DOT Awards $45.5M Air Traffic Control Contract to Midwest Air Traffic Control Service Inc
Contract Overview
Contract Amount: $45,555,466 ($45.6M)
Contractor: Midwest AIR Traffic Control Service Inc
Awarding Agency: Department of Transportation
Start Date: 2024-11-26
End Date: 2032-01-31
Contract Duration: 2,622 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $45.6 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW). Key points: 1. Contract covers essential Air Traffic Control (ATC) services and support for FCTS operations. 2. Midwest Air Traffic Control Service Inc. is the awardee for this significant contract. 3. The contract is a Firm Fixed Price type, indicating predictable costs for the government. 4. This award represents a substantial investment in maintaining critical aviation infrastructure.
Value Assessment
Rating: good
The contract value of $45.5M over approximately 7.5 years suggests a reasonable annual spend for specialized ATC services. Benchmarking against similar large-scale ATC support contracts would provide further clarity on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The presence of multiple bidders likely contributed to a more favorable price discovery process.
Taxpayer Impact: Full and open competition is expected to yield a fair price, maximizing the value of taxpayer dollars spent on essential air traffic control services.
Public Impact
Ensures continued safe and efficient air traffic operations. Supports the critical infrastructure of the Federal Aviation Administration (FAA). Provides stability for aviation services in the District of Columbia. Potential for job creation and economic activity related to ATC services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends over 7 years, requiring ongoing monitoring.
- Reliance on a single contractor for critical ATC services.
- Potential for scope creep or unforeseen support needs.
Positive Signals
- Firm Fixed Price contract provides cost certainty.
- Awarded through full and open competition.
- Clear definition of services in the Statement of Work.
Sector Analysis
This contract falls within the broader transportation sector, specifically focusing on air traffic control services. Spending benchmarks for similar FAA contracts would indicate if this award is competitive within the specialized field of ATC operations.
Small Business Impact
The provided data does not indicate if small businesses were involved as subcontractors or partners in this contract award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Robust oversight mechanisms will be crucial to ensure service delivery meets SOW requirements and taxpayer value is maintained throughout the contract's lifecycle.
Related Government Programs
- Air Traffic Control
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration requires sustained oversight.
- Potential for contractor performance issues over time.
- Dependence on a single entity for critical infrastructure support.
- Risk of unforeseen technological or operational changes impacting service needs.
Tags
air-traffic-control, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $45.6 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. THE FCT CONTRACT ENCOMPASSES THE SCOPE OF ATC SERVICES AND ASSOCIATED SUPPORT SERVICES REQUIRED FOR THE DAY-TO-DAY OPERATION OF FCTS AS DEFINED IN THIS STATEMENT OF WORK (SOW).
Who is the contractor on this award?
The obligated recipient is MIDWEST AIR TRAFFIC CONTROL SERVICE INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $45.6 million.
What is the period of performance?
Start: 2024-11-26. End: 2032-01-31.
What specific metrics will be used to evaluate the performance of Midwest Air Traffic Control Service Inc. throughout the contract duration?
Performance evaluation will likely involve key performance indicators (KPIs) tied to air traffic safety, efficiency, and responsiveness. These could include metrics such as on-time performance, incident response times, adherence to operational procedures, and overall system reliability. The FAA's contract management team will monitor these KPIs against the SOW requirements to ensure the contractor meets its obligations and delivers the expected value.
How will the FAA ensure continued cost-effectiveness and prevent potential price increases over the 7.5-year contract term?
The Firm Fixed Price (FFP) structure inherently limits the government's exposure to cost increases, as the price is set upfront. However, the FAA will monitor market trends for labor and materials relevant to ATC services. Any potential for price adjustments would be strictly governed by contract clauses, and the FAA will leverage its oversight to ensure the contractor operates efficiently and avoids unnecessary costs.
What contingency plans are in place should Midwest Air Traffic Control Service Inc. fail to meet its contractual obligations?
The FAA maintains contingency plans for critical service contracts. These typically include options for corrective action plans with the incumbent contractor, potential for partial termination, or, in severe cases, termination for default. The FAA would then likely initiate a process to bring in an alternative provider, potentially through an expedited procurement, to ensure uninterrupted air traffic control services.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: 693KA7-23-R-00003
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7300 W 129TH ST, OVERLAND PARK, KS, 66213
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $173,776,955
Exercised Options: $45,555,466
Current Obligation: $45,555,466
Actual Outlays: $27,269,208
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Timeline
Start Date: 2024-11-26
Current End Date: 2032-01-31
Potential End Date: 2032-01-31 00:00:00
Last Modified: 2026-04-02
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