DOT's FAA awarded $23.8M to VERO TECHNICAL SUPPORT, INC. for professional services over 9 years

Contract Overview

Contract Amount: $23,852,909 ($23.9M)

Contractor: Vero Technical Support, Inc

Awarding Agency: Department of Transportation

Start Date: 2013-06-14

End Date: 2022-06-30

Contract Duration: 3,303 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CWO - VERO TECHNICAL SUPPORT, INC. IGF::CL::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 $23.9 million to VERO TECHNICAL SUPPORT, INC for work described as: CWO - VERO TECHNICAL SUPPORT, INC. IGF::CL::IGF Key points: 1. Contract value represents a significant investment in technical support services. 2. The duration of the contract suggests a long-term need for these services. 3. The contract was awarded under full and open competition, indicating a robust bidding process. 4. The firm fixed-price structure aims to control costs and provide predictability. 5. The geographic location of the contractor is Washington D.C. 6. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: fair

The total award amount of $23.8 million over approximately 9 years (3303 days) averages to about $2.6 million per year. Without specific performance metrics or comparable contract data for VERO TECHNICAL SUPPORT, INC., it is difficult to definitively benchmark value. However, the duration and total value suggest a substantial commitment. The firm fixed-price contract type is generally favorable for the government in managing cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the opportunity was broadly advertised, and multiple bids were likely considered. The presence of 3 bids suggests a moderate level of competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by encouraging multiple vendors to offer their best terms and pricing to win the contract.

Public Impact

The Federal Aviation Administration (FAA) benefits from consistent technical support services. These services likely contribute to the operational efficiency and effectiveness of FAA programs. The contract supports a firm based in Washington D.C., potentially impacting the local economy. The workforce implications include employment opportunities for professionals in technical and scientific services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single vendor for critical technical support may pose risks if the vendor's performance degrades.
The 'after exclusion of sources' clause warrants further investigation into why certain sources were excluded prior to full and open competition.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm fixed-price contract type provides cost certainty for the government.
The contract has a defined end date, allowing for re-evaluation of needs and competition.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of specialized expertise. The Federal Aviation Administration (FAA) is a major consumer of such services to support its complex operations, including air traffic control, safety regulation, and infrastructure management. Spending in this sector is driven by the need for specialized knowledge and technical solutions that government agencies may not possess internally. Benchmarking would require comparing this contract's value and scope to other similar technical support contracts within the FAA or other federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The primary contractor, VERO TECHNICAL SUPPORT, INC., is not identified as a small business in the provided data, suggesting larger firms may have participated in the competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration. Performance reviews, regular reporting requirements, and adherence to the firm fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Operations Support
Professional and Technical Services Contracts
Department of Transportation IT and Support Services
Government-wide Professional Services Schedules (if applicable)

Risk Flags

Long contract duration may lead to outdated services or vendor lock-in.
Potential for reduced competition if source exclusions were not fully justified.
Need for detailed review of Statement of Work to understand specific services and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.9 million to VERO TECHNICAL SUPPORT, INC. CWO - VERO TECHNICAL SUPPORT, INC. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is VERO TECHNICAL SUPPORT, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2013-06-14. End: 2022-06-30.

What specific technical support services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category. To understand the specific services, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These documents detail the precise tasks, deliverables, and technical requirements. Without access to these details, it's presumed the services are technical in nature and support the FAA's mission, potentially including areas like IT support, engineering analysis, research, or specialized operational assistance.

How does the $23.8 million award compare to similar FAA technical support contracts?

Benchmarking this $23.8 million award requires comparing it to similar contracts awarded by the FAA for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) or closely related service codes. Factors such as contract duration, scope of work, and number of bidders are crucial for a fair comparison. If this contract represents a higher-than-average cost per year or per service unit compared to similar contracts, it might indicate a fair or potentially concerning value. Conversely, if it aligns with or is lower than benchmarks, it suggests good value. Detailed analysis would involve accessing historical contract data for the FAA and similar agencies.

What is the track record of VERO TECHNICAL SUPPORT, INC. with federal contracts?

To assess VERO TECHNICAL SUPPORT, INC.'s track record, one would need to examine their past federal contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A history of successful contract completion, positive performance reviews, and timely delivery of services would indicate a reliable contractor. Conversely, a pattern of poor performance, cost overruns (though less likely with firm fixed-price), or unresolved issues would raise concerns about their capability and reliability for this $23.8 million award.

What are the potential risks associated with a 9-year contract duration?

A contract duration of approximately 9 years (3303 days) presents several potential risks. Firstly, technology and operational needs can evolve significantly over such a long period, potentially making the contracted services obsolete or less effective by the end of the term. Secondly, there's a risk of vendor complacency or reduced innovation if the contractor assumes long-term business without continuous competitive pressure. Thirdly, the government might become overly reliant on a single vendor, creating 'vendor lock-in' and making it difficult to switch providers if performance issues arise or better solutions become available. Robust oversight and clear performance metrics are essential to mitigate these risks.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clause impact the competition dynamics?

The clause 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain potential sources were excluded from the outset. This exclusion needs careful justification. If the exclusions were based on legitimate reasons (e.g., lack of capability, prior performance issues), then the subsequent full and open competition among the remaining eligible sources could still yield good results. However, if the exclusions were arbitrary or improperly justified, it could limit competition, potentially leading to higher prices or less optimal solutions for the government. Understanding the rationale behind the exclusions is key to assessing the true level of competition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vero Technical Support Inc

Address: 593 27TH AVE SW STE A, VERO BEACH, FL, 32968

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $30,359,490

Exercised Options: $23,852,909

Current Obligation: $23,852,909

Actual Outlays: $5,307,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline