DOT's FAA Awards $270M Firm Fixed Price Contract to Robinson Aviation for Air Traffic Control Services

Contract Overview

Contract Amount: $270,360,313 ($270.4M)

Contractor: Robinson Aviation (RVA), Inc.

Awarding Agency: Department of Transportation

Start Date: 2015-04-07

End Date: 2025-01-31

Contract Duration: 3,587 days

Daily Burn Rate: $75.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ROBINSON AVIATION (RVA) FOR AREA 4 IGF::CT::IGF

Place of Performance

Location: OVERLAND PARK, JOHNSON County, KANSAS, 66204

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $270.4 million to ROBINSON AVIATION (RVA), INC. for work described as: ROBINSON AVIATION (RVA) FOR AREA 4 IGF::CT::IGF Key points: 1. Contract awarded to Robinson Aviation (RVA), Inc. for Air Traffic Control services. 2. Significant value of over $270 million over a 10-year period. 3. Utilized full and open competition, suggesting a competitive bidding process. 4. The contract is for Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of $270.36M over approximately 10 years suggests a substantial investment in air traffic control infrastructure. Benchmarking against similar large-scale ATC contracts would be necessary for a precise value assessment, but the duration and scope indicate a significant, potentially competitive, pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible price through market forces.

Public Impact

Ensures continued operation and modernization of air traffic control systems. Supports the safety and efficiency of national airspace. Potential for technological advancements in air traffic management. Impacts airlines, cargo carriers, and general aviation through service reliability.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Contract duration is long (10 years), potentially leading to price escalation if not managed.
Small business participation is not indicated (sb: false).

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Full and open competition suggests competitive pricing.
Long-term contract provides stability for critical services.

Sector Analysis

This contract falls within the Air Traffic Control sector, a critical component of national infrastructure managed by the FAA. Spending in this area is typically substantial and driven by safety, efficiency, and technological upgrade requirements. Benchmarks would focus on similar long-term, high-value service contracts for critical infrastructure.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued within this large contract.

Oversight & Accountability

The definitive contract award with a clear start and end date suggests established oversight processes. However, the long duration necessitates ongoing monitoring to ensure performance, cost control, and adherence to contract terms by both the FAA and Robinson Aviation.

Related Government Programs

Air Traffic Control
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration (10 years).
No indication of small business participation.
Potential for price escalation over the contract term if not managed.
Reliance on a single contractor for critical infrastructure services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $270.4 million to ROBINSON AVIATION (RVA), INC.. ROBINSON AVIATION (RVA) FOR AREA 4 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 $270.4 million.

What is the period of performance?

Start: 2015-04-07. End: 2025-01-31.

What specific air traffic control services are covered under this contract, and how do they align with current and future FAA modernization goals?

The contract covers services for Area 4 IGF (Instrument Flight Group), which likely includes the operation, maintenance, and potentially modernization of air traffic control systems and infrastructure within a specific geographic region. Alignment with FAA goals would depend on the specific technical requirements and performance metrics outlined in the contract's statement of work, focusing on areas like NextGen implementation or enhanced surveillance capabilities.

Given the firm fixed price structure, what mechanisms are in place to prevent cost overruns or scope creep that could impact the government's final expenditure?

While a firm fixed price contract shifts cost risk to the contractor, the government typically employs mechanisms like detailed performance metrics, regular progress reviews, and change order controls. The FAA would monitor adherence to the defined scope and require formal approval and potential renegotiation for any changes, ensuring that the fixed price remains the basis for payment unless contract modifications are formally executed.

How does the $270M contract value compare to historical spending on similar air traffic control services, and what factors justify this level of investment?

Benchmarking this $270M contract against historical spending requires access to detailed procurement data for comparable ATC services. Justification for the investment likely stems from the critical nature of air traffic control, the long-term operational requirements, potential technological upgrades, and the scope of services provided across the designated area. Inflation, market rates, and the complexity of the systems managed would also be contributing factors.

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: $337,342,714

Exercised Options: $270,360,313

Current Obligation: $270,360,313

Actual Outlays: $140,685,784

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline