DOT's FAA Awards $384.7M Contract to Robinson Aviation for Air Traffic Control Services

Contract Overview

Contract Amount: $384,720,001 ($384.7M)

Contractor: Robinson Aviation (RVA), Inc.

Awarding Agency: Department of Transportation

Start Date: 2015-04-07

End Date: 2025-09-30

Contract Duration: 3,829 days

Daily Burn Rate: $100.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: ROBINSON AVIATION (RVA) FOR AREA 2 IGF::CT::IGF

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73101

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $384.7 million to ROBINSON AVIATION (RVA), INC. for work described as: ROBINSON AVIATION (RVA) FOR AREA 2 IGF::CT::IGF Key points: 1. Contract awarded to Robinson Aviation (RVA), Inc. for Air Traffic Control services. 2. Significant contract value of $384.7 million over its period of performance. 3. Procurement method was 'FULL AND OPEN COMPETITION', indicating broad market solicitation. 4. Contract type is 'DEFINITIVE CONTRACT' with 'FIRM FIXED PRICE' terms. 5. Services are categorized under NAICS code 488111 (Air Traffic Control).

Value Assessment

Rating: good

The contract's firm fixed price structure suggests a clear understanding of costs. Benchmarking against similar air traffic control contracts would be necessary for a definitive value assessment, but the price appears reasonable given the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of 'FULL AND OPEN COMPETITION' is a positive indicator for price discovery, allowing multiple vendors to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.

Taxpayer Impact: The competitive nature of the award is expected to yield a fair price, maximizing taxpayer value for essential air traffic control services.

Public Impact

Ensures continued operation and modernization of air traffic control systems. Supports the safety and efficiency of the National Airspace System. Impacts airlines, cargo carriers, and general aviation through reliable ATC services. Potential for technological advancements in air traffic management. Economic impact through employment and related industry support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends to September 2025, requiring ongoing monitoring.
Fixed-price contracts can shift risk to the contractor, potentially impacting performance if costs escalate unexpectedly.

Positive Signals

Full and open competition promotes fairness and potentially better pricing.
Firm fixed price provides cost certainty for the government.
Clear NAICS code and PSC indicate well-defined service requirements.

Sector Analysis

This contract falls within the Air Traffic Control sector, a critical component of the transportation industry. Spending in this area is consistently high due to the essential nature of air safety and efficiency. Benchmarks for similar large-scale ATC contracts would provide further context.

Small Business Impact

The data indicates this was a full and open competition, which theoretically allows for small business participation. However, the prime contractor is Robinson Aviation (RVA), Inc., and there is no explicit information on small business subcontracting in the provided data. Further investigation into subcontracting plans would be beneficial.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Standard oversight mechanisms for definitive contracts, including performance reviews and financial monitoring, should be in place to ensure compliance and accountability.

Related Government Programs

Air Traffic Control
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Contract duration is lengthy (approx. 10 years), requiring sustained oversight.
Fixed-price nature shifts cost risk to the contractor; performance monitoring is crucial.
Lack of explicit small business subcontracting data.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $384.7 million to ROBINSON AVIATION (RVA), INC.. ROBINSON AVIATION (RVA) FOR AREA 2 IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is ROBINSON AVIATION (RVA), INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $384.7 million.

What is the period of performance?

Start: 2015-04-07. End: 2025-09-30.

What specific air traffic control technologies or services are included in this contract, and how do they align with current FAA modernization efforts?

The contract specifies services under NAICS code 488111 (Air Traffic Control). While the exact technological components are not detailed, the contract's duration and value suggest it covers significant operational and potentially developmental aspects of air traffic management. Alignment with FAA modernization would depend on specific contract line items and performance work statements, which are not provided here.

Given the firm fixed price, what mechanisms are in place to manage potential cost overruns or performance issues if Robinson Aviation faces unforeseen challenges?

Firm fixed price contracts place the cost risk on the contractor. However, the FAA typically includes clauses for performance standards, service level agreements, and potential remedies for non-performance. Contractual provisions for termination for default or convenience, along with potential penalties or incentives, would be detailed in the full contract document.

How does the $384.7 million award compare to historical spending on similar air traffic control services, and does it represent an efficient use of taxpayer funds?

Without specific historical data for comparable ATC contracts, a direct comparison is difficult. However, the 'full and open competition' method suggests a deliberate effort to achieve competitive pricing. A detailed cost-benefit analysis, comparing the contract's deliverables against industry benchmarks and the total lifecycle cost, would be needed to definitively assess efficiency.

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: 1601 NW EXPWY STE 850, OKLAHOMA CITY, OK, 73118

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

Financial Breakdown

Contract Ceiling: $476,063,950

Exercised Options: $384,720,001

Current Obligation: $384,720,001

Actual Outlays: $200,196,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline