DOT's FAA awards $20.7M engineering services contract to LS Technologies LLC for TDM-IP Migration

Contract Overview

Contract Amount: $20,748,923 ($20.7M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2018-04-13

End Date: 2026-08-09

Contract Duration: 3,040 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPORT TDM-IP MIGRATION PORTFOLIO PROGRAM OFFICE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20593

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $20.7 million to LS TECHNOLOGIES LLC for work described as: SUPPORT TDM-IP MIGRATION PORTFOLIO PROGRAM OFFICE Key points: 1. Contract value of $20.7 million over its period of performance. 2. LS Technologies LLC is the prime contractor for this engineering services award. 3. The contract is for supporting the TDM-IP Migration Portfolio Program Office. 4. Performance period spans from April 2018 to August 2026. 5. The contract type is Time and Materials, indicating flexibility in scope. 6. This award falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract value of $20.7 million over nearly 8.5 years suggests a moderate annual spend. Without specific deliverables or comparable project data, assessing value for money is challenging. The Time and Materials (T&M) contract type can lead to cost overruns if not managed closely, but also offers flexibility for evolving requirements. Benchmarking against similar large-scale IT migration or engineering support contracts within the FAA or other transportation agencies would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This designation suggests that while an initial broad competition may have occurred, specific circumstances led to excluding certain sources, or the competition was limited in scope. The exact number of bidders is not provided, making it difficult to fully assess the level of competition. A limited competition might result in less aggressive pricing compared to full and open competition.

Taxpayer Impact: The limited competition nature of this award means taxpayers may not have benefited from the most aggressive pricing achievable through a wider bidding process.

Public Impact

Benefits the Federal Aviation Administration (FAA) by supporting critical IT infrastructure migration. Services delivered are engineering support for the TDM-IP Migration Portfolio Program Office. Geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include employment for engineers and technical specialists at LS Technologies LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not rigorously managed.
Limited competition may have resulted in a higher price than a fully open bid.
The long performance period (over 8 years) requires sustained oversight to ensure continued value.

Positive Signals

Contract supports a critical FAA program (TDM-IP Migration).
LS Technologies LLC is the prime contractor, indicating established capabilities.
The award period is long, suggesting a stable, ongoing need for these services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a broad category encompassing firms that design, build, and manage infrastructure and systems. The Federal Aviation Administration, as a major government entity, frequently procures such services for its complex operational and IT needs. The market for engineering services supporting government agencies is substantial, with numerous firms competing for large-scale contracts. This specific award relates to IT infrastructure migration, a common and critical area of spending for government organizations seeking to modernize their systems.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a primary set-aside consideration for this specific award. There is no explicit mention of small business subcontracting goals or achievements. Therefore, the direct impact on the small business ecosystem from this particular contract appears minimal, though LS Technologies LLC may engage small businesses as subcontractors without this being explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a Time and Materials contract, rigorous monitoring of labor hours and costs is essential. Accountability measures would be tied to performance metrics and adherence to contract terms. Transparency is generally facilitated through federal procurement databases, but detailed performance reports and specific oversight activities are typically internal to the agency.

Related Government Programs

FAA IT Modernization Programs
Transportation Systems Engineering Support
Portfolio Program Management Support Services
Cloud Migration Services
Network Infrastructure Modernization

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may impact price competitiveness.
Long contract duration requires sustained oversight.
Scope definition and management challenges inherent in IT migration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.7 million to LS TECHNOLOGIES LLC. SUPPORT TDM-IP MIGRATION PORTFOLIO PROGRAM OFFICE

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 $20.7 million.

What is the period of performance?

Start: 2018-04-13. End: 2026-08-09.

What is the specific nature of the TDM-IP Migration Portfolio Program Office and its importance to the FAA?

The TDM-IP Migration Portfolio Program Office likely manages the transition and modernization of the FAA's Telecommunications Data Management Infrastructure Program (TDM-IP). This program is crucial for ensuring the reliability, security, and efficiency of the communication and data systems that underpin air traffic control and aviation safety operations. Migrating or upgrading such infrastructure is a complex undertaking, often involving the integration of new technologies, decommissioning of legacy systems, and ensuring seamless operation during the transition. The importance lies in maintaining the integrity of the National Airspace System (NAS) and supporting future advancements in air traffic management.

How does the Time and Materials (T&M) contract type compare to other contract types for IT migration projects?

Time and Materials (T&M) contracts are flexible but can be riskier in terms of cost predictability compared to fixed-price contracts. For IT migration projects, T&M is often used when the scope of work is not clearly defined at the outset or is expected to evolve significantly. This allows the government to pay for direct labor hours at specified hourly rates and for the actual cost of materials. However, it places a greater burden on the government to closely monitor contractor effort and costs to prevent overspending. Fixed-price contracts, conversely, offer greater cost certainty but require a well-defined scope upfront, which can be challenging for complex, evolving IT projects.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

This contract type suggests that while the initial intent might have been broad competition, certain sources were excluded, or the competition was narrowed down. Potential risks include a reduced pool of qualified bidders, which could lead to less competitive pricing and potentially limit the government's access to the best available solutions or technologies. It may also raise questions about the fairness and transparency of the procurement process if the reasons for exclusion are not well-documented or justified. This could result in a higher overall cost to the taxpayer compared to a truly open and unrestricted competition.

What is the typical annual spending for engineering services contracts of this magnitude within the FAA?

The FAA, responsible for managing the National Airspace System, consistently invests heavily in engineering services for infrastructure, technology, and operational improvements. Annual spending on such contracts can vary significantly based on major modernization initiatives. For a program office supporting a critical migration effort, an annual spend in the range of $2-3 million (derived from the $20.7M total over ~8.5 years) is plausible, though this can fluctuate year-to-year. Larger, agency-wide modernization efforts could see annual engineering service expenditures in the tens or even hundreds of millions.

What are the implications of LS Technologies LLC being the sole prime contractor for this duration?

LS Technologies LLC being the prime contractor for nearly nine years implies a significant level of trust and established performance with the FAA. It suggests the company has demonstrated the capability to manage and execute complex engineering support tasks over an extended period. For the government, this can mean continuity and deep institutional knowledge within the contractor team. However, it also necessitates vigilant oversight to ensure continued competitive pricing and prevent complacency. The long duration also means the FAA is reliant on LS Technologies' sustained performance and adaptability to evolving technological landscapes.

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: $22,998,393

Exercised Options: $20,748,923

Current Obligation: $20,748,923

Actual Outlays: $16,138,569

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,711,357

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