DOT's FAA awards $47.6M IT support contract to Advanced Management Technology, Inc

Contract Overview

Contract Amount: $47,601,665 ($47.6M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2007-09-15

End Date: 2008-09-30

Contract Duration: 381 days

Daily Burn Rate: $124.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ATO INFORMATION TECHNOLOGY SUPPORT SERVICE CONTRACT INCREMENTAL FUNDING FOR TASK 001 - ATO APPS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $47.6 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: ATO INFORMATION TECHNOLOGY SUPPORT SERVICE CONTRACT INCREMENTAL FUNDING FOR TASK 001 - ATO APPS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a key area for IT infrastructure. 3. A firm-fixed-price contract type can help control costs for the government. 4. The contract duration of 381 days indicates a medium-term need for these services. 5. The award value of $47.6M places this contract within a significant spending category. 6. The contract was awarded to a single vendor, Advanced Management Technology, Inc.

Value Assessment

Rating: fair

The contract value of $47.6 million for 381 days of IT support services appears to be within a reasonable range for complex IT systems design. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar large-scale IT support contracts within the Federal Aviation Administration (FAA) or the Department of Transportation (DOT) would provide a clearer picture of its competitiveness. The firm-fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this IT support service contract. While three bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, with 3 bidders, suggests that taxpayers likely received a reasonably competitive price. However, exploring opportunities to increase bidder participation in future procurements could yield even greater savings.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and its operational divisions, which will receive enhanced IT support. Services delivered include computer systems design, crucial for maintaining and upgrading the complex IT infrastructure that supports air traffic control and aviation safety. The geographic impact is likely nationwide, given the FAA's responsibility for managing U.S. airspace. Workforce implications may include the direct employment of IT professionals by Advanced Management Technology, Inc., and potentially indirect impacts on FAA IT staff who will collaborate with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor becomes deeply integrated into critical systems.
Risk of cost overruns if the scope of work expands beyond initial estimates, despite the fixed-price nature.
Dependence on a single vendor for critical IT support could pose a risk if the vendor experiences financial or operational difficulties.

Positive Signals

Firm-fixed-price contract type helps to establish cost certainty for the government.
Awarded through full and open competition, indicating a competitive process.
The contractor, Advanced Management Technology, Inc., is likely experienced in providing IT support services.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS code 541512). This sector is vital for government operations, encompassing the design, development, and implementation of IT solutions. The Federal Aviation Administration (FAA) is a significant consumer of IT services, investing heavily in systems that ensure aviation safety and efficiency. Comparable spending benchmarks for IT support services within large federal agencies often run into tens or hundreds of millions of dollars annually, reflecting the complexity and criticality of these systems.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Advanced Management Technology, Inc., is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. This suggests that the primary focus of this procurement was on obtaining specialized IT services, and opportunities for small business participation may have been limited or not a primary consideration in this specific award.

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, which obligates the contractor to deliver specific services for an agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

FAA IT Modernization Programs
Air Traffic Control Systems Support
Federal Civilian IT Services
Department of Transportation IT Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor performance issues impacting critical FAA systems.
Cybersecurity vulnerabilities in IT systems.
Dependence on a single vendor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $47.6 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. ATO INFORMATION TECHNOLOGY SUPPORT SERVICE CONTRACT INCREMENTAL FUNDING FOR TASK 001 - ATO APPS

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 $47.6 million.

What is the period of performance?

Start: 2007-09-15. End: 2008-09-30.

What is the track record of Advanced Management Technology, Inc. in performing similar federal IT support contracts?

Assessing the track record of Advanced Management Technology, Inc. requires a review of their past performance on federal contracts, particularly those involving IT support and systems design for agencies like the FAA or DOT. Information on past performance, including client satisfaction, adherence to schedule and budget, and technical execution, is typically available through sources like the Federal Procurement Data System (FPDS) or contractor performance assessment reporting tools. A history of successful contract completions, positive performance reviews, and minimal disputes would indicate a lower risk associated with this award. Conversely, a history of performance issues or contract terminations would raise concerns about the contractor's capability to meet the requirements of this new award.

How does the awarded price compare to market rates for similar IT systems design services?

To benchmark the awarded price of $47.6 million against market rates, one would need to analyze the specific services rendered under the contract, such as system architecture, software development, integration, and maintenance. Comparing this to industry pricing models, hourly rates for specialized IT personnel, and the cost of similar-sized projects undertaken by other federal agencies or commercial entities is essential. Factors like the complexity of the FAA's systems, the required security clearances, and the geographic location of service delivery can influence market rates. Without a detailed statement of work, a precise comparison is difficult, but the number of bidders (3) suggests some level of market validation.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, vendor performance issues, and cybersecurity vulnerabilities. Scope creep can occur if the requirements evolve beyond the initial contract statement of work, potentially leading to cost increases or delays, although the firm-fixed-price structure aims to mitigate this. Vendor performance risk is managed through contract oversight, performance metrics, and the potential for corrective action. Cybersecurity is a critical concern for FAA systems; mitigation involves stringent security requirements in the contract, regular audits, and adherence to federal cybersecurity standards. The FAA's established oversight mechanisms and the contractor's own quality assurance processes are crucial for managing these risks.

How effective has the FAA been in managing its IT support contracts in the past?

The FAA's effectiveness in managing IT support contracts can be evaluated by examining historical contract performance data, audit reports from the DOT Inspector General, and GAO reviews. Historically, large federal agencies like the FAA have faced challenges with IT modernization and contract management, including cost overruns and schedule delays on complex projects. However, the agency has also implemented various initiatives to improve procurement processes, enhance oversight, and adopt agile methodologies. Assessing specific metrics like on-time delivery, budget adherence, and the successful implementation of IT systems under previous contracts would provide a clearer picture of the FAA's management capabilities in this area.

What is the historical spending trend for IT support services at the FAA?

Analyzing historical spending trends for IT support services at the FAA would involve examining annual budget allocations and actual expenditures for IT services over several fiscal years. This data can be found in the FAA's budget justifications, agency financial reports, and the Federal Procurement Data System (FPDS). Understanding these trends helps to contextualize the current $47.6 million award, indicating whether spending in this area is increasing, decreasing, or remaining stable. Significant year-over-year changes might signal shifts in IT strategy, new system procurements, or changes in outsourcing policies. Benchmarking FAA's IT spending against other large federal agencies can also provide valuable context.

What is the potential impact of this contract on the broader IT services market, particularly for small businesses?

This contract, valued at $47.6 million and awarded through full and open competition, primarily impacts the large prime contractor, Advanced Management Technology, Inc. For the broader IT services market, it signifies continued government investment in essential IT infrastructure. The impact on small businesses is likely indirect unless they are part of the contractor's supply chain or involved in subcontracting opportunities, which are not detailed here. If this contract involves significant subcontracting, it could provide opportunities for specialized small IT firms. However, the absence of a small business set-aside suggests that large businesses were the primary focus of this particular procurement.

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: Tetra Tech, Inc. (UEI: 045224250)

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $250,000,000

Exercised Options: $47,601,665

Current Obligation: $47,601,665

Parent Contract

Parent Award PIID: DTFAWA07D00030

IDV Type: IDC

Timeline