GSA awards $58.8M contract for consulting services to AIRTEC, INC., with a 273-day duration

Contract Overview

Contract Amount: $58,806,669 ($58.8M)

Contractor: Airtec, Inc.

Awarding Agency: General Services Administration

Start Date: 2016-09-29

End Date: 2017-06-29

Contract Duration: 273 days

Daily Burn Rate: $215.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: CALIFORNIA, SAINT MARYS County, MARYLAND, 20619

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $58.8 million to AIRTEC, INC. for work described as: IGF::OT::IGF Key points: 1. The contract value represents a significant investment in specialized consulting services. 2. Competition dynamics for this contract are crucial for ensuring fair pricing and service quality. 3. Performance risk indicators will be monitored closely given the fixed-price nature of the award. 4. The duration of the contract suggests a focused, short-term engagement for specific objectives. 5. This contract falls within the broader category of scientific and technical consulting services.

Value Assessment

Rating: fair

The contract value of $58.8 million for a 273-day period suggests a high daily burn rate. Without specific deliverables or comparable contracts, it's difficult to definitively benchmark the value. However, the firm fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator if managed effectively. Further analysis would require understanding the scope of 'Other Scientific and Technical Consulting Services' and comparing the implied hourly or daily rates to industry standards for similar expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This process is designed to foster a competitive environment, theoretically leading to better pricing and service offerings for the government. The number of bidders, if available, would provide further insight into the level of market interest and the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces.

Public Impact

The primary beneficiaries are likely government agencies requiring specialized scientific and technical consulting. Services delivered are expected to support critical government functions and decision-making processes. The contract's geographic impact is noted as Maryland (MD), suggesting a concentration of activity in that region. Workforce implications may include the engagement of highly skilled consultants and subject matter experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if deliverables are not clearly defined.
Risk of contractor performance not meeting expectations within the fixed-price constraint.
Dependency on a single contractor for critical consulting services.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract shifts cost risk to the contractor.
Clear contract duration (273 days) indicates a defined project timeline.

Sector Analysis

The contract falls under the 'Other Scientific and Technical Consulting Services' NAICS code (541690). This sector is broad and encompasses a wide range of specialized advisory services supporting government operations. The market for such services is competitive, with numerous firms offering expertise in areas like engineering, environmental science, management consulting, and IT strategy. The $58.8 million award size is substantial within this category, suggesting a significant project or a consolidation of multiple needs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small businesses may be limited unless they are direct subcontractors to AIRTEC, INC. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the General Services Administration (GSA). The firm fixed-price nature provides a degree of accountability, as the contractor is incentivized to complete the work within budget. Transparency would be enhanced by public availability of contract performance reports and any associated Inspector General audits, if applicable.

Related Government Programs

Professional, Scientific, and Technical Services
Management and Consulting Services
Government Consulting Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor prioritizing profit over quality in a fixed-price environment.
Need for robust government oversight to ensure deliverables meet requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $58.8 million to AIRTEC, INC.. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is AIRTEC, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $58.8 million.

What is the period of performance?

Start: 2016-09-29. End: 2017-06-29.

What specific types of 'Other Scientific and Technical Consulting Services' were procured under this contract?

The provided data identifies the NAICS code as 541690, 'Other Scientific and Technical Consulting Services.' However, it does not detail the specific services rendered. These could range widely, potentially including areas such as environmental consulting, engineering analysis, cybersecurity strategy, program management support, or specialized research and development advisory. To understand the precise nature of the services, one would need to consult the contract's statement of work (SOW) or task order details. Without this, the 'other' classification remains broad, making direct comparisons challenging.

How does the $58.8 million contract value compare to typical spending on similar consulting services by the GSA?

The $58.8 million award for a 273-day contract is a substantial sum, indicating a significant scope of work or a high level of specialized expertise required. Benchmarking this against typical GSA spending requires access to historical contract data for similar services (NAICS 541690) and contract durations. GSA often procures a wide array of professional services, and while $58.8 million is considerable, its relative size depends heavily on whether it represents a single large project or a consolidation of smaller needs. Without comparative data on the average contract value, number of bidders, and service scope for this category, it's difficult to definitively state if this represents high or low spending relative to norms.

What are the primary risk indicators associated with this firm fixed-price contract?

The primary risk indicator for a firm fixed-price (FFP) contract is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs exceed initial estimates. While FFP shifts financial risk to the contractor, it places a greater burden on the government to meticulously define requirements and monitor performance. If the scope is not clearly articulated or if unforeseen technical challenges arise, the government may not receive the full value intended. Additionally, if the contractor underbids due to competitive pressure, they might lack the resources or motivation to deliver optimal results, leading to performance issues.

What is the significance of the contract being awarded under 'Full and Open Competition'?

Awarding a contract under 'Full and Open Competition' signifies that the solicitation was made available to all responsible sources, and the government did not impose any restrictions on the types of organizations that could bid. This is generally considered the preferred method of procurement as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. It implies that the government actively sought out and evaluated proposals from multiple vendors, aiming to secure the best value for the taxpayer. The absence of set-asides or sole-source justifications suggests a healthy competitive market for these services.

What does the 273-day duration imply about the nature of the services provided?

A contract duration of 273 days, approximately nine months, suggests a project with a defined, relatively short-term objective rather than an ongoing, indefinite need. This timeframe is typical for specific consulting engagements, studies, analyses, or the implementation of a particular solution. It implies that the scope of work is well-defined and achievable within this period. Longer durations might indicate broader program support or operational services, while shorter ones could point to very focused tasks. The 273-day period allows for focused effort without the long-term commitment often associated with indefinite-delivery contracts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 44174 AIRPORT RD STE 300, CALIFORNIA, MD, 20619

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

Financial Breakdown

Contract Ceiling: $62,545,500

Exercised Options: $62,545,500

Current Obligation: $58,806,669

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS24F0027L

IDV Type: FSS

Timeline