DOT awards $17.4M for FAA NAS System Program Support to LS Technologies LLC

Contract Overview

Contract Amount: $17,409,637 ($17.4M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2017-04-07

End Date: 2026-08-09

Contract Duration: 3,411 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF EPICS TASK ORDER 0003: NAS SYSTEM PROGRAM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $17.4 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF EPICS TASK ORDER 0003: NAS SYSTEM PROGRAM SUPPORT Key points: 1. Contract awarded on a time and materials basis, which can pose cost control challenges. 2. The contract duration is substantial, spanning nearly 9 years, requiring ongoing performance monitoring. 3. The award was made under full and open competition after exclusion of sources, indicating a competitive process. 4. The North American Industry Classification System (NAICS) code 541330 suggests engineering services are the primary focus. 5. The contract is a delivery order under a larger contract vehicle, implying it's part of a broader acquisition strategy. 6. The contractor, LS Technologies LLC, is a small business, which may have implications for subcontracting opportunities.

Value Assessment

Rating: fair

The contract's value of $17.4 million over approximately 9 years for system program support appears reasonable given the scope. However, the time and materials pricing structure warrants close monitoring to ensure costs remain within expected parameters. Benchmarking against similar engineering support contracts for large-scale federal programs would provide a clearer picture of value for money, but such data is not readily available in this context. The absence of a specific ceiling price in the provided data makes direct cost comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' This suggests that while the competition was open, specific sources may have been excluded based on pre-defined criteria, potentially narrowing the field of bidders. The exact number of bidders is not specified, but the designation implies a competitive process was undertaken to select the most advantageous offer.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by fostering price discovery and encouraging contractors to offer competitive terms.

Public Impact

The Federal Aviation Administration (FAA) benefits through continued support for the National Airspace System (NAS) programs. Services delivered include engineering and program support critical for the modernization and operation of the NAS. The geographic impact is national, as the NAS serves the entire United States. The contract supports skilled jobs in engineering and program management, primarily in the District of Columbia where the contractor is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials contract type can lead to cost overruns if not managed diligently.
Long contract duration requires sustained oversight to ensure continued performance and value.
Potential for scope creep in a long-term program support contract.
Limited visibility into the specific performance metrics and quality assurance measures.
The 'exclusion of sources' clause, while allowing open competition, might limit the breadth of potential bidders.

Positive Signals

Awarded through a competitive process, suggesting a vetted selection.
Contractor is a small business, potentially supporting federal small business goals.
The contract supports a critical national infrastructure program (NAS).
Long-term award provides stability for program support.
The contract is a delivery order, indicating it fits within an existing, likely pre-vetted, contract vehicle.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Federal Aviation Administration's National Airspace System (NAS) programs. The NAS is a complex, government-owned and operated air traffic control system. Spending in this sector often involves long-term, high-value contracts for specialized technical and engineering expertise required for maintaining and modernizing critical infrastructure. Comparable spending benchmarks would typically be found within other large federal agencies managing complex systems, such as defense or energy, for program management and engineering support.

Small Business Impact

LS Technologies LLC is identified as a small business. This contract award contributes to federal small business utilization goals. As a small business prime contractor, LS Technologies LLC may be required to subcontract a portion of the work to other small businesses, potentially creating opportunities within the small business ecosystem. The specific subcontracting plan requirements are not detailed here, but the award itself signifies a direct contract with a small entity for significant federal work.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation and the Federal Aviation Administration contracting officers and program managers. Given the nature of the work (NAS System Program Support), it is likely subject to regular performance reviews and audits. The Inspector General for the Department of Transportation would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is facilitated through contract award databases, but detailed performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Aviation Systems Engineering Support
National Airspace System (NAS) Operations and Maintenance
Government IT and Engineering Services Contracts
Department of Transportation Program Management Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Risk of performance degradation over the long contract duration.
Need for robust oversight to manage scope and ensure efficiency.
Potential limitations in competition due to 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.4 million to LS TECHNOLOGIES LLC. IGF::OT::IGF EPICS TASK ORDER 0003: NAS SYSTEM PROGRAM SUPPORT

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 $17.4 million.

What is the period of performance?

Start: 2017-04-07. End: 2026-08-09.

What is the track record of LS Technologies LLC in performing similar federal contracts, particularly for the FAA?

LS Technologies LLC has a history of performing federal contracts, including work with the FAA. While specific details on past performance for NAS System Program Support are not provided in this data snippet, their selection for this significant delivery order suggests they have met the necessary qualifications and demonstrated capability. Further analysis would require examining their contract history, past performance reviews, and any awards or penalties received on previous government engagements. Understanding their experience with time and materials contracts and large-scale system support would be crucial for assessing their suitability and potential risks.

How does the awarded amount compare to the estimated value or ceiling of the parent contract vehicle?

The provided data indicates this is a 'delivery order' valued at $17.4 million. Delivery orders are typically issued against indefinite-delivery, indefinite-quantity (IDIQ) or other multiple-award contract vehicles. Without information on the parent contract vehicle's total ceiling value, duration, and the number of other delivery orders issued against it, it is difficult to definitively compare this award. If the parent contract has a significantly higher ceiling, this $17.4 million order represents a portion of the total potential spending. Conversely, if it represents a substantial portion of a smaller vehicle, it suggests a significant commitment.

What are the primary risks associated with a Time and Materials (T&M) contract for engineering services?

Time and Materials (T&M) contracts carry inherent risks, primarily related to cost control. Unlike fixed-price contracts, the government pays for the actual labor hours and material costs incurred by the contractor, plus a negotiated fixed fee or fixed hourly rates. This structure can lead to cost overruns if the scope of work is not well-defined or if the contractor's efficiency is low. For engineering services, risks include potential for scope creep, inefficient use of labor, and difficulty in accurately estimating project duration and final cost. Robust oversight, clear task definitions, and diligent monitoring of labor hours and material usage are essential to mitigate these risks.

What is the significance of the 'full and open competition after exclusion of sources' award type?

The 'full and open competition after exclusion of sources' award type signifies a competitive procurement process where all responsible sources were initially considered, but certain sources were subsequently excluded based on specific, documented criteria. This could be due to factors like past performance issues, inability to meet technical requirements, or other pre-defined exclusion clauses. While it ensures a competitive environment, the exclusion of certain potential bidders might limit the range of innovative solutions or the most aggressive pricing. The rationale for exclusion must be justifiable to ensure fairness and compliance with procurement regulations.

How does the contract duration of nearly 9 years impact performance management and value assessment?

A contract duration of nearly 9 years (April 2017 to August 2026) for system program support necessitates a long-term performance management strategy. It allows for continuity and deep institutional knowledge but also increases the risk of contractor performance degradation over time, potential for complacency, and the need for sustained, vigilant oversight. Value assessment becomes a continuous process, requiring regular reviews of performance against objectives, cost efficiency, and alignment with evolving FAA needs. Periodic re-evaluations or contract modifications may be necessary to ensure the contract remains relevant and provides optimal value throughout its extended term.

What are the potential implications of LS Technologies LLC being a small business prime contractor on this large contract?

LS Technologies LLC being a small business prime contractor on a $17.4 million contract has several implications. It directly contributes to the government's small business contracting goals. It also suggests that the FAA is leveraging small businesses for critical support roles. As a prime, LS Technologies is responsible for overall contract performance. Depending on the contract's specific clauses, they may be required to subcontract a certain percentage of the work to other small businesses, fostering a broader small business ecosystem. However, managing a contract of this scale as a small business can present challenges related to resources, bonding, and technical capacity, requiring robust internal management and potentially strategic partnerships.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $20,443,889

Exercised Options: $17,409,637

Current Obligation: $17,409,637

Actual Outlays: $12,513,841

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $10,912,709

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DTFAWA17D00015

IDV Type: IDC

Timeline