Transportation's $11.3M IT support contract awarded to ACENTRA HEALTH LLC without competition

Contract Overview

Contract Amount: $11,298,062 ($11.3M)

Contractor: Acentra Health LLC

Awarding Agency: Department of Transportation

Start Date: 2007-02-13

End Date: 2009-09-04

Contract Duration: 934 days

Daily Burn Rate: $12.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE FUNDING FOR LOGICAL ACCESS AND AUTHORIZATION CONTROL SERVICE SUPPORT, CONTRACT # DTFA03-02-D-00011

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $11.3 million to ACENTRA HEALTH LLC for work described as: PROVIDE FUNDING FOR LOGICAL ACCESS AND AUTHORIZATION CONTROL SERVICE SUPPORT, CONTRACT # DTFA03-02-D-00011 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. The contract duration of 934 days suggests a need for sustained support. 3. Awarded to ACENTRA HEALTH LLC, a single entity, raising questions about competitive pricing. 4. The NAICS code 541519 points to a focus on computer-related services. 5. This contract represents a significant investment in IT infrastructure support for the FAA. 6. The absence of competition may limit opportunities for cost savings through market forces.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids and limited public data on comparable IT support services for the FAA. The firm-fixed-price structure provides cost certainty but does not inherently guarantee optimal value. Without a competitive process, it's difficult to assess if ACENTRA HEALTH LLC's pricing was aligned with market rates or if alternative, more cost-effective solutions were overlooked. The total award amount of $11.3 million over approximately 2.5 years warrants scrutiny to ensure taxpayer funds were used efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source procurement method, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, often due to proprietary technology, unique expertise, or urgent needs. The lack of competition means that the government did not benefit from the price discovery and innovation that typically arise from a competitive bidding process. This raises concerns about whether the government secured the best possible price and service.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no market pressure to drive down prices. It also limits the opportunity for other qualified businesses to compete for government contracts.

Public Impact

The Federal Aviation Administration (FAA) benefits from continued support for its logical access and authorization control systems. This contract ensures the operational integrity of critical IT infrastructure related to aviation safety and management. The services provided likely support the daily functions of FAA personnel reliant on these IT systems. The geographic impact is primarily within the FAA's operational footprint, likely concentrated where ACENTRA HEALTH LLC provides services. Workforce implications include the employment of IT professionals by ACENTRA HEALTH LLC to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competed contract.
Limited transparency into the justification for a sole-source award.
Potential for vendor lock-in due to the absence of market alternatives.
Difficulty in assessing performance benchmarks against industry standards without competitive context.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Contract duration suggests a stable, ongoing need for these specific IT services.
Award to a single vendor may indicate specialized capabilities required for the task.

Sector Analysis

The IT services sector is vast and highly competitive, encompassing a wide range of specialized capabilities. Contracts for IT support, particularly those involving logical access and authorization control, are crucial for government agencies to maintain secure and efficient operations. The market for such services includes numerous firms ranging from large system integrators to specialized cybersecurity providers. Without competitive bidding, it is difficult to benchmark this $11.3 million contract against industry standards or determine if it represents a fair market price. Comparable spending in this sub-sector often varies significantly based on the complexity of the systems supported and the level of security required.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have specific small business set-aside provisions. The absence of subcontracting requirements for small businesses means that the direct economic benefit to the small business ecosystem from this particular award is likely minimal. Opportunities for small businesses to participate would typically arise if the prime contractor, ACENTRA HEALTH LLC, chose to subcontract portions of the work, which is not explicitly indicated here.

Oversight & Accountability

Oversight for this contract would fall under the Department of Transportation's Office of Inspector General (OIG), which is responsible for auditing and investigating the efficiency and integrity of departmental programs and operations. The firm-fixed-price nature of the contract provides a degree of financial oversight by establishing a ceiling cost. However, the lack of competition limits the government's ability to independently verify the reasonableness of the price through market comparisons. Transparency regarding the justification for the sole-source award and ongoing performance monitoring would be key oversight elements.

Related Government Programs

IT Infrastructure Support Services
Cybersecurity Services
Access Control Systems
Authorization Management Systems
Federal Aviation Administration IT Modernization

Risk Flags

Sole-source award lacks competitive justification.
Limited transparency on specific service details and performance metrics.
Historical data is dated, making current value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.3 million to ACENTRA HEALTH LLC. PROVIDE FUNDING FOR LOGICAL ACCESS AND AUTHORIZATION CONTROL SERVICE SUPPORT, CONTRACT # DTFA03-02-D-00011

Who is the contractor on this award?

The obligated recipient is ACENTRA HEALTH LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2007-02-13. End: 2009-09-04.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded under contract number DTFA03-02-D-00011. While the specific justification for a sole-source award is not detailed in the provided data snippet, common reasons include the existence of only one responsible source capable of providing the required services, urgent and compelling circumstances that preclude full and open competition, or specific statutory authority. For IT services like logical access and authorization control support, justifications often relate to proprietary software, unique integration requirements with existing systems, or specialized expertise held by a single vendor. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise justification used by the Federal Aviation Administration in this instance.

How does the $11.3 million award compare to similar IT support contracts within the Department of Transportation or FAA?

Directly comparing the $11.3 million award for logical access and authorization control support to similar contracts within the Department of Transportation (DOT) or the Federal Aviation Administration (FAA) is challenging without more specific details about the scope of services, duration, and performance metrics. The contract ran from February 2007 to September 2009, a period over 15 years ago, making direct comparisons to current market rates difficult due to inflation and technological advancements. Furthermore, the sole-source nature of this award means it wasn't subject to competitive pricing pressures that would typically inform value assessments. To conduct a meaningful comparison, one would need to identify contracts with similar NAICS codes (541519 - Other Computer Related Services), service descriptions (IT support, access control), and contract values from the same or adjacent time periods, while accounting for differences in contract type and competition levels.

What are the potential risks associated with awarding a significant IT support contract without competition?

Awarding a significant IT support contract without competition, as seen with ACENTRA HEALTH LLC's $11.3 million award, carries several potential risks. Primarily, there is a heightened risk of paying a higher price than would be achieved in a competitive environment, as the government lacks the leverage of multiple bids to drive down costs. This can lead to inefficient use of taxpayer funds. Secondly, a lack of competition can stifle innovation, as the incumbent contractor may have less incentive to introduce cost-saving efficiencies or cutting-edge solutions. There's also a risk of vendor lock-in, where the agency becomes overly reliant on a single provider, making future transitions difficult and potentially more expensive. Finally, without the vetting process inherent in competition, there's a slightly increased risk regarding the contractor's overall capability and performance, although this is mitigated by contract oversight.

What was the historical spending pattern for logical access and authorization control support by the FAA prior to and after this contract?

The provided data focuses solely on this specific contract (DTFA03-02-D-00011) awarded to ACENTRA HEALTH LLC from 2007 to 2009. It does not offer insights into the FAA's historical spending patterns for logical access and authorization control support before or after this period. To analyze historical spending, one would need access to broader federal procurement databases (like USASpending.gov or FPDS) and filter for relevant NAICS codes, keywords, and agencies over multiple fiscal years. This would allow for the identification of trends, changes in contract types, shifts in awarded vendors, and overall budget allocations for these specific IT services, providing context for the significance and typical cost of such support within the FAA's IT budget.

Does ACENTRA HEALTH LLC have a track record of performance with the FAA or other federal agencies for similar IT services?

The provided data identifies ACENTRA HEALTH LLC as the contractor for this specific $11.3 million IT support contract with the FAA. However, it does not offer details on their performance history, past performance evaluations, or other contracts they may have held with the FAA or other federal agencies. To assess ACENTRA HEALTH LLC's track record, further research would be required using federal procurement data systems (e.g., FPDS, SAM.gov) to identify all contracts awarded to the company, their performance ratings, any contract disputes or terminations, and the types of services rendered. This information is crucial for understanding their reliability and capability in delivering IT support services, especially in the context of a sole-source award.

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: NOT COMPETED

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 KING FARM BLVD FL 2, ROCKVILLE, MD, 08

Business Categories: Category Business, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business

Financial Breakdown

Contract Ceiling: $11,298,062

Exercised Options: $11,298,062

Current Obligation: $11,298,062

Parent Contract

Parent Award PIID: DTFA0302D00011

IDV Type: IDC

Timeline