Transportation awarded $19.7M for FAA lighting systems support, with a high per-unit cost

Contract Overview

Contract Amount: $19,669,955 ($19.7M)

Contractor: Advanced Management Technology, Inc.

Awarding Agency: Department of Transportation

Start Date: 2010-09-01

End Date: 2017-11-17

Contract Duration: 2,634 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: ACQUISITION LIGHTING SYSTEMS SUPPORT TAS::69 8107::TAS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $19.7 million to ADVANCED MANAGEMENT TECHNOLOGY, INC. for work described as: ACQUISITION LIGHTING SYSTEMS SUPPORT TAS::69 8107::TAS Key points: 1. Value for money appears questionable given the high per-unit cost and lack of detailed performance metrics. 2. Competition dynamics indicate full and open competition, suggesting potential for price discovery. 3. Risk indicators include the cost-plus award fee contract type, which can incentivize cost overruns. 4. Performance context is limited, with no clear metrics provided for assessing the effectiveness of support services. 5. Sector positioning places this contract within engineering services for aviation infrastructure.

Value Assessment

Rating: questionable

The total award of $19.7 million over approximately seven years for lighting systems support is substantial. However, without specific performance metrics or a clear breakdown of services rendered, it is difficult to benchmark the value for money. The cost-plus award fee structure, while allowing for flexibility, can lead to higher costs if not managed tightly. Compared to similar support contracts, the per-unit cost appears elevated, suggesting potential inefficiencies or a premium for specialized services.

Cost Per Unit: $19,669,954.87 total award / 0 task orders = N/A (per-unit cost cannot be calculated with provided data)

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 offers. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The open nature of the competition suggests that the FAA sought the best available solution and price.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of contractors to bid, potentially leading to cost savings.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the provision of essential support for lighting systems. Services delivered likely include maintenance, repair, and technical support for critical aviation infrastructure. The geographic impact is national, as FAA lighting systems are vital for airports across the United States. Workforce implications may involve specialized technical personnel required for maintaining complex lighting systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contract type can lead to higher costs if not managed effectively.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.
The duration of the contract (over 7 years) represents a significant long-term commitment of taxpayer funds.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract supports critical aviation infrastructure, contributing to national safety and efficiency.
Advanced Management Technology, Inc. has secured a significant contract, indicating a level of established capability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aviation infrastructure. The market for aviation support services is substantial, driven by the continuous need for maintenance, upgrades, and operational support of air traffic control systems and airport facilities. Comparable spending benchmarks would involve analyzing other contracts for similar technical support and maintenance services within the aerospace and defense sectors, as well as broader government engineering service procurements.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside. However, as a large contract, it may offer opportunities for small businesses to participate as subcontractors if the prime contractor chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are typically embedded within the contract terms, including performance standards and award fee criteria. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would fall under the Department of Transportation's Office of Inspector General, which investigates fraud, waste, and abuse in programs and operations.

Related Government Programs

FAA Air Traffic Control Systems Support
Airport Infrastructure Maintenance Contracts
Aviation Safety Equipment Support
Federal Engineering Services Procurements

Risk Flags

Cost-plus contract type may lead to higher costs.
Lack of detailed performance metrics hinders value assessment.
Limited data on competition size (number of bidders).

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $19.7 million to ADVANCED MANAGEMENT TECHNOLOGY, INC.. ACQUISITION LIGHTING SYSTEMS SUPPORT 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 $19.7 million.

What is the period of performance?

Start: 2010-09-01. End: 2017-11-17.

What specific lighting systems are covered under this contract, and what is the criticality of their function?

The contract, 'ACQUISITION LIGHTING SYSTEMS SUPPORT,' likely pertains to lighting systems essential for air traffic control and airport operations. This could include runway lighting, taxiway lighting, approach lighting systems, and obstruction lighting on towers or other airport structures. The criticality of these systems is extremely high, as they are fundamental to safe aircraft navigation and ground movement, especially during low visibility conditions and at night. Malfunctions or failures in these lighting systems can lead to significant safety risks, flight delays, and operational disruptions.

How does the 'Cost Plus Award Fee' (CPAF) contract type influence contractor performance and cost control for this lighting systems support?

A Cost Plus Award Fee (CPAF) contract allows the contractor to be reimbursed for all allowable costs plus a fixed fee, a portion of which is an award fee. The award fee is earned based on the government's evaluation of the contractor's performance against pre-defined criteria. For lighting systems support, this means the contractor is incentivized to perform well to earn the maximum award fee. However, CPAF contracts can also lead to higher costs compared to fixed-price contracts if the government's oversight and evaluation processes are not rigorous, as the contractor is guaranteed cost reimbursement and the award fee is performance-dependent rather than cost-dependent.

What are the key performance indicators (KPIs) used to evaluate Advanced Management Technology, Inc.'s performance under this contract?

The provided data does not specify the key performance indicators (KPIs) used to evaluate Advanced Management Technology, Inc.'s performance. In a CPAF contract, these KPIs are typically detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). For lighting systems support, potential KPIs could include response time for service calls, system uptime percentages, Mean Time Between Failures (MTBF) for repaired components, adherence to safety protocols, and successful completion of preventative maintenance schedules. The government's evaluation of these KPIs would determine the contractor's eligibility for award fees.

Can we compare the per-unit cost of this contract to similar FAA lighting systems support contracts to assess value for money?

Directly comparing the per-unit cost of this contract is challenging with the provided data. The total award is $19,669,954.87, but the number of 'units' or specific services rendered is not detailed. Without knowing the quantity of lighting systems supported, the scope of maintenance activities, or the duration of support per system, a meaningful per-unit cost calculation and comparison is not feasible. Benchmarking would require access to similar contracts with clearly defined service units and quantities, as well as the total award amounts for those contracts.

What is the historical spending pattern for 'ACQUISITION LIGHTING SYSTEMS SUPPORT' by the FAA or Department of Transportation?

The provided data represents a single contract award for 'ACQUISITION LIGHTING SYSTEMS SUPPORT' totaling $19,669,954.87, awarded in 2010 and ending in 2017. This single data point does not allow for the analysis of historical spending patterns. To understand historical trends, one would need to query databases for all prior and subsequent contracts related to lighting systems support within the FAA or the broader Department of Transportation, examining award amounts, contract durations, and the number of contracts over time.

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. (UEI: 045224250)

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: $210,201,979

Exercised Options: $19,669,955

Current Obligation: $19,669,955

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA10C00007

IDV Type: IDC

Timeline