DOT awards $5.2M for air traffic flow management support, with 5 bidders competing

Contract Overview

Contract Amount: $5,194,825 ($5.2M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2021-09-08

End Date: 2026-09-30

Contract Duration: 1,848 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT TRAFFIC FLOW MANAGEMENT RAPID DEVELOPMENT & DEPLOYMENT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $5.2 million to LS TECHNOLOGIES LLC for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT TRAFFIC FLOW MANAGEMENT RAPID DEVELOPMENT & DEPLOYMENT. Key points: 1. Contract focuses on rapid development and deployment for traffic flow management. 2. Competition involved 5 bidders, suggesting a moderately competitive environment. 3. Risk indicators are moderate given the time and materials contract type. 4. Performance context is tied to ongoing air traffic management modernization. 5. Sector positioning is within engineering services supporting critical infrastructure.

Value Assessment

Rating: fair

The contract's value of $5.2 million for 1848 days of support appears reasonable on a daily basis, approximately $2,811 per day. Benchmarking against similar contracts for engineering services in air traffic management is difficult without more specific service details. However, the time and materials pricing structure warrants careful monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: $2,811 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bids received. The presence of multiple bidders indicates a healthy level of interest and suggests that the government likely received a range of pricing and technical proposals. This competitive process is generally favorable for price discovery and ensuring the government obtains services at a fair market price.

Taxpayer Impact: The full and open competition with five bidders is positive for taxpayers, as it likely drove down costs through competitive pressure and provided a wider selection of qualified contractors.

Public Impact

Benefits the Federal Aviation Administration (FAA) by providing essential support for traffic flow management systems. Services delivered include rapid development and deployment, crucial for modernizing air traffic control. Geographic impact is national, as air traffic flow management affects the entire U.S. airspace. Workforce implications include the need for specialized engineering and technical talent to support the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not closely managed.
The duration of the contract (over 4 years) requires sustained oversight to ensure continued value.
Dependence on specific technical expertise may create a single point of failure if key personnel leave.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Multiple bidders (5) suggest a competitive market for these specialized services.
The contract supports a critical function (traffic flow management) for national airspace safety and efficiency.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of the federal contracting landscape, particularly for agencies managing complex infrastructure like the FAA. The market for air traffic management technology and support services is specialized, involving a mix of large aerospace firms and smaller, highly technical engineering companies. Spending in this area is driven by the need for continuous modernization and efficiency improvements in national airspace systems.

Small Business Impact

This contract was not specifically set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The prime contractor, LS Technologies LLC, is a small business, which is a positive signal for the small business ecosystem. However, the overall impact on the broader small business landscape depends on whether LS Technologies LLC further utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Federal Aviation Administration (FAA). As a delivery order under a larger contract vehicle, the oversight mechanisms are likely established within the parent contract's terms. Transparency is expected through contract reporting requirements. The specific Inspector General jurisdiction would be the Department of Transportation's Office of Inspector General.

Related Government Programs

Air Traffic Control Modernization Programs
NextGen Air Transportation System
FAA Systems Engineering Support Contracts
Aviation Safety and Security Initiatives

Risk Flags

Time and Materials Pricing
Contract Duration
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.2 million to LS TECHNOLOGIES LLC. THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT TRAFFIC FLOW MANAGEMENT RAPID DEVELOPMENT & DEPLOYMENT.

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 $5.2 million.

What is the period of performance?

Start: 2021-09-08. End: 2026-09-30.

What is the track record of LS Technologies LLC in performing similar air traffic management support services for the federal government?

LS Technologies LLC has a history of supporting federal agencies, including the FAA, with various technical and engineering services. Their portfolio often includes work related to air traffic management, systems engineering, and operational support. While specific details on past performance for traffic flow management rapid development and deployment are not provided in this summary, their general experience in the aviation sector suggests a foundational understanding of the domain. A deeper dive into their contract history, past performance evaluations, and client feedback would be necessary to fully assess their capabilities and reliability for this specific task order.

How does the awarded amount of $5.2 million compare to the estimated value or budget for similar air traffic flow management support contracts?

Direct comparison of the $5.2 million award is challenging without knowing the specific scope, duration, and complexity of services required. However, the contract duration of 1848 days (approximately 5 years) and the daily rate of roughly $2,811 suggest a moderate investment. Larger, more comprehensive air traffic management system development or modernization projects can run into hundreds of millions or even billions of dollars. This task order appears to focus on a specific, albeit important, aspect of traffic flow management support, likely involving specialized engineering and development efforts rather than a complete system overhaul. Benchmarking against contracts for similar 'rapid development and deployment' services within the FAA or other transportation agencies would provide a more accurate context.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services in a rapidly evolving field like air traffic management?

The primary risk with a T&M contract for rapid development in air traffic management is cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours and costs incurred, plus a fee. If project requirements are not tightly defined, or if development timelines extend unexpectedly, costs can significantly exceed initial estimates. This is particularly concerning in a field requiring cutting-edge solutions where unforeseen technical challenges or scope adjustments are common. Effective oversight, clear task definitions, and robust change control processes are crucial to mitigate these risks and ensure the government receives good value.

How effective is the 'full and open competition' with five bidders in ensuring optimal price discovery and contractor performance for this type of specialized engineering service?

Full and open competition with five bidders is generally considered a strong mechanism for price discovery and ensuring a competitive landscape. The presence of multiple qualified bidders suggests that the FAA likely received a range of technical approaches and price points, allowing them to select the best value. For specialized engineering services like air traffic flow management support, a competitive process helps ensure that contractors are incentivized to offer efficient solutions and fair pricing. The number of bidders (five) indicates sufficient market interest without being so large as to make the evaluation process overly burdensome. This level of competition typically leads to better outcomes for taxpayers by fostering innovation and cost-consciousness among contractors.

What is the historical spending trend for air traffic flow management support services by the Federal Aviation Administration?

Historical spending on air traffic flow management (ATFM) support services by the FAA has been substantial and is closely tied to the agency's continuous efforts to modernize the National Airspace System (NAS). Significant investments have been made in programs like the Next Generation Air Transportation System (NextGen), which aims to improve capacity, efficiency, and safety through advanced technologies. Spending in this area encompasses various categories, including software development, systems engineering, hardware integration, and operational support. While the specific $5.2 million task order represents a discrete investment, it is part of a larger, ongoing commitment to enhancing ATFM capabilities. Analyzing FAA's budget allocations and contract awards over the past decade would reveal trends in investment priorities and the types of services procured for ATFM.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,745,279

Exercised Options: $5,794,825

Current Obligation: $5,194,825

Actual Outlays: $4,370,172

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,376,119

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA921D00002

IDV Type: IDC

Timeline