DOT's FAA awarded $24.7M for IT support services, with a 3-bidder competition

Contract Overview

Contract Amount: $24,693,156 ($24.7M)

Contractor: Itsolutions NET Government Services, Inc.

Awarding Agency: Department of Transportation

Start Date: 2003-10-10

End Date: 2009-02-28

Contract Duration: 1,968 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DAFIS UDO RECONSTRUCT W/O ADVANCE

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $24.7 million to ITSOLUTIONS NET GOVERNMENT SERVICES, INC. for work described as: DAFIS UDO RECONSTRUCT W/O ADVANCE Key points: 1. Value for money appears reasonable given the contract duration and competitive nature. 2. Competition dynamics indicate a healthy market for IT support services. 3. Risk indicators are low due to a firm-fixed-price contract type. 4. Performance context is established over a multi-year period. 5. Sector positioning is within the broader IT services market for government agencies.

Value Assessment

Rating: good

The contract's total value of $24.7 million over approximately 5.5 years suggests a moderate annual spend. Without specific performance metrics or detailed task orders, a precise value-for-money assessment is challenging. However, the firm-fixed-price structure generally promotes cost control for the government. Benchmarking against similar IT support contracts would provide a clearer picture of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The limited number of bidders, however, might indicate a specialized service area or a concentrated market.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging innovation among contractors.

Public Impact

Benefits the Federal Aviation Administration by providing essential IT support services. Ensures the continuity of critical IT infrastructure and operations for the agency. Supports IT professionals in Maryland, where the contractor is located. Indirectly impacts aviation safety and efficiency by maintaining robust IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively bid.
Reliance on a single contractor for critical IT functions could pose a risk if performance degrades.

Positive Signals

Firm-fixed-price contract type limits cost overrun risks for the government.
Awarded through full and open competition, indicating a fair and accessible process.
Long-term contract provides stability and predictability for IT service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on support services. The government IT services market is substantial, with agencies across all branches relying heavily on contractors for infrastructure, software, and support. This contract represents a portion of the FAA's overall IT spending, contributing to the operational efficiency of a key transportation regulator.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and the contractor, ITSOLUTIONS NET GOVERNMENT SERVICES, INC., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. Further analysis would be needed to determine if small business participation was encouraged or mandated.

Oversight & Accountability

The contract was awarded by the Department of Transportation's Federal Aviation Administration. Oversight would typically be managed by contracting officers and program managers within the FAA. The firm-fixed-price nature of the contract provides a degree of oversight on cost. Transparency is generally maintained through contract award databases, though detailed performance reports may not be publicly available.

Related Government Programs

FAA IT Modernization Programs
Department of Transportation IT Services
Government IT Support Contracts
Federal Aviation Systems IT

Risk Flags

Contract duration may lead to potential vendor lock-in.
Limited number of bidders could indicate market concentration or specialized requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.7 million to ITSOLUTIONS NET GOVERNMENT SERVICES, INC.. DAFIS UDO RECONSTRUCT W/O ADVANCE

Who is the contractor on this award?

The obligated recipient is ITSOLUTIONS NET GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2003-10-10. End: 2009-02-28.

What specific IT support services were included under this contract?

The contract, identified by NAICS code 561990 (All Other Support Services), suggests a broad range of support activities. While specific details are not provided in the summary data, typical services under such a contract could include help desk support, network maintenance, system administration, hardware/software installation and troubleshooting, and IT asset management. The Federal Aviation Administration (FAA) likely required these services to maintain its complex IT infrastructure, which supports air traffic control, administrative functions, and data management critical to aviation operations.

How does the $24.7 million award compare to other FAA IT support contracts?

Comparing the $24.7 million award requires access to a broader dataset of FAA IT contracts. However, considering the contract duration of approximately 5.5 years (from October 2003 to February 2009), the average annual value was roughly $4.5 million. This figure is moderate for a federal agency like the FAA, which manages extensive and critical IT systems. Larger contracts often involve major system procurements or enterprise-wide solutions, while this contract appears to focus on ongoing operational support. A detailed benchmark analysis against similar support service contracts awarded by the FAA during that period would be necessary for a precise comparison.

What are the potential risks associated with a firm-fixed-price contract for IT support?

Firm-fixed-price (FFP) contracts are generally favored for their cost certainty. However, for IT support services, potential risks include scope creep if not managed tightly, where the contractor may be incentivized to perform minimal work to maximize profit, or conversely, if the scope is poorly defined, the contractor might struggle to meet evolving needs within the fixed price. Another risk is that the contractor might cut corners on quality or innovation to maintain profitability, potentially impacting service levels. The government's ability to effectively manage the contract and ensure performance standards are met is crucial to mitigating these risks.

What was the contractor's track record prior to or during this contract?

Information on ITSOLUTIONS NET GOVERNMENT SERVICES, INC.'s track record prior to or during this specific contract is not detailed in the provided summary data. To assess their performance, one would need to review past performance evaluations, any contract modifications, claims, or disputes associated with this or other government contracts they held. A positive track record would typically involve successful delivery of services, adherence to schedules and budgets, and positive feedback from previous government clients. Conversely, a history of performance issues could indicate higher risk.

How did the competition level (3 bidders) impact the final price?

With three bidders competing for this contract, it suggests a moderately competitive market for the specific IT support services required by the FAA. A higher number of bidders generally leads to more aggressive pricing as companies vie for the award. While three bidders indicate that the price was likely influenced by competitive pressures, it's difficult to quantify the exact impact without knowing the bid amounts and the government's cost estimates. A sole-source or limited competition scenario would typically result in higher prices compared to a robust, full-and-open competition with numerous participants.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Itsolutions NET, Inc. (UEI: 075377395)

Address: 9713 KEY WEST AVE STE 400, ROCKVILLE, MD, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $1,626,900,000

Exercised Options: $38,177,694

Current Obligation: $24,693,156

Timeline