Transportation contract for engineering services awarded to APPTIS (NJ), INC. for over $13.4M

Contract Overview

Contract Amount: $13,433,653 ($13.4M)

Contractor: Apptis (NJ), Inc.

Awarding Agency: Department of Transportation

Start Date: 2004-02-03

End Date: 2009-07-11

Contract Duration: 1,985 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MASS ESSA SB MINIMUM ORDERING OBLIGATION

Place of Performance

Location: GALLOWAY, ATLANTIC County, NEW JERSEY, 08205

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $13.4 million to APPTIS (NJ), INC. for work described as: MASS ESSA SB MINIMUM ORDERING OBLIGATION Key points: 1. Contract value exceeds $13.4 million, indicating a significant investment in engineering services. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1985 days (over 5 years) points to a long-term need for these services. 4. The contract type is Time and Materials, which can pose cost control challenges if not managed effectively. 5. The North American Industry Classification System (NAICS) code 541330 categorizes this as Engineering Services. 6. The contract was awarded by the Department of Transportation's Federal Aviation Administration. 7. The contractor, APPTIS (NJ), INC., is based in New Jersey.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more granular data on the engineering services provided and their market rates. The Time and Materials pricing structure, while common, can lead to costs exceeding initial estimates if not closely monitored. Comparing it to similar FAA engineering contracts would provide better insight into whether the $13.4 million represents a fair price for the scope of work and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 3 bids suggests a moderate level of competition for this engineering services contract. While competition is present, the exact number of bidders can influence price discovery; more bidders generally lead to more competitive pricing.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs. The fact that multiple companies vied for this contract suggests that the government likely received a reasonably competitive price.

Public Impact

The Federal Aviation Administration benefits from specialized engineering expertise to support its operations and infrastructure. Services delivered likely include design, analysis, and technical consultation related to aviation projects. The geographic impact is primarily within the operational domain of the Federal Aviation Administration, potentially nationwide. The contract supports a workforce of engineers and technical specialists within APPTIS (NJ), INC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Limited information on specific performance metrics makes it difficult to assess the quality of services rendered.
The long contract duration (over 5 years) requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible bidding process.
The contract supports critical engineering functions within the Department of Transportation.
The contractor is based in New Jersey, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and project-based work. The Federal Aviation Administration's need for such services is typical for an agency responsible for complex infrastructure and regulatory oversight. Comparable spending benchmarks would involve looking at other large-scale engineering contracts within government agencies, particularly those related to infrastructure, aerospace, or transportation.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Accountability measures would be tied to the contract's performance requirements and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Operations
Department of Transportation Engineering Contracts
Professional, Scientific, and Technical Services
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Long contract duration requires sustained oversight.
Limited detail on specific services provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.4 million to APPTIS (NJ), INC.. MASS ESSA SB MINIMUM ORDERING OBLIGATION

Who is the contractor on this award?

The obligated recipient is APPTIS (NJ), INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2004-02-03. End: 2009-07-11.

What specific engineering services were rendered under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. However, the specific nature of these services is not detailed. Typically, engineering services for the FAA can encompass a wide range, including but not limited to, architectural and engineering design for airport facilities, air traffic control systems, navigation aids, airspace management studies, environmental impact assessments, and technical consulting for aviation safety and infrastructure projects. Without access to the contract's statement of work, a precise breakdown of services is not possible.

How does the $13.4 million contract value compare to similar FAA engineering contracts?

Direct comparison of the $13.4 million value to similar FAA engineering contracts requires access to a broader dataset of FAA procurements for engineering services. However, for a contract spanning nearly five years (1985 days), $13.4 million suggests a substantial, but not necessarily outlier, investment. The Federal Aviation Administration frequently procures engineering support for its vast infrastructure and technological modernization efforts. The actual value benchmark would depend heavily on the complexity, scope, and duration of the services. Contracts for major system upgrades or large-scale facility designs could easily exceed this amount, while smaller, more specialized consulting tasks might be significantly less.

What are the potential risks associated with a Time and Materials contract of this duration?

Time and Materials (T&M) contracts, especially those with a long duration like this 1985-day award, carry inherent risks for the government. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or percentage for profit. Without stringent oversight, contractors may not be incentivized to control costs or improve efficiency. For the FAA, this could mean exceeding the $13.4 million obligation if not managed carefully. Risks also include potential for scope creep and difficulties in accurately forecasting the total expenditure. Robust monitoring of labor hours, rates, and material usage is crucial to mitigate these risks.

What is the track record of APPTIS (NJ), INC. with federal contracts?

The provided data indicates APPTIS (NJ), INC. was awarded this specific Department of Transportation contract. To assess their broader track record, one would need to query federal procurement databases for all contracts awarded to this entity. This would reveal the number of contracts, their values, agencies involved, and performance history. A review of past performance evaluations, if available, would offer insights into their reliability, quality of work, and adherence to contract terms. Without this broader context, it's difficult to definitively assess their overall federal contracting performance beyond this single award.

How does the 'full and open competition' award mechanism impact taxpayer value?

Awarding contracts through 'full and open competition' is generally considered the most effective method for maximizing taxpayer value. This process allows any responsible business to submit a bid, fostering a competitive environment that typically drives down prices and encourages innovation. When multiple bidders participate, as indicated by the 'no': 3 metric here, the government is more likely to secure services at a fair market price. This contrasts with sole-source or limited competition awards, which may result in higher costs due to reduced market pressure. Therefore, the competitive nature of this award suggests a positive mechanism for ensuring efficient use of public funds.

What is the significance of the NAICS code 541330 for this contract?

The North American Industry Classification System (NAICS) code 541330 specifically identifies 'Engineering Services.' This classification is crucial as it defines the primary business activity for which the contract was awarded. It helps categorize the type of expertise required, such as civil, mechanical, electrical, or aerospace engineering, depending on the specific needs of the Federal Aviation Administration. This code is used for statistical purposes, economic analysis, and to ensure that procurement opportunities are directed towards businesses operating within this specialized sector. It signals that the contract is for professional engineering expertise rather than construction, manufacturing, or other service types.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Apptis Holdings Inc. (UEI: 165295606)

Address: 314 CHRIS GAUPP DR, ABSECON, NJ, 02

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $13,433,653

Exercised Options: $13,433,653

Current Obligation: $13,433,653

Parent Contract

Parent Award PIID: DTFACT04D00007

IDV Type: IDC

Timeline