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a competitive environment, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The Federal Aviation Administration (FAA) will benefit from specialized acquisition support services. These services are crucial for the efficient and effective procurement of goods and services necessary for the FAA's operations. The primary beneficiaries are the FAA's acquisition and program management teams, who will receive expert assistance. The contract's performance is centered in Washington D.C., impacting the local professional services workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Time and Materials pricing can lead to cost overruns if not meticulously monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' necessitates robust oversight to ensure specific deliverables are met.
Lack of competition may reduce the incentive for the contractor to optimize efficiency.

Positive Signals

Contract awarded to a specific entity, Savi Solutions, Inc., suggesting a perceived capability to meet the requirement.
The contract duration indicates a recognized need for sustained support in acquisition processes.
The award is for definitive contract type, implying a clear scope and terms.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of federal contracting. This contract falls under the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector encompasses a wide array of specialized support functions critical to government operations, including program management, acquisition assistance, and technical consulting. Federal spending in this area is substantial, with agencies often relying on external expertise to navigate complex procurement landscapes and manage specialized projects. Benchmarks for similar contracts are difficult to establish due to the heterogeneity of services within this NADICS code.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Savi Solutions, Inc., is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract as prime contractors were not prioritized.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a sole-source award, scrutiny on performance and adherence to the Time and Materials (T&M) ceiling will be critical. The T&M structure necessitates detailed tracking of labor hours and rates to prevent cost overruns. Transparency will depend on the FAA's internal reporting and contract management practices. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Acquisition Regulation (FAR) Compliance Support
Program Management Support Services
Contract Administration Services
Procurement Technical Assistance
Professional Services Contracts

Risk Flags

Sole-source award may limit cost savings.
Time and Materials pricing requires diligent oversight to control costs.
Broad service category necessitates clear performance metrics and monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $273,000 to SAVI SOLUTIONS, INC.. AAQ 460 ACQUISITION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is SAVI SOLUTIONS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $273,000.

What is the period of performance?

Start: 2025-08-11. End: 2026-09-28.

What is the track record of Savi Solutions, Inc. in performing similar acquisition support services for the federal government?

Information regarding Savi Solutions, Inc.'s specific track record in performing acquisition support services for the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and client feedback from previous federal contracts. Understanding their experience with similar agencies, contract types (especially Time and Materials), and the complexity of acquisition processes would be crucial. Without this historical data, it is difficult to definitively gauge their past performance and suitability for this specific requirement beyond the agency's sole-source justification.

How does the $2.7 million contract value compare to similar acquisition support contracts awarded by the FAA or other agencies?

Comparing the $2.7 million contract value requires access to a broader dataset of federal contracts for 'acquisition support services.' The provided data is limited to this single contract. However, for a duration of approximately 1.5 years (413 days), $2.7 million translates to roughly $1.7 million per year. This figure needs to be benchmarked against contracts for similar scope, complexity, and labor categories. Given the sole-source nature and Time and Materials (T&M) pricing, it's challenging to assert value without comparative data. Agencies often use historical data and market research to justify sole-source awards, but this information is not available here.

What are the primary risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of budget certainty. Unlike fixed-price contracts, T&M contracts do not have a predetermined total cost. The final price is determined by the actual labor hours expended and the agreed-upon material costs. This places a significant burden on the government to closely monitor contractor performance, labor rates, and hours billed to ensure that costs remain within the contract's ceiling and that the work is performed efficiently. Without robust oversight, contractors may have less incentive to control costs, potentially leading to higher overall expenditures for the government.

What specific acquisition support services will Savi Solutions, Inc. be providing under this contract?

The contract is broadly categorized under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). While the specific deliverables are not detailed in the provided data, 'acquisition support services' typically encompass a range of activities aimed at assisting government agencies in their procurement processes. This can include tasks such as market research, developing acquisition strategies, drafting solicitations and contract documents, providing technical evaluations of proposals, contract administration, and ensuring compliance with federal acquisition regulations. The exact nature of these services would be defined in the Statement of Work (SOW) attached to the contract.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' and was awarded as a 'DEFINITIVE CONTRACT,' implying a sole-source determination was made. Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs (e.g., unique capabilities, proprietary data, urgent requirements). The specific justification for this sole-source award to Savi Solutions, Inc. by the FAA is not detailed in the provided data. Typically, such justifications are documented in a Justification for Other Than Full and Open Competition (JOFOC) report, which would outline the rationale and market research conducted.

What is the historical spending pattern for acquisition support services at the FAA, and how does this contract fit within that pattern?

The provided data does not include historical spending patterns for acquisition support services at the FAA. To assess how this $2.7 million contract fits within the broader spending landscape, one would need access to historical contract databases and budget information for the FAA's procurement and administrative support functions. Analyzing past awards for similar services, their values, durations, and competition levels would provide context. Without this historical data, it's difficult to determine if this award represents an increase, decrease, or stable level of spending for such services within the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 10313 COLVIN RUN RD, GREAT FALLS, VA, 22066

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $559,049

Exercised Options: $273,000

Current Obligation: $273,000

Actual Outlays: $81,536

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline