Dod's $54M Air Traffic Control Contract Awarded to Midwest AIR Traffic Control Service Inc
Contract Overview
Contract Amount: $54,265,444 ($54.3M)
Contractor: Midwest AIR Traffic Control Service Inc
Awarding Agency: Department of Defense
Start Date: 2016-05-20
End Date: 2020-02-29
Contract Duration: 1,380 days
Daily Burn Rate: $39.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: IGF::OT::IGF
Plain-Language Summary
Department of Defense obligated $54.3 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $54.26 million. 2. Awarded under full and open competition, suggesting market availability. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Engineering Services sector, crucial for operational support.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type carries inherent risk for cost control. Without specific benchmarks for similar air traffic control engineering services, it's difficult to definitively assess pricing efficiency, but CPFF contracts often require close monitoring to prevent excessive spending.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offering.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, though the CPFF structure necessitates vigilance to control final costs.
Public Impact
Ensures continued operational capability for Air Force air traffic control. Supports critical infrastructure maintenance and engineering services. Potential for cost escalation due to CPFF contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Lack of specific unit cost benchmarks
Positive Signals
- Awarded via full and open competition
- Supports critical infrastructure
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting air traffic control operations. Spending in this sector is vital for national infrastructure and defense readiness. Benchmarks for similar large-scale engineering support contracts would provide further context.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract was awarded via a delivery order under a larger contract, suggesting a framework for oversight is in place. However, the CPFF structure requires robust monitoring by the Air Force to ensure costs remain reasonable and within scope.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Lack of specific unit cost data makes price efficiency assessment difficult.
- Potential for scope creep without stringent oversight.
- Limited information on small business participation.
Tags
engineering-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.3 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is MIDWEST AIR TRAFFIC CONTROL SERVICE INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $54.3 million.
What is the period of performance?
Start: 2016-05-20. End: 2020-02-29.
What is the typical profit margin for Cost Plus Fixed Fee contracts in the engineering services sector, and how does this contract's fixed fee compare?
Profit margins for CPFF contracts in engineering services can vary based on complexity, risk, and market conditions. Typically, the fixed fee is negotiated as a percentage of the estimated cost. Without knowing the estimated cost and the negotiated fixed fee for this specific contract, a direct comparison is impossible. However, agencies should ensure the fixed fee is reasonable and reflects the level of effort and risk involved.
What specific engineering services are covered under this contract, and are there performance metrics to ensure quality and timeliness?
The contract specifies 'Engineering Services' for air traffic control. Detailed performance metrics and service level agreements are crucial for ensuring the quality and timeliness of these essential services. The contract's structure, particularly the delivery order nature, should outline specific deliverables and performance standards to be met by MIDWEST AIR TRAFFIC CONTROL SERVICE INC.
How does the duration and value of this contract compare to similar air traffic control engineering support contracts awarded by the Department of Defense?
This contract spans approximately 3.7 years (from May 2016 to Feb 2020) with a total value of $54.26 million. Comparing this to similar contracts would require access to a broader dataset of DoD procurements for air traffic control engineering services. Factors like scope, complexity, and specific technological requirements would influence comparisons.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 7285 W 132ND ST STE 340, OVERLAND PARK, KS, 66213
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $80,012,160
Exercised Options: $80,012,160
Current Obligation: $54,265,444
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523614D4984
IDV Type: IDC
Timeline
Start Date: 2016-05-20
Current End Date: 2020-02-29
Potential End Date: 2020-02-29 00:00:00
Last Modified: 2024-03-01
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