DOT awards $50.4M contract for Air Traffic Control services to Robinson Aviation, Inc

Contract Overview

Contract Amount: $50,446,972 ($50.4M)

Contractor: Robinson Aviation (RVA), Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-26

End Date: 2032-01-01

Contract Duration: 2,592 days

Daily Burn Rate: $19.5K/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 THE STATEMENT OF WORK (SOW).

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 $50.4 million to ROBINSON AVIATION (RVA), 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 THE STATEMENT OF WORK (SOW). Key points: 1. Contract value represents significant investment in essential air traffic control operations. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (over 7 years) indicates a need for sustained service delivery. 4. Firm Fixed Price contract type shifts cost risk to the contractor. 5. The contract is for Air Traffic Control services, a critical national infrastructure function. 6. The award to a single contractor implies a focus on specialized capabilities.

Value Assessment

Rating: good

The contract value of $50.4 million over approximately 7.5 years averages to about $6.7 million annually. Benchmarking this against similar large-scale air traffic control service contracts is challenging without more specific service scope details. However, the firm fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the contractor manages costs effectively. The base award amount of $19.46 million for the initial period appears reasonable given the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bidders suggests a healthy level of competition for this significant contract. This competitive process is expected to drive price discovery and ensure that the government receives a fair market price for the services rendered.

Taxpayer Impact: A competitive bidding process for essential services like air traffic control helps ensure that taxpayer dollars are used efficiently and that the government secures the best possible value.

Public Impact

The Federal Aviation Administration (FAA) benefits through the reliable operation of air traffic control systems. Citizens and businesses benefit from safe and efficient air travel. The contract supports the day-to-day operation of critical air traffic control infrastructure. The primary geographic impact is within the District of Columbia, where the services are likely concentrated. The contract supports specialized roles within the aviation sector, potentially impacting the workforce in air traffic control.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to contractor complacency if not managed with robust performance metrics.
Dependence on a single contractor for critical ATC services poses a risk if performance degrades or the contractor faces financial instability.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor, potentially leading to cost savings for the government.
Full and open competition indicates a robust bidding process, likely resulting in competitive pricing.
The contract is for essential air traffic control services, a critical national function.

Sector Analysis

The Federal Aviation Administration (FAA) operates within the broader Transportation sector, specifically focusing on air traffic management. This contract for Air Traffic Control (ATC) services is central to the FAA's mission. The market for ATC services is highly specialized, dominated by a few key players with the necessary expertise and security clearances. The total federal spending on air traffic control and related services is substantial, reflecting the critical nature of aviation safety and efficiency.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary focus was on securing specialized capabilities from larger, potentially more experienced firms. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for any subcontracting opportunities, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a sub-agency of the Department of Transportation. The contract's firm fixed-price nature and long duration necessitate rigorous performance monitoring to ensure services meet the Statement of Work (SOW) requirements. Transparency is expected through standard federal procurement reporting mechanisms. Inspector General oversight from the Department of Transportation would also apply.

Related Government Programs

Federal Aviation Administration Operations
Air Traffic Control Modernization Programs
National Airspace System Operations
Aviation Safety and Security Contracts

Risk Flags

Long contract duration requires sustained oversight.
Dependence on a single contractor for critical services.
Firm Fixed Price shifts cost risk but requires strict performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $50.4 million to ROBINSON AVIATION (RVA), 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 THE STATEMENT OF WORK (SOW).

Who is the contractor on this award?

The obligated recipient is ROBINSON AVIATION (RVA), INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $50.4 million.

What is the period of performance?

Start: 2024-11-26. End: 2032-01-01.

What is the historical spending pattern for Air Traffic Control services by the FAA?

Historical spending on Air Traffic Control (ATC) services by the FAA has been substantial and generally increasing, reflecting the continuous need to maintain and modernize the National Airspace System (NAS). While specific figures for 'ATC services' as a distinct category can fluctuate based on contract definitions, the FAA's overall budget consistently allocates significant portions to operations, air traffic services, and infrastructure. For instance, in recent fiscal years, the FAA's budget has been in the tens of billions of dollars, with a considerable portion dedicated to maintaining ATC operations, personnel, and technology. This $50.4 million contract, spanning over seven years, represents a consistent investment within this larger budgetary framework, focusing on specific operational support rather than major system overhauls. Analyzing year-over-year trends in operational spending, including contracts for services like those awarded to Robinson Aviation, provides insight into the sustained demand and funding priorities for ensuring air traffic safety and efficiency.

How does the pricing of this contract compare to similar Air Traffic Control service contracts?

Directly comparing the pricing of this $50.4 million contract to similar Air Traffic Control (ATC) service contracts is complex without detailed service scope and performance metrics. However, the contract's firm fixed-price (FFP) structure is a key indicator. FFP contracts are generally favored when requirements are well-defined, as they shift cost-risk to the contractor, potentially leading to better value for the government if the contractor manages performance efficiently. The annual average cost of approximately $6.7 million ($50.4M / ~7.5 years) needs to be evaluated against the specific services provided, such as radar maintenance, communication systems support, or operational staffing, if applicable. Benchmarking would ideally involve comparing this cost per service unit or per operational hour against other FAA contracts for comparable services or against industry standards for private sector ATC support. Given the specialized nature of ATC services and the full and open competition, the pricing is presumed to be market-driven, but a definitive value assessment requires deeper analysis of the Statement of Work (SOW) and performance outcomes.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or the specific methods for performance measurement for this contract. However, for Air Traffic Control (ATC) services, critical KPIs typically revolve around safety, efficiency, and reliability. These could include metrics such as the number of incidents or near-misses, system uptime percentages for radar and communication equipment, response times for service requests, adherence to air traffic flow management procedures, and overall system availability. The contract's Statement of Work (SOW) would define these specific performance standards. The Federal Aviation Administration (FAA) would likely employ a quality assurance surveillance plan (QASP) to monitor the contractor's performance against these defined metrics. Regular performance reviews and potential financial incentives or penalties tied to KPI achievement are common oversight mechanisms for such critical service contracts.

What is Robinson Aviation (RVA), Inc.'s track record with federal contracts, particularly with the FAA?

Robinson Aviation (RVA), Inc. has a history of performing federal contracts, including work related to aviation services. While specific details on their past performance with the FAA are not provided in the summary data, their selection for this significant Air Traffic Control (ATC) services contract suggests a positive assessment of their capabilities and past performance by the agency. Federal procurement databases often contain past performance information, which is a critical factor in source selection. Agencies typically review a contractor's record on previous contracts, including timeliness of delivery, quality of work, cost control, and overall customer satisfaction. RVA's ability to win a contract awarded under full and open competition indicates they met the agency's requirements and likely demonstrated a satisfactory or better past performance record relevant to the scope of work.

What are the potential risks associated with a sole-source or limited competition award for critical ATC services?

This contract was awarded under 'full and open competition,' not sole-source or limited competition, which mitigates many of the typical risks associated with non-competitive awards. In a sole-source or limited competition scenario for critical Air Traffic Control (ATC) services, the primary risks include potentially higher costs due to lack of price competition, reduced innovation as there's less pressure to improve services, and a greater dependence on a single provider which increases vulnerability if that provider fails to perform or faces financial instability. There's also a risk of 'contractor lock-in,' making it difficult and costly to switch providers. However, since this contract involved 4 bidders under full and open competition, these specific risks are significantly reduced. The competition itself serves as a primary risk mitigation strategy, ensuring a more competitive price and a wider pool of potential providers if issues arise.

How does this contract contribute to the overall modernization and efficiency of the National Airspace System (NAS)?

This contract focuses on the day-to-day operation and associated support services for Air Traffic Control (ATC), rather than directly funding major modernization initiatives like NextGen. While essential for maintaining current operational integrity, its contribution to modernization is indirect. Reliable execution of ATC services ensures the existing system functions safely and efficiently, which is a prerequisite for implementing new technologies. Modernization efforts often rely on stable operational environments. Therefore, by ensuring the continuity and effectiveness of current ATC operations, this contract supports the foundational stability upon which future modernization projects can be built and integrated. It ensures that the 'lights stay on' and the system runs smoothly, allowing the FAA to focus resources on transformative upgrades.

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: 1601 NW EXPRESSWAY SUITE 850, OKLAHOMA CITY, OK, 73118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $207,259,948

Exercised Options: $50,446,972

Current Obligation: $50,446,972

Actual Outlays: $29,988,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline