DOT awards $21.9M engineering services contract to LS Technologies LLC, spanning over 9 years

Contract Overview

Contract Amount: $21,900,803 ($21.9M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2017-04-05

End Date: 2026-08-09

Contract Duration: 3,413 days

Daily Burn Rate: $6.4K/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 $21.9 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF Key points: 1. Contract value appears reasonable given the extended duration and scope of engineering services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract type (Time and Materials) carries inherent risk of cost overruns if not closely managed. 4. Performance period extends significantly, requiring sustained oversight for quality and value. 5. This contract falls within the engineering services sector, supporting critical infrastructure. 6. No small business set-aside was applied, indicating a focus on specialized capabilities.

Value Assessment

Rating: good

The total contract value of $21.9 million over approximately 9 years averages to about $2.4 million annually. This figure seems within a reasonable range for specialized engineering services supporting a federal agency like the FAA. Benchmarking against similar large-scale engineering support contracts would provide a more precise value-for-money assessment, but the duration and scope suggest a substantial undertaking. The Time and Materials pricing structure, while flexible, necessitates diligent monitoring to ensure costs remain aligned with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the initial solicitation was broad, but specific sources were later excluded before the final award. This suggests a competitive process was initiated, but the reasons for excluding other potential bidders would need further investigation to fully understand the competitive landscape. The number of bidders and the specific evaluation criteria are not detailed here, but the 'full and open' designation generally implies an effort to maximize competition.

Taxpayer Impact: A competitive award process, even with exclusions, generally benefits taxpayers by encouraging multiple firms to bid, which can drive down prices and improve service quality.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential engineering support. Services delivered likely include technical analysis, program management, and engineering consulting for aviation infrastructure. The contract's impact is national, supporting the FAA's mission across the United States. The contract supports a specialized engineering workforce, likely requiring highly skilled professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed effectively, as it incentivizes labor hours rather than fixed outcomes.
The long performance period (over 9 years) increases the risk of scope creep and potential for reduced value if oversight is not consistently rigorous.
The 'Exclusion of Sources' aspect of the competition requires further scrutiny to ensure fairness and prevent undue limitation of competition.

Positive Signals

Awarded through a full and open competition process, indicating an attempt to leverage market capabilities.
The contract duration suggests a long-term need for these specialized engineering services, implying a strategic alignment with agency goals.
The contractor, LS Technologies LLC, has secured a significant contract, indicating a level of trust and perceived capability by the awarding agency.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader professional, scientific, and technical services industry. This sector encompasses firms that provide specialized expertise in design, analysis, and consulting for various infrastructure and technological projects. The federal government is a major consumer of these services, particularly for large-scale projects in transportation, defense, and energy. Comparable spending benchmarks would typically look at the average contract values for similar engineering support services awarded by agencies like the Department of Transportation or the FAA.

Small Business Impact

This contract does not appear to have a small business set-aside component (ss=false, sb=false). The award to LS Technologies LLC, a single entity, suggests that the scope of work or the required expertise was deemed best met by a larger or more specialized firm. This implies that subcontracting opportunities for small businesses may exist, but they are not mandated by the contract's structure. The absence of a set-aside means that the direct impact on the small business ecosystem for this specific award is likely limited, though the prime contractor's own subcontracting practices would be a key factor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Transportation's Federal Aviation Administration contracting officers and program managers. Accountability measures are typically embedded in the contract's performance work statement, requiring adherence to specific deliverables and quality standards. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Aviation Administration Air Traffic Control Operations
Department of Transportation Infrastructure Projects
Engineering and Technical Services Contracts
Professional Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of reduced value over long performance period without consistent oversight.
Need for clarity on 'Exclusion of Sources' to ensure robust competition.
Contract duration may outpace technological advancements if not managed adaptively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.9 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 $21.9 million.

What is the period of performance?

Start: 2017-04-05. End: 2026-08-09.

What is the track record of LS Technologies LLC in performing similar engineering services for the federal government?

LS Technologies LLC has a history of securing federal contracts, primarily within the engineering and technical services domain. Analyzing their past performance on similar contracts, particularly those with the Department of Transportation or the FAA, would reveal their ability to meet deadlines, manage budgets, and deliver quality services. Specific metrics such as past performance ratings, any documented disputes or contract terminations, and the types of projects they have successfully completed would provide a clearer picture of their capabilities and reliability as a contractor for this significant $21.9 million award.

How does the average annual value of this contract compare to similar engineering support contracts awarded by the FAA?

This contract's average annual value is approximately $2.4 million ($21.9M / 9 years). To benchmark this effectively, one would need to compare it against the average annual value of other engineering services contracts awarded by the FAA or similar agencies for comparable tasks. Factors such as the specific technical expertise required, the complexity of the projects supported, and the duration of those contracts are crucial for a fair comparison. Without access to a detailed database of comparable contracts, it's difficult to definitively state if this represents excellent, fair, or questionable value, but the multi-year duration suggests a substantial and ongoing need.

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

The primary risk with a Time and Materials (T&M) contract, like the one awarded to LS Technologies LLC, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer task durations and potentially less efficient work, as the contractor's profit is tied to the amount of time and resources expended. Effective risk mitigation requires robust government oversight, including detailed monitoring of labor hours, validation of material costs, and clear definition of 'not-to-exceed' limits to ensure the contract remains within budget and delivers value.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method impact price discovery and overall value?

The 'Full and Open Competition After Exclusion of Sources' method begins with a broad solicitation but then narrows the field of potential bidders before the final award. While it starts with the intention of maximizing competition, the subsequent exclusion of sources can limit the number of viable bidders. The impact on price discovery depends heavily on the reasons for exclusion and the number of remaining bidders. If only a few highly qualified firms remain, the competitive pressure might be reduced, potentially leading to less aggressive pricing. Conversely, if the exclusions were based on specific technical requirements that only a few firms could meet, the remaining competition might still be robust enough to ensure fair pricing.

What are the potential implications of a 9-year performance period for engineering services on program effectiveness and contractor performance?

A 9-year performance period for engineering services offers the potential for deep institutional knowledge and sustained support for long-term projects, which can enhance program effectiveness. Contractors can develop a thorough understanding of agency needs and operational environments. However, such extended periods also carry risks: potential for contractor complacency, difficulty in adapting to evolving technological landscapes, and the challenge of maintaining consistent oversight and performance evaluation over nearly a decade. Ensuring program effectiveness requires proactive contract management, regular performance reviews, and mechanisms for adapting the scope or services as agency requirements change over the long term.

Are there any indications of potential cost efficiencies or cost-saving measures built into this contract structure?

The provided data does not explicitly detail cost-saving measures or efficiencies built into the Time and Materials (T&M) contract structure itself. T&M contracts are inherently flexible but less predictable in cost compared to fixed-price arrangements. Potential efficiencies would likely stem from the contractor's internal processes and the government's diligent oversight in managing labor hours and material costs. Without specific clauses related to performance incentives, cost reduction targets, or fixed-price components for certain deliverables, the onus is on the FAA to actively manage the contract to ensure cost-effectiveness throughout its duration.

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: $22,235,322

Exercised Options: $21,900,803

Current Obligation: $21,900,803

Actual Outlays: $13,755,631

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,402,779

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