Transportation awards $11.3M contract for FAA operational support and ABS-B integration

Contract Overview

Contract Amount: $11,282,648 ($11.3M)

Contractor: Arcon Corp

Awarding Agency: Department of Transportation

Start Date: 2004-04-14

End Date: 2012-02-29

Contract Duration: 2,877 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO AWARD SOLICITATION # DTFAWA-04-R-00003. 04-ATB230-2000 OPERATION SUPPORT PROBLEM RESOLUTION/ABS-B INTEGRATION IN ACCORDANCE WITH PARAGRAPH(S) 1&2 IN SECTION C.

Place of Performance

Location: WALTHAM, MIDDLESEX County, MASSACHUSETTS, 02451

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $11.3 million to ARCON CORP for work described as: TO AWARD SOLICITATION # DTFAWA-04-R-00003. 04-ATB230-2000 OPERATION SUPPORT PROBLEM RESOLUTION/ABS-B INTEGRATION IN ACCORDANCE WITH PARAGRAPH(S) 1&2 IN SECTION C. Key points: 1. Contract focuses on critical operational support and system integration for the Federal Aviation Administration. 2. Awarded via full and open competition, suggesting a broad market search. 3. Contract duration spans nearly eight years, indicating a long-term need for these services. 4. The cost-plus-fixed-fee structure may incentivize contractor efficiency while managing risk. 5. This contract supports essential aviation infrastructure and safety systems. 6. The specific NAICS code points to services related to computer and office machine repair and maintenance.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns or comparable contract data. The total award amount of $11.3 million over nearly eight years suggests an average annual spend of approximately $1.4 million. This figure needs to be assessed against the scope of services, which includes operational support and integration of the ABS-B system. Without specific performance metrics or detailed service level agreements, it's difficult to definitively assess value for money. However, the duration implies a sustained need for these specialized services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' solicitation (DTFAWA-04-R-00003). This indicates that the Federal Aviation Administration sought proposals from all responsible sources, allowing for a wide range of potential bidders. The specific number of bidders is not provided, but the competitive nature of the award process is a positive sign for price discovery and potentially achieving a fair market price.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services compared to sole-source or limited competition awards.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential operational support and integration services. The contract supports the ongoing operation and modernization of air traffic management systems, contributing to aviation safety and efficiency. Services likely impact air traffic controllers, maintenance personnel, and system operators within the FAA. Geographic impact is likely nationwide, given the FAA's responsibility for U.S. airspace. Workforce implications may include the need for specialized technical expertise in system integration and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness of the operational support.
The cost-plus-fixed-fee contract type can sometimes lead to cost overruns if not managed carefully.
Details on the specific integration challenges and solutions for ABS-B are not publicly available.
The long contract duration might reduce flexibility to adopt newer technologies if they emerge.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract addresses critical operational needs for the FAA, supporting aviation safety.
The fixed-fee component provides some cost certainty for the government.
Long-term nature of the contract suggests a stable and reliable service provider is being secured.

Sector Analysis

This contract falls within the IT services and maintenance sector, specifically focusing on specialized support for aviation technology. The NAICS code 811212 covers computer and office machine repair and maintenance. The Federal Aviation Administration is a significant spender in this area, investing in the upkeep and integration of complex air traffic control and management systems. Comparable spending benchmarks would typically involve other large government contracts for IT support, system integration, and maintenance of critical infrastructure, often running into millions of dollars annually.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The 'sb' field is false. Therefore, small businesses were likely not specifically targeted for this award, and their participation would have been as subcontractors if they were involved. The impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities were created.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated by the contract award notice, but detailed operational oversight and Inspector General jurisdiction would depend on specific FAA policies and the nature of any reported issues or audits.

Related Government Programs

FAA Air Traffic Control Modernization Programs
NextGen Air Transportation System
Aviation Systems Maintenance Contracts
IT Support Services for Federal Agencies
Computer and Office Machine Repair Services

Risk Flags

Long contract duration may lead to technological obsolescence.
Cost-plus-fixed-fee structure requires careful government oversight to manage costs.
Limited public detail on specific performance metrics and integration challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.3 million to ARCON CORP. TO AWARD SOLICITATION # DTFAWA-04-R-00003. 04-ATB230-2000 OPERATION SUPPORT PROBLEM RESOLUTION/ABS-B INTEGRATION IN ACCORDANCE WITH PARAGRAPH(S) 1&2 IN SECTION C.

Who is the contractor on this award?

The obligated recipient is ARCON CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2004-04-14. End: 2012-02-29.

What specific operational support tasks are included under this contract?

The contract statement of work (SOW) details the specific operational support tasks. While the solicitation mentions 'OPERATION SUPPORT PROBLEM RESOLUTION/ABS-B INTEGRATION', the precise nature of these tasks would be elaborated in Section C of the contract. This could encompass a range of activities such as system monitoring, troubleshooting, help desk support, software updates, hardware maintenance, and ensuring the seamless functioning of the ABS-B (Automatic Dependent Surveillance-Broadcast) system. The 'problem resolution' aspect suggests a reactive component to address issues as they arise, while integration implies proactive work to ensure new or updated components work with existing systems.

How does the cost-plus-fixed-fee (CPFF) structure impact the government's financial risk and contractor incentives?

A Cost-Plus-Fixed-Fee (CPFF) contract structure means the government reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure shifts a significant portion of the financial risk to the government, as the final cost is not fixed upfront. However, the fixed fee provides a clear profit target for the contractor, incentivizing them to complete the work efficiently to maximize their profit margin within the agreed-upon fee. For the government, it allows for flexibility in scope and provides access to services where precise cost estimation is difficult, but requires robust oversight to control costs and ensure value.

What is the significance of the ABS-B integration component of this contract?

The Automatic Dependent Surveillance-Broadcast (ADS-B) system is a key component of the FAA's Next Generation Air Transportation System (NextGen). It enables aircraft to broadcast their position, velocity, and other information, which is then used for air traffic control and situational awareness. Integrating ABS-B involves ensuring this technology works seamlessly with existing air traffic management systems, ground infrastructure, and potentially other aircraft systems. This integration is crucial for improving airspace efficiency, safety, and capacity, and requires specialized technical expertise.

What is the historical spending pattern for similar operational support and integration services by the FAA?

Historical spending by the FAA on operational support and system integration, particularly for initiatives like NextGen and its components such as ABS-B, has been substantial. The FAA has consistently allocated significant portions of its budget towards modernizing air traffic control systems, which includes ongoing maintenance, upgrades, and integration of new technologies. While specific figures for comparable contracts vary widely based on scope and duration, the FAA's overall IT and systems budget runs into billions of dollars annually. This $11.3 million contract represents a segment of that larger investment in maintaining and advancing critical aviation infrastructure.

What are the potential risks associated with a contract of this duration (nearly 8 years)?

Contracts spanning nearly eight years, like this one, carry several potential risks. Firstly, technological obsolescence is a significant concern; the technology landscape can change rapidly, and the systems or services provided under the contract might become outdated before its completion. Secondly, scope creep can be more pronounced over longer periods, potentially leading to cost increases if not managed diligently. Thirdly, maintaining consistent performance and contractor engagement over such an extended duration can be challenging. Finally, the government might miss opportunities to leverage newer, potentially more cost-effective solutions that emerge during the contract's life if there are no provisions for flexibility or re-competition.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Computer and Office Machine Repair and Maintenance

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 260 BEAR HILL RD STE 200, WALTHAM, MA, 05

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $245,706,344

Exercised Options: $14,683,669

Current Obligation: $11,282,648

Timeline