Dot's FAA Awards $252M Air Traffic Control Contract to Midwest AIR Traffic Control Service Inc
Contract Overview
Contract Amount: $252,070,048 ($252.1M)
Contractor: Midwest AIR Traffic Control Service Inc
Awarding Agency: Department of Transportation
Start Date: 2015-04-07
End Date: 2025-09-30
Contract Duration: 3,829 days
Daily Burn Rate: $65.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MIDWEST FOR AREA 1 IGF::CT::IGF
Place of Performance
Location: OVERLAND PARK, JOHNSON County, KANSAS, 66204
State: Kansas Government Spending
Plain-Language Summary
Department of Transportation obligated $252.1 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: MIDWEST FOR AREA 1 IGF::CT::IGF Key points: 1. Contract value of $252M over 10 years. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Risk appears moderate given the long duration and fixed-price nature. 4. Sector is Air Traffic Control, critical for national infrastructure.
Value Assessment
Rating: good
The contract value of $252M over approximately 10 years suggests a significant investment. Benchmarking against similar air traffic control service contracts would be necessary for a precise assessment, but the scale indicates substantial operational requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can drive competitive pricing. The number of offers received (3) indicates some level of interest, but further analysis could reveal if this was optimal.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better prices and services.
Public Impact
Ensures continued operation of vital air traffic control services. Supports national airspace safety and efficiency. Impacts airlines, airports, and travelers through reliable air traffic management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (10 years) could lead to price escalation risks.
- Limited number of offers (3) might indicate potential barriers to entry or limited market interest.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
Sector Analysis
This contract falls within the Air Traffic Control sector, a critical component of national transportation infrastructure. Spending in this area is driven by the need for safety, efficiency, and modernization of air navigation systems.
Small Business Impact
The data indicates that small businesses were not a primary focus for this specific contract, as the awardee is not identified as an SMB and there's no explicit mention of small business subcontracting goals. Further investigation into subcontracting opportunities would be beneficial.
Oversight & Accountability
The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Standard oversight mechanisms for large, long-term contracts would apply, including performance monitoring and compliance checks to ensure service delivery and adherence to terms.
Related Government Programs
- Air Traffic Control
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration.
- Limited number of bids received.
- Potential for cost escalation under fixed-price model.
- Lack of explicit small business participation noted.
Tags
air-traffic-control, department-of-transportation, ks, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $252.1 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. MIDWEST FOR AREA 1 IGF::CT::IGF
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 $252.1 million.
What is the period of performance?
Start: 2015-04-07. End: 2025-09-30.
What is the historical performance of MIDWEST AIR TRAFFIC CONTROL SERVICE INC. on similar government contracts?
Assessing the contractor's past performance is crucial for understanding their reliability and capability. Reviewing previous contract awards, performance evaluations, and any past disputes or challenges would provide insight into their track record. This information helps mitigate risks associated with service delivery and adherence to contract terms, ultimately impacting the value received by the government.
How does the per-unit cost of services compare to industry benchmarks for air traffic control?
Benchmarking the per-unit cost against industry standards is essential for determining fair pricing. Without specific unit cost data, a direct comparison is difficult. However, analyzing the total contract value relative to the scope of services and comparing it to similar contracts awarded by the FAA or other agencies can provide an indirect assessment of cost-effectiveness.
What are the potential risks associated with the long duration and fixed-price nature of this contract?
The long duration (nearly 10 years) combined with a firm fixed-price structure presents risks of potential cost overruns for the contractor if market conditions change significantly (e.g., inflation, labor costs). Conversely, the government might miss out on potential savings if prices decrease over time. Effective contract management and contingency planning are key to mitigating these risks.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
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: $317,355,409
Exercised Options: $252,070,048
Current Obligation: $252,070,048
Actual Outlays: $127,584,748
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-07
Current End Date: 2025-09-30
Potential End Date: 2025-10-12 00:00:00
Last Modified: 2025-09-12
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