FAA awards $27.6M lease for Oklahoma City Airport maintenance, insurance, and land rental

Contract Overview

Contract Amount: $27,629,414 ($27.6M)

Contractor: Oklahoma City Airport Trust

Awarding Agency: Department of Transportation

Start Date: 2003-12-10

End Date: 2028-06-30

Contract Duration: 8,969 days

Daily Burn Rate: $3.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: RECONSTRUCTED LINE TO CREATE PO FOR MAINTENANCE, INSURANCE, AND LAND RENTAL UNDER LEASE DOT-FA71AC-2103.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73159

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $27.6 million to OKLAHOMA CITY AIRPORT TRUST for work described as: RECONSTRUCTED LINE TO CREATE PO FOR MAINTENANCE, INSURANCE, AND LAND RENTAL UNDER LEASE DOT-FA71AC-2103. Key points: 1. Lease agreement for essential airport operations. 2. Significant duration of nearly 25 years. 3. No competition cited, raising potential value concerns. 4. Sector: Transportation (Airports).

Value Assessment

Rating: questionable

The contract value is substantial over its long duration. Without competitive bidding, it's difficult to assess if the pricing reflects fair market value for lease, maintenance, and insurance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED,' indicating a limited competition approach. This lack of competition may have hindered price discovery and potentially led to a higher cost for the government.

Taxpayer Impact: The long-term nature and lack of competition suggest taxpayers may be paying a premium for these essential airport services.

Public Impact

Ensures continued operation and maintenance of critical airport infrastructure. Provides necessary insurance coverage for the leased property. Supports land rental for airport facilities, vital for air travel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Potential for price escalation

Positive Signals

Ensures essential services are provided
Stable operational environment for the airport

Sector Analysis

This contract falls within the Transportation sector, specifically related to airport operations and infrastructure. Spending benchmarks for similar long-term leases with maintenance and insurance components can vary widely based on location and facility type.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract. The 'NOT COMPETED' status suggests opportunities for small business participation may have been limited.

Oversight & Accountability

The contract is managed by the Federal Aviation Administration (FAA). Oversight would focus on ensuring the terms of the lease, maintenance, and insurance are met throughout the contract period, especially given the long duration and lack of initial competition.

Related Government Programs

Lessors of Nonresidential Buildings (except Miniwarehouses)
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Lack of competition
Long contract duration (nearly 25 years)
Potential for inflated pricing
Limited transparency on justification for non-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $27.6 million to OKLAHOMA CITY AIRPORT TRUST. RECONSTRUCTED LINE TO CREATE PO FOR MAINTENANCE, INSURANCE, AND LAND RENTAL UNDER LEASE DOT-FA71AC-2103.

Who is the contractor on this award?

The obligated recipient is OKLAHOMA CITY AIRPORT TRUST.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27.6 million.

What is the period of performance?

Start: 2003-12-10. End: 2028-06-30.

What was the justification for not competing this lease agreement?

The justification for not competing this lease agreement is not provided in the data. Typically, sole-source or limited competition awards require a documented justification, such as a specific need that only one vendor can fulfill, or if competition is deemed not practicable or not in the government's best interest. Further investigation into FAA procurement records would be needed.

What are the risks associated with a long-term, non-competed lease for airport services?

The primary risks include paying above-market rates due to a lack of competitive pressure, potential for service quality degradation over time if performance is not rigorously monitored, and missed opportunities to leverage new technologies or more cost-effective solutions that might emerge. The long duration also locks the government into these terms for an extended period.

How does this contract contribute to the overall effectiveness of the Oklahoma City Airport?

This contract is crucial for the airport's effectiveness by ensuring the physical space is maintained, insured, and legally accessible through the land rental. It provides a stable foundation for air traffic operations and passenger services. However, the effectiveness in terms of cost-efficiency is questionable due to the non-competed nature.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Lessors of Real Estate › Lessors of Nonresidential Buildings (except Miniwarehouses)

Product/Service Code: LEASE/RENT FACILITIES › LEASE/RENTAL OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7100 TERMINAL DR UNIT 937, OKLAHOMA CITY, OK, 90

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,201,694,944

Exercised Options: $58,879,814

Current Obligation: $27,629,414

Timeline