DOT's FAA awards $23.9M for enterprise program support to LS Technologies LLC

Contract Overview

Contract Amount: $23,936,835 ($23.9M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2017-04-13

End Date: 2026-08-09

Contract Duration: 3,405 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF FUNDS FOR ENTERPRISE PROGRAM STRATEGIC 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 $23.9 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF FUNDS FOR ENTERPRISE PROGRAM STRATEGIC SUPPORT Key points: 1. Contract value represents a significant investment in strategic enterprise program support. 2. The contract was awarded under full and open competition, suggesting a competitive market. 3. The duration of the contract (over 8 years) indicates a long-term need for these services. 4. The use of Time and Materials pricing may present cost control challenges if not closely managed. 5. The geographic location of the contractor in Washington D.C. may indicate proximity to agency headquarters. 6. The specific NAICS code (541330) points to engineering services, aligning with the contract's purpose.

Value Assessment

Rating: fair

The contract value of $23.9 million over approximately 8 years suggests a substantial commitment. Benchmarking this against similar enterprise program support 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 warrants closer scrutiny of the contractor's billing and the agency's oversight to ensure value for money.

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,' which typically means the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The specific details of how many bidders participated are not provided, but this competition type generally fosters price discovery and encourages multiple vendors to compete, potentially leading to more favorable pricing for the government.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a potentially more competitive pricing environment, as multiple companies vied for the contract. This process aims to ensure the government secures the best value by leveraging market forces.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced enterprise program strategic support. This contract supports critical functions within the FAA's operational framework. The primary beneficiary is the FAA, enabling more effective program management and strategic planning. The contract's impact on the broader workforce is indirect, focusing on support services rather than direct operational personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Lack of specific performance metrics or outcomes in the provided data.
Long contract duration may reduce flexibility to adapt to changing needs without modification.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Contract duration suggests a stable, long-term need and partnership.
Contractor is LS Technologies LLC, a known entity in the federal contracting space.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is crucial for government operations, providing specialized expertise for complex projects and program management. The market for such services is competitive, with numerous firms offering a range of capabilities. The FAA's spending in this area is consistent with the need for ongoing strategic support to manage its vast aviation infrastructure and regulatory responsibilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract award. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The focus appears to be on securing the best technical solution through open competition, rather than specifically targeting small business prime contractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA) contracting officer and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be less publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA Enterprise Services
Federal Aviation Administration IT Support
Engineering and Management Consulting Services
Government Program Management Support

Risk Flags

Potential for cost overruns due to T&M pricing.
Lack of detailed performance metrics in public data.
Long contract duration may limit adaptability.
Specific rationale for 'exclusion of sources' not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $23.9 million to LS TECHNOLOGIES LLC. IGF::OT::IGF FUNDS FOR ENTERPRISE PROGRAM STRATEGIC 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 $23.9 million.

What is the period of performance?

Start: 2017-04-13. End: 2026-08-09.

What is the historical spending trend for enterprise program support services by the FAA?

Analyzing historical spending trends for enterprise program support by the FAA requires access to detailed historical contract data. Without specific datasets, it's difficult to provide precise figures. However, agencies like the FAA typically have consistent needs for program management, strategic planning, and technical support due to the complexity and scale of aviation operations. Spending in this category often fluctuates based on specific initiatives, technological upgrades, and regulatory changes. Generally, such support services represent a significant portion of an agency's operational budget, reflecting the ongoing need for expertise to manage large-scale programs and ensure mission effectiveness. A review of past FAA solicitations and awards for similar services would reveal patterns of investment and potential shifts in focus over time.

How does the awarded amount compare to similar contracts for enterprise program support within the federal government?

The awarded amount of $23.9 million for enterprise program support over approximately 8 years, equating to roughly $3 million per year, is a substantial but not extraordinary figure for a federal agency like the FAA. Comparable contracts for similar services across various federal departments can range widely depending on the scope, duration, and complexity. For instance, large-scale IT modernization or strategic planning initiatives within agencies like the Department of Defense or Health and Human Services might involve contracts in the tens or hundreds of millions of dollars. However, for specialized enterprise program support, this award appears to be within a reasonable range, especially considering the FAA's critical mission. Benchmarking would ideally involve comparing contract values for services with identical NAICS codes and similar performance work statements, which are not fully detailed here.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If not managed diligently, this structure can incentivize longer task durations or less efficient work, as the contractor is paid for time and resources expended. For the government, this necessitates robust oversight, including detailed monitoring of labor hours, verification of work performed, and strict adherence to the ceiling price. Without strong controls, the total cost can exceed initial estimates, diminishing the value for money achieved. The FAA must ensure its project managers and contracting officers are vigilant in managing LS Technologies LLC's performance and billing.

What is LS Technologies LLC's track record with the Federal Aviation Administration and other government agencies?

LS Technologies LLC has a history of contracting with federal agencies, including the FAA. Information available through federal procurement data systems (like FPDS or SAM.gov) would detail their past performance, including contract values, types, and agencies served. A positive track record with the FAA, demonstrated through successful completion of previous contracts and positive performance reviews, would lend confidence to this new award. Conversely, any past performance issues, disputes, or failures to meet contractual obligations could raise concerns. A thorough review of their contract history, including any past performance evaluations or awards/debarments, is crucial for a complete assessment of their reliability and capability for this significant enterprise program support role.

How does the 'Full and Open Competition After Exclusion of Sources' classification impact price discovery and taxpayer value?

The classification 'Full and Open Competition After Exclusion of Sources' is a specific type of competitive procurement. It implies that the solicitation was made available to all responsible sources, but perhaps certain sources were excluded based on specific criteria outlined in the solicitation (e.g., specific certifications, past performance requirements, or geographic limitations not otherwise prohibited). This approach aims to ensure a broad range of potential bidders participate, fostering competition. Price discovery is generally enhanced because multiple vendors submit proposals, allowing the government to compare pricing and technical approaches. For taxpayers, this typically translates to better value, as competitive pressures drive down costs and encourage innovation. However, the 'exclusion of sources' aspect warrants understanding the rationale behind the exclusions to ensure they were justified and did not unduly limit competition.

What are the potential implications of this contract on the broader aviation industry or related technology sectors?

This contract's implications for the broader aviation industry are primarily indirect. By providing strategic support to the FAA's enterprise programs, LS Technologies LLC contributes to the agency's ability to manage complex initiatives, potentially leading to more efficient operations, improved safety systems, or modernized infrastructure. This, in turn, can benefit airlines, manufacturers, and travelers through a more stable and effective regulatory environment. In the technology sector, particularly for firms specializing in engineering and management consulting, this contract signifies a significant award that can enhance LS Technologies LLC's reputation and capabilities. It may also signal demand for specific types of expertise within the aviation technology ecosystem, potentially influencing other companies' strategic focus and investment in related 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: $25,413,430

Exercised Options: $23,936,835

Current Obligation: $23,936,835

Actual Outlays: $16,209,070

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $12,543,253

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