DOT's FAA awards $17M engineering services contract to LS TECHNOLOGIES LLC, with 5 years remaining
Contract Overview
Contract Amount: $16,963,554 ($17.0M)
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: $5.0K/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
Plain-Language Summary
Department of Transportation obligated $17.0 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risks include contractor performance over the extended period and evolving technical requirements. 4. The contract supports critical aviation infrastructure and safety initiatives. 5. This falls within the broader engineering services sector for federal agencies. 6. The contract's duration extends well into the future, requiring ongoing monitoring.
Value Assessment
Rating: good
The contract's total value of approximately $17 million over its lifespan, ending in August 2026, suggests a moderate annual spend. Benchmarking against similar engineering services contracts for aviation infrastructure is necessary for a precise value-for-money assessment. However, the use of full and open competition implies that pricing was likely scrutinized by multiple bidders, which generally leads to more competitive rates.
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, indicating that multiple potential bidders were considered and allowed to submit proposals. The specific details of the number of bidders are not provided, but the process suggests a robust competition that should have driven fair market pricing.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes a level playing field and encourages competitive pricing, potentially leading to cost savings.
Public Impact
The Federal Aviation Administration (FAA) benefits from specialized engineering expertise. Services delivered are crucial for maintaining and improving air traffic control systems and aviation infrastructure. The contract's impact is primarily national, supporting the safety and efficiency of the U.S. airspace. This contract likely supports a workforce of engineers and technical specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep over the contract's extended duration.
- Ensuring continued alignment with evolving aviation technology standards.
- Monitoring contractor performance to ensure consistent quality of engineering services.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Contract duration provides stability for critical engineering support.
- The contractor, LS TECHNOLOGIES LLC, has a track record of performance on federal contracts.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting the aviation industry. The federal government is a significant consumer of engineering services, particularly for infrastructure projects and complex systems like air traffic control. Spending in this category is often driven by modernization efforts, safety upgrades, and maintenance of existing assets. Comparable spending benchmarks would involve analyzing other large-scale engineering contracts awarded by agencies like the Department of Defense or Department of Transportation for similar infrastructure needs.
Small Business Impact
Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. As this was awarded under full and open competition, it does not appear to be a small business set-aside. The impact on the small business ecosystem would depend on whether LS TECHNOLOGIES LLC utilizes small businesses for subcontracting opportunities, which is not specified.
Oversight & Accountability
Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Air Traffic Control Modernization
- Aviation Infrastructure Support
- Engineering and Technical Services
- Federal Aviation Administration Contracts
Risk Flags
- Long contract duration may lead to cost escalation or obsolescence.
- Need for ongoing performance monitoring to ensure quality.
- Potential for scope creep if requirements are not tightly managed.
Tags
engineering-services, department-of-transportation, federal-aviation-administration, district-of-columbia, time-and-materials, full-and-open-competition, delivery-order, aviation, infrastructure, technical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $17.0 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 $17.0 million.
What is the period of performance?
Start: 2017-04-06. End: 2026-08-09.
What is the historical spending pattern for engineering services by the FAA?
The Federal Aviation Administration (FAA) has consistently allocated significant funds towards engineering and technical services to support its vast aviation infrastructure and modernization programs. Historical spending data reveals a trend of substantial investment in areas such as air traffic control system upgrades, airport development, and safety enhancements. For instance, major initiatives like the Next Generation Air Transportation System (NextGen) have driven multi-year spending commitments in engineering services. Analyzing FAA's budget justifications and contract award databases over the past decade would show fluctuations tied to specific program lifecycles and technological advancements. The average annual spend on engineering services can range from hundreds of millions to over a billion dollars, depending on the scale of ongoing projects and federal appropriations. This specific contract, valued at approximately $17 million, represents a portion of that broader spending.
How does the pricing of this contract compare to similar engineering services contracts?
Directly comparing the pricing of this specific contract without detailed task orders and labor categories is challenging. However, the contract's award under 'full and open competition after exclusion of sources' suggests that the pricing was subjected to a competitive bidding process. This typically results in rates that are more aligned with market expectations than sole-source awards. To perform a robust comparison, one would need to benchmark the proposed labor rates, overhead factors, and total estimated costs against similar engineering services contracts awarded by the FAA or other federal agencies for comparable projects, such as air traffic control system support or airport infrastructure design. Factors like the complexity of the required services, the experience level of the personnel, and the geographic location of performance also influence pricing.
What are the key performance indicators (KPIs) for this contract?
While specific Key Performance Indicators (KPIs) are not detailed in the provided summary data, engineering services contracts of this nature typically include KPIs focused on technical performance, schedule adherence, and cost control. For the FAA, critical KPIs would likely revolve around the timely and accurate delivery of engineering designs, reports, and analyses that meet stringent aviation safety and operational standards. This could include metrics such as the percentage of deliverables completed on time, the number of design revisions required due to errors, adherence to budget constraints for specific task orders, and the successful integration of proposed solutions into existing FAA systems. Performance evaluations would also consider the quality of technical solutions proposed and the responsiveness of the contractor to FAA's technical direction.
What is LS TECHNOLOGIES LLC's track record with federal contracts?
LS TECHNOLOGIES LLC has a history of performing federal contracts, primarily within the Department of Transportation and other civilian agencies. A review of federal procurement data indicates that the company has been awarded numerous contracts, often in the realm of engineering, technical support, and program management services. Their performance history, as reflected in contract databases, generally shows successful completion of awarded work. However, like any contractor, there may be instances of past performance reviews that highlight areas for improvement or specific challenges encountered on certain projects. Understanding the specifics of their past performance, including any awards or penalties, is crucial for a comprehensive risk assessment.
What are the potential risks associated with the long duration of this contract?
The extended duration of this contract, ending in August 2026, presents several potential risks. Firstly, technological advancements in aviation could render the initially specified engineering solutions or methodologies obsolete before the contract concludes, requiring significant adaptation or modification. Secondly, the cost of labor and materials may fluctuate considerably over several years, potentially impacting the contract's overall cost-effectiveness if not managed through appropriate pricing mechanisms. Thirdly, maintaining consistent contractor performance and quality over such a long period can be challenging; personnel turnover within the contractor's organization or a decline in focus could affect service delivery. Finally, changes in federal priorities or budget allocations could lead to scope adjustments or early termination, although this is less common with well-defined essential services.
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: $17,160,728
Exercised Options: $16,963,554
Current Obligation: $16,963,554
Actual Outlays: $9,391,883
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $12,265,374
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
Start Date: 2017-04-06
Current End Date: 2026-08-09
Potential End Date: 2026-08-09 00:00:00
Last Modified: 2026-03-06
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