Frontier Technology Inc. awarded $33.7M for AF A1 Technical Innovation Support, raising questions on competition and value

Contract Overview

Contract Amount: $33,731,495 ($33.7M)

Contractor: Frontier Technology Inc

Awarding Agency: General Services Administration

Start Date: 2017-09-30

End Date: 2020-07-15

Contract Duration: 1,019 days

Daily Burn Rate: $33.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF - SBIR PHASE III AWARD IN SUPPORT HQ AF A1 TECHNICAL INNOVATION SUPPORT PROJECT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $33.7 million to FRONTIER TECHNOLOGY INC for work described as: IGF::OT::IGF - SBIR PHASE III AWARD IN SUPPORT HQ AF A1 TECHNICAL INNOVATION SUPPORT PROJECT. Key points: 1. Contract awarded via "Not Available for Competition" justification, limiting price discovery and potentially increasing costs. 2. Significant award value for custom computer programming services, requiring careful benchmarking against similar contracts. 3. Performance period of 1019 days suggests a long-term need for technical innovation support. 4. Contract type is Time and Materials, which can pose cost control risks if not managed diligently. 5. The award falls under GSA's Federal Acquisition Service, indicating a centralized procurement approach. 6. No small business set-aside was applied, suggesting potential missed opportunities for small business participation.

Value Assessment

Rating: questionable

The $33.7 million award for custom computer programming services requires thorough benchmarking. Without a competitive process, it is difficult to ascertain if the pricing reflects fair market value. The Time and Materials (T&M) contract type, while flexible, can lead to cost overruns if not closely monitored. Comparing this to similar technical innovation support contracts, especially those procured competitively, would be crucial to assess value for money. The lack of competition inherently raises concerns about potential overpayment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under a 'Not Available for Competition' justification. This means that the agency did not conduct a competitive solicitation process, likely due to specific circumstances or a perceived lack of suitable alternative sources. Consequently, only one offeror, Frontier Technology Inc., was considered. This limited competition significantly impacts price discovery, as there was no market pressure from competing bids to drive down costs.

Taxpayer Impact: The absence of a competitive bidding process means taxpayers may not have received the most advantageous pricing. Without multiple offers, the government lacks assurance that the negotiated price is the best possible value.

Public Impact

The primary beneficiary is the Air Force's A1 (Manpower, Personnel, and Services) directorate, receiving technical innovation support. Services delivered include custom computer programming and technical innovation support, aimed at enhancing Air Force capabilities. The geographic impact is primarily within Virginia, where the contractor is located and services are likely performed. Workforce implications include the employment of skilled programmers and technical experts by Frontier Technology Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Time and Materials contract type carries inherent cost escalation risks.
Lack of transparency in the justification for 'Not Available for Competition' requires further scrutiny.
Absence of small business participation opportunities.

Positive Signals

Award supports critical Air Force technical innovation needs.
Contract duration of over 1000 days indicates a sustained requirement.
Contractor is providing specialized custom computer programming services.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a segment of the broader IT services market. This sector is characterized by high demand for specialized software development and technical support. The total federal spending on IT services is substantial, and contracts like this represent a portion of that investment. Benchmarking this award against other custom programming contracts, particularly those supporting defense agencies, would provide further context on its scale and pricing.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Frontier Technology Inc., is not explicitly identified as a small business in the provided data. The lack of a small business set-aside means that opportunities for small businesses to compete for or subcontract on this significant award were not prioritized through this specific procurement mechanism. This could represent a missed opportunity to foster small business growth within the federal IT contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA) and the specific Air Force A1 directorate utilizing the services. The Federal Acquisition Service (FAS) within GSA is responsible for managing many such contracts. Accountability measures would be tied to the performance metrics outlined in the contract and the Time and Materials reporting requirements. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Air Force IT Modernization Programs
GSA IT Schedule Contracts
Defense Custom Software Development
SBIR Phase III Awards

Risk Flags

Sole-source award justification requires scrutiny.
Time and Materials contract type poses cost control risks.
Lack of competitive bidding limits price discovery.
Potential for unoptimized resource allocation due to non-competitive award.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.7 million to FRONTIER TECHNOLOGY INC. IGF::OT::IGF - SBIR PHASE III AWARD IN SUPPORT HQ AF A1 TECHNICAL INNOVATION SUPPORT PROJECT.

Who is the contractor on this award?

The obligated recipient is FRONTIER TECHNOLOGY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2017-09-30. End: 2020-07-15.

What specific technical innovation support was provided to the Air Force A1 directorate under this contract?

The contract, identified as an 'SBIR PHASE III AWARD IN SUPPORT HQ AF A1 TECHNICAL INNOVATION SUPPORT PROJECT,' suggests that the services provided by Frontier Technology Inc. were related to innovations stemming from Small Business Innovation Research (SBIR) projects. This likely involved leveraging advanced technologies or research developed by small businesses to address specific needs within the Air Force's Manpower, Personnel, and Services (A1) directorate. Examples could include developing new software tools for personnel management, enhancing data analytics capabilities for service delivery, or implementing novel technological solutions for workforce optimization. The 'Custom Computer Programming Services' classification further indicates a focus on tailored software development and integration to meet unique Air Force requirements.

Why was this contract awarded on a 'Not Available for Competition' basis, and what are the implications?

The 'Not Available for Competition' (NAC) justification typically implies that the agency determined, for specific reasons, that only one source was capable of meeting the requirement. This could be due to proprietary technology, unique capabilities, or urgent needs where no other vendor could respond in time. However, NAC awards significantly limit price discovery, as there is no competitive pressure to ensure the best possible price. This can lead to higher costs for taxpayers compared to competitively awarded contracts. It also raises concerns about whether the agency fully explored all potential sources or if the justification was robust enough to warrant bypassing competition.

How does the Time and Materials (T&M) contract type affect cost control and value for money in this context?

Time and Materials (T&M) contracts obligate the government to pay the contractor for direct labor hours at specified fixed hourly rates and for the actual cost of materials. While T&M contracts offer flexibility, especially for research and development or when the scope of work is not clearly defined, they carry inherent risks for cost control. Without strict oversight and well-defined ceilings, costs can escalate beyond initial estimates. For a $33.7 million award over 1019 days, effective management of labor hours, rates, and material costs is critical to ensure value for money and prevent cost overruns. The government must diligently monitor performance and expenditures to mitigate these risks.

What is the significance of this award being an SBIR Phase III contract?

SBIR Phase III contracts represent the culmination of the Small Business Innovation Research (SBIR) program. Phase I and II involve research and development by small businesses, often funded by federal agencies. Phase III aims to transition these technologies into commercial products or services, with federal agencies acting as the first customer. An SBIR Phase III award signifies that the technology developed by Frontier Technology Inc. (or a predecessor small business) has matured to a point where it is deemed valuable for a specific government need, in this case, supporting Air Force A1 technical innovation. These awards can be sole-source and are intended to foster commercialization and further develop innovative technologies.

How does this contract compare to other federal spending on custom computer programming services?

The $33.7 million award to Frontier Technology Inc. for custom computer programming services is a substantial amount, placing it among significant federal IT procurements. Federal spending on IT services, including custom programming, runs into the tens of billions of dollars annually. To assess its comparability, one would need to analyze the specific nature of the 'technical innovation support' and the complexity of the programming required. Contracts for similar defense-related innovation projects, especially those involving specialized R&D transitions like SBIR Phase III, can command higher values due to unique requirements and limited vendor pools. However, without a competitive benchmark, direct comparison of value-for-money is challenging.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: ID05140018016

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 4141 COLONEL GLENN HWY STE 140, BEAVERCREEK, OH, 45431

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

Financial Breakdown

Contract Ceiling: $33,765,470

Exercised Options: $33,734,662

Current Obligation: $33,731,495

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS05Q14BMD0001

IDV Type: IDC

Timeline