FAA awards $36.1M contract to Midwest Weather, Inc. for weather services, lacking competition
Contract Overview
Contract Amount: $36,117,308 ($36.1M)
Contractor: Midwest Weather, Inc.
Awarding Agency: Department of Transportation
Start Date: 2013-11-14
End Date: 2022-05-31
Contract Duration: 3,120 days
Daily Burn Rate: $11.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CWO - MIDWEST WEATHER, INC. IGF::CT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $36.1 million to MIDWEST WEATHER, INC. for work described as: CWO - MIDWEST WEATHER, INC. IGF::CT::IGF Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. Services provided are in the 'All Other Professional, Scientific, and Technical Services' category. 3. Long contract duration (2013-2022) suggests a potentially stable but un-benchmarked relationship. 4. No small business participation noted, impacting broader economic goals.
Value Assessment
Rating: questionable
The contract's value of $36.1M over nearly 9 years, with a fixed-price structure, makes direct per-unit cost comparison difficult without specific service metrics. The lack of competition suggests potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was sole-sourced, meaning no competitive bidding process occurred. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The absence of competition likely results in a higher cost to taxpayers than a competitively awarded contract would have achieved.
Public Impact
Essential weather services for aviation safety are being provided. Taxpayers may be overpaying due to the lack of competitive bidding. The long-term nature of the contract could indicate a critical, ongoing need. Limited transparency on performance metrics due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Essential service provision
- Firm fixed price contract type
Sector Analysis
This contract falls under 'All Other Professional, Scientific, and Technical Services,' a broad category. Benchmarking is difficult without specific service details, but the lack of competition suggests potential deviation from market rates.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that opportunities for small businesses were not pursued or were unavailable for this specific requirement.
Oversight & Accountability
The sole-source nature of this contract warrants closer oversight to ensure fair pricing and adequate service delivery. A review of the justification for sole-sourcing is recommended.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Lack of transparency in pricing and performance justification.
- Long contract duration without apparent re-competition.
- No small business participation.
Tags
all-other-professional-scientific-and-te, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $36.1 million to MIDWEST WEATHER, INC.. CWO - MIDWEST WEATHER, INC. IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is MIDWEST WEATHER, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $36.1 million.
What is the period of performance?
Start: 2013-11-14. End: 2022-05-31.
What was the justification for awarding this contract on a sole-source basis, and has it been re-evaluated over its long duration?
The justification for sole-sourcing is critical for understanding why competition was bypassed. Agencies typically cite unique capabilities, urgent needs, or lack of market availability. Without this justification, it's difficult to assess if the decision was appropriate or if market conditions changed, necessitating a re-evaluation for future awards or modifications.
How does the cost of these weather services compare to similar services procured competitively by other government agencies or private sector entities?
A comprehensive cost comparison is challenging due to the 'All Other Professional, Scientific, and Technical Services' NAICS code and the sole-source nature. However, if comparable services exist, benchmarking against those would reveal potential overpricing. The FAA should have conducted or should now conduct a market research analysis to establish a fair and reasonable price baseline.
What performance metrics were established for this contract, and how was performance monitored to ensure value for money, especially given the lack of competition?
Performance monitoring is crucial for sole-source contracts to mitigate risks of overpayment and underperformance. The FAA should have clearly defined performance standards and metrics. Regular reviews of these metrics and contractor performance reports are necessary to ensure the agency is receiving the expected value, even without competitive pressure driving efficiency.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
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: 28 HARMONY CROSSING DR, SAINT PETERS, MO, 63376
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $47,289,028
Exercised Options: $36,117,308
Current Obligation: $36,117,308
Actual Outlays: $8,874,345
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-11-14
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2024-12-27
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