DOT's $25.4M contract with RNR Technologies Inc. for professional services awarded without competition

Contract Overview

Contract Amount: $25,445,844 ($25.4M)

Contractor: RNR Technologies Inc

Awarding Agency: Department of Transportation

Start Date: 2013-11-14

End Date: 2022-05-31

Contract Duration: 3,120 days

Daily Burn Rate: $8.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CWO - RNR TECHNOLOGIES, INC. IGF::CT::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 $25.4 million to RNR TECHNOLOGIES INC for work described as: CWO - RNR TECHNOLOGIES, INC. IGF::CT::IGF Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. Long contract duration of 3120 days suggests a sustained need for services. 3. Sole-source award raises questions about potential cost efficiencies and market alternatives. 4. Services fall under 'All Other Professional, Scientific, and Technical Services,' a broad category. 5. Contractor RNR Technologies Inc. has a single award from the FAA. 6. The contract was awarded to a firm located in Washington D.C.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding and the broad nature of the service category. Without comparison to other similar contracts or market rates for 'All Other Professional, Scientific, and Technical Services,' it's difficult to definitively assess if the $25.4 million represents good value for money. The firm-fixed-price structure provides cost certainty, but the absence of competition means there's no direct market validation of the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning RNR Technologies Inc. was the only vendor considered. The Federal Aviation Administration did not conduct a competitive solicitation for these services. This approach limits the opportunity for price discovery and may not yield the most cost-effective solution compared to a fully competed contract with multiple bidders.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, potentially leading to higher costs than if multiple vendors had vied for the contract.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving professional, scientific, and technical services. The specific services delivered are not detailed but fall under a broad professional services category. The geographic impact is concentrated in Washington D.C., where the contractor is located. Workforce implications are likely internal to RNR Technologies Inc., with potential for specialized roles within the FAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Broad service category makes it difficult to assess specific performance metrics.
Long contract duration without competition could mask inefficiencies over time.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Single award to RNR Technologies Inc. suggests a focused relationship.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of expertise. This sector is crucial for government operations, providing specialized support that agencies may not possess internally. The market for such services is diverse, with many firms capable of offering solutions. However, the specific niche RNR Technologies Inc. occupies within 'All Other Professional, Scientific, and Technical Services' is not clearly defined by the provided data, making direct spending benchmarks difficult.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. The sole-source nature of the award further limits the potential for small business participation through subcontracting. This contract does not appear to directly contribute to the small business ecosystem.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) within the FAA, responsible for monitoring performance and ensuring compliance. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source award and the broad description of services, making detailed public scrutiny challenging.

Related Government Programs

Professional Services Contracts
Technical Support Services
Federal Aviation Administration Contracts
Department of Transportation Contracts

Risk Flags

Sole-source award
Lack of competition
Broad service category

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.4 million to RNR TECHNOLOGIES INC. CWO - RNR TECHNOLOGIES, INC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is RNR 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 $25.4 million.

What is the period of performance?

Start: 2013-11-14. End: 2022-05-31.

What specific services did RNR Technologies Inc. provide under this contract?

The provided data classifies the contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad category and does not specify the exact nature of the services rendered. Without further documentation or details from the Department of Transportation or the Federal Aviation Administration, it is impossible to determine the precise professional, scientific, or technical support provided by RNR Technologies Inc. This lack of specificity is common in broad service contracts but hinders detailed performance analysis and value assessment.

Why was this contract awarded on a sole-source basis?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this approach is not provided. Common reasons for sole-source awards include the existence of only one responsible source capable of providing the required service, urgent and compelling needs, or specific national security requirements. However, without an official justification document from the FAA, the precise rationale remains unknown. This lack of competition limits the government's ability to leverage market forces for potentially better pricing and service options.

How does the $25.4 million contract value compare to similar services procured by the FAA or DOT?

Direct comparison of the $25.4 million contract value is difficult without knowing the specific services provided due to the broad NAICS code (541990). However, for context, the Federal Aviation Administration (FAA) procures a wide range of services, including IT, aviation safety, and operational support. Contracts of this magnitude are not uncommon for long-term, complex service requirements. The absence of competitive bidding makes it challenging to benchmark the pricing against market rates or other competitively awarded contracts for similar, albeit broadly defined, professional services.

What is RNR Technologies Inc.'s track record with federal contracts?

According to the provided data, RNR Technologies Inc. has received one federal contract award, which is this $25.4 million definitive contract from the Federal Aviation Administration. This suggests a limited federal contracting history, with this single award representing their primary engagement with the government based on this dataset. Further investigation into their performance on this contract would be necessary to fully assess their track record.

What are the potential risks associated with a long-duration, sole-source contract?

A significant risk associated with a long-duration, sole-source contract is the potential for cost escalation or reduced incentive for efficiency. Without competitive pressure, the contractor may have less motivation to control costs or innovate over the contract's lifespan. Additionally, if the government's needs evolve, modifying a sole-source contract can be more complex and potentially costly than re-competing the requirement. There's also a risk that the government might be locked into a solution that becomes outdated or less effective over time without market alternatives being explored.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8262 BOLT DR SE, ADA, MI, 49301

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

Financial Breakdown

Contract Ceiling: $30,257,198

Exercised Options: $25,445,844

Current Obligation: $25,445,844

Actual Outlays: $7,233,355

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline