DOT's FAA Awards $94M Engineering Services Contract to LS Technologies LLC Under Full and Open Competition

Contract Overview

Contract Amount: $94,231,545 ($94.2M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2021-08-19

End Date: 2026-02-28

Contract Duration: 1,654 days

Daily Burn Rate: $57.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OTHER FUNCTIONS

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22031

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $94.2 million to LS TECHNOLOGIES LLC for work described as: OTHER FUNCTIONS Key points: 1. Significant contract value of $94.2 million awarded. 2. LS Technologies LLC, a small business, is the prime contractor. 3. Contract spans over 4 years, indicating long-term need. 4. Engineering services are critical for infrastructure and operational support.

Value Assessment

Rating: good

The contract value of $94.2 million for engineering services appears reasonable given the 4-year duration and the nature of the services provided. Benchmarking against similar large-scale engineering support contracts would provide further clarity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to competitive pricing.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds for essential engineering services.

Public Impact

Supports critical infrastructure projects within the Federal Aviation Administration. Ensures continued operational efficiency and safety through expert engineering. Provides specialized technical expertise to the Department of Transportation.

Waste & Efficiency Indicators

Waste Risk Score: 57 / 10

Warning Flags

Potential for scope creep in long-term engineering contracts.
Reliance on a single contractor for critical services.
Need for ongoing performance monitoring to ensure quality.

Positive Signals

Awarded through full and open competition.
Contractor is a small business.
Long-term duration indicates sustained need and potential for stable support.

Sector Analysis

This contract falls within the engineering services sector, which is vital for government infrastructure and operational support. Spending in this area is often driven by modernization efforts and maintenance requirements.

Small Business Impact

LS Technologies LLC is the prime contractor, indicating a successful award to a small business. Further analysis would be needed to determine the extent of subcontracting to other small businesses.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Federal Aviation Administration to ensure performance standards are met and funds are used efficiently.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Long contract duration may lead to vendor lock-in.
Need for detailed performance metrics and oversight.
Scope definition critical for managing expectations and deliverables.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $94.2 million to LS TECHNOLOGIES LLC. OTHER FUNCTIONS

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 $94.2 million.

What is the period of performance?

Start: 2021-08-19. End: 2026-02-28.

What specific engineering disciplines are covered under this contract, and how do they align with current FAA modernization priorities?

The contract specifies 'Engineering Services' (NAICS 541330), which is broad. Detailed task orders would outline specific disciplines like aerospace, civil, electrical, or systems engineering. Alignment with FAA priorities like NextGen implementation, infrastructure upgrades, or safety system enhancements would be crucial for assessing value.

What are the key performance indicators (KPIs) for LS Technologies LLC, and how will their performance be measured to ensure effectiveness?

Effective oversight would involve defining clear KPIs related to project timelines, budget adherence, technical accuracy, and responsiveness. Regular performance reviews and milestone tracking are essential. The FAA's quality assurance surveillance plan (QASP) would detail these metrics and the process for evaluating LS Technologies' delivery.

Given the 'Time and Materials' pricing structure, what controls are in place to prevent cost overruns and ensure fair pricing?

Time and Materials (T&M) contracts require stringent controls. The FAA must establish labor hour limitations, pre-negotiated rates, and clear scope definitions for each task order. Regular audits and close monitoring of hours billed against work completed are critical to prevent overruns and ensure the taxpayer receives good value.

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: $94,231,545

Exercised Options: $94,231,545

Current Obligation: $94,231,545

Actual Outlays: $90,010,251

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $38,556,975

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