FAA's $17.4M contract for portfolio management services awarded to Advanced Management Technology, Inc

Contract Overview

Contract Amount: $17,396,019 ($17.4M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2010-08-23

End Date: 2017-11-17

Contract Duration: 2,643 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TASK ORDER FOR SERVICE AREA PORTFOLIO MANAGEMENT TAS::69 8107::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $17.4 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: TASK ORDER FOR SERVICE AREA PORTFOLIO MANAGEMENT TAS::69 8107::TAS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 3. The duration of the contract was over 7 years, indicating a long-term need for these services. 4. The contract was a delivery order under a larger contract vehicle. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services. 6. The contract was awarded to a single contractor, Advanced Management Technology, Inc.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Award Fee structure means the final cost could vary based on performance, making direct comparison difficult. However, the total award amount over its multi-year duration suggests a significant investment in portfolio management capabilities for the FAA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This generally promotes a competitive environment, which can lead to better pricing and service quality. The number of bidders is not specified, but the process itself suggests a deliberate effort to solicit multiple proposals.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among potential contractors.

Public Impact

The Federal Aviation Administration (FAA) benefits from improved management of its service area portfolios. Services delivered likely include strategic planning, resource allocation, and performance monitoring for FAA's operational areas. The geographic impact is national, as it pertains to the FAA's overall service area management. The contract supports the FAA's mission to ensure the safety and efficiency of civil aviation in the United States.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not meticulously managed and monitored.
The long duration of the contract (over 7 years) may present risks related to evolving technological needs and market conditions.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The contract aims to improve service area portfolio management, which is critical for efficient operations.
The contractor, Advanced Management Technology, Inc., was selected, implying they met the required qualifications.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to management and consulting for large-scale government operations. The Federal Aviation Administration (FAA) is a major government entity that requires sophisticated portfolio management to oversee its vast infrastructure and operational responsibilities. Comparable spending benchmarks would typically be found within other large federal agencies managing complex service delivery networks.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, the prime contractor may have subcontracting opportunities, which could benefit small businesses depending on their subcontracting plan and the nature of the services required.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. The Cost Plus Award Fee structure necessitates close monitoring of costs and performance to ensure that award fees are justified. Transparency would depend on the FAA's public reporting practices regarding contract performance and expenditures. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Operations
Government Program Management Services
Engineering and Technical Services Contracts
Department of Transportation IT and Management Support

Risk Flags

Cost Plus Award Fee structure requires diligent oversight to manage costs and ensure value.
Long contract duration may pose risks related to adaptability and evolving needs.
Lack of detailed performance metrics hinders objective value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.4 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. TASK ORDER FOR SERVICE AREA PORTFOLIO MANAGEMENT TAS::69 8107::TAS

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 $17.4 million.

What is the period of performance?

Start: 2010-08-23. End: 2017-11-17.

What specific portfolio management services were delivered under this contract?

While the contract title indicates 'Service Area Portfolio Management,' the specific deliverables are not detailed in the provided data. Typically, such services would encompass strategic planning, asset management, performance monitoring, risk assessment, and resource allocation for the FAA's various service areas. This could include managing air traffic control facilities, communication systems, navigation aids, and other critical infrastructure. The Cost Plus Award Fee structure suggests that the scope likely involved complex, performance-dependent tasks where the contractor's effectiveness in managing these portfolios would be directly tied to their compensation.

How does the $17.4 million cost compare to similar portfolio management contracts within the federal government?

Directly comparing the $17.4 million cost is difficult without knowing the exact scope, duration, and performance metrics of similar contracts. However, for a contract spanning over seven years (2010-2017) for a major agency like the FAA, this figure represents an average annual expenditure of approximately $2.5 million. This is within a reasonable range for complex program management and engineering services required by large federal organizations. Benchmarking would require access to detailed cost data from comparable contracts, considering factors like the number of service areas managed, the complexity of the systems involved, and the specific performance standards set.

What were the key performance indicators (KPIs) used to determine award fees for Advanced Management Technology, Inc.?

The provided data does not specify the Key Performance Indicators (KPIs) used for determining award fees under this Cost Plus Award Fee (CPAF) contract. In CPAF contracts, KPIs are crucial and are typically defined in the contract's Performance Work Statement (PWS). They often relate to factors such as meeting project milestones, achieving quality standards, cost control, customer satisfaction, and adherence to schedules. For portfolio management, KPIs might include metrics related to efficiency improvements, cost savings identified, successful implementation of strategic plans, or enhanced operational reliability within the managed service areas.

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

Advanced Management Technology, Inc. (AMT) has a history of performing federal contracts, particularly within the Department of Transportation and other agencies requiring engineering and management support. While specific details of their past performance on similar portfolio management contracts are not provided here, their selection for this significant FAA contract suggests they met the government's requirements and demonstrated capability. A comprehensive assessment would involve reviewing past performance evaluations, contract close-out reports, and any debriefings provided to unsuccessful bidders on other relevant solicitations.

Were there any significant risks or challenges identified during the performance of this contract?

The provided data does not explicitly list risks or challenges encountered during the contract's performance. However, long-term contracts, especially those with a CPAF structure, inherently carry risks. These can include scope creep, evolving technological requirements, contractor performance issues, or difficulties in accurately measuring and rewarding performance. The multi-year duration (over 7 years) could also pose risks related to maintaining relevance and adapting to changes in FAA's strategic priorities or operational needs. Without specific reports or audits, it's difficult to pinpoint actual challenges faced.

How has spending on service area portfolio management evolved at the FAA since this contract concluded?

Information on the evolution of FAA's spending on service area portfolio management since the conclusion of this contract in 2017 is not available in the provided data. To assess this, one would need to analyze subsequent contracts awarded for similar services, track overall FAA budget allocations for program management and engineering support, and examine any strategic shifts in how the agency approaches portfolio management. Trends might include increased reliance on data analytics, adoption of new management methodologies, or changes in contracting strategies, potentially leading to shifts in spending levels and contract types.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 1515 WILSON BLVD STE 1100, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $409,137,669

Exercised Options: $17,396,019

Current Obligation: $17,396,019

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10C00007

IDV Type: IDC

Timeline