FAA's $10.9M Air Traffic Comms Support Contract Awarded to CTG, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $10,913,172 ($10.9M)
Contractor: CTG, Inc.
Awarding Agency: Department of Transportation
Start Date: 2007-09-27
End Date: 2011-09-22
Contract Duration: 1,456 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TECHNICAL SUPPORT TO FAA AIR TRAFFIC ORGANIZATION COMMUNICATIONS SERVICES
Place of Performance
Location: OAKTON, FAIRFAX County, VIRGINIA, 22124
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $10.9 million to CTG, INC. for work described as: TECHNICAL SUPPORT TO FAA AIR TRAFFIC ORGANIZATION COMMUNICATIONS SERVICES Key points: 1. Contract value of $10.9 million over approximately 4 years. 2. Awarded to CTG, Inc. via full and open competition. 3. Services fall under 'Other Computer Related Services' (NAICS 541519). 4. Contract type is Time and Materials, indicating potential for cost overruns. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure, while common for evolving technical support, can lead to less predictable costs compared to fixed-price contracts. Benchmarking against similar IT support contracts is difficult without detailed labor categories and rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Time and Materials (T&M) contract type may limit the effectiveness of initial price competition if not managed closely.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers by promoting competitive pricing. However, the T&M structure requires diligent oversight to ensure costs remain reasonable and do not exceed the anticipated value.
Public Impact
Ensures continued operation of critical air traffic control communication systems. Supports the Federal Aviation Administration's (FAA) mission to maintain safe and efficient airspace. Potential for cost increases due to the Time and Materials contract type. Lack of small business involvement may limit opportunities for smaller, specialized firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports critical FAA infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on computer-related services for government operations. Spending benchmarks for similar technical support contracts vary widely based on scope and complexity, but $10.9M over four years suggests a moderate-sized engagement.
Small Business Impact
The contract data indicates no small business participation (SB=false). This suggests that the prime contractor, CTG, Inc., did not subcontract with small businesses for this particular award, potentially missing opportunities to leverage specialized small business capabilities.
Oversight & Accountability
The contract was awarded by the Department of Transportation's Federal Aviation Administration. Oversight would focus on ensuring the contractor meets performance requirements and that the Time and Materials pricing is justified and controlled through diligent administration.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Time and Materials contract type.
- Lack of small business participation.
- Potential for cost creep without strict oversight.
- Services are critical to air traffic operations, implying high impact if disrupted.
Tags
other-computer-related-services, department-of-transportation, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $10.9 million to CTG, INC.. TECHNICAL SUPPORT TO FAA AIR TRAFFIC ORGANIZATION COMMUNICATIONS SERVICES
Who is the contractor on this award?
The obligated recipient is CTG, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $10.9 million.
What is the period of performance?
Start: 2007-09-27. End: 2011-09-22.
What was the average hourly rate or loaded labor cost for the Time and Materials contract, and how does it compare to industry benchmarks for similar technical support roles?
Without specific details on labor categories, hours, and rates billed under this Time and Materials contract, a precise per-unit cost benchmark is not feasible. However, agencies typically track these metrics internally and compare them against pre-negotiated ceilings or market research to ensure fair and reasonable pricing throughout the contract's life.
What mechanisms were in place to manage and control costs under the Time and Materials contract, given its inherent risk of price escalation?
Effective management of T&M contracts relies on robust oversight, including detailed review of invoices, monitoring of labor hours, and comparison against established ceiling prices or independent government cost estimates. The FAA likely employed contract officers and technical representatives to ensure contractor performance and cost reasonableness.
How did the full and open competition process ensure the best value was achieved for the government, considering the T&M pricing structure?
Full and open competition aims to maximize the pool of potential offerors, driving down prices. While T&M pricing introduces uncertainty, the competition likely focused on the offeror's technical approach, past performance, and proposed labor rates/escalation clauses, ensuring a competitive baseline before the T&M elements were applied.
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: 10461 WHITE GRANITE DR STE 250, OAKTON, VA, 11
Business Categories: Category Business, Minority Owned Business, Small Business, Indian (Subcontinent) American Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $10,913,172
Exercised Options: $10,913,172
Current Obligation: $10,913,172
Parent Contract
Parent Award PIID: DTFAWA03D03023
IDV Type: IDC
Timeline
Start Date: 2007-09-27
Current End Date: 2011-09-22
Potential End Date: 2011-09-22 00:00:00
Last Modified: 2011-09-22
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