DOT's FAA Spends $2.3M on RTCA Membership for Regulatory Compliance Standards

Contract Overview

Contract Amount: $2,341,818 ($2.3M)

Contractor: Rtca Inc

Awarding Agency: Department of Transportation

Start Date: 2021-12-01

End Date: 2026-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RTCA PROFESSIONAL MEMBERSHIP SERVICE AND INCLUSION IN COMMITTEE DEVELOPMENT OF COMPREHENSIVE, INDUSTRY-VETTED AND ENDORSED STANDARDS AND GUIDANCE USED AS MEANS OF COMPLIANCE WITH FEDERAL AVIATION ADMINISTRATION (FAA) REGULATIONS. PROFESSIONAL MEMBER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.3 million to RTCA INC for work described as: RTCA PROFESSIONAL MEMBERSHIP SERVICE AND INCLUSION IN COMMITTEE DEVELOPMENT OF COMPREHENSIVE, INDUSTRY-VETTED AND ENDORSED STANDARDS AND GUIDANCE USED AS MEANS OF COMPLIANCE WITH FEDERAL AVIATION ADMINISTRATION (FAA) REGULATIONS. PROFESSIONAL MEMBER Key points: 1. RTCA membership provides access to industry-vetted standards crucial for FAA regulatory compliance. 2. The contract value of $2.3M over five years appears reasonable for access to critical guidance. 3. Potential risk exists if RTCA standards become outdated or fail to keep pace with technological advancements. 4. This spending falls within the professional organizations sector, supporting regulatory infrastructure.

Value Assessment

Rating: good

The $2.3M contract value over five years for RTCA membership seems fair given the essential nature of the standards for FAA compliance. Benchmarking against similar professional organization memberships for regulatory bodies suggests this is within an expected range.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may have impacted price discovery, as alternative providers of similar standards development services were not fully considered.

Taxpayer Impact: Taxpayers benefit from ensured regulatory compliance in aviation, which supports safety and industry stability. However, the limited competition might mean a less optimal price than if broader options were explored.

Public Impact

Ensures aviation safety and compliance through adherence to industry-developed standards. Supports the development of critical guidance used by the FAA. Facilitates collaboration between government and industry on aviation regulations. Provides a mechanism for continuous improvement of aviation standards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Reliance on a single organization for critical standards.
Potential for standards to become outdated.

Positive Signals

Ensures access to essential regulatory compliance tools.
Supports a vital sector of the economy.
Facilitates industry-government collaboration.

Sector Analysis

This contract falls within the professional organizations sector, specifically supporting the Federal Aviation Administration's need for industry-vetted standards. Spending in this area is crucial for maintaining regulatory frameworks and ensuring safety in complex industries like aviation.

Small Business Impact

This contract does not appear to directly benefit small businesses, as RTCA Inc. is the sole awardee and is likely a larger entity. There is no indication of subcontracting opportunities for small businesses within this agreement.

Oversight & Accountability

The contract is managed by the Federal Aviation Administration, a component of the Department of Transportation. Oversight would involve ensuring RTCA fulfills its obligations in standards development and that the membership provides the intended value for regulatory compliance.

Related Government Programs

Professional Organizations
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition may lead to higher costs.
Potential for standards to become outdated.
Dependence on a single organization for critical guidance.
Lack of direct small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.3 million to RTCA INC. RTCA PROFESSIONAL MEMBERSHIP SERVICE AND INCLUSION IN COMMITTEE DEVELOPMENT OF COMPREHENSIVE, INDUSTRY-VETTED AND ENDORSED STANDARDS AND GUIDANCE USED AS MEANS OF COMPLIANCE WITH FEDERAL AVIATION ADMINISTRATION (FAA) REGULATIONS. PROFESSIONAL MEMBER

Who is the contractor on this award?

The obligated recipient is RTCA INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.3 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-11-30.

What is the specific value proposition of RTCA membership beyond just compliance, and how is this value measured?

The value proposition extends to RTCA's role in fostering innovation and consensus-building within the aviation industry, leading to more practical and effective standards. Measuring this value involves tracking the adoption rate of RTCA standards by the FAA and other global aviation authorities, as well as assessing the impact of these standards on safety incident rates and operational efficiency.

What are the risks associated with relying on a single entity like RTCA for critical aviation standards development?

The primary risk is a potential lack of diverse perspectives, leading to standards that may not fully address emerging technologies or unique operational challenges. There's also a risk of vendor lock-in and potential stagnation if RTCA's processes become bureaucratic or slow to adapt. Ensuring continuous engagement with a broad spectrum of stakeholders and independent review mechanisms can mitigate these risks.

How effectively does this contract ensure that FAA regulations remain current and relevant in a rapidly evolving aviation landscape?

The contract's effectiveness hinges on RTCA's ability to proactively engage with industry and anticipate future needs. While RTCA provides a structured process for standards development, the FAA must actively monitor RTCA's output and provide timely feedback to ensure regulations remain current. The limited competition aspect raises questions about whether alternative mechanisms could foster more dynamic standard evolution.

Industry Classification

NAICS: Other Services (except Public Administration) › Business, Professional, Labor, Political, and Similar Organizations › Professional Organizations

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1150 18TH ST NW STE 910, WASHINGTON, DC, 20036

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

Financial Breakdown

Contract Ceiling: $3,310,000

Exercised Options: $2,341,818

Current Obligation: $2,341,818

Actual Outlays: $2,341,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline