DOT's FAA awards $118M for Midwest Air Traffic Control Services to Midwest Air Traffic Control Service Inc

Contract Overview

Contract Amount: $118,354,762 ($118.4M)

Contractor: Midwest AIR Traffic Control Service Inc

Awarding Agency: Department of Transportation

Start Date: 2010-01-22

End Date: 2015-06-30

Contract Duration: 1,985 days

Daily Burn Rate: $59.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MIDWEST AREA 3 TAS::69 1301::TAS

Place of Performance

Location: OVERLAND PARK, JOHNSON County, KANSAS, 66213, UNITED STATES OF AMERICA

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $118.4 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: MIDWEST AREA 3 TAS::69 1301::TAS Key points: 1. Contract awarded to a single entity, raising questions about competition. 2. Significant contract value suggests a critical service for air traffic management. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The 'Other Management Consulting Services' NAICS code is broad and requires further scrutiny. 5. No small business participation noted, impacting diversity goals.

Value Assessment

Rating: fair

The award amount of $118.35M over approximately 5.5 years suggests a substantial investment. Benchmarking against similar air traffic control service contracts is difficult without more specific service details, but the price appears within a reasonable range for long-term, critical infrastructure support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bids were likely considered. However, the award to a single entity, 'MIDWEST AIR TRAFFIC CONTROL SERVICE INC', suggests this firm was the most advantageous offer. The impact on price discovery is positive due to competition, but the final selection warrants review.

Taxpayer Impact: Taxpayers benefit from competitive bidding, which aims to secure the best value. However, the specific value for money achieved requires further analysis of the winning bid against alternatives.

Public Impact

Ensures continued operation and safety of air traffic control in the Midwest region. Supports critical infrastructure for national transportation and economic activity. Potential for job creation within the awarded company and its subcontractors. Impacts airline operations and passenger travel reliability in the Midwest.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Broad NAICS code may obscure specific service costs.
Single awardee despite full and open competition needs justification.

Positive Signals

Full and open competition was utilized.
Firm fixed-price contract provides cost predictability.
Long-term contract ensures service continuity.

Sector Analysis

This contract falls under management consulting services supporting the Federal Aviation Administration's air traffic control operations. Spending in this sector is crucial for national infrastructure and safety. Benchmarks for similar large-scale air traffic management contracts are highly specialized and depend on the specific services rendered.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that either no small businesses bid on the contract, or the prime contractor is not a small business and did not subcontract to any. This is a missed opportunity for supporting small business economic growth.

Oversight & Accountability

The Federal Aviation Administration is responsible for overseeing this contract. Robust oversight is necessary to ensure the contractor meets performance standards, delivers value, and adheres to contract terms. Accountability mechanisms should be in place to address any performance issues or cost overruns.

Related Government Programs

Other Management Consulting Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Lack of small business participation.
Broad NAICS code limits transparency.
Potential for single-awardee concentration risk.
Need for detailed performance metrics to validate value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $118.4 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. MIDWEST AREA 3 TAS::69 1301::TAS

Who is the contractor on this award?

The obligated recipient is MIDWEST AIR TRAFFIC CONTROL SERVICE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $118.4 million.

What is the period of performance?

Start: 2010-01-22. End: 2015-06-30.

What specific management consulting services were provided under this contract, and how did they contribute to the efficiency or safety of Midwest air traffic control?

The NAICS code 541618 is very broad, encompassing various management consulting activities. To assess value, it's crucial to understand the precise services rendered, such as operational analysis, technology implementation support, or regulatory compliance assistance. The effectiveness would be measured by improvements in air traffic flow, safety incident reduction, or cost savings directly attributable to these consulting efforts.

Given the 'full and open competition' designation, why was the contract awarded to only one entity, and what was the competitive landscape like?

While designated 'full and open,' the award to a single entity implies that only one bidder met all requirements or offered the most advantageous proposal. Further investigation into the number of bids received and the evaluation criteria would clarify the competitive intensity. Understanding if other qualified firms were present but not selected, or if the scope inherently favored a single provider, is key to assessing true competition.

How does the $118.35 million contract value compare to historical spending on similar air traffic control services, and what is the projected return on investment for taxpayers?

Benchmarking this contract requires detailed comparison with similar FAA contracts for air traffic control services, considering duration, scope, and specific deliverables. Without this context, the $118.35M figure is difficult to evaluate. A clear ROI analysis would link the contract's outcomes to tangible benefits like improved safety metrics, operational efficiencies, or cost reductions, demonstrating value for taxpayer investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7285 W 132ND ST STE 340, OVERLAND PARK, KS, 66213

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

Financial Breakdown

Contract Ceiling: $118,354,762

Exercised Options: $118,354,762

Current Obligation: $118,354,762

Contract Characteristics

Cost or Pricing Data: NO

Timeline