DOT's $7.9M E-Government Travel Services contract awarded to CW Government Travel Inc. for air transportation

Contract Overview

Contract Amount: $7,985,105 ($8.0M)

Contractor: CW Government Travel Inc

Awarding Agency: Department of Transportation

Start Date: 2014-08-29

End Date: 2027-06-03

Contract Duration: 4,661 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: E-GOVERNMENT TRAVEL SERVICES TAS::69 4562::TAS IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.0 million to CW GOVERNMENT TRAVEL INC for work described as: E-GOVERNMENT TRAVEL SERVICES TAS::69 4562::TAS IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration spans over 3 years, indicating a long-term need for these services. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award is a delivery order under a larger contract vehicle. 5. Services are for scheduled passenger air transportation, a critical operational need. 6. The contractor, CW Government Travel Inc., has a significant presence in the travel services sector.

Value Assessment

Rating: good

The contract value of approximately $7.9 million over its period of performance appears reasonable for the scope of e-government travel services. Benchmarking against similar federal travel contracts is challenging without more specific service details, but the fixed-price nature provides cost certainty. The award being a delivery order suggests it's part of a pre-negotiated framework, potentially indicating favorable pricing established during the initial contract award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this specific delivery order. While more bidders could potentially drive prices lower, a competitive process was indeed followed, allowing for price discovery and selection of the most advantageous offer.

Taxpayer Impact: The full and open competition ensures that taxpayer funds are likely being used efficiently by selecting from multiple offers, rather than being limited to a single provider.

Public Impact

Federal employees requiring air travel for official government business will benefit from streamlined booking and management services. The contract supports the operational needs of the Federal Aviation Administration (FAA) and potentially other Department of Transportation (DOT) agencies. Services are primarily delivered through an e-government platform, enhancing accessibility and efficiency for users. The contract supports jobs within the travel agency sector, particularly at CW Government Travel Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the e-government platform becomes deeply integrated into agency workflows.
Reliance on a single contractor for a critical service could pose risks if the contractor experiences financial instability or service disruptions.
Ensuring data security and privacy for traveler information is paramount.

Positive Signals

Awarded through full and open competition, indicating a competitive selection process.
Fixed-price contract type helps control costs and provides budget predictability.
The contract duration allows for stable service provision over several years.
E-government platform likely offers efficiency gains and user convenience.

Sector Analysis

The federal travel services market is a significant sector within government contracting. This contract falls under the broader category of professional services, specifically focusing on travel management and booking. The e-government aspect highlights a trend towards digital service delivery. Comparable spending benchmarks are difficult to ascertain without knowing the specific service level agreements, but federal agencies collectively spend billions on travel annually, making efficient management crucial.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the primary contract vehicle under which this delivery order was issued was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses are not detailed in this award notice but could exist depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Federal Aviation Administration. The fixed-price nature of the contract provides a degree of financial oversight by setting clear cost expectations. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

GSA SmartPay Program
Federal Travel Regulations (FTR)
E-Gov Travel Service (ETS) contracts
Department of Defense Travel System (DTS)

Risk Flags

Potential for vendor lock-in
Data security and privacy concerns
Reliance on contractor performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.0 million to CW GOVERNMENT TRAVEL INC. E-GOVERNMENT TRAVEL SERVICES TAS::69 4562::TAS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CW GOVERNMENT TRAVEL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2014-08-29. End: 2027-06-03.

What is the historical spending pattern for e-government travel services by the Department of Transportation?

Historical spending data for e-government travel services by the Department of Transportation (DOT) prior to this specific award would provide valuable context. Analyzing previous contract values, durations, and awarded vendors can reveal trends in how DOT procures travel management solutions. For instance, understanding if DOT has consistently used full and open competition for such services, or if there have been shifts towards sole-source awards, can indicate changes in procurement strategy. Furthermore, examining the total annual spend on travel services over several fiscal years can highlight the significance of this $7.9 million contract within DOT's overall budget. Without access to historical DOT-specific travel service contract data, it's difficult to provide precise figures, but federal agencies generally aim to consolidate travel services to leverage economies of scale and improve efficiency, often through large, multi-year contracts like this one.

How does the pricing of this contract compare to similar federal travel service contracts?

Directly comparing the pricing of this $7.9 million contract to similar federal travel service contracts requires detailed knowledge of the specific services rendered, service level agreements (SLAs), and the overall volume of travel managed. This contract is a delivery order under a larger contract vehicle, suggesting that pricing was likely negotiated at a master contract level. The fixed-price nature provides cost certainty for the government. To benchmark effectively, one would need to analyze the per-transaction fees, administrative costs, or service charges associated with managing air travel bookings for federal employees. Factors such as the level of support provided (e.g., 24/7 call centers, complex itinerary management), technology platform features, and reporting capabilities all influence pricing. Generally, larger contracts with significant volume can achieve lower per-unit costs due to economies of scale. Without access to the specific pricing structure and comparable contract details, a precise value-for-money assessment is limited.

What is the track record of CW Government Travel Inc. in fulfilling federal travel contracts?

CW Government Travel Inc. has a history of serving federal agencies, including contracts related to travel management. Their track record can be assessed by examining past performance evaluations, contract completion history, and any documented disputes or awards. Federal procurement databases often contain past performance information, which contracting officers use during source selection. A review of publicly available data suggests CW Government Travel Inc. has held various federal contracts over the years. Key indicators of a strong track record include consistent on-time delivery, adherence to contract terms, positive client feedback, and a history of successful contract renewals or extensions. Conversely, any history of significant performance issues, contract terminations, or unresolved claims would raise concerns. For this specific contract, the FAA's selection of CW Government Travel Inc. implies a satisfactory assessment of their past performance relevant to the requirements.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this e-government travel services contract include service disruptions, data security breaches, and vendor performance issues. Service disruptions could occur due to technical failures in the e-government platform or operational challenges faced by CW Government Travel Inc. Data security is a critical concern, as the contract involves handling sensitive traveler information. Vendor performance risks involve the contractor's ability to meet service level agreements consistently. Mitigation strategies are embedded within the contract structure. The fixed-price nature helps control financial risks. Contractual clauses typically address data security requirements, performance standards, and remedies for non-performance. The government's ability to monitor performance through reporting and potentially conduct audits provides oversight. Furthermore, the competition that led to this award suggests that alternative providers exist, reducing reliance on a single entity in the long term, although this specific award is to one vendor.

How does this contract contribute to the overall efficiency and cost-effectiveness of federal travel management?

This contract aims to enhance the efficiency and cost-effectiveness of federal travel management through the provision of an e-government travel platform. Such platforms typically centralize booking, expense management, and reporting, reducing administrative overhead for both travelers and agency finance departments. By offering a user-friendly interface and potentially negotiated fares or discounts, the platform can help control travel costs. The fixed-price structure provides budget predictability. Furthermore, consolidating travel services under a single, competitively awarded contract allows for better data aggregation and analysis, enabling agencies to identify cost-saving opportunities and enforce travel policies more effectively. The efficiency gains stem from automating processes, reducing manual intervention, and providing travelers with self-service capabilities, ultimately freeing up resources for core government missions.

Industry Classification

NAICS: Transportation and Warehousing › Scheduled Air Transportation › Scheduled Passenger Air Transportation

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 WILSON BLVD STE 230, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,669,933

Exercised Options: $16,756,704

Current Obligation: $7,985,105

Actual Outlays: $2,512,925

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS33FAA009

IDV Type: IDC

Timeline