DOT Awards $5M for Enroute Engineering Support to NIRA INC, Lacking Competition

Contract Overview

Contract Amount: $5,037,535 ($5.0M)

Contractor: Nira Inc

Awarding Agency: Department of Transportation

Start Date: 2022-08-03

End Date: 2027-08-22

Contract Duration: 1,845 days

Daily Burn Rate: $2.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Engineering Services

Official Description: ENROUTE ENGINEERING AND COST ESTIMATING 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 $5.0 million to NIRA INC for work described as: ENROUTE ENGINEERING AND COST ESTIMATING SUPPORT SERVICES Key points: 1. Contract Value: $5.04M over 5 years. 2. Sole Source Award: No competition was sought for these engineering services. 3. Risk: Lack of competition may lead to inflated pricing and reduced innovation. 4. Sector: Engineering Services (NAICS 541330).

Value Assessment

Rating: questionable

The contract value of $5.04M for 5 years of engineering support is difficult to benchmark without specific deliverables. The lack of competition raises concerns about whether this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning no other vendors were considered. This limits price discovery and potentially allows the awarded vendor to set higher prices than in a competitive environment.

Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive bidding, potentially diverting funds from other critical infrastructure projects.

Public Impact

Essential engineering services for air traffic control systems are being procured without competitive bidding. The Federal Aviation Administration relies on this support to maintain and improve enroute systems. Lack of transparency in the sole-source award process can erode public trust in government spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of price competition
Potential for overpayment

Positive Signals

Essential service for FAA operations
Long-term contract provides stability

Sector Analysis

The engineering services sector is broad, but specialized support for critical infrastructure like air traffic control is vital. Benchmarking is challenging without detailed scope, but competitive bids typically yield better value.

Small Business Impact

This contract was not awarded to a small business. The sole-source nature of the award further limits opportunities for small businesses to compete for this type of federal work.

Oversight & Accountability

The sole-source justification and award process should be thoroughly reviewed by oversight bodies to ensure it was appropriate and that taxpayer funds are being used efficiently.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in procurement
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.0 million to NIRA INC. ENROUTE ENGINEERING AND COST ESTIMATING 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 $5.0 million.

What is the period of performance?

Start: 2022-08-03. End: 2027-08-22.

What specific engineering tasks are included in this contract, and how do they align with the FAA's strategic goals?

The contract is for 'ENROUTE ENGINEERING AND COST ESTIMATING SUPPORT SERVICES.' This likely includes technical analysis, design support, and cost projections for the FAA's enroute air traffic control systems. Understanding the precise scope is crucial for assessing value and ensuring alignment with the agency's modernization and operational efficiency objectives.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award needs to be robust, typically citing unique capabilities or urgent needs that preclude competition. Without this information, it's impossible to determine if the FAA adequately explored competitive options or if this award represents a missed opportunity for better pricing and innovation.

How will the FAA ensure cost-effectiveness and quality of services given the lack of competitive pressure?

With a sole-source contract, the FAA must implement strong contract management practices, including detailed performance metrics, regular progress reviews, and potentially independent cost analysis. Proactive oversight is essential to mitigate risks associated with limited competition and ensure the government receives good value for its investment.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-22-R-00447

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: $5,037,535

Exercised Options: $5,037,535

Current Obligation: $5,037,535

Actual Outlays: $3,335,388

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline