Transportation's $64.6M IT Support Contract Awarded to Advanced Management Technology, Inc

Contract Overview

Contract Amount: $64,592,566 ($64.6M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2007-09-21

End Date: 2016-02-26

Contract Duration: 3,080 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS LINE PROVIDES FUNDING FOR ASH IT SUPPORT SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $64.6 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: THIS LINE PROVIDES FUNDING FOR ASH IT SUPPORT SERVICES. Key points: 1. Contract provides essential IT support services, indicating a sustained need for technical expertise. 2. The contract's duration of 3080 days (over 8 years) suggests long-term reliance on the contractor. 3. Awarded under full and open competition, this contract likely benefited from competitive pricing. 4. The cost-plus-fixed-fee (CPFF) structure may incentivize contractor efficiency while managing costs. 5. The contract's value of $64.6M over its term warrants scrutiny for value for money. 6. The specific NAICS code (541519) points to a broad range of IT support services.

Value Assessment

Rating: good

The total award amount of $64.6 million over approximately 8.5 years averages to about $7.6 million annually. This figure appears reasonable for comprehensive IT support services for a federal agency like the FAA. Benchmarking against similar IT support contracts would provide a more precise value-for-money assessment, but the annual spend does not immediately suggest overpricing. The CPFF contract type allows for cost reimbursement plus a fixed fee, which can be effective for services where costs are difficult to predict, but requires diligent oversight to ensure costs remain reasonable.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that there were 3 offers received suggests a healthy level of competition for this requirement. This competitive process is generally expected to drive down prices and encourage innovation as contractors vie for the award. The agency's decision to use full and open competition implies confidence that the market could adequately meet the IT support needs.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and better value. The presence of multiple bidders suggests that the government is not locked into a single provider, fostering a more cost-effective outcome.

Public Impact

Benefits federal agency operations by ensuring continuity of IT services. Delivers essential IT support, including technical assistance and system maintenance. Geographic impact is primarily within the agency's operational locations, likely nationwide. Supports a workforce reliant on stable and functional IT infrastructure. Ensures the Federal Aviation Administration (FAA) can maintain its critical mission functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require robust oversight to prevent cost overruns and ensure the fixed fee remains appropriate.
Long contract durations can sometimes lead to complacency or reduced incentive for innovation if not actively managed.
The broad nature of 'Other Computer Related Services' could lead to scope creep if not clearly defined and monitored.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded fair pricing.
The contract has a defined end date, providing a natural point for re-evaluation of needs and contractor performance.
The agency selected a specific contractor, implying a thorough evaluation process based on technical capabilities and price.

Sector Analysis

The IT services sector is a critical component of federal operations, encompassing a wide array of support functions from help desk to complex system integration. Federal spending in IT services is substantial, with agencies continually seeking to modernize infrastructure and enhance cybersecurity. This contract for IT support services falls within the broader IT consulting and services market, which is highly competitive. Comparable spending benchmarks for IT support can vary widely based on scope, duration, and complexity, but this contract's value is significant within its specific service category.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Advanced Management Technology, Inc., is not identified as a small business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the requirement was deemed best met through full and open competition, potentially limiting direct opportunities for small businesses on this specific prime contract. Future analysis could explore subcontracting reports to ascertain small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a branch of the Department of Transportation. The agency is responsible for monitoring contractor performance, ensuring adherence to contract terms, and managing costs, especially given the Cost Plus Fixed Fee (CPFF) structure. Accountability measures would include performance reviews, milestone tracking, and financial audits. Transparency is facilitated through contract databases like FPDS, which provide public access to award details, though detailed performance metrics may not always be publicly available.

Related Government Programs

Federal Aviation Administration IT Modernization Programs
Department of Transportation IT Services
IT Support Services Contracts
Cost-Plus-Fixed-Fee Contracts
General Services Administration (GSA) IT Schedules

Risk Flags

Long contract duration may reduce flexibility for adopting new technologies.
Cost-plus-fixed-fee structure requires diligent oversight to manage costs effectively.
Potential for scope creep in broad IT support service contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $64.6 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. THIS LINE PROVIDES FUNDING FOR ASH IT SUPPORT SERVICES.

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 $64.6 million.

What is the period of performance?

Start: 2007-09-21. End: 2016-02-26.

What is the track record of Advanced Management Technology, Inc. with federal contracts, particularly within the Department of Transportation?

Advanced Management Technology, Inc. (AMT) has a history of federal contracting, including work with the Department of Transportation (DOT). Reviewing their contract history reveals multiple awards across various agencies, indicating a capacity to secure and perform on government contracts. Specific to DOT, AMT has been awarded contracts for IT support and related services. A deeper dive into their performance history, including any past performance evaluations or contract disputes, would provide a more comprehensive understanding of their reliability and effectiveness as a federal contractor. Examining the number and value of their past DOT contracts can also indicate the agency's level of trust and satisfaction with their services.

How does the per-unit cost or annual cost of this contract compare to similar IT support contracts awarded by the FAA or other transportation agencies?

Direct per-unit cost comparison is challenging without specific service delivery metrics (e.g., cost per help desk ticket, cost per server managed). However, the annual average cost of approximately $7.6 million ($64.6M / 8.5 years) for comprehensive IT support services for a major federal agency like the FAA can be benchmarked against industry standards and similar government contracts. Industry reports suggest that IT support costs for large organizations can range significantly, but this annual figure appears within a plausible range for the scope of services typically required by an agency of the FAA's size and complexity. A more precise comparison would require access to detailed scope of work documents and pricing structures of comparable contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude ($64.6M) and duration (over 8 years) revolve around cost control and contractor performance. For the government, the risk is that the contractor may not exert sufficient effort to control costs, as the government agrees to pay all allowable costs incurred. While the fixed fee provides the contractor with an incentive to perform efficiently, it doesn't directly tie profit to cost savings. The long duration increases the risk of scope creep, potential for outdated technology if not managed proactively, and the possibility of the contractor becoming entrenched, making future competition more challenging. Robust government oversight, clear performance metrics, and regular contract reviews are crucial to mitigate these risks.

How effective has the Federal Aviation Administration (FAA) been in managing its IT support contracts to ensure optimal value and service delivery?

Assessing the overall effectiveness of the FAA's IT support contract management requires a broad review of their IT portfolio and performance metrics over time. While this specific contract indicates a long-term engagement, the effectiveness hinges on the FAA's internal processes for oversight, performance evaluation, and contract modifications. Agencies like the FAA often face challenges in keeping pace with technological advancements and managing complex IT infrastructures. Success is typically measured by system uptime, user satisfaction, cybersecurity posture, and the ability to adapt to evolving mission requirements. Publicly available Inspector General reports or GAO reviews related to FAA IT spending could offer insights into management effectiveness and areas for improvement.

What has been the historical spending trend for IT support services within the Department of Transportation over the last decade?

Historical spending trends for IT support services within the Department of Transportation (DOT) over the last decade would likely show a consistent and significant investment, reflecting the increasing reliance on technology across all its operating administrations. While specific aggregate data for 'IT support services' can be fragmented across various contract types and agencies within DOT, overall IT spending has generally increased across federal agencies to support modernization efforts, cybersecurity initiatives, and data management. Trends may indicate shifts towards cloud computing, managed services, and specialized IT support. Analyzing the total IT obligations reported by DOT over the past 10 years, broken down by service categories where possible, would illustrate this trend.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 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, 22209

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,363,430,258

Exercised Options: $64,592,566

Current Obligation: $64,592,566

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline