FAA's $505M T5 Contract for Aviation CIP and Programs Awarded to PTSI Managed Services Inc
Contract Overview
Contract Amount: $505,177,303 ($505.2M)
Contractor: Ptsi Managed Services Inc
Awarding Agency: Department of Transportation
Start Date: 2023-03-30
End Date: 2030-04-05
Contract Duration: 2,563 days
Daily Burn Rate: $197.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: THE T5 CONTRACT WILL SUPPORT IMPLEMENTATION OF THE FEDERAL AVIATION ADMINISTRATION AVIATION CIP AND CERTAIN REIMBURSABLE PROGRAMS INCLUDING THOSE ARISING FROM AIP APPROPRIATIONS AND OTHER DIRECTLY FUNDED AND REIMBURSABLE PROJECTS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $505.2 million to PTSI MANAGED SERVICES INC for work described as: THE T5 CONTRACT WILL SUPPORT IMPLEMENTATION OF THE FEDERAL AVIATION ADMINISTRATION AVIATION CIP AND CERTAIN REIMBURSABLE PROGRAMS INCLUDING THOSE ARISING FROM AIP APPROPRIATIONS AND OTHER DIRECTLY FUNDED AND REIMBURSABLE PROJECTS Key points: 1. The contract supports critical FAA aviation infrastructure and programs. 2. PTSI Managed Services Inc. is the primary contractor. 3. The contract value is substantial at over $505 million. 4. It spans over 6 years, indicating long-term support needs. 5. The sector is professional, scientific, and technical services.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar CPAF contracts for professional services is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPAF structure are not detailed, making it hard to assess optimal price realization.
Taxpayer Impact: Taxpayer funds are being used for essential aviation infrastructure and program support. The CPAF structure necessitates careful oversight to ensure cost efficiency.
Public Impact
Ensures continued development and maintenance of the national aviation system. Supports various FAA programs, potentially impacting air travel safety and efficiency. The long duration suggests a significant, ongoing need for these services. Funding comes from appropriations and other directly funded/reimbursable projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) contract type can incentivize cost overruns.
- Lack of detailed cost breakdown makes true value assessment challenging.
- Long contract duration increases exposure to potential scope creep or changing requirements.
Positive Signals
- Awarded under full and open competition.
- Supports critical national infrastructure (FAA Aviation CIP).
- Long-term commitment indicates a recognized and sustained need.
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). Spending in this broad category can vary significantly, but large-scale infrastructure support contracts like this represent a substantial portion of government technical services expenditure.
Small Business Impact
The data indicates that small business participation (sb) is false, meaning there is no explicit set-aside or reporting requirement for small businesses in this contract based on the provided fields.
Oversight & Accountability
The Cost Plus Award Fee structure requires robust oversight from the FAA to ensure performance targets are met and costs are controlled. Award fees should be tied to measurable outcomes to ensure accountability.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure.
- Long contract duration.
- Lack of detailed cost transparency.
- No explicit small business participation noted.
- Broad 'All Other Professional, Scientific, and Technical Services' category.
Tags
all-other-professional-scientific-and-te, department-of-transportation, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $505.2 million to PTSI MANAGED SERVICES INC. THE T5 CONTRACT WILL SUPPORT IMPLEMENTATION OF THE FEDERAL AVIATION ADMINISTRATION AVIATION CIP AND CERTAIN REIMBURSABLE PROGRAMS INCLUDING THOSE ARISING FROM AIP APPROPRIATIONS AND OTHER DIRECTLY FUNDED AND REIMBURSABLE PROJECTS
Who is the contractor on this award?
The obligated recipient is PTSI MANAGED SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $505.2 million.
What is the period of performance?
Start: 2023-03-30. End: 2030-04-05.
How effectively are award fees structured to incentivize cost control and performance within the CPAF model?
The effectiveness hinges on the specific metrics and targets defined in the contract's award fee plan. Without visibility into these details, it's difficult to assess. Well-defined, objective performance metrics tied to cost efficiency and program delivery are crucial for ensuring the CPAF structure drives value rather than simply increasing costs.
What are the primary risks associated with the long duration and CPAF structure of this contract?
The primary risks include potential cost escalation due to the CPAF's fee structure, which can incentivize spending. The long duration (over 6 years) increases the risk of requirements becoming outdated, scope creep, or contractor performance degradation over time. Inadequate oversight could exacerbate these issues, leading to diminished value for taxpayer investment.
How does this contract's spending align with broader FAA modernization and infrastructure goals?
This contract directly supports the FAA Aviation CIP and other programs, indicating alignment with infrastructure goals. The substantial funding suggests it's a key component of the FAA's strategy. However, a deeper analysis would require understanding how the T5 contract's specific deliverables contribute to overarching modernization objectives and performance metrics.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Address: 100 W WALNUT ST, PASADENA, CA, 91124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $640,774,685
Exercised Options: $505,177,303
Current Obligation: $505,177,303
Actual Outlays: $221,065,430
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA923D00005
IDV Type: IDC
Timeline
Start Date: 2023-03-30
Current End Date: 2030-04-05
Potential End Date: 2030-04-05 00:00:00
Last Modified: 2026-04-10
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