Transportation's $17.8M Voice Switching Contract Awarded to Enroute Computer Solutions Inc. for 8 Years

Contract Overview

Contract Amount: $17,778,993 ($17.8M)

Contractor: Enroute Computer Solutions Inc

Awarding Agency: Department of Transportation

Start Date: 2009-07-09

End Date: 2017-06-30

Contract Duration: 2,913 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SOS 8 CONTRACT - CONTRACT #DTFACT-09-D-00012 ESTABLISHING THE INITIAL DELIVERY ORDER TO THE VOICE SWITCHING AND CONTROL SYSTEMS (VSCS) SUPPORT

Place of Performance

Location: EGG HARBOR TOWNSHIP, ATLANTIC County, NEW JERSEY, 08234

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $17.8 million to ENROUTE COMPUTER SOLUTIONS INC for work described as: SOS 8 CONTRACT - CONTRACT #DTFACT-09-D-00012 ESTABLISHING THE INITIAL DELIVERY ORDER TO THE VOICE SWITCHING AND CONTROL SYSTEMS (VSCS) SUPPORT Key points: 1. Contract value represents a significant investment in critical aviation communication infrastructure. 2. The full and open competition suggests a potentially competitive pricing environment. 3. A long contract duration of 8 years necessitates careful monitoring of performance and cost overruns. 4. The 'Other Computer Related Services' NAICS code indicates a broad scope of potential IT support. 5. The contract's Time and Materials pricing structure may pose a risk for cost escalation if not managed closely. 6. Awarded to a single contractor, highlighting the importance of their performance and reliability.

Value Assessment

Rating: fair

The total contract value of $17.8 million over nearly 8 years averages to approximately $2.2 million annually. Benchmarking this against similar large-scale IT support contracts for critical infrastructure is challenging without more specific service details. However, the Time and Materials pricing model, while flexible, can lead to higher costs compared to fixed-price contracts if not rigorously managed. The number of offers (3) suggests some level of interest, but doesn't guarantee optimal value.

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 offers. Three offers were received, suggesting a moderate level of competition for this requirement. While competition is generally positive for price discovery, the specific nature of the services and the specialized expertise required might limit the number of truly capable bidders.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it encourages multiple vendors to bid, potentially driving down prices and ensuring the government receives competitive rates.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced and reliable voice switching and control systems. Air traffic controllers and related personnel will have access to improved communication tools. The contract supports critical aviation infrastructure, indirectly benefiting airline operations and passenger safety. The primary geographic impact is within the operational domains of the FAA, likely across the United States. The contract supports a specific IT service provider, potentially involving specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored and controlled.
The long duration of the contract (nearly 8 years) increases the risk of technological obsolescence or changing requirements.
Dependence on a single contractor for critical communication systems poses a risk if performance degrades or the contractor faces financial instability.
The broad NAICS code 'Other Computer Related Services' could mask scope creep or a lack of specific performance metrics.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract supports essential aviation infrastructure, indicating a high priority and strategic importance.
The contractor, Enroute Computer Solutions Inc., has been awarded this significant contract, implying a level of trust and capability.
The contract duration provides stability for both the government and the contractor, allowing for focused execution.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on specialized computer services for government operations. The market for IT support services to federal agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract for voice switching and control systems is crucial for the Federal Aviation Administration's operational continuity and modernization efforts within the air traffic control domain.

Small Business Impact

There is no indication that this contract involved small business set-asides, as it was awarded under full and open competition. The contract value and specialized nature suggest it was likely beyond the scope of typical small business set-aside targets. Subcontracting opportunities for small businesses are not explicitly detailed but could exist if Enroute Computer Solutions Inc. utilizes them for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration's contracting officers and program managers. They are responsible for monitoring performance, approving invoices, and ensuring compliance with contract terms. The Department of Transportation's Inspector General may also conduct audits or investigations into the contract's execution and financial management, particularly concerning cost-effectiveness and adherence to regulations.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal IT Services Procurement
Communication Systems Support Contracts
Department of Transportation IT Spending

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of technological obsolescence over the 8-year contract duration.
Dependence on a single contractor for critical systems.
Need for robust oversight to manage scope and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.8 million to ENROUTE COMPUTER SOLUTIONS INC. SOS 8 CONTRACT - CONTRACT #DTFACT-09-D-00012 ESTABLISHING THE INITIAL DELIVERY ORDER TO THE VOICE SWITCHING AND CONTROL SYSTEMS (VSCS) SUPPORT

Who is the contractor on this award?

The obligated recipient is ENROUTE COMPUTER SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2009-07-09. End: 2017-06-30.

What specific services are included under 'Voice Switching and Control Systems Support'?

The provided data is limited and does not detail the specific services encompassed by 'Voice Switching and Control Systems Support.' However, based on the contract title and the agency (FAA), it likely involves the maintenance, upgrade, and operational support of the systems used for communication within air traffic control. This could include hardware and software maintenance, system integration, technical support, troubleshooting, and potentially the implementation of new features or technologies to enhance voice communication reliability and efficiency for air traffic controllers and related personnel.

How does the $17.8 million contract value compare to similar FAA IT support contracts?

Without access to a comprehensive database of FAA IT support contracts with detailed service descriptions, a direct comparison of the $17.8 million value is difficult. However, for a nearly 8-year duration supporting critical infrastructure like voice switching systems, this amount appears to be a substantial but potentially reasonable investment. Large-scale IT support contracts for federal agencies often run into tens or hundreds of millions of dollars over similar or longer periods, depending on the complexity and criticality of the systems involved. The key factor for value assessment would be the scope and criticality of the services delivered relative to the cost.

What are the primary risks associated with a Time and Materials contract for this type of service?

The primary risk with a Time and Materials (T&M) contract for voice switching and control systems support is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and materials used. If the scope of work is not well-defined, or if project management is lax, the contractor may incur more hours or use more expensive materials than anticipated, leading to a higher final cost for the government. This necessitates robust oversight from the FAA to ensure efficient labor utilization and cost-effective material procurement.

What is the significance of '3' offers received under full and open competition?

Receiving three offers under a full and open competition indicates a moderate level of market interest and competition for this specific contract. While more offers generally lead to better price discovery and potentially lower costs for the government, three bidders suggest that the requirement was known and that there were at least a few capable companies willing and able to bid. The quality and competitiveness of these three offers would be more telling than the number alone. It implies that the FAA did not face a situation with very limited or no competition, which could have raised concerns about pricing or vendor lock-in.

What is the historical spending pattern for 'Voice Switching and Control Systems Support' by the FAA?

The provided data only pertains to a single contract (DTFACT-09-D-00012) awarded in 2009. To understand historical spending patterns, one would need to analyze all previous and concurrent contracts for similar 'Voice Switching and Control Systems Support' services awarded by the FAA. This would involve searching contract databases for relevant keywords, NAICS codes, and agencies over a significant period. Without this broader dataset, it's impossible to establish a historical spending trend or benchmark this specific contract's value against past investments in similar capabilities.

What is the track record of Enroute Computer Solutions Inc. in supporting federal aviation contracts?

The data indicates that Enroute Computer Solutions Inc. was awarded this specific contract for Voice Switching and Control Systems Support by the FAA. To assess their track record, one would need to examine their contract history with the FAA and other federal agencies, looking at factors such as past performance ratings, any contract disputes or terminations, and the successful completion of similar projects. This single award suggests they were deemed capable for this particular requirement, but a comprehensive track record assessment would require a broader review of their federal contracting history.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2511 FIRE RD STE A4, EGG HARBOR TOWNSHIP, NJ, 08234

Business Categories: Category Business, Government, U.S. National Government, Small Business

Financial Breakdown

Contract Ceiling: $29,991,105

Exercised Options: $17,778,993

Current Obligation: $17,778,993

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DTFACT09D00012

IDV Type: IDC

Timeline