DOT's FAA Awards $18.2M for Air Transportation Support, Lacking Competition

Contract Overview

Contract Amount: $18,253 ($18.3K)

Contractor: Standardaero Atlantic, Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-06-26

End Date: 2025-07-07

Contract Duration: 11 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HIGH ITT ON STARTUP

Place of Performance

Location: KENNESAW, COBB County, GEORGIA, 30144

State: Georgia Government Spending

Plain-Language Summary

Department of Transportation obligated $18,253 to STANDARDAERO ATLANTIC, INC. for work described as: HIGH ITT ON STARTUP Key points: 1. Significant award of $18.2M for air transportation support. 2. Contract awarded to StandardAero Atlantic, Inc. with no competition. 3. Short duration (11 days) suggests an urgent or specific need. 4. Firm Fixed Price contract type aims to control costs.

Value Assessment

Rating: questionable

The award is a Purchase Order, which typically involves smaller dollar values and less formal pricing scrutiny than larger contracts. Without a competitive process, it's difficult to assess if the $18.2M price represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible value for this $18.2M expenditure.

Public Impact

Taxpayers may have overpaid due to the absence of competitive bidding. Limited transparency into the justification for a sole-source award. Potential for future sole-source awards if this becomes a pattern.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High dollar value for a short-term award
Sole-source justification unclear

Positive Signals

Firm Fixed Price contract type
Awarded to a specific company for a defined service

Sector Analysis

The Federal Aviation Administration (FAA) within the Department of Transportation procures a wide range of services to ensure aviation safety and efficiency. Spending benchmarks for 'Other Support Activities for Air Transportation' can vary widely based on the specific nature of the support required.

Small Business Impact

This award was not competed and there is no indication that small businesses were involved in the subcontracting process. Further analysis would be needed to determine if small business participation was considered or required.

Oversight & Accountability

The use of a sole-source purchase order for a significant amount warrants oversight to ensure the justification was sound and that competitive procedures were bypassed appropriately. Accountability for the pricing and necessity of the service is crucial.

Related Government Programs

Other Support Activities for Air Transportation
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Lack of competition
High dollar value for short duration
Sole-source award justification unclear
Potential for inflated pricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18,253 to STANDARDAERO ATLANTIC, INC.. HIGH ITT ON STARTUP

Who is the contractor on this award?

The obligated recipient is STANDARDAERO ATLANTIC, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $18,253.

What is the period of performance?

Start: 2025-06-26. End: 2025-07-07.

What was the specific justification for awarding this contract sole-source, and why was competition deemed unnecessary or impractical?

The justification for a sole-source award typically involves unique capabilities, urgent needs where competition is impossible, or specific circumstances outlined in federal acquisition regulations. Without detailed documentation from the FAA, it's impossible to ascertain the precise reason. This lack of transparency is a key concern regarding value for taxpayer money.

Given the $18.2M value and short 11-day duration, what is the risk of cost overruns or inefficient service delivery?

The high cost for a very short duration increases the risk of inefficiency. A sole-source award removes the pressure of competitive pricing, potentially allowing for inflated costs. The urgency implied by the short timeframe could also lead to rushed execution, increasing the risk of errors or incomplete service delivery, ultimately impacting overall value.

How does this sole-source award align with the FAA's broader strategy for ensuring cost-effective and competitive procurement in air transportation support services?

Sole-source awards, especially for substantial amounts, generally run counter to strategies emphasizing competition for cost-effectiveness. While exceptions exist, this award raises questions about whether the FAA is consistently leveraging market forces to achieve the best value. It suggests a potential deviation from standard competitive practices that could impact long-term procurement efficiency.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 AEROSPACE BLVD, SUMMERSIDE

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $37,443

Exercised Options: $18,253

Current Obligation: $18,253

Actual Outlays: $18,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline