Department of Transportation's $12.4M contract for telecom support awarded to Operational Technologies Services

Contract Overview

Contract Amount: $12,435,746 ($12.4M)

Contractor: Operational Technologies Services

Awarding Agency: Department of Transportation

Start Date: 2004-04-23

End Date: 2010-05-31

Contract Duration: 2,229 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INITIATE FUNDS TO SUPPORT TELECOMMUNICATIONS ORGANIZATION. BUSINESS & FINANCIAL MANAGEMENT SERVICES (BFMS) CONTRACT #DTFAWA-04-C-00017 FOR (TASK 1 - OPERATIONAL BUDGET PLANNING)

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $12.4 million to OPERATIONAL TECHNOLOGIES SERVICES for work described as: INITIATE FUNDS TO SUPPORT TELECOMMUNICATIONS ORGANIZATION. BUSINESS & FINANCIAL MANAGEMENT SERVICES (BFMS) CONTRACT #DTFAWA-04-C-00017 FOR (TASK 1 - OPERATIONAL BUDGET PLANNING) Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2,229 days (over 6 years) indicates a long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. The contract was awarded to Operational Technologies Services, a company with a track record in government contracting. 6. The contract was awarded by the Federal Aviation Administration (FAA), a key agency within the Department of Transportation.

Value Assessment

Rating: fair

The total award amount of $12.4 million over approximately six years suggests a moderate annual spend. Without specific performance metrics or detailed breakdowns of services rendered, it's challenging to definitively benchmark value for money. The Time and Materials contract type, while flexible, necessitates diligent oversight to prevent cost overruns compared to fixed-price contracts. Further analysis would require comparing the specific services provided against industry standards and similar government contracts.

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 bidders suggests a reasonable level of competition for this requirement. This competitive process is generally expected to lead to more favorable pricing and better value for the government compared to sole-source or limited competition awards.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced telecommunications support, crucial for its operational efficiency. The contract supports essential business and financial management services, including operational budget planning. The services delivered are professional, scientific, and technical in nature, contributing to the agency's core functions. The contract's impact is primarily within the federal government's operational infrastructure, rather than directly on the public or a specific geographic region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to unpredictable costs if not closely monitored.
The broad NAICS code may indicate a less defined scope of work, potentially leading to scope creep.
The contract duration is substantial, requiring sustained oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Multiple bidders participated, suggesting market interest and potential for competitive pricing.
The contract supports critical operational functions for the FAA.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide range of services, including management consulting, research and development, and other specialized technical support. Government spending in this sector is substantial, supporting various agency functions. Benchmarking would require identifying comparable contracts for telecommunications and business management services within the federal government.

Small Business Impact

The data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and larger, established firms likely competed for and won this award. There is no explicit information on subcontracting plans for small businesses within this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. The Time and Materials nature of the contract necessitates close monitoring of labor hours and material costs to ensure compliance with the contract terms and prevent overspending. Transparency would be enhanced through regular reporting requirements and potential audits by the Department of Transportation's Inspector General.

Related Government Programs

Department of Transportation IT Services
Federal Aviation Administration Operational Support
Professional and Technical Services Contracts
Telecommunications Support Services
Business and Financial Management Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Broad NAICS code may indicate a less defined scope, risking scope creep.
Long contract duration requires sustained oversight.
Lack of small business participation or set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.4 million to OPERATIONAL TECHNOLOGIES SERVICES. INITIATE FUNDS TO SUPPORT TELECOMMUNICATIONS ORGANIZATION. BUSINESS & FINANCIAL MANAGEMENT SERVICES (BFMS) CONTRACT #DTFAWA-04-C-00017 FOR (TASK 1 - OPERATIONAL BUDGET PLANNING)

Who is the contractor on this award?

The obligated recipient is OPERATIONAL TECHNOLOGIES SERVICES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2004-04-23. End: 2010-05-31.

What was the specific nature of the 'Business & Financial Management Services (BFMS)' provided under this contract?

The provided data indicates that the contract was for 'INITIATE FUNDS TO SUPPORT TELECOMMUNICATIONS ORGANIZATION' and specifically mentions 'TASK 1 - OPERATIONAL BUDGET PLANNING' as part of the Business & Financial Management Services (BFMS). This suggests the services were focused on financial planning and management related to the organization's telecommunications infrastructure and operations. The broader scope likely encompassed financial administration, budgeting, forecasting, and potentially resource allocation advice to support the telecommunications functions of the Federal Aviation Administration (FAA).

How does the $12.4 million award compare to typical spending for similar telecommunications support contracts within the FAA?

Without access to a comprehensive database of all FAA telecommunications support contracts, a direct comparison is difficult. However, $12.4 million over approximately six years (2,229 days) averages to roughly $2 million per year. This figure is moderate for a federal agency like the FAA, which manages a vast and complex telecommunications network. The specific nature of the services (budget planning, financial management) might also differentiate it from purely technical infrastructure contracts. Further analysis would require benchmarking against contracts with similar scope and duration within the agency or similar federal entities.

What are the primary risks associated with a Time and Materials (T&M) contract of this duration and value?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $12.4 million and lasting over six years, is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts do not have a ceiling on the total cost, as payment is based on the actual labor hours and material costs incurred. This can lead to the government paying more than anticipated if the contractor's efficiency is low, if the scope of work expands without proper controls, or if billing practices are not rigorously scrutinized. Effective oversight, detailed tracking of hours, and clear definition of 'materials' are crucial to mitigate these risks.

What does the participation of 3 bidders in a full and open competition imply for the government's value for money?

The participation of 3 bidders in a full and open competition is a positive signal for value for money. It indicates that the requirement was sufficiently defined and attractive for multiple companies to invest resources in preparing proposals. Competition generally drives down prices as bidders strive to offer the most competitive terms to win the contract. While 3 bidders is a reasonable number, a higher number of bidders could potentially lead to even greater price reductions and a wider array of innovative solutions. The government's ability to negotiate favorable terms based on this competition is key to realizing value.

How has the Federal Aviation Administration's spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended historically?

Historical spending data for NAICS code 541990 by the Federal Aviation Administration (FAA) would require a dedicated search of federal procurement databases (like FPDS-NG or USASpending.gov). Generally, spending in this broad category can fluctuate based on agency priorities, specific project needs, and the availability of internal expertise. The FAA, with its complex mission, often requires specialized external support. Trends could show an increase if the agency is outsourcing more functions or a decrease if it's building internal capacity. This specific $12.4M contract represents a portion of that historical spending, but a full trend analysis would need to examine multiple years and contracts within this NAICS code.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

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

Parent Company: NCI, Inc. (UEI: 195313866)

Address: 1950 OLD GALLOWS RD STE 520, VIENNA, VA, 11

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Small Business

Financial Breakdown

Contract Ceiling: $12,435,746

Exercised Options: $12,435,746

Current Obligation: $12,435,746

Parent Contract

Parent Award PIID: DTFAWA04C00017

IDV Type: IDC

Timeline