Department of Transportation's $38.5M Logistics Support Contract Awarded to Subsystem Technologies Inc

Contract Overview

Contract Amount: $38,511,761 ($38.5M)

Contractor: Subsystem Technologies Inc.

Awarding Agency: Department of Transportation

Start Date: 2014-05-23

End Date: 2020-02-19

Contract Duration: 2,098 days

Daily Burn Rate: $18.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: "EFAST PA 14-028-CS LOGISTICS SUPPORT SERVICES CONTRACT " IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $38.5 million to SUBSYSTEM TECHNOLOGIES INC. for work described as: "EFAST PA 14-028-CS LOGISTICS SUPPORT SERVICES CONTRACT " IGF::OT::IGF Key points: 1. Contract value of $38.5 million over its period of performance. 2. Awarded under a Best Practices Acquisition (BPA) Call, indicating a streamlined procurement process. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The contract duration was approximately 2098 days. 5. The North American Industry Classification System (NAICS) code 541712 points to Research and Development in Physical, Engineering, and Life Sciences. 6. The contractor, Subsystem Technologies Inc., has secured this significant award.

Value Assessment

Rating: fair

The total contract value of $38.5 million over nearly six years represents a significant investment. Benchmarking this against similar logistics support contracts for R&D services is challenging without more specific service details. The Firm Fixed Price nature provides cost certainty, but the overall value-for-money assessment depends heavily on the quality and efficiency of the logistics support provided. The contract was competed, which generally supports better pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Special Acquisition Procedures (SAP), suggesting a competitive process was utilized. While the specific number of bidders is not detailed, the 'full-and-open' competition level implies that all responsible sources were permitted to submit offers. This approach is generally expected to yield competitive pricing and a wider range of innovative solutions.

Taxpayer Impact: A competed contract, even under SAP, is generally favorable for taxpayers as it allows for price discovery and encourages multiple vendors to offer their best pricing to win the award.

Public Impact

The Federal Aviation Administration (FAA) within the Department of Transportation is the primary beneficiary, receiving logistics support services. These services are crucial for the operational efficiency and research endeavors of the agency. The contract's geographic impact is primarily within Virginia, where the contractor is located. The contract likely supports a workforce involved in logistics, research, and administrative functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness.
The long duration of the contract could lead to potential cost inefficiencies if not actively managed.
The specific nature of 'logistics support services' for R&D is broad and may encompass a wide range of activities, making direct comparison difficult.

Positive Signals

The contract was competed, indicating a level of market engagement and potential for competitive pricing.
Firm Fixed Price contract type provides cost predictability for the government.
The award to Subsystem Technologies Inc. suggests they met the government's requirements for this service.

Sector Analysis

The contract falls within the Research and Development sector, specifically NAICS code 541712. This sector is characterized by innovation and the pursuit of scientific and technological advancements. Logistics support is a critical, albeit often behind-the-scenes, component that enables R&D activities to proceed smoothly. Comparable spending benchmarks would depend on the specific nature of the R&D supported by the FAA.

Small Business Impact

The data indicates that small business participation was not a primary set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses through set-asides is minimal. However, Subsystem Technologies Inc. may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. Further analysis would be needed to determine subcontracting plans and actual utilization.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration contracting officers and program managers. The Department of Transportation's Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be less public.

Related Government Programs

Federal Aviation Administration Logistics Contracts
Department of Transportation R&D Support Services
Government-wide Logistics and Supply Chain Management
Research and Development Services Contracts

Risk Flags

Contract Duration
Scope Definition
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $38.5 million to SUBSYSTEM TECHNOLOGIES INC.. "EFAST PA 14-028-CS LOGISTICS SUPPORT SERVICES CONTRACT " IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is SUBSYSTEM TECHNOLOGIES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2014-05-23. End: 2020-02-19.

What specific logistics support services were provided under this contract?

The provided data identifies the contract as 'EFAST PA 14-028-CS LOGISTICS SUPPORT SERVICES CONTRACT' awarded to SUBSYSTEM TECHNOLOGIES INC. for the Department of Transportation, specifically the Federal Aviation Administration. The NAICS code 541712 indicates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)'. While the contract title suggests logistics support, the precise nature of these services in the context of R&D is not detailed. This could range from inventory management, equipment transport, facility support, to specialized material handling for research projects. Without further documentation, the exact scope of services remains general.

How does the $38.5 million contract value compare to similar logistics support contracts for R&D within the FAA or DOT?

Directly comparing the $38.5 million contract value to similar logistics support contracts for R&D within the FAA or DOT is challenging without more granular data on the specific services rendered and the duration of comparable contracts. However, for a contract spanning nearly six years (2098 days), this value suggests a substantial and ongoing need for logistics support. The FAA, in particular, manages complex aviation research and development projects that require specialized logistical handling. A comprehensive benchmark would require analyzing a portfolio of contracts with similar NAICS codes and service descriptions across the agency and potentially other federal research-oriented bodies.

What is the track record of Subsystem Technologies Inc. with federal contracts, particularly with the Department of Transportation?

Subsystem Technologies Inc. has a history of receiving federal contracts. While the provided data snippet focuses on this specific $38.5 million award, a deeper dive into federal procurement databases would reveal the full extent of their contract history. This would include the types of services they have provided, the agencies they have served, and their performance ratings on past contracts. Examining their past performance, especially with the Department of Transportation and the FAA, is crucial for assessing their reliability and capability in fulfilling the current contract's requirements. Consistent positive performance on prior contracts would be a strong indicator of future success.

What are the potential risks associated with a nearly six-year Firm Fixed Price contract for logistics support?

A significant risk with a long-term Firm Fixed Price (FFP) contract, like this nearly six-year logistics support agreement, is the potential for scope creep or unforeseen cost increases that are not adequately captured in the initial fixed price. If the contractor is locked into a price that becomes insufficient due to market fluctuations in labor, materials, or operational costs, they might cut corners on service quality. Conversely, if the government's needs change significantly, the FFP structure can make modifications costly. Effective oversight is critical to manage these risks, ensuring the contractor maintains quality and that any necessary adjustments are handled appropriately.

How does the NAICS code 541712 (R&D in Physical, Engineering, and Life Sciences) align with 'Logistics Support Services'?

The alignment between NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences) and 'Logistics Support Services' lies in the enabling role logistics plays for R&D activities. Federal agencies like the FAA conduct extensive research requiring specialized equipment, materials, and prototypes. Logistics support ensures these items are procured, stored, transported, and managed efficiently and securely. This can include handling sensitive research materials, managing complex supply chains for experimental components, or providing on-site support for research facilities. Therefore, logistics services are integral to the successful execution of R&D projects within this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2121 CRYSTAL DR STE 680, ARLINGTON, VA, 22202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,575,694

Exercised Options: $38,511,761

Current Obligation: $38,511,761

Actual Outlays: $2,327,767

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10A00158

IDV Type: BPA

Timeline