FAA Awards $69.8M VTS Support Services Contract to LS Technologies LLC

Contract Overview

Contract Amount: $69,792,927 ($69.8M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2019-05-02

End Date: 2026-06-29

Contract Duration: 2,615 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Transportation

Official Description: VERIFICATION&VALIDATION (V&V)/TEST&EVALUATION (T&E) SERVICES (VTS) SUPPORT SERVICES CONTRACT. SE2025 TORP #5134

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $69.8 million to LS TECHNOLOGIES LLC for work described as: VERIFICATION&VALIDATION (V&V)/TEST&EVALUATION (T&E) SERVICES (VTS) SUPPORT SERVICES CONTRACT. SE2025 TORP #5134 Key points: 1. Contract awarded to LS Technologies LLC for Verification & Validation/Test & Evaluation services. 2. The contract has a total value of $69.8 million over its duration. 3. Awarded under full and open competition after exclusion of sources. 4. Services fall under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. However, the total value suggests a reasonable price for specialized VTS/T&E support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, minimizing unnecessary taxpayer expenditure for these critical engineering services.

Public Impact

Ensures the safety and reliability of aviation systems through rigorous testing. Supports the Federal Aviation Administration's mission to maintain air traffic control standards. Provides specialized engineering expertise crucial for complex aerospace projects. The duration of the contract allows for long-term planning and consistent support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can increase cost risk.
Exclusion of sources in competition requires careful justification.

Positive Signals

Full and open competition promotes market fairness.
Long contract duration provides stability.
Specialized engineering services are critical for aviation safety.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the Transportation sector, heavily reliant on engineering and IT services for its complex infrastructure. Spending benchmarks for similar VTS/T&E contracts vary widely based on scope and duration, but $69.8M over nearly 7 years for specialized support is within a typical range for federal aviation projects.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary consideration for this specific award. The contract was awarded to LS Technologies LLC, which is not identified as a small business in this context. Future solicitations may offer opportunities for small businesses in related support roles.

Oversight & Accountability

The contract's oversight will be managed by the Federal Aviation Administration. The Time and Materials nature necessitates diligent monitoring of labor hours and material costs to ensure adherence to the contract ceiling and prevent cost overruns. Performance metrics will be key to accountability.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for rigorous oversight to manage labor hours and material costs.
Ensuring continued competition or fair pricing if sources are excluded in future task orders.
Dependency on a single contractor for critical VTS/T&E services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $69.8 million to LS TECHNOLOGIES LLC. VERIFICATION&VALIDATION (V&V)/TEST&EVALUATION (T&E) SERVICES (VTS) SUPPORT SERVICES CONTRACT. SE2025 TORP #5134

Who is the contractor on this award?

The obligated recipient is LS TECHNOLOGIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $69.8 million.

What is the period of performance?

Start: 2019-05-02. End: 2026-06-29.

What specific VTS/T&E methodologies will LS Technologies LLC employ to ensure the highest level of system integrity for the FAA?

LS Technologies LLC is expected to employ a range of industry-standard and potentially bespoke Verification, Validation, and Test & Evaluation methodologies tailored to the specific systems under review. This could include requirements traceability analysis, functional testing, performance testing, integration testing, and system acceptance testing. The specific methodologies will likely be detailed in the contractor's technical approach and subject to FAA approval, ensuring alignment with aviation safety standards and regulatory compliance.

How will the FAA mitigate the inherent cost risks associated with a Time and Materials contract for such a critical service?

The FAA will mitigate cost risks through robust contract oversight, including detailed review of labor hours, rates, and material costs. Establishing clear performance metrics and milestones, along with regular progress reviews, will help ensure efficient resource utilization. The contract ceiling acts as a hard limit, and the FAA will likely implement strict change control processes and potentially task orders with fixed-price components for specific deliverables to maintain cost control.

What is the long-term strategic value of this contract for the FAA's modernization efforts?

This contract provides essential VTS/T&E support, which is critical for the successful implementation and integration of new technologies within the National Airspace System. By ensuring the reliability and safety of modernized systems, LS Technologies LLC's services contribute directly to the FAA's strategic goals of enhancing air traffic management efficiency, capacity, and safety. The long duration allows for continuous support throughout complex, multi-year modernization programs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tetra Tech, Inc.

Address: 2750 PROSPERITY AVE STE 400, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $153,845,182

Exercised Options: $69,792,927

Current Obligation: $69,792,927

Actual Outlays: $62,394,063

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $40,086,899

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00030

IDV Type: IDC

Timeline