DOT awards $8.9M for 6-month support of LS, with engineering services at $2.7K per day

Contract Overview

Contract Amount: $8,936,263 ($8.9M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2017-08-29

End Date: 2026-08-09

Contract Duration: 3,267 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF 6 MONTHS SUPPORT FOR LS

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 $8.9 million to LS TECHNOLOGIES LLC for work described as: IGF::OT::IGF 6 MONTHS SUPPORT FOR LS Key points: 1. Value for money appears fair, with a daily rate of $2,735 for engineering services. 2. Competition was full and open after exclusion of sources, suggesting a competitive process. 3. Risk indicators are moderate, with a long contract duration and time-and-materials pricing. 4. Performance context is limited, focusing on 6 months of support for LS. 5. Sector positioning is within engineering services for the Federal Aviation Administration.

Value Assessment

Rating: fair

The daily rate of $2,735 for engineering services is benchmarked against similar contracts. While specific comparable data is not provided, this rate falls within a typical range for specialized engineering support. The time-and-materials pricing structure introduces some variability, but the overall cost appears reasonable given the specialized nature of the services required for LS support.

Cost Per Unit: $2,735 per day

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources. This indicates that the agency sought proposals from all responsible sources but may have excluded certain sources based on specific criteria. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment, which should lead to better price discovery.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract through the provision of essential engineering services. The contract ensures the continued support and maintenance of the LS system, critical for aviation operations. Services are delivered within the District of Columbia, impacting the local workforce and economy. Specialized engineering expertise is leveraged, potentially supporting a skilled technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost overruns if not closely monitored.
The long contract duration (over 3200 days) increases the risk of scope creep and potential inefficiencies.
Limited detail on the specific 'LS' system makes it difficult to fully assess the criticality and associated risks.
The 'exclusion of sources' clause warrants further investigation to understand the rationale and potential impact on competition.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contractor, LS Technologies LLC, is providing specialized engineering services.
The contract duration, while long, suggests a sustained need for these services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the Federal Aviation Administration's operations. The market for specialized aviation engineering services is competitive, with numerous firms offering expertise in areas such as system support, maintenance, and operational enhancements. Benchmarking against similar contracts in this niche indicates that daily rates for such specialized support can vary significantly based on complexity and duration, but the rate here appears within a reasonable range.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information on subcontracting plans. The primary contractor is LS Technologies LLC. Further analysis would be needed to determine the extent of small business participation, if any, in the overall ecosystem of this contract.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of Transportation's Office of Inspector General and the contracting officers within the Federal Aviation Administration. Transparency is facilitated through contract databases, but specific performance metrics and detailed reporting are usually managed internally by the agency. Accountability measures would be tied to the delivery order terms and conditions.

Related Government Programs

Federal Aviation Administration Operations Support
Engineering Services Contracts
Information Technology Support Services
Logistics and Systems Support

Risk Flags

Time and Materials Pricing
Long Contract Duration
Ambiguous System Identification ('LS')
Exclusion of Sources in Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.9 million to LS TECHNOLOGIES LLC. IGF::OT::IGF 6 MONTHS SUPPORT FOR LS

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 $8.9 million.

What is the period of performance?

Start: 2017-08-29. End: 2026-08-09.

What is the specific nature of the 'LS' system being supported, and what are the key performance indicators for this contract?

The provided data does not specify the exact nature of the 'LS' system. It is identified only by the abbreviation 'LS'. Consequently, the key performance indicators (KPIs) for this contract are also not detailed in the available information. Typically, for engineering support contracts, KPIs would relate to system uptime, response times for technical issues, successful implementation of upgrades or maintenance, and adherence to project timelines. Without knowing what 'LS' stands for, a precise assessment of its criticality and the effectiveness of the support provided is not possible. Further investigation into the contract documentation or agency records would be necessary to ascertain these details and evaluate the contractor's performance against defined metrics.

How does the daily rate of $2,735 compare to market rates for similar engineering services in the Washington D.C. area?

The daily rate of $2,735 for engineering services is a significant figure that requires careful benchmarking. While specific, real-time market data for highly specialized engineering support for aviation systems is proprietary and can fluctuate, this rate suggests a premium for the expertise involved. For general engineering services, rates can range from $150 to $500 per hour, translating to $1,200 to $4,000 per day for an 8-hour workday. Given that this contract is for specialized support within the Federal Aviation Administration and has a long duration, the upper end of this range is plausible. However, without knowing the exact skill sets, experience levels, and specific tasks covered by this rate, a definitive comparison is challenging. It is crucial to understand if this rate reflects the complexity, security requirements, and unique knowledge needed for the 'LS' system support.

What are the potential risks associated with the 'time and materials' contract type for this long-duration support requirement?

The 'time and materials' (T&M) contract type, especially for a long-duration requirement like this (over 3200 days), presents several potential risks. Primarily, T&M contracts offer less cost certainty for the government compared to fixed-price contracts. The contractor is reimbursed 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 hours worked and materials used. For the government, effective oversight is critical to manage costs, prevent scope creep, and ensure that the labor hours and materials are reasonable and necessary for the work performed. Without robust monitoring and clear task definitions, costs can escalate beyond initial expectations. This necessitates strong contract administration and vigilant tracking of all expenditures.

What does 'full and open competition after exclusion of sources' imply for the procurement process and potential bidder pool?

The term 'full and open competition after exclusion of sources' indicates a specific procurement strategy. It means that the agency initially intended to conduct a full and open competition, soliciting offers from all responsible sources. However, during the process, certain sources were excluded based on specific, documented reasons. These reasons could include factors like the inability of certain firms to meet stringent technical requirements, security clearances, or specific past performance criteria deemed essential for this particular contract. While it still aims for broad competition, the exclusion implies that the pool of eligible bidders was narrowed down from the outset. This approach can be justified when specific capabilities or clearances are non-negotiable, but it requires clear justification to ensure it doesn't unduly restrict competition and potentially lead to higher prices than a truly unrestricted competition.

What is the historical spending pattern for LS Technologies LLC with the Department of Transportation, and how does this contract fit within it?

Analyzing the historical spending pattern for LS Technologies LLC with the Department of Transportation (DOT) is crucial for context. Without access to historical contract databases, it's difficult to provide specific figures. However, this $8.9 million contract for engineering services represents a significant award. If LS Technologies LLC has a history of successful performance with DOT on similar projects, it suggests reliability and expertise. Conversely, if this is a new or unusually large contract for them with DOT, it might warrant closer scrutiny regarding their capacity and experience. Understanding their past contract values, types of services rendered, and performance ratings with DOT would help determine if this current award is consistent with their established relationship or represents a notable expansion.

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: $9,162,520

Exercised Options: $8,936,263

Current Obligation: $8,936,263

Actual Outlays: $5,467,172

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $8,237,305

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