FAA's NextGen Air Transportation System funding for engineering and development support totaled $600,000

Contract Overview

Contract Amount: $14,863,177 ($14.9M)

Contractor: Metron Aviation Inc

Awarding Agency: Department of Transportation

Start Date: 2008-06-12

End Date: 2011-02-28

Contract Duration: 991 days

Daily Burn Rate: $15.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: WA-08-04485 - FUNDING FOR ENGINEERING AND DEVELOPMENT SUPPORT FOR THE NEXT GENERATION AIR TRANSPORTATION SYSTEM. NEXTGEN A-CATM F&E "(METRON AVIATION / CONTRACT# -DTFAWA-08-C-00069)" PERIOD OF PERFORMANCE: JUNE 1, 2008 THRU DECEMBER 31, 2008. TFM SURFACE DATA INITIATIVE (TSDI) ALG PLAN#: 08-AJR4200-1000 AMOUNT: $200,000 DEPARTURE FLOW MANGEMENT (DFM) ALG PLAN # 08-AJR4200-3000. AMOUNT: $400,000

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20170

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $14.9 million to METRON AVIATION INC for work described as: WA-08-04485 - FUNDING FOR ENGINEERING AND DEVELOPMENT SUPPORT FOR THE NEXT GENERATION AIR TRANSPORTATION SYSTEM. NEXTGEN A-CATM F&E "(METRON AVIATION / CONTRACT# -DTFAWA-08-C-00069)" PERIOD OF PERFORMANCE: JUNE 1, 2008 THRU DECEMBER 31, 2008. TFM SURFACE DATA INITIATIVE (T… Key points: 1. Contract focused on critical NextGen initiatives like A-CATM and DFM. 2. Funding allocated across two distinct projects: TSDI and DFM. 3. Short performance period of 7 months for initial funding. 4. Contractor, Metron Aviation Inc., has a history with FAA projects. 5. This contract represents a small portion of the overall NextGen program investment. 6. Services provided fall under 'Other Computer Related Services' NAICS code. 7. The contract type was Cost Plus Fixed Fee, indicating performance-based incentives. 8. Virginia was the state associated with this contract award.

Value Assessment

Rating: fair

The total awarded amount of $600,000 for engineering and development support for the Next Generation Air Transportation System (NextGen) is difficult to benchmark without more granular data on the specific deliverables. The contract was a Cost Plus Fixed Fee (CPFF) type, which can sometimes lead to higher costs if not managed tightly, but also allows for flexibility in evolving research and development projects. Given the short initial performance period of 7 months, the value is contingent on the successful completion of the defined engineering and development tasks for the A-CATM and DFM initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This suggests that either the contractor, Metron Aviation Inc., possessed unique capabilities or intellectual property essential for the specific NextGen initiatives (A-CATM and DFM), or there were other justifications for bypassing a competitive bidding process. Without further details on the justification for the sole-source award, it is challenging to assess the extent of potential price efficiencies that might have been achieved through open competition.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if the contractor does not face competitive pressure to offer the most cost-effective solution. Transparency regarding the justification for sole-source procurement is crucial for ensuring taxpayer value.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the advancement of its NextGen air traffic management technologies. Services delivered include engineering and development support for critical components of the NextGen system, such as the A-CATM and DFM. The geographic impact is national, as improvements to the air transportation system affect all air travel within the United States. Workforce implications include specialized engineering and technical roles required for advanced aviation system development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in suboptimal pricing for taxpayers.
Short initial performance period raises questions about the scope and complexity of work intended.
CPFF contract type requires diligent oversight to control costs and ensure value.
Limited public information on the specific technical milestones and deliverables for this funding.

Positive Signals

Focus on critical NextGen initiatives addresses long-term aviation modernization needs.
Contract awarded to a known entity (Metron Aviation Inc.) potentially leveraging existing expertise.
Funding supports the development of advanced air traffic management capabilities.

Sector Analysis

This contract falls within the broader aerospace and defense technology sector, specifically focusing on air traffic management systems. The Next Generation Air Transportation System (NextGen) is a multi-billion dollar initiative by the FAA to modernize the U.S. air traffic control system. Spending in this area typically involves significant R&D and engineering services. Comparable spending benchmarks would be other contracts awarded for specialized aviation technology development and system integration.

Small Business Impact

There is no indication that this contract involved small business set-asides or subcontracting opportunities. The award was made to Metron Aviation Inc., and the nature of the specialized engineering and development support suggests it may not have been structured to facilitate broad small business participation. Further analysis would be needed to determine if any subcontracting plans were in place.

Oversight & Accountability

Oversight for this contract would fall under the Federal Aviation Administration (FAA), likely managed by program offices responsible for NextGen development. Accountability measures would be tied to the Cost Plus Fixed Fee (CPFF) structure, requiring detailed reporting on costs incurred and progress towards fixed fee milestones. Transparency is limited due to the sole-source nature and the specific technical focus of the work, with details typically residing within agency program documentation.

Related Government Programs

Next Generation Air Transportation System (NextGen)
Air Traffic Control Modernization
Aviation Systems Engineering
Metron Aviation Inc. Contracts

Risk Flags

Sole-source award lacks competitive pricing pressure.
CPFF contract type requires robust cost oversight.
Short initial performance period may indicate evolving scope or phased approach.
Limited public detail on specific technical deliverables and success metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $14.9 million to METRON AVIATION INC. WA-08-04485 - FUNDING FOR ENGINEERING AND DEVELOPMENT SUPPORT FOR THE NEXT GENERATION AIR TRANSPORTATION SYSTEM. NEXTGEN A-CATM F&E "(METRON AVIATION / CONTRACT# -DTFAWA-08-C-00069)" PERIOD OF PERFORMANCE: JUNE 1, 2008 THRU DECEMBER 31, 2008. TFM SURFACE DATA INITIATIVE (TSDI) ALG PLAN#: 08-AJR4200-1000 AMOUNT: $200,000 DEPARTURE FLOW MANGEMENT (DFM) ALG PLAN # 08-AJR4200-3000. AMOUNT: $400,000

Who is the contractor on this award?

The obligated recipient is METRON AVIATION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $14.9 million.

What is the period of performance?

Start: 2008-06-12. End: 2011-02-28.

What is the specific technical scope and expected outcome for the 'TFM Surface Data Initiative (TSDI)' and 'Departure Flow Management (DFM)' under this contract?

The provided data indicates funding for the TFM Surface Data Initiative (TSDI) and Departure Flow Management (DFM) as part of the Next Generation Air Transportation System (NextGen). TSDI likely involves the collection, processing, and dissemination of data related to aircraft movements on airport surfaces to improve situational awareness and efficiency. DFM aims to optimize the departure process from airports, potentially reducing delays and improving runway utilization. The specific technical scope would detail the software development, system integration, data analysis techniques, and performance metrics required for these initiatives. Expected outcomes would include enhanced data accuracy, improved flow management algorithms, and measurable reductions in departure delays or increased throughput.

What was the justification for awarding this contract on a sole-source basis to Metron Aviation Inc.?

The data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source award. The justification for such an award typically rests on specific criteria outlined in federal acquisition regulations, such as the existence of unique capabilities, proprietary technology, or urgent needs that cannot be met through competitive means. For Metron Aviation Inc., this could stem from prior development work on NextGen components, specialized expertise in air traffic flow management algorithms, or possession of critical intellectual property. A formal Justification for Other Than Full and Open Competition (JOFOC) would detail these reasons, which are often sensitive and not fully disclosed in public contract data.

How does the $600,000 funding compare to the overall budget for NextGen initiatives related to surface data and departure flow management?

The $600,000 allocated in this specific contract represents a relatively small, initial funding increment for the broader NextGen program. The NextGen initiative as a whole is a multi-billion dollar undertaking by the FAA, aimed at modernizing the entire air traffic control system. Funding for specific components like TFM Surface Data Initiative (TSDI) and Departure Flow Management (DFM) would likely be distributed across numerous contracts over many years, encompassing research, development, testing, and implementation phases. Therefore, this $600,000 should be viewed as seed funding or support for a particular development phase, rather than a comprehensive budget for these initiatives.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D projects like NextGen components?

Cost Plus Fixed Fee (CPFF) contracts carry inherent risks, particularly for research and development (R&D) projects. The primary risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a fixed fee. If the project scope is not well-defined or if unforeseen technical challenges arise, costs can escalate. For the contractor, the risk lies in accurately estimating the costs to achieve the fixed fee. In R&D, where outcomes can be uncertain, contractors may face challenges in meeting performance objectives within the estimated cost structure, potentially impacting their profit margin. Effective government oversight is crucial to mitigate these risks by scrutinizing costs and ensuring progress aligns with the fee structure.

What is Metron Aviation Inc.'s track record with the FAA, particularly concerning NextGen projects?

Metron Aviation Inc. has a documented history of working with the Federal Aviation Administration (FAA), particularly in areas related to air traffic management and aviation system analysis. While this specific contract (08-C-00069) focuses on initial funding for NextGen components, the company has been involved in various studies and analyses supporting the FAA's modernization efforts. Their expertise often lies in areas such as flight data analysis, air traffic flow management, and simulation modeling. Their involvement in NextGen projects suggests a recognized capability within the agency for providing specialized technical support and analysis crucial for the development and implementation of advanced air traffic systems.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Airbus U.S. Space & Defense, Inc. (UEI: 403284867)

Address: 131 ELDEN ST STE 200, HERNDON, VA, 20170

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business

Financial Breakdown

Contract Ceiling: $547,606,560

Exercised Options: $14,863,177

Current Obligation: $14,863,177

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline