DOT awards $8M for aeronautical services support to LS Technologies LLC, with a 2026 completion date

Contract Overview

Contract Amount: $8,055,142 ($8.1M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2024-04-24

End Date: 2026-02-17

Contract Duration: 664 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AERONAUTICAL SERVICES SUPPORT

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 $8.1 million to LS TECHNOLOGIES LLC for work described as: AERONAUTICAL SERVICES SUPPORT Key points: 1. Contract value appears reasonable for specialized aeronautical support services. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include performance variability and adherence to schedule. 4. This contract supports critical aviation infrastructure and operations. 5. The engineering services sector is highly specialized and competitive. 6. Contract duration is moderate, allowing for focused project execution.

Value Assessment

Rating: good

The contract value of approximately $8 million for aeronautical services support seems aligned with industry standards for specialized engineering and technical assistance. Benchmarking against similar contracts for aviation consulting and support services indicates a competitive pricing structure. The Time and Materials pricing model, while requiring careful oversight, allows for flexibility in addressing evolving project needs. The total value is within a reasonable range for a contract of this duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a robust competitive process. This level of competition generally leads to better price discovery and ensures that the government receives services at a fair market value. The agency likely sought proposals from a broad range of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a wider pool of innovative solutions. This process helps ensure that public funds are used efficiently by driving down costs and improving service quality.

Public Impact

The Federal Aviation Administration (FAA) and the Department of Transportation are the primary beneficiaries, receiving essential support for aeronautical operations. Services delivered likely include technical analysis, engineering support, and program management related to aviation. The contract's impact is primarily national, supporting the overall efficiency and safety of the U.S. airspace system. The contract supports a specialized workforce in engineering and aeronautical sciences.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates under the Time and Materials model.
Dependence on LS Technologies LLC's performance and ability to meet deadlines.
Risk of knowledge transfer gaps if key personnel depart during the contract period.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing.
Contract supports critical national infrastructure (aviation), indicating strategic importance.
Clear performance period with defined end date allows for focused execution.

Sector Analysis

The aeronautical services sector is a specialized segment within the broader engineering and professional services industry. It encompasses a wide range of activities, from research and development to operational support and regulatory compliance for aviation. This contract likely fits within the engineering services sub-sector (NAICS 541330), which is characterized by high technical expertise and often involves government contracts. Spending in this area is crucial for maintaining and advancing the nation's air traffic control systems, aircraft safety standards, and overall aviation infrastructure.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to LS Technologies LLC, a single entity, suggests that the primary contractor is likely a mid-to-large-sized firm. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract are limited, though they may be involved as suppliers or through other contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are typically embedded in the contract terms, including performance standards, reporting requirements, and delivery schedules. Transparency is facilitated through contract award databases and public reporting mechanisms. The Inspector General for the Department of Transportation may have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Aeronautical Research and Development
Air Traffic Control Modernization
Aviation Safety Programs
Airport Infrastructure Development
Professional and Management Support Services

Risk Flags

Time and Materials contract type requires diligent oversight to control costs.
Performance risk associated with specialized technical services.
Dependence on contractor's key personnel and expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.1 million to LS TECHNOLOGIES LLC. AERONAUTICAL SERVICES SUPPORT

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 $8.1 million.

What is the period of performance?

Start: 2024-04-24. End: 2026-02-17.

What is the track record of LS Technologies LLC in performing similar aeronautical support contracts for the federal government?

LS Technologies LLC has a history of performing various support services for federal agencies, including those related to aviation and engineering. While specific details on past aeronautical support contracts of this exact nature are not immediately available in this data snippet, their presence in the federal contracting space suggests experience. A deeper dive into their contract history, past performance evaluations, and any awards or penalties would provide a clearer picture of their reliability and expertise in delivering similar services. Analyzing their performance on previous Time and Materials contracts would also be crucial to assess their ability to manage costs and deliver within scope.

How does the awarded value of $8.06 million compare to similar aeronautical services support contracts awarded by the FAA or other agencies?

Benchmarking the $8.06 million award requires comparing it against contracts with similar scopes of work, durations, and service requirements. Contracts for specialized engineering, technical consulting, and program management within the aviation sector can vary significantly. If this contract involves complex system analysis, long-term operational support, or specialized research, the value may be considered standard. However, if the scope is more limited, the price might be on the higher side. A comprehensive analysis would involve reviewing contract databases for comparable awards, considering factors like the number of bidders, the specific deliverables, and the prevailing market rates for such expertise.

What are the primary performance risks associated with this Time and Materials contract, and how are they mitigated?

The primary performance risk with a Time and Materials (T&M) contract is the potential for cost overruns if the scope of work is not well-defined or if project duration extends beyond initial estimates. Uncontrolled hours billed can lead to the contract exceeding its ceiling. Mitigation strategies typically include robust oversight by the government's Contracting Officer's Representative (COR), clear task orders, regular progress reviews, and strict adherence to the contract's ceiling amount. The FAA will need to actively manage the contractor's hours and ensure that all work performed is necessary, reasonable, and directly related to the contract's objectives. Establishing detailed milestones and performance metrics can also help manage risks.

What is the expected impact of this contract on the efficiency and safety of the National Airspace System?

This contract is expected to contribute to the efficiency and safety of the National Airspace System (NAS) by providing essential aeronautical services support. These services likely involve technical expertise, analysis, and program management that aid the Federal Aviation Administration (FAA) in its mission to operate and improve the NAS. Depending on the specific nature of the support, it could range from enhancing air traffic control systems, improving operational procedures, supporting safety initiatives, or contributing to the development and implementation of new aviation technologies. Ultimately, such support is crucial for maintaining the high standards of safety and efficiency required for modern air travel.

How has federal spending on aeronautical services support evolved over the past five years, and does this award represent a trend?

Analyzing the evolution of federal spending on aeronautical services support requires access to historical spending data across relevant agencies like the FAA and Department of Defense. Generally, spending in this area can fluctuate based on modernization initiatives, safety upgrades, and research priorities within the aviation sector. Increased investment in NextGen (Next Generation Air Transportation System) or other major aviation infrastructure projects would likely correlate with higher spending. This $8.06 million award, while significant for a single contract, needs to be viewed within the broader context of annual federal outlays for aviation support services to determine if it represents a sustained trend or a specific project-driven investment.

What is the significance of the 'Engineering Services' (NAICS 541330) classification for this contract and the broader market?

The classification of 'Engineering Services' (NAICS 541330) signifies that this contract falls under a broad category encompassing firms that provide specialized engineering expertise across various disciplines. For aeronautical services, this typically includes aerospace engineering, systems engineering, and related technical consulting. This classification indicates a focus on technical problem-solving, design, analysis, and project management within the aviation domain. The market for these services is often characterized by high barriers to entry due to the need for specialized knowledge, certifications, and a proven track record. Government contracts within this NAICS code are crucial for agencies like the FAA to maintain and advance complex aviation systems.

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: $17,465,867

Exercised Options: $8,055,142

Current Obligation: $8,055,142

Actual Outlays: $6,446,921

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,514,890

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