DOT awards $9.5M for FAA engineering support, with LS Technologies LLC securing the contract
Contract Overview
Contract Amount: $9,574,863 ($9.6M)
Contractor: LS Technologies LLC
Awarding Agency: Department of Transportation
Start Date: 2021-08-25
End Date: 2026-09-30
Contract Duration: 1,862 days
Daily Burn Rate: $5.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Transportation
Official Description: NEW ENTRANT PROGRAM & ENGINEERING SUPPORT SERVICES AJM 31.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590
Plain-Language Summary
Department of Transportation obligated $9.6 million to LS TECHNOLOGIES LLC for work described as: NEW ENTRANT PROGRAM & ENGINEERING SUPPORT SERVICES AJM 31. Key points: 1. Contract value appears reasonable given the duration and scope of engineering support services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risk indicators include the Time and Materials pricing structure, which can lead to cost overruns if not managed closely. 4. This contract supports critical FAA functions related to new entrant programs. 5. The awardee, LS Technologies LLC, is positioned to provide specialized engineering expertise. 6. The contract's duration of over five years allows for sustained support and potential for performance optimization.
Value Assessment
Rating: good
The contract's total value of $9.57 million over approximately five years suggests a moderate annual spend. Benchmarking against similar engineering support contracts for federal agencies, particularly within the aviation sector, would be necessary for a precise value-for-money assessment. However, the duration and the nature of the services (engineering support for new entrant programs) indicate a potentially fair price point, assuming efficient service delivery and cost controls by the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment.
Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of contractors to offer their services, leading to potentially more cost-effective solutions.
Public Impact
The Federal Aviation Administration (FAA) benefits from specialized engineering support for its new entrant programs. Services delivered include critical engineering expertise to facilitate the integration of new technologies and systems within the air traffic control system. The primary geographic impact is within the District of Columbia, where the contract is managed and likely where key personnel are based. The contract supports a specialized workforce of engineers and technical experts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) pricing can incentivize contractor inefficiency if not closely monitored, potentially leading to higher costs than fixed-price contracts.
- The long duration of the contract (over 5 years) increases the risk of scope creep or evolving requirements that may not be adequately captured in the initial pricing.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment and a wide selection of qualified contractors.
- The contract supports critical FAA new entrant programs, indicating a strategic investment in modernizing air traffic control systems.
- The contractor, LS Technologies LLC, is likely chosen for its specific expertise in engineering services relevant to aviation.
Sector Analysis
The engineering services sector is a vital component of federal contracting, supporting a wide range of agencies with specialized technical expertise. Within the broader aerospace and defense market, engineering support for air traffic management systems is crucial for modernization and safety. The FAA, as a major consumer of these services, relies on such contracts to maintain and upgrade its complex infrastructure. Comparable spending benchmarks would typically be found within the Federal Procurement Data System (FPDS) for similar engineering services contracts awarded to other aviation or transportation-focused entities.
Small Business Impact
This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, LS Technologies LLC, may engage small businesses as subcontractors, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Aviation Administration (FAA). The contract's Time and Materials (T&M) structure necessitates robust oversight to ensure that labor hours and material costs are reasonable and allocable to the contract's objectives. Transparency is facilitated through contract reporting mechanisms within the federal procurement system. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- FAA Air Traffic Control Modernization Programs
- NextGen Air Transportation System
- Engineering and Technical Services Contracts
- Department of Transportation IT and Engineering Support
Risk Flags
- Time and Materials Pricing Structure
- Long Contract Duration
Tags
transportation, faa, engineering-services, full-and-open-competition, delivery-order, time-and-materials, ls-technologies-llc, district-of-columbia, new-entrant-program, federal-aviation-administration
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $9.6 million to LS TECHNOLOGIES LLC. NEW ENTRANT PROGRAM & ENGINEERING SUPPORT SERVICES AJM 31.
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 $9.6 million.
What is the period of performance?
Start: 2021-08-25. End: 2026-09-30.
What is the track record of LS Technologies LLC in performing similar engineering support services for the FAA or other federal agencies?
LS Technologies LLC has a history of providing professional and technical services to various government agencies, including the Department of Transportation. While specific details on their performance for FAA new entrant programs require deeper investigation into past contract performance evaluations (e.g., CPARS reports), their presence in the federal contracting space suggests experience. A review of their contract history would reveal the types and scale of projects they have undertaken, providing insight into their capabilities and reliability in delivering engineering support. It is crucial to examine if they have previously managed Time and Materials contracts of similar scope and duration to assess their proficiency in cost control and efficient service delivery within such structures.
How does the awarded amount of $9.57 million compare to the estimated value or budget for similar FAA engineering support contracts?
Direct comparison of the $9.57 million award value to specific FAA engineering support contracts is challenging without access to detailed budget documents or a comprehensive database of comparable contract values. However, the duration of the contract (over five years) suggests an average annual value of approximately $1.9 million. This figure falls within a moderate range for specialized engineering support services required by a large federal agency like the FAA. Factors such as the complexity of the 'new entrant programs,' the specific technical expertise required, and the prevailing market rates for such services would influence the 'fairness' of this value. A thorough benchmark analysis against contracts with similar scopes, durations, and agencies would be necessary for a definitive assessment.
What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract, and how are they mitigated?
The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns if contractor effort is not efficiently managed or if the scope of work expands unexpectedly. Unlike fixed-price contracts, T&M agreements do not set a ceiling on the total cost, potentially leading to higher expenditures for the government. Mitigation strategies typically involve stringent oversight by the contracting officer and program managers, detailed tracking of labor hours and material costs, and the establishment of 'level of effort' clauses or 'not-to-exceed' (NTE) limits within the contract. Regular performance reviews and audits are essential to ensure that the contractor's time and materials are reasonable, allocable, and necessary for the contract's objectives, thereby controlling costs and ensuring value for taxpayers.
How effective is the 'full and open competition' process in ensuring the FAA receives optimal value for its engineering support services?
The 'full and open competition' process is generally considered the most effective method for the federal government to ensure optimal value. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For the FAA's engineering support services, this means that a wide array of qualified firms can compete, potentially leading to better-priced proposals and higher quality service offerings. The success of this process in achieving optimal value hinges on the clarity of the solicitation requirements, the fairness of the evaluation criteria, and the government's ability to accurately assess proposals against these criteria. A robust competition typically results in a contractor that offers the best combination of technical merit and cost.
What is the historical spending pattern for engineering support services by the FAA, and how does this contract fit within that trend?
Analyzing the FAA's historical spending on engineering support services requires access to comprehensive procurement data. Generally, the FAA, like other large federal agencies managing complex infrastructure, consistently invests in engineering and technical support to maintain, upgrade, and modernize its systems. Spending patterns are often influenced by major modernization initiatives (like NextGen), technological advancements, and regulatory changes. This $9.57 million contract for 'NEW ENTRANT PROGRAM & ENGINEERING SUPPORT SERVICES' appears to align with the FAA's ongoing need for specialized expertise to manage the integration of new technologies and processes within the air traffic management system. It represents a specific allocation within a broader category of engineering services spending, likely reflecting a strategic priority.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,697,805
Exercised Options: $9,574,863
Current Obligation: $9,574,863
Actual Outlays: $8,914,652
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,601,860
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 693KA921D00002
IDV Type: IDC
Timeline
Start Date: 2021-08-25
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-25
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