Transportation contract for WAAS Support awarded to Advanced Management Technology, Inc. for over $34M

Contract Overview

Contract Amount: $34,242,427 ($34.2M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2006-02-17

End Date: 2009-12-11

Contract Duration: 1,393 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Transportation

Official Description: WAAS SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $34.2 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: WAAS SUPPORT Key points: 1. The contract value of over $34 million for WAAS Support suggests a significant investment in critical aviation infrastructure. 2. The award to a single contractor, Advanced Management Technology, Inc., warrants an examination of the competition dynamics. 3. The duration of the contract (over 3 years) indicates a need for sustained support and potential for long-term contractor performance. 4. The Cost Plus Fixed Fee (CPFF) contract type may require close monitoring to ensure cost control and value for money. 5. The Federal Aviation Administration's reliance on this contract highlights its importance for the Wide Area Augmentation System. 6. The absence of small business set-aside indicates the primary focus was on technical capability rather than small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $34.2 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can sometimes lead to less price certainty compared to fixed-price contracts. Further analysis would require understanding the scope of 'WAAS Support' and comparing the per-unit costs or labor rates to industry standards for similar engineering services.

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 bids. With 3 bidders, the competition level appears moderate, suggesting that while multiple companies were interested, it may not have been a highly contested bid. This level of competition generally provides a reasonable basis for price discovery, but a deeper dive into the bid evaluation process would be needed to confirm optimal value.

Taxpayer Impact: A full and open competition with multiple bidders is generally favorable for taxpayers, as it encourages competitive pricing and can lead to better value. However, the moderate number of bidders suggests that further efforts to broaden the competitive landscape could potentially yield even greater savings.

Public Impact

The primary beneficiaries are likely the Federal Aviation Administration (FAA) and the broader aviation community, including pilots and air traffic controllers, who rely on the Wide Area Augmentation System (WAAS) for navigation and safety. The services delivered are crucial for the maintenance, operation, and enhancement of the WAAS, a key component of the National Airspace System. The geographic impact is national, as WAAS provides critical augmentation services across the United States. Workforce implications include the employment of engineers and technical specialists by Advanced Management Technology, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type necessitates robust oversight to prevent cost overruns and ensure efficient resource utilization.
Limited public information on specific performance metrics makes it difficult to independently assess the contractor's value delivery.
The moderate number of bidders in a full and open competition could indicate potential barriers to entry or a niche market for these specialized services.

Positive Signals

The contract was awarded through full and open competition, suggesting a fair and transparent procurement process.
The award to a single contractor implies a selection based on demonstrated capability and suitability for the complex WAAS support requirements.
The contract duration of over three years indicates a stable, long-term need for these services, providing continuity for the FAA.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), which is a significant component of the federal contracting landscape, particularly for agencies like the FAA that require specialized technical expertise. The market for aviation support services is often characterized by a mix of large prime contractors and specialized subcontractors. Spending in this area is driven by the need to maintain and modernize complex systems like WAAS, ensuring safety and efficiency in air travel. Comparable spending benchmarks would typically involve analyzing other contracts for similar system support or engineering services within the Department of Transportation and other aviation-related agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the procurement was likely focused on large prime contractors or that the nature of the required services did not lend itself to a small business set-aside. There is no direct information on subcontracting plans, but in the absence of a small business set-aside, the prime contractor has discretion in awarding subcontracts, which may or may not include small businesses.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the contracting agency. As a Cost Plus Fixed Fee (CPFF) contract, the FAA would be responsible for monitoring expenditures, ensuring compliance with the contract terms, and verifying that the fixed fee is earned based on performance. Transparency is facilitated by the contract award notice, but detailed performance reports and cost breakdowns are typically internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA Air Traffic Control Systems
National Airspace System Modernization
GPS Augmentation Systems
Aviation Navigation Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Moderate number of bidders in a full and open competition warrants further investigation into market dynamics.
Lack of specific performance metrics in summary data hinders detailed value-for-money assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $34.2 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. WAAS SUPPORT

Who is the contractor on this award?

The obligated recipient is ADVANCED MANAGEMENT TECHNOLOGY, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2006-02-17. End: 2009-12-11.

What is the specific scope of 'WAAS Support' covered by this contract?

The contract data identifies the service as 'WAAS SUPPORT' under NAICS code 541330 (Engineering Services). While the specific details of the support are not provided in the summary data, it is reasonable to infer that it encompasses a range of engineering activities critical to the operation and maintenance of the Wide Area Augmentation System (WAAS). This could include system design, integration, testing, maintenance, troubleshooting, software updates, and potentially technical support for the ground and satellite infrastructure that comprises WAAS. The Cost Plus Fixed Fee (CPFF) contract type suggests that the scope may have involved some level of uncertainty or evolving requirements, necessitating flexibility in service delivery.

How does the $34.2 million contract value compare to other FAA engineering service contracts?

Without access to a comprehensive database of all FAA engineering service contracts, a direct comparison of the $34.2 million value is difficult. However, for a multi-year contract supporting a critical national system like WAAS, this value appears substantial and indicative of the complexity and importance of the services. The Federal Aviation Administration procures a wide range of engineering services, from small, specialized studies to large-scale system development and sustainment. Contracts in the tens of millions of dollars are not uncommon for major aviation infrastructure support. To provide a precise benchmark, one would need to analyze the average contract values for similar 'Engineering Services' (NAICS 541330) awarded by the FAA over a comparable period.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for WAAS Support?

The primary risk with a CPFF contract is the potential for cost overruns if the contractor's actual costs exceed initial estimates, even though the contractor's fee is fixed. While the government aims to control costs by negotiating a fair fixed fee based on anticipated effort, there's less incentive for the contractor to aggressively control costs compared to a fixed-price contract. This necessitates robust government oversight to monitor expenditures, ensure efficiency, and prevent scope creep that could inflate costs without commensurate value. The FAA would need strong program management and financial controls to mitigate these risks effectively.

What is the track record of Advanced Management Technology, Inc. in supporting aviation systems?

The provided data indicates that Advanced Management Technology, Inc. (AMT) was awarded this contract. To assess their track record specifically for aviation systems, further research beyond this single contract award would be necessary. This would involve examining AMT's contract history with the FAA and other aviation-related agencies, looking for past performance evaluations, any history of contract disputes or awards, and the types of services they have previously provided. Without this additional information, it's difficult to definitively state their specific expertise and success in supporting complex aviation systems like WAAS.

How has FAA spending on WAAS support evolved over time?

This specific contract (awarded 2006-2009) represents a snapshot of FAA spending on WAAS support during that period. To understand the evolution of spending, one would need to analyze historical contract data for WAAS support over a longer timeframe, looking at previous contracts awarded before 2006 and subsequent contracts after 2009. This analysis would reveal trends in funding levels, changes in contract types, and shifts in the contractors performing the work, providing insights into the FAA's long-term investment strategy for WAAS.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc. (UEI: 045224250)

Address: 1515 WILSON BLVD STE 1100, ARLINGTON, VA, 08

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $299,000,000

Exercised Options: $34,242,427

Current Obligation: $34,242,427

Parent Contract

Parent Award PIID: DTFAWA06C00006

IDV Type: IDC

Timeline