DOT Awards $8.6M Air Traffic Control Services Contract to Serco Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $8,603,728 ($8.6M)
Contractor: Serco Inc
Awarding Agency: Department of Transportation
Start Date: 2024-11-27
End Date: 2032-01-31
Contract Duration: 2,621 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $8.6 million to SERCO INC for work described as: THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW). Key points: 1. Contract value of $8.6 million over its term. 2. Serco Inc. is the incumbent contractor. 3. Risk appears moderate given the definitive contract type and firm-fixed-price structure. 4. Spending is within the Air Traffic Control sector.
Value Assessment
Rating: good
The contract value of $8.6 million over approximately 7 years suggests a reasonable annual spend for ATC services. Benchmarking against similar contracts would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.
Taxpayer Impact: Competitive bidding in this full and open process likely ensures taxpayer funds are used efficiently for essential air traffic control services.
Public Impact
Ensures continued operation of critical air traffic control services. Supports the safety and efficiency of national airspace. Provides stable employment for personnel involved in ATC operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends to 2032, requiring ongoing monitoring.
- Potential for scope creep in associated support services.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests competitive pricing.
Sector Analysis
This contract falls within the Air Traffic Control sector, a critical component of national infrastructure. Spending benchmarks for similar ATC services contracts would be useful for comparison.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist.
Oversight & Accountability
The definitive contract award and firm-fixed-price structure provide a clear framework for oversight. The FAA's oversight will be crucial to ensure performance and adherence to the SOW.
Related Government Programs
- Air Traffic Control
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Contract duration extends to 2032.
- Potential for scope creep in associated support services.
- Incumbent contractor may face complacency.
- Reliance on a single contractor for critical services.
Tags
air-traffic-control, department-of-transportation, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $8.6 million to SERCO INC. THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW).
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2024-11-27. End: 2032-01-31.
What is the historical performance of Serco Inc. in providing ATC services, and how does it compare to the requirements of this contract?
Serco Inc. has been the incumbent contractor, suggesting a track record of performance. A review of past performance evaluations, contract modifications, and any disputes would be necessary to assess their suitability for this new contract. Comparing their historical service delivery against the specific SOW requirements will highlight areas of strength and potential concern.
Are there any identified risks associated with the transition of services or potential contractor performance issues given the contract's duration?
The contract's long duration (ending in 2032) necessitates proactive risk management. Potential risks include contractor performance degradation over time, changes in technology impacting service needs, and the possibility of key personnel turnover. The FAA should implement regular performance reviews and contingency plans to mitigate these risks.
How does the annual cost of this contract compare to industry benchmarks for similar Air Traffic Control services?
Without specific cost breakdowns and detailed service level agreements, a precise benchmark is difficult. However, the total contract value of $8.6 million over approximately 7 years suggests an average annual cost of roughly $1.2 million. This figure should be compared against publicly available data for similar FAA contracts or private sector ATC service providers.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: 693KA7-23-R-00003
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 12930 WORLDGATE DR, HERNDON, VA, 20170
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $36,768,293
Exercised Options: $8,603,728
Current Obligation: $8,603,728
Actual Outlays: $5,114,236
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-11-27
Current End Date: 2032-01-31
Potential End Date: 2032-01-31 00:00:00
Last Modified: 2026-03-11
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