DOT Awards $121.7M for FAA Production Equipment, Software, and Warranty to Indra Air Traffic

Contract Overview

Contract Amount: $121,703,368 ($121.7M)

Contractor: Indra AIR Traffic, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-09-12

End Date: 2034-08-29

Contract Duration: 3,273 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ORDER AND FUND YEAR 2 PRODUCTION EQUIPMENT, WARRANTY, AND MDT SOFTWARE.

Place of Performance

Location: OVERLAND PARK, JOHNSON County, KANSAS, 66214

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $121.7 million to INDRA AIR TRAFFIC, INC. for work described as: ORDER AND FUND YEAR 2 PRODUCTION EQUIPMENT, WARRANTY, AND MDT SOFTWARE. Key points: 1. Significant investment in critical air traffic control infrastructure. 2. Sole provider for specialized equipment may limit future competition. 3. Long-term contract (2025-2034) requires careful performance monitoring. 4. Focus on production equipment and software highlights modernization efforts.

Value Assessment

Rating: fair

The contract value of $121.7M over 9 years appears substantial. Benchmarking against similar large-scale air traffic control system procurements is necessary to assess value, as specific comparable contracts are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of 'production equipment, warranty, and MDT software' might lead to limited vendor options for specialized components.

Taxpayer Impact: Taxpayer funds are allocated for essential upgrades to air traffic control systems, aiming for improved safety and efficiency.

Public Impact

Enhances the safety and efficiency of the National Airspace System. Supports the modernization of air traffic control technology. Ensures continued operation and maintenance of critical FAA systems. Potential for job creation in manufacturing and technical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration increases risk of cost overruns or obsolescence.
Reliance on a single vendor for specialized equipment could lead to lock-in.
Potential for scope creep if additional software or hardware needs arise.

Positive Signals

Addresses critical infrastructure needs for air traffic management.
Secures necessary equipment and software for future operations.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the IT and Defense/Aerospace sectors, specifically related to air traffic control systems. Spending benchmarks for similar large-scale, specialized equipment procurements are difficult to ascertain without more granular data on system components and integration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. Given the specialized nature of air traffic control equipment, it is likely that larger, established companies are the primary participants in such contracts.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely delivery, adherence to specifications, and effective management of the long-term warranty and software support.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long-term contract duration (9 years)
Potential for vendor lock-in due to specialized nature
Risk of technology obsolescence over contract term
Dependence on a single supplier for critical components

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $121.7 million to INDRA AIR TRAFFIC, INC.. ORDER AND FUND YEAR 2 PRODUCTION EQUIPMENT, WARRANTY, AND MDT SOFTWARE.

Who is the contractor on this award?

The obligated recipient is INDRA AIR TRAFFIC, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $121.7 million.

What is the period of performance?

Start: 2025-09-12. End: 2034-08-29.

What is the specific breakdown of costs for production equipment versus software and warranty?

The provided data aggregates the total contract value without itemizing costs for production equipment, warranty, and MDT software. A detailed cost breakdown would allow for a more precise assessment of value for money across these different components and identify potential areas for cost savings or negotiation in future procurements.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness?

Key performance indicators should focus on the reliability and uptime of the production equipment, the successful implementation and functionality of the MDT software, and the responsiveness and effectiveness of the warranty support. Establishing clear, measurable KPIs will enable the FAA to track contractor performance and ensure the contract delivers the intended operational benefits.

What is the long-term strategy for managing technology obsolescence with this equipment and software?

Given the contract's duration extending to 2034, a proactive strategy for managing technology obsolescence is critical. This should involve regular reviews of technological advancements, clear contractual clauses for software updates and hardware refresh cycles, and contingency planning for potential upgrades or replacements to ensure the system remains current and effective.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11300 W 89TH ST, OVERLAND PARK, KS, 66214

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $121,703,368

Exercised Options: $121,703,368

Current Obligation: $121,703,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA824D00016

IDV Type: IDC

Timeline