DOT Awards $8.7M for Enroute Planning and Financial Support Services to NIRA INC

Contract Overview

Contract Amount: $8,723,983 ($8.7M)

Contractor: Nira Inc

Awarding Agency: Department of Transportation

Start Date: 2022-08-23

End Date: 2027-08-22

Contract Duration: 1,825 days

Daily Burn Rate: $4.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENROUTE PLANNING AND FINANCIAL SUPPORT SERVICES

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 $8.7 million to NIRA INC for work described as: ENROUTE PLANNING AND FINANCIAL SUPPORT SERVICES Key points: 1. Contract awarded for administrative management and general management consulting services. 2. NIRA INC is the sole contractor for this definitive contract. 3. The contract has a duration of 5 years. 4. The total award value is $8,723,983.20. 5. The contract is firm-fixed-price.

Value Assessment

Rating: questionable

The contract's value of $8.7M over 5 years for consulting services needs further justification. Without comparable contracts or detailed performance metrics, assessing its value against industry benchmarks is difficult. The lack of readily available pricing data makes a precise comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. This procurement method may limit price discovery and potentially lead to higher costs for taxpayers compared to a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award raises concerns about potential overspending and the efficient use of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long-term nature of the contract (5 years) locks in current pricing without market adjustments. Lack of transparency in the sole-source justification could hide inefficiencies. Essential services for enroute planning and financial support are being provided, but at what cost?

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited price discovery
Long contract duration

Positive Signals

Essential services provided
Firm-fixed-price contract

Sector Analysis

This contract falls under administrative management and general management consulting services (NAICS 541611). Spending in this sector can vary widely based on agency needs and project scope. Benchmarks are difficult to establish without specific service details.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award, suggesting missed opportunities for small business participation.

Oversight & Accountability

The sole-source nature of this contract warrants close oversight to ensure the services are necessary, performed effectively, and priced reasonably. Transparency in the justification for sole-sourcing is crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award limits competition and potentially increases costs.
Lack of transparency in the justification for sole-sourcing.
Potential for overpayment due to absence of competitive bidding.
Missed opportunities for small business participation.
Long contract duration may not reflect evolving market conditions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.7 million to NIRA INC. ENROUTE PLANNING AND FINANCIAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is NIRA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2022-08-23. End: 2027-08-22.

What specific factors justified the sole-source award for these enroute planning and financial support services, and were alternatives explored?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For these services, the agency likely cited specific expertise or proprietary knowledge held by NIRA INC that could not be replicated by other firms within the required timeframe or scope. A thorough review would confirm if these justifications were robust and if any market research was conducted to identify potential competitors.

How does the $8.7M contract value compare to industry standards for similar enroute planning and financial support consulting services?

Benchmarking this contract's value is challenging without detailed service descriptions and performance metrics. However, for a 5-year definitive contract of this magnitude in administrative consulting, the price appears substantial. A comparative analysis with other government or commercial contracts for similar services, adjusted for scope and duration, would be necessary to determine if it represents fair market value or if potential cost savings were missed due to the lack of competition.

What mechanisms are in place to ensure the effectiveness and efficiency of NIRA INC's services throughout the 5-year contract period?

Given the firm-fixed-price structure, the primary mechanism for ensuring effectiveness is likely through performance standards and deliverables outlined in the contract. The Federal Aviation Administration should have robust contract management processes to monitor NIRA INC's performance, conduct regular reviews, and ensure that the services provided meet the agency's operational needs for enroute planning and financial support. Any deviations or underperformance should trigger contractual remedies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-22-R-00425

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 400 VIRGINIA AVE SW STE 720, WASHINGTON, DC, 20024

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

Financial Breakdown

Contract Ceiling: $8,723,983

Exercised Options: $8,723,983

Current Obligation: $8,723,983

Actual Outlays: $5,756,477

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline