DOT's FAA awarded $23.5M to VERO TECHNICAL SUPPORT, INC. for professional services over 9 years

Contract Overview

Contract Amount: $23,509,893 ($23.5M)

Contractor: Vero Technical Support, Inc

Awarding Agency: Department of Transportation

Start Date: 2013-06-14

End Date: 2022-05-31

Contract Duration: 3,273 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 $23.5 million to VERO TECHNICAL SUPPORT, INC for work described as: CWO - VERO TECHNICAL SUPPORT, INC. IGF::CL::IGF Key points: 1. The contract value of $23.5 million over nine years suggests a significant investment in ongoing technical support. 2. The 'Full and Open Competition After Exclusion of Sources' indicates a competitive process, though the exclusion warrants scrutiny. 3. The firm fixed-price contract type generally transfers risk to the contractor, potentially stabilizing costs. 4. The duration of the contract (3273 days) points to a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services,' indicating a broad scope. 6. The contract was awarded to a single entity, VERO TECHNICAL SUPPORT, INC., highlighting their specialized role.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific service details. The total award of $23.5 million over approximately nine years averages to about $2.6 million annually. This figure needs to be compared against the cost of similar support services for aviation infrastructure or technical operations. The firm fixed-price nature is a positive for cost predictability, but the overall value depends heavily on the efficiency and effectiveness of the services provided by VERO TECHNICAL SUPPORT, INC. Further analysis would require understanding the specific deliverables and performance metrics.

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.' This suggests that while the competition was generally open, specific sources may have been excluded prior to the main solicitation. The number of bidders is not explicitly stated in the provided data, but the 'full and open' designation implies multiple potential offerors were considered. This type of competition aims to achieve fair market prices and identify the best value solution.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it should drive down costs and ensure the government receives quality services at a reasonable price. The exclusion of certain sources, however, could potentially limit the breadth of competition and may warrant further investigation into the justification for such exclusions.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by securing essential technical support services. The services delivered likely contribute to the operational efficiency and safety of the national airspace system. The geographic impact is national, supporting FAA operations across the United States. The contract supports a workforce employed by VERO TECHNICAL SUPPORT, INC., contributing to specialized technical expertise within the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition needs clear justification to ensure maximum competition.
The long contract duration (over 9 years) increases the risk of cost overruns if not managed tightly.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' could indicate a wide range of potential tasks, making performance monitoring complex.

Positive Signals

The firm fixed-price contract type shifts cost overrun risk to the contractor.
The 'full and open' competition, even with exclusions, suggests an effort to leverage market competition.
The award to a single, presumably specialized, vendor can lead to deep expertise and efficient service delivery.

Sector Analysis

The contract falls within the Professional, Scientific, and Technical Services sector, specifically NAICS code 541990. This sector is characterized by a wide array of specialized services, including research and development, consulting, and technical support. The Federal Aviation Administration's spending in this area is crucial for maintaining complex technological systems and ensuring regulatory compliance. Comparable spending benchmarks would involve analyzing other government contracts for similar technical support services across various agencies, considering the scale and complexity of the services required.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this contract. This suggests the contract was not specifically targeted towards small businesses, and the prime contractor, VERO TECHNICAL SUPPORT, INC., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in supporting critical federal services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures would be tied to the performance metrics outlined in the firm fixed-price contract. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any investigations into fraud, waste, or abuse related to this contract were initiated.

Related Government Programs

FAA Technical Support Services
Professional and Technical Services Contracts
Government IT and Engineering Support
Aviation Infrastructure Modernization Programs

Risk Flags

Potential for limited competition due to source exclusion.
Risk of scope misalignment over long contract duration.
Need for robust oversight to ensure performance and relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.5 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 $23.5 million.

What is the period of performance?

Start: 2013-06-14. End: 2022-05-31.

What specific technical services does VERO TECHNICAL SUPPORT, INC. provide under this contract?

The provided data identifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests a wide range of potential services, which could include areas such as engineering support, scientific research, technical consulting, data analysis, or specialized IT services related to aviation systems. Without further details from the contract's statement of work, it is difficult to pinpoint the exact nature of the services. However, given the agency (FAA) and the duration, these services are likely critical to the agency's operational functions, potentially involving support for air traffic control systems, aviation safety programs, or related technological infrastructure.

How does the $23.5 million award compare to similar FAA contracts for technical support?

Comparing the $23.5 million award to similar FAA contracts requires access to a broader dataset of aviation-related technical support agreements. However, considering the contract spans over nine years (3273 days), the average annual value is approximately $2.6 million. This figure is moderate for a long-term, specialized support contract within a large federal agency like the FAA. Larger, more complex system integration or development contracts can easily reach tens or hundreds of millions of dollars annually. Conversely, smaller, more focused service contracts might be in the hundreds of thousands. The value here suggests a significant, but not exceptionally large, ongoing support requirement.

What are the key risks associated with a nine-year firm fixed-price contract of this magnitude?

A primary risk with a long-term firm fixed-price contract is the potential for the contractor to become complacent or for the scope of work to become misaligned with evolving agency needs over the nine-year period. While the fixed price transfers cost overrun risk to the contractor, there's a risk of scope creep if not managed tightly, potentially leading to disputes or the contractor delivering only the minimum required. Another risk is the contractor's financial stability and continued capability over such an extended period. If the contractor faces financial difficulties or loses key personnel, service delivery could be impacted. The FAA must maintain robust oversight to ensure continued performance and relevance.

What does 'Full and Open Competition After Exclusion of Sources' imply for the procurement process?

This procurement method indicates that the solicitation was initially intended for full and open competition, meaning all responsible sources were permitted to submit offers. However, prior to the solicitation, certain sources were excluded. This exclusion must be justified by the agency, often based on factors like national security, specific technical requirements that only certain vendors can meet, or previous performance issues with excluded entities. While the remaining competition aims for fair pricing, the exclusion means taxpayers may not have benefited from the widest possible pool of potential bidders, potentially impacting the final price and innovation.

How has the FAA's spending on 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended historically?

Analyzing historical spending trends for NAICS 541990 by the FAA would require accessing historical procurement data over several fiscal years. Generally, spending in this category can fluctuate based on agency priorities, technological advancements, and specific project needs. For instance, increased investment in air traffic control modernization or new safety initiatives could lead to higher spending in this broad services category. Conversely, periods of budget constraints or project completion might see a decrease. Without specific historical data for the FAA under this NAICS code, it's difficult to provide a precise trend, but it's reasonable to assume variability based on the agency's evolving operational and technological landscape.

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: $26,350,185

Exercised Options: $23,509,893

Current Obligation: $23,509,893

Actual Outlays: $5,191,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline