Applied Knowledge Group Inc. awarded $10.16M for computer systems design services under FAA contract

Contract Overview

Contract Amount: $10,160,506 ($10.2M)

Contractor: Applied Knowledge Group, Inc.

Awarding Agency: Department of Transportation

Start Date: 2007-04-05

End Date: 2012-07-01

Contract Duration: 1,914 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INCREMENTAL FUNDING CONTRACT FOR TASK 001 UNDER FAA CONTRACT DTFAWA-07-D-00011

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $10.2 million to APPLIED KNOWLEDGE GROUP, INC. for work described as: INCREMENTAL FUNDING CONTRACT FOR TASK 001 UNDER FAA CONTRACT DTFAWA-07-D-00011 Key points: 1. Contract value of $10.16M for computer systems design services. 2. Awarded under a full and open competition. 3. Contract duration of 1914 days. 4. Task order awarded by the Federal Aviation Administration. 5. Services fall under the Computer Systems Design category. 6. Contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $10.16 million for computer systems design services appears to be within a reasonable range for a multi-year federal contract of this nature. Benchmarking against similar contracts for IT services would provide a clearer picture of value for money. The firm fixed price structure suggests that cost risks are largely borne by the contractor, which can be beneficial for the government if managed effectively. However, without specific performance metrics or comparison data, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for ensuring fair pricing and access to a wide range of capabilities, the number of bidders can influence the intensity of price discovery.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competition awards.

Public Impact

The Federal Aviation Administration (FAA) benefits from these computer systems design services, likely to support its operational and technological infrastructure. The services delivered are expected to enhance or maintain critical IT systems within the FAA. The geographic impact is primarily within the United States, supporting federal aviation operations. Workforce implications may include specialized IT professionals employed by Applied Knowledge Group, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT projects if not managed tightly.
Dependence on contractor expertise could create knowledge transfer challenges.
Ensuring continued alignment with evolving FAA technological requirements over the contract duration.

Positive Signals

Firm fixed price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process.
Awarded to a single contractor for a defined scope of work.

Sector Analysis

The contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a broad category encompassing the design, development, and integration of computer systems. The federal government is a significant consumer of such services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and develop new capabilities. Comparable spending benchmarks for IT services contracts can vary widely based on complexity, duration, and specific requirements.

Small Business Impact

This contract does not appear to have a small business set-aside. The award was made to Applied Knowledge Group, Inc. without specific mention of small business subcontracting goals in the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FAA IT Modernization Programs
Federal Aviation Systems Procurement
Department of Transportation IT Services
Computer Systems Design Services Contracts

Risk Flags

Contract Duration
Potential for Scope Creep
Dependence on Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.2 million to APPLIED KNOWLEDGE GROUP, INC.. INCREMENTAL FUNDING CONTRACT FOR TASK 001 UNDER FAA CONTRACT DTFAWA-07-D-00011

Who is the contractor on this award?

The obligated recipient is APPLIED KNOWLEDGE GROUP, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2007-04-05. End: 2012-07-01.

What is the track record of Applied Knowledge Group, Inc. with federal contracts, particularly with the FAA?

Applied Knowledge Group, Inc. has a history of receiving federal contracts, including those with the Department of Transportation and its agencies like the FAA. Analyzing their past performance on similar IT services contracts would reveal their reliability, ability to meet deadlines, and adherence to budget. Specific details on past FAA contracts, including their value, duration, and performance reviews, would provide a clearer picture of their capabilities and suitability for complex IT projects. A review of their contract history might also indicate any past disputes or performance issues that could be relevant to assessing risk for this current award.

How does the $10.16 million contract value compare to similar FAA computer systems design contracts awarded over the past five years?

To benchmark the $10.16 million value, one would need to compare it against similar computer systems design services contracts awarded by the FAA or other Department of Transportation agencies within the last five years. Key comparison points would include contract duration, scope of work complexity, and the number of bidders. For instance, if similar multi-year contracts for complex system design averaged between $8-12 million, then this award would appear reasonable. Conversely, if comparable contracts were significantly lower, it might suggest a potential overpayment or a more extensive scope of work. Accessing detailed contract data from FPDS or agency-specific procurement portals would be necessary for a robust comparison.

What are the primary risks associated with a firm fixed-price contract for complex IT systems design?

The primary risk with a firm fixed-price (FFP) contract for complex IT systems design lies in the potential for the contractor to cut corners on quality or scope to maintain profitability if unforeseen technical challenges arise or if initial cost estimates were inaccurate. While FFP shifts cost risk to the contractor, it can also disincentivize innovation or the adoption of superior solutions if they were not explicitly defined in the original scope. For the government, the risk is receiving a product or service that meets the minimum contractual requirements but falls short of optimal performance or future adaptability. Effective government oversight and clear, detailed performance work statements are crucial to mitigate these risks.

What specific computer systems design services are being procured under this task order, and how do they align with FAA's strategic IT goals?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS 541512) under a larger FAA contract. To understand the specific services, one would need to examine the task order's Statement of Work (SOW). These services could range from designing new air traffic control software, upgrading communication systems, developing data analytics platforms, or integrating various IT components. Aligning these services with the FAA's strategic IT goals would involve reviewing the agency's IT strategic plan, modernization roadmaps, and current priorities, such as enhancing cybersecurity, improving operational efficiency, or implementing NextGen air traffic management technologies. The SOW would detail how the contractor's design work directly contributes to these overarching objectives.

What has been the historical spending trend for computer systems design services by the Federal Aviation Administration?

Analyzing the historical spending trend for computer systems design services by the FAA would involve querying federal procurement databases (like FPDS) for contracts awarded under NAICS code 541512 over several fiscal years. This would reveal the total annual expenditure on such services, identify major contractors, and show fluctuations in spending. For example, spending might increase during periods of major system modernization efforts (like NextGen) and decrease during budget constraints. Understanding these trends provides context for the current $10.16 million award, indicating whether it represents a typical investment or a significant deviation. It also helps in forecasting future needs and budget allocations for IT services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: KCT Group, Inc. (UEI: 126299341)

Address: 2100 RESTON PKWY STE 400, RESTON, VA, 11

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $21,109,720

Exercised Options: $10,160,506

Current Obligation: $10,160,506

Parent Contract

Parent Award PIID: DTFAWA07D00011

IDV Type: IDC

Timeline