DOT's $247M air traffic control contract awarded to Midwest Air Traffic Control Service Inc
Contract Overview
Contract Amount: $247,036,356 ($247.0M)
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: $64.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MIDWEST FOR AREA 3 IGF::CT::IGF
Place of Performance
Location: OVERLAND PARK, JOHNSON County, KANSAS, 66204
State: Kansas Government Spending
Plain-Language Summary
Department of Transportation obligated $247.0 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: MIDWEST FOR AREA 3 IGF::CT::IGF Key points: 1. Contract value represents a significant investment in air traffic control infrastructure. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The contract duration of over 10 years indicates a long-term need for these services. 4. The firm-fixed-price structure aims to control costs and provide predictability. 5. This contract is crucial for maintaining safe and efficient air travel in the region. 6. The awardee has a substantial contract value, implying significant operational capacity.
Value Assessment
Rating: good
The contract value of approximately $247 million over its period of performance is substantial. Benchmarking against similar air traffic control service contracts is challenging without more specific service details. However, the firm-fixed-price nature of the award suggests that the government has negotiated a set price for the services, which can be advantageous for cost control. The number of bids received (3) provides some indication of market interest, but a more detailed analysis of the bid prices would be needed for a definitive value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Three bids were received, suggesting a moderate level of competition for this specific requirement. While three bidders is not exceptionally high, it demonstrates that the opportunity was accessible and attracted multiple interested parties, which is generally positive for price discovery.
Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that can drive down prices and improve service quality.
Public Impact
The primary beneficiaries are the flying public and the aviation industry, who rely on safe and efficient air traffic control. Services delivered include the operation and maintenance of air traffic control systems and facilities. The geographic impact is focused on the Midwest region, specifically Kansas, supporting air travel within this area. Workforce implications include the employment of air traffic controllers and support staff by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency if not actively managed.
- Dependence on a single contractor for critical air traffic control services poses a risk.
- Potential for cost overruns if the firm-fixed-price contract does not adequately account for unforeseen operational challenges.
Positive Signals
- Awarded through full and open competition, indicating a fair and accessible process.
- Firm-fixed-price contract type helps to lock in costs and provide budget certainty.
- Long-term contract provides stability for essential air traffic control services.
- The contractor has been awarded a significant sum, suggesting they possess the capacity and experience to fulfill the contract.
Sector Analysis
The air traffic control sector is a critical component of national infrastructure, ensuring the safety and efficiency of air travel. This contract falls within the broader aerospace and defense services industry. Spending in this sector is heavily influenced by government appropriations and the need to maintain and modernize aging air traffic management systems. Comparable spending benchmarks would typically involve other large-scale air traffic control service contracts awarded by the FAA or equivalent international bodies.
Small Business Impact
The data indicates that small business participation was not a primary focus for this contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor is likely a large entity, and opportunities for small businesses may be limited unless they are part of the prime contractor's supply chain or subcontracting network, which is not detailed here.
Oversight & Accountability
Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a division of the Department of Transportation. The FAA is responsible for ensuring that the contractor meets all performance requirements and adheres to safety regulations. Accountability measures are embedded within the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be less publicly accessible.
Related Government Programs
- Air Traffic Control Operations
- National Airspace System Modernization
- Aviation Safety and Security
- Federal Aviation Administration Contracts
- Transportation Infrastructure Investment
Risk Flags
- Long-term contract duration
- Single awardee for critical infrastructure
- Moderate competition level
Tags
transportation, air-traffic-control, faa, department-of-transportation, definitive-contract, firm-fixed-price, full-and-open-competition, midwest, kansas, large-contract, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $247.0 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. MIDWEST FOR AREA 3 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 $247.0 million.
What is the period of performance?
Start: 2015-04-07. End: 2025-09-30.
What is the historical spending pattern for air traffic control services in the Midwest region by the FAA?
Analyzing historical spending for air traffic control services in the Midwest region by the FAA requires access to detailed historical contract data. Generally, the FAA has consistently invested in air traffic control infrastructure and services to ensure the safety and efficiency of the National Airspace System. Spending patterns are influenced by factors such as the age of existing equipment, technological advancements (like NextGen), and the overall volume of air traffic. Contracts for these services are often long-term due to the critical nature of the infrastructure and the need for stable operations. Without specific historical data for this contract or region, it's difficult to provide precise figures, but it's reasonable to assume a sustained and significant investment over time to maintain and upgrade these vital services.
How does the awarded price compare to the estimated value or independent government cost estimate for this contract?
The provided data does not include the estimated value or the independent government cost estimate (IGCE) for this contract. Therefore, a direct comparison to assess if the awarded price of approximately $247 million is favorable or unfavorable cannot be made. In a full and open competition, the awarded price is typically the result of the bidding process, where contractors submit their offers based on their understanding of the requirements and their cost structures. A low number of bids (3 in this case) could sometimes indicate that the government's estimate was too low, or the requirements were highly specialized, potentially limiting the number of competitive offers. A thorough value assessment would require comparing the awarded price against the IGCE and potentially against benchmark data from similar contracts.
What is the track record of Midwest Air Traffic Control Service Inc. with similar FAA contracts?
Midwest Air Traffic Control Service Inc. has been awarded this definitive contract valued at approximately $247 million, indicating a significant engagement with the FAA. To assess their track record, one would need to examine their past performance on previous FAA contracts, particularly those involving air traffic control services. Key aspects to review would include on-time delivery, adherence to budget, quality of service, safety record, and any past performance issues or disputes. A substantial contract award like this suggests the FAA has confidence in the contractor's capabilities, but a deeper dive into their contract history, including any performance reviews or awards/debarments, would provide a more comprehensive understanding of their reliability and expertise in this critical domain.
What are the key performance indicators (KPIs) used to measure the success of this air traffic control contract?
The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for air traffic control services, typical KPIs would likely focus on safety, efficiency, and reliability. These could include metrics such as the number of safety incidents or near misses, adherence to air traffic flow management targets, response times for system outages, availability of critical equipment, and controller performance standards. The firm-fixed-price nature of the contract suggests that the FAA will be closely monitoring these performance metrics to ensure the contractor is meeting its obligations and delivering the required level of service to maintain the integrity of the National Airspace System.
What is the potential impact of this contract on the modernization of the National Airspace System (e.g., NextGen)?
This contract, focused on air traffic control services in the Midwest region, likely plays a role in the broader modernization efforts of the National Airspace System, such as the Next Generation Air Transportation System (NextGen). While the contract details do not explicitly mention NextGen implementation, the ongoing operation and maintenance of air traffic control infrastructure are foundational to any modernization initiative. Midwest Air Traffic Control Service Inc. may be responsible for integrating new technologies or supporting systems that are part of NextGen. The long-term nature of the contract also provides a stable platform for potential future upgrades and the adoption of new procedures and technologies that enhance safety, efficiency, and capacity within the airspace.
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: $247,051,840
Exercised Options: $247,036,356
Current Obligation: $247,036,356
Actual Outlays: $125,380,775
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: 2025-09-30 00:00:00
Last Modified: 2025-09-26
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