DOT awards $16.9M contract to LS Technologies for engineering services, with a 20-month duration

Contract Overview

Contract Amount: $16,941,784 ($16.9M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2022-08-04

End Date: 2024-12-31

Contract Duration: 880 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AJI TECHNICAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $16.9 million to LS TECHNOLOGIES LLC for work described as: AJI TECHNICAL SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the scope and duration. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risks include performance under a time and materials contract. 4. This contract supports critical FAA engineering functions. 5. The award falls within the broader IT and Engineering Services sector. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $16.9 million over approximately 20 months suggests a monthly burn rate of around $847,000. Without specific details on the services rendered, direct comparison is challenging. However, for engineering services supporting federal agencies, this rate is within a plausible range, especially considering the specialized nature of FAA support. The time and materials pricing structure warrants careful monitoring to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded prior to the final award. This suggests a competitive process, but the exclusion of certain sources could potentially limit the breadth of competition. The number of bidders is not specified, but the 'full and open' designation generally implies multiple interested parties.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services compared to sole-source or limited competitions.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering support. Services delivered are critical for maintaining and improving aviation infrastructure and systems. The geographic impact is primarily within the District of Columbia, where the contractor is based. Workforce implications include employment for engineers and technical specialists at LS Technologies LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market. The federal government spends billions annually on engineering and technical support across various agencies. This contract represents a portion of the Department of Transportation's investment in maintaining and advancing its operational capabilities, particularly within the aviation domain. Comparable spending benchmarks would depend on the specific engineering disciplines and complexity of the tasks involved.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award to LS Technologies LLC, a company whose size is not specified here, means that opportunities for small businesses to directly participate in this specific contract are likely limited unless they are part of the prime contractor's supply chain or are engaged in subcontracting roles not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-transportation, federal-aviation-administration, district-of-columbia, time-and-materials, full-and-open-competition, professional-services, aviation-support, large-contract, it-services

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.9 million to LS TECHNOLOGIES LLC. AJI TECHNICAL SUPPORT SERVICES

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 $16.9 million.

What is the period of performance?

Start: 2022-08-04. End: 2024-12-31.

What specific engineering services are being provided under this contract?

The contract details specify 'Engineering Services' under NAICS code 541330. While the specific nature of these services is not fully elaborated in the provided data, engineering services for the FAA typically encompass a wide range of activities. These can include system design, analysis, testing, integration, maintenance, and modernization of air traffic control systems, communication networks, navigation aids, and other critical aviation infrastructure. The services may also involve research and development, technical studies, and program management support to ensure the safety, efficiency, and technological advancement of the National Airspace System.

How does the pricing structure (Time and Materials) compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the level of effort or the duration of the work cannot be predetermined with certainty. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but carries higher risk for the government regarding cost control. FFP contracts provide greater cost certainty but require a well-defined scope of work. For complex engineering projects where requirements may evolve, T&M can be suitable, but it necessitates robust oversight to manage labor hours and material costs effectively. Other contract types like Cost-Plus-Fixed-Fee (CPFF) also exist for services where scope is less defined.

What is the track record of LS Technologies LLC in performing similar federal contracts?

LS Technologies LLC has a history of performing federal contracts, primarily within the Department of Transportation and related agencies. Their portfolio often includes services related to aviation systems, air traffic management, and engineering support. Analyzing their past performance on similar contracts, including contract values, durations, and any reported performance issues or accolades, would provide a clearer picture of their capabilities and reliability. Accessing detailed contract performance reports and past performance evaluations would be necessary for a comprehensive assessment of their track record.

What are the potential risks associated with the 'after exclusion of sources' clause in the competition?

The 'after exclusion of sources' clause in a 'Full and Open Competition' award indicates that while the competition was intended to be broad, certain potential offerors were identified and excluded from the competition before the final solicitation or evaluation phase. The risks associated with this include potentially limiting the pool of innovative solutions or competitive pricing that might have been offered by the excluded sources. Understanding the rationale behind these exclusions is crucial to ensure that the government did not inadvertently forgo a more advantageous offer due to non-objective criteria or procedural errors.

How does this contract's value and duration compare to historical spending on similar FAA engineering services?

The $16.9 million contract awarded to LS Technologies LLC over approximately 20 months represents a significant investment in engineering services for the FAA. To benchmark this, one would need to analyze historical spending data for similar engineering support contracts awarded by the FAA. Factors such as the specific technical requirements, the complexity of the systems supported, and the prevailing market rates for engineering talent would influence comparisons. If historical data shows similar contracts ranging from $10M-$25M over 18-24 months for comparable support, this award would be considered within the expected range. Conversely, significant deviations could signal potential overpricing or under-resourcing.

What are the implications of this contract being awarded in the District of Columbia?

The award to a contractor located in the District of Columbia (DC) has several implications. It suggests that LS Technologies LLC has a physical presence or operational base in the DC metropolitan area, which is common for firms supporting federal agencies headquartered there. This proximity can facilitate communication, collaboration, and on-site support. For the local economy, it means potential job creation and business activity within DC. However, it also means that the primary geographic impact of the contract's execution is concentrated in this region, rather than being distributed nationwide, unless the services themselves have a broader operational reach.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: $25,882,741

Exercised Options: $16,941,784

Current Obligation: $16,941,784

Actual Outlays: $16,941,784

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $12,518,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00030

IDV Type: IDC

Timeline

Start Date: 2022-08-04

Current End Date: 2024-12-31

Potential End Date: 2024-12-31 00:00:00

Last Modified: 2025-05-16

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