DOT's FAA awards $24.8M engineering services contract to LS Technologies LLC, spanning 9 years

Contract Overview

Contract Amount: $24,831,822 ($24.8M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2017-04-06

End Date: 2026-08-09

Contract Duration: 3,412 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF

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 $24.8 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF Key points: 1. Contract value represents a significant investment in engineering expertise for the FAA. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The long duration of the contract (over 9 years) indicates a need for sustained support. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The contract's focus on engineering services aligns with critical infrastructure development and maintenance. 6. The geographic focus on Washington D.C. may indicate a concentration of essential FAA operations in the region.

Value Assessment

Rating: fair

The total contract value of $24.8 million over approximately 9 years averages to about $2.75 million annually. Benchmarking this against similar engineering services contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not meticulously monitored. The absence of a fixed price or cost-plus-fixed-fee structure suggests a potential for higher overall expenditure compared to more constrained pricing models.

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,' which is a complex designation. It implies that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bidders is not specified, but the 'full and open' aspect suggests an intent to solicit from a wide range of qualified contractors. This approach generally aims to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining the best value through a wider pool of offers. However, the 'after exclusion of sources' clause warrants further scrutiny to understand if any potential cost-saving competition was inadvertently limited.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential engineering support. Services delivered likely include technical analysis, design, planning, and oversight for aviation infrastructure and systems. The contract's primary geographic impact is in Washington D.C., where the contractor is based. The contract supports a workforce of engineers and technical specialists, contributing to the federal engineering sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to unpredictable costs and potential overruns if not managed rigorously.
The 'after exclusion of sources' clause in the competition type requires understanding the rationale behind exclusions to ensure maximum competition.
The long contract duration (over 9 years) necessitates robust performance monitoring to ensure continued value and alignment with evolving needs.
Lack of specific performance metrics or deliverables in the provided data makes it difficult to assess the efficiency of service delivery.

Positive Signals

Awarded through a full and open competition process, indicating an effort to leverage market competition for best value.
The contract addresses a long-term need for engineering services, suggesting strategic planning by the FAA.
The contractor, LS Technologies LLC, is established, implying a level of experience and capability.
The contract value, while substantial, is spread over a significant period, potentially allowing for phased resource allocation.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the professional, scientific, and technical services industry. This sector supports a wide range of government functions, including infrastructure development, research, and operational support. The market for federal engineering services is substantial, with agencies like the Department of Transportation consistently investing in expertise to manage complex projects. This contract represents a portion of the FAA's broader spending on technical and engineering support, likely complementing other contracts for specific projects or broader program management.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this contract. This suggests that the primary focus was on securing the most capable contractor through open competition, rather than prioritizing small business awards. Consequently, there are no direct subcontracting implications for small businesses mandated by this contract's structure. The impact on the small business ecosystem is neutral, as it does not appear to actively promote or hinder small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Federal Aviation Administration (FAA). Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. The Inspector General's office for the Department of Transportation may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Department of Transportation - General Operations
Federal Aviation Administration - Air Traffic Control Modernization
Engineering and Technical Services Contracts
Professional and Technical Services Spending
Long-Term Government Service Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Need for clear justification of 'exclusion of sources' in competition.
Requirement for robust performance monitoring over the 9-year duration.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.8 million to LS TECHNOLOGIES LLC. IGF::OT::IGF

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 $24.8 million.

What is the period of performance?

Start: 2017-04-06. End: 2026-08-09.

What is the specific nature of the engineering services provided under this contract?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. While the specific tasks are not detailed, this category typically encompasses a broad range of activities such as systems engineering, design, analysis, planning, testing, and technical consulting. For the FAA, these services could relate to air traffic control systems, airport infrastructure, aircraft safety standards, or aviation technology research and development. Understanding the precise deliverables and technical requirements would be crucial for a comprehensive assessment of value and performance.

How does the $24.8 million contract value compare to historical FAA spending on similar engineering services?

Without specific details on the scope of services, a direct comparison of the $24.8 million value is difficult. However, the FAA consistently procures significant engineering and technical support. Annual spending on engineering services can range from tens to hundreds of millions of dollars, depending on major modernization efforts or infrastructure projects. This $24.8 million award, spread over 9 years, represents an average annual expenditure of approximately $2.75 million. This figure appears moderate when viewed against the FAA's overall budget and capital investment programs, suggesting it might fund a specific program area or a dedicated team rather than a massive overhaul.

What are the potential risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk with Time and Materials (T&M) contracts is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a markup. Unlike fixed-price contracts, there is less incentive for the contractor to control costs efficiently. This necessitates robust government oversight, including detailed monitoring of labor hours, rates, and material expenses, to prevent overcharging and ensure the work remains within budget expectations. Without stringent controls, T&M can become significantly more expensive than anticipated.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for cost and competition?

This designation suggests a nuanced approach to competition. 'Full and Open Competition' is the preferred method, aiming to solicit offers from all responsible sources. However, the 'after exclusion of sources' clause indicates that certain potential bidders were intentionally excluded based on specific criteria or justifications (e.g., national security, prior performance issues, or specific technical requirements). While it aims for broad participation, the exclusions could potentially limit the number of bidders and, consequently, the intensity of price competition. The justification for these exclusions is key to understanding if the government achieved optimal price discovery.

What is the track record of LS Technologies LLC in performing federal engineering contracts?

LS Technologies LLC has a history of performing federal contracts, primarily within the Department of Transportation and related agencies. Publicly available data suggests they have been awarded multiple contracts, often in areas related to aviation systems, engineering support, and program management. Assessing their specific track record would involve reviewing past performance evaluations, on-time delivery rates, and adherence to budget on previous similar contracts. A deeper dive into their performance history would provide better insight into their reliability and capability for this current $24.8 million award.

How does this contract fit into the broader landscape of FAA's technology and infrastructure investments?

This contract likely supports the FAA's ongoing efforts to modernize and maintain its complex infrastructure, which includes air traffic control systems, navigation aids, and communication networks. Investments in engineering services are crucial for planning, designing, and overseeing these upgrades. The $24.8 million value, spread over 9 years, suggests a sustained need for specialized expertise, possibly related to specific technology integration projects, safety enhancements, or regulatory compliance initiatives within the aviation sector. It represents a component of the FAA's larger capital improvement and operational support strategy.

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: $26,329,289

Exercised Options: $24,831,822

Current Obligation: $24,831,822

Actual Outlays: $17,055,803

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,590,859

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