FAA Awards $34.8M Air Traffic Control Contract to Serco Management Services Inc
Contract Overview
Contract Amount: $34,881,201 ($34.9M)
Contractor: Serco Inc
Awarding Agency: Department of Transportation
Start Date: 2015-04-07
End Date: 2025-09-30
Contract Duration: 3,829 days
Daily Burn Rate: $9.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: SERCO MANAGEMENT SERVICES INC FOR AREA 5 IGF::CT::IGF
Place of Performance
Location: RESTON, FAIRFAX County, VIRGINIA, 20190
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $34.9 million to SERCO INC for work described as: SERCO MANAGEMENT SERVICES INC FOR AREA 5 IGF::CT::IGF Key points: 1. Contract awarded to Serco Management Services Inc. for Air Traffic Control services. 2. The contract has a total value of $34.8 million. 3. Awarded by the Department of Transportation, specifically the Federal Aviation Administration. 4. The contract type is Firm Fixed Price, indicating a set price for services. 5. This contract is for a duration of 3829 days.
Value Assessment
Rating: good
The contract's firm fixed price structure suggests a clear pricing mechanism. Benchmarking against similar air traffic control contracts would be necessary for a definitive assessment, but the value appears reasonable for the scope and duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically leads to competitive pricing and ensures the government receives the best value. This method allows all qualified vendors to bid, fostering a competitive environment.
Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs and ensuring efficient use of public funds.
Public Impact
Ensures continued operation of critical air traffic control systems. Supports the safety and efficiency of the National Airspace System. Provides essential services for commercial and private aviation. Impacts travelers through reliable air traffic management. Contributes to the economic activity driven by aviation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends beyond typical award cycles.
- Potential for scope creep in long-term contracts.
- Reliance on a single contractor for critical infrastructure.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type.
- Long-term commitment ensures service continuity.
Sector Analysis
This contract falls within the Air Traffic Control sector, a critical component of the transportation industry. Spending in this area is essential for national infrastructure and safety. Benchmarks for similar contracts would focus on operational efficiency and technological integration.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Federal Aviation Administration is responsible for overseeing this contract. Robust oversight mechanisms are crucial to ensure Serco Management Services Inc. meets performance requirements and adheres to contract terms, safeguarding taxpayer investment.
Related Government Programs
- Air Traffic Control
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration (over 9 years) increases risk of obsolescence or changing requirements.
- Potential for contractor lock-in due to specialized nature of air traffic control.
- Lack of small business awardee may indicate missed opportunities for economic inclusion.
- Firm Fixed Price can disincentivize contractor innovation if not carefully managed.
Tags
air-traffic-control, department-of-transportation, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $34.9 million to SERCO INC. SERCO MANAGEMENT SERVICES INC FOR AREA 5 IGF::CT::IGF
Who is the contractor on this award?
The obligated recipient is SERCO INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $34.9 million.
What is the period of performance?
Start: 2015-04-07. End: 2025-09-30.
What is the specific scope of services included in this air traffic control contract?
The provided data specifies the contract is for 'Air Traffic Control' services, with a North American Industry Classification System (NAICS) code of 488111. However, the granular details of the services, such as specific operational duties, technology maintenance, or personnel requirements, are not detailed in this summary. A full review of the contract's Statement of Work (SOW) would be necessary to understand the complete scope.
How does the firm fixed price structure mitigate risks associated with potential cost overruns for the FAA?
A Firm Fixed Price (FFP) contract shifts the risk of cost overruns to the contractor, Serco Management Services Inc. The FAA agrees to pay a set price regardless of the contractor's actual costs. This structure incentivizes the contractor to manage its expenses efficiently and effectively to maintain profitability, thereby protecting the FAA from unexpected increases in expenditure.
What performance metrics are in place to ensure the effectiveness of Serco's air traffic control services?
While the contract is firm fixed price, effectiveness is typically ensured through performance standards and Service Level Agreements (SLAs) outlined in the contract's Statement of Work. The FAA would monitor key performance indicators (KPIs) related to air traffic safety, efficiency, and system availability. Failure to meet these metrics could result in penalties or contractually defined remedies.
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: 12930 WORLDGATE DR, HERNDON, VA, 20170
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: $38,990,349
Exercised Options: $34,881,201
Current Obligation: $34,881,201
Actual Outlays: $18,319,543
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: 2025-09-15
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