DOT's FAA awards $68M for aeronautical database support, with Concept Solutions LLC as prime

Contract Overview

Contract Amount: $68,101,151 ($68.1M)

Contractor: Concept Solutions LLC

Awarding Agency: Department of Transportation

Start Date: 2016-05-06

End Date: 2023-09-08

Contract Duration: 2,681 days

Daily Burn Rate: $25.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: "AERONAUTICAL DATABASE MISSION SUPPORT SYSTEMS DEVELOPMENT 16-001-CS " IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $68.1 million to CONCEPT SOLUTIONS LLC for work described as: "AERONAUTICAL DATABASE MISSION SUPPORT SYSTEMS DEVELOPMENT 16-001-CS " IGF::OT::IGF Key points: 1. Contract value of $68.1M over 7 years suggests a significant investment in critical aviation infrastructure. 2. The contract was competed under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 3. A Time and Materials (T&M) contract type can pose cost control risks if not closely managed. 4. The award to Concept Solutions LLC, a single entity, warrants scrutiny regarding pricing and performance. 5. The duration of the contract (2,681 days) highlights the long-term nature of the support required. 6. The absence of small business set-aside flags suggests this was not specifically targeted for smaller enterprises.

Value Assessment

Rating: fair

The contract's total value of $68.1 million over approximately seven years averages to about $9.7 million annually. Benchmarking this against similar IT support contracts for large federal agencies is challenging without more specific service details. However, the Time and Materials pricing structure, while flexible, can lead to higher costs if not managed diligently, especially over a long contract duration. The provided data does not offer enough detail to definitively assess value for money or compare specific unit costs against market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which generally allows for a broader range of competition than micro-purchases but is typically used for procurements under $250,000. However, the total award value of $68.1 million suggests this may have been a series of task orders or a larger contract awarded through a vehicle that utilized SAP for its initial competition. The number of bidders is not specified, but SAP aims to promote competition among qualified sources.

Taxpayer Impact: Competing under SAP, even for a large total value, suggests an effort to leverage market competition to achieve fair pricing, though the specific level of competition and its impact on taxpayer savings are not detailed.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by ensuring the continued development and support of its aeronautical database mission systems. This contract supports the operational integrity and modernization of critical aviation infrastructure, impacting flight safety and efficiency. The services delivered are essential for maintaining and enhancing the systems that manage aeronautical data, which is fundamental to air traffic control and navigation. The primary geographic impact is within the District of Columbia, where the FAA's headquarters and likely key operational centers are located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly managed and monitored.
The long contract duration (over 7 years) increases the risk of scope creep and potential inefficiencies over time.
Lack of specific performance metrics or outcome-based measures in the provided data makes it difficult to assess contractor performance objectively.
The single awardee for this significant contract value warrants close monitoring to ensure continued competitive pricing and service quality.

Positive Signals

The contract supports a critical mission function for the FAA, indicating a recognized need and strategic importance.
The use of a Blanket Purchase Agreement (BPA) Call suggests a pre-negotiated framework that may offer some efficiencies.
The contract was competed, implying that multiple vendors had the opportunity to bid, potentially leading to a more favorable outcome than a sole-source award.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically custom computer programming. The market for IT services supporting government agencies is vast and highly competitive. The FAA's need for aeronautical database support is a specialized niche within this sector, requiring expertise in data management, software development, and aviation systems. Comparable spending benchmarks would typically involve analyzing IT support contracts for other large federal agencies with complex data management requirements.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the procurement was either competed broadly or utilized a vehicle where small business participation was not a primary set-aside criterion. While Concept Solutions LLC is the prime contractor, there is no explicit information on subcontracting plans or requirements for small business participation. Further investigation into the BPA or contract vehicle used would be needed to understand potential small business opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would also have jurisdiction to audit and investigate for waste, fraud, and abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance reports and specific oversight activities are often internal or not publicly disclosed.

Related Government Programs

FAA IT Modernization Programs
Aeronautical Data Management Systems
Custom Computer Programming Services
Federal Aviation Administration IT Support Contracts
Department of Transportation IT Services

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of technology obsolescence over the long contract duration.
Lack of defined performance metrics makes objective assessment difficult.
Limited visibility into small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $68.1 million to CONCEPT SOLUTIONS LLC. "AERONAUTICAL DATABASE MISSION SUPPORT SYSTEMS DEVELOPMENT 16-001-CS " IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is CONCEPT SOLUTIONS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $68.1 million.

What is the period of performance?

Start: 2016-05-06. End: 2023-09-08.

What is the specific nature of the 'Aeronautical Database Mission Support Systems Development' and how does it contribute to the FAA's overall mission?

The 'Aeronautical Database Mission Support Systems Development' contract likely involves the maintenance, enhancement, and development of the systems that store, manage, and process critical aeronautical data. This data is fundamental for flight planning, air traffic control, navigation, and safety systems. The FAA's mission is to ensure the safety and efficiency of the National Airspace System (NAS). Therefore, the development and support of these database systems are crucial for providing accurate, up-to-date information to pilots, air traffic controllers, and other stakeholders, directly contributing to flight safety and operational efficiency.

How does the Time and Materials (T&M) contract type compare to other contract types in terms of cost efficiency for IT development services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. While offering flexibility, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts, as the final cost is not predetermined. For IT development, fixed-price or cost-plus-fixed-fee contracts are generally preferred when requirements can be well-defined, as they provide better cost certainty. Effective oversight, including labor hour limitations and detailed monitoring, is essential to control costs under T&M agreements.

What does 'COMPETED UNDER SAP' imply for a contract with a total value of $68.1 million?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) typically applies to procurements valued at $250,000 or less. Awarding a contract with a total value of $68.1 million under SAP is unusual and suggests that this figure likely represents the cumulative value of multiple task orders issued against a larger contract vehicle (like a BPA or IDIQ) that was initially competed using SAP principles, or that the SAP threshold was exceeded and the designation is potentially misleading or refers to the initial award mechanism of the underlying vehicle. SAP aims to streamline the acquisition process for smaller purchases, but its application to such a large cumulative value warrants clarification on the specific procurement strategy and the underlying contract vehicle.

What are the potential risks associated with a long-duration contract (2,681 days) for IT development and support?

Long-duration contracts, such as this one spanning over seven years, present several risks for IT development and support. Technology evolves rapidly, meaning systems developed early in the contract may become outdated by its end, requiring costly modifications or replacements. Scope creep is another significant risk; requirements can expand or change over time, leading to increased costs and delays if not managed rigorously. Contractor performance can also degrade over extended periods if incentives are not maintained or if institutional knowledge is lost. Furthermore, the government's ability to adapt to new technological solutions or vendor offerings may be constrained by the long-term commitment.

Given Concept Solutions LLC is the sole prime contractor, what are the implications for competition and potential future contract awards?

When a single contractor is awarded a large, long-term contract, it can reduce future competitive opportunities, especially if the contractor becomes deeply embedded in the agency's systems and processes. While the initial award was competed, the long duration and significant value mean that for the contract's lifespan, there is no direct competition for these specific services. This can potentially lead to complacency or reduced pressure on the contractor to innovate or offer the most competitive pricing in subsequent years, unless strong performance incentives and oversight are in place. Future procurements might also be structured to favor the incumbent, making it harder for new entrants to compete.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 11600 SUNRISE VALLEY DR STE 300, RESTON, VA, 20191

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,101,151

Exercised Options: $68,101,151

Current Obligation: $68,101,151

Actual Outlays: $43,805,322

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10A00084

IDV Type: BPA

Timeline