FAA Awards $34.6M Firm Fixed Price Contract for Air Traffic Control Services to Robinson Aviation

Contract Overview

Contract Amount: $34,580,642 ($34.6M)

Contractor: Robinson Aviation (RVA), Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-11-26

End Date: 2032-01-31

Contract Duration: 2,622 days

Daily Burn Rate: $13.2K/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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $34.6 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 THIS STATEMENT OF WORK (SOW). Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Significant duration of over 7 years indicates a long-term need for these services. 3. The contract is for essential Air Traffic Control services, critical for aviation safety. 4. No small business participation noted, which could be a missed opportunity for economic inclusion.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty for the government. Benchmarking against similar ATC service contracts would be necessary for a definitive value assessment, but the price appears reasonable given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, allowing any qualified vendor to bid. This method generally promotes price discovery and competitive pricing, leading to potentially better value for the government.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential air traffic control services.

Public Impact

Ensures continued safe and efficient operation of air traffic control. Supports the Department of Transportation's mission to maintain a safe and efficient national airspace system. Potential for economic impact through employment and related services by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Long contract duration may require performance monitoring to ensure continued value.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost predictability.
Essential service for national safety and infrastructure.

Sector Analysis

This contract falls within the Air Traffic Control sector, a critical component of the transportation industry. Spending in this area is driven by safety regulations, technological advancements, and operational demands. Benchmarks for similar contracts would typically consider the complexity of airspace managed and the specific services provided.

Small Business Impact

The contract data indicates that small businesses were not involved in this award (ss: false, sb: false). This suggests that the competition may not have specifically targeted or incentivized small business participation, potentially limiting opportunities for smaller entities in this sector.

Oversight & Accountability

The contract's long duration necessitates robust oversight from the Federal Aviation Administration to ensure performance standards are met and that the firm fixed price remains advantageous throughout the contract term. Regular performance reviews and compliance checks are crucial.

Related Government Programs

Air Traffic Control
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration may lead to price erosion or increased costs if market conditions change significantly.
Lack of small business participation could indicate a less inclusive procurement strategy.
Dependence on a single contractor for critical ATC services poses a potential risk if performance issues arise.
The firm fixed price structure might not account for potential unforeseen technological advancements or regulatory changes impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $34.6 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 THIS 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 $34.6 million.

What is the period of performance?

Start: 2024-11-26. End: 2032-01-31.

What specific performance metrics are in place to ensure the quality and effectiveness of the ATC services provided by Robinson Aviation?

The contract likely includes a Statement of Work (SOW) detailing specific performance standards and deliverables for ATC services. The FAA would monitor adherence to these standards through regular performance evaluations, audits, and potentially user feedback mechanisms. Key metrics could include response times, incident resolution rates, and compliance with safety protocols.

Are there any provisions for price adjustments or contract modifications given the long duration and potential for unforeseen economic changes?

While the contract is firm fixed price, long-term contracts often include clauses for economic price adjustments (EPAs) or specific conditions under which modifications can be made, such as changes in law or scope. The absence of such provisions could expose the government to risk if inflation significantly outpaces the fixed price, or conversely, benefit the government if costs decrease.

How does the FAA ensure that the competitive process for this contract truly reflects the best value and not just the lowest initial bid?

Full and open competition aims to ensure best value by allowing multiple vendors to compete, driving down prices and encouraging innovation. The FAA would have evaluated proposals based on a combination of technical merit, past performance, and price. The selection process likely involved a detailed evaluation of how each bidder met the SOW requirements to ensure the chosen contractor could deliver effective 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: 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: $141,220,124

Exercised Options: $34,580,642

Current Obligation: $34,580,642

Actual Outlays: $20,475,014

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline