DOT's $47.4M Air Traffic Control Contract Awarded to Midwest Air Traffic Control Service Inc
Contract Overview
Contract Amount: $47,449,694 ($47.4M)
Contractor: Midwest AIR Traffic Control Service Inc
Awarding Agency: Department of Transportation
Start Date: 2015-04-07
End Date: 2025-01-31
Contract Duration: 3,587 days
Daily Burn Rate: $13.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: MIDWEST FOR AREA 7 IGF::CT::IGF
Place of Performance
Location: OVERLAND PARK, JOHNSON County, KANSAS, 66204
State: Kansas Government Spending
Plain-Language Summary
Department of Transportation obligated $47.4 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC for work described as: MIDWEST FOR AREA 7 IGF::CT::IGF Key points: 1. The contract value is $47.4 million over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract is for Air Traffic Control services, a critical infrastructure function. 4. The firm fixed price contract type aims to control costs for the government.
Value Assessment
Rating: good
The contract is a definitive contract with a firm fixed price, suggesting clear cost expectations. Benchmarking against similar air traffic control contracts would provide further insight into its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a wide range of potential bidders to participate.
Taxpayer Impact: The competitive nature of the award is expected to ensure a fair price for taxpayers, maximizing value for the services rendered.
Public Impact
Ensures continued operation of vital air traffic control systems. Supports the safety and efficiency of air travel in the Midwest region. Provides essential services to the aviation industry and the public.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (over 9 years).
- No small business participation noted.
Positive Signals
- Firm fixed price contract.
- Full and open competition.
Sector Analysis
This contract falls within the Transportation sector, specifically focusing on air traffic control services. Spending in this area is crucial for national infrastructure and safety.
Small Business Impact
The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities for small business subcontracting were explored or mandated.
Oversight & Accountability
The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Standard oversight procedures for definitive contracts should be in place to ensure performance and compliance.
Related Government Programs
- Air Traffic Control
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration.
- No small business participation.
- Potential for cost escalation risk with firm fixed price over extended period.
Tags
air-traffic-control, department-of-transportation, ks, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $47.4 million to MIDWEST AIR TRAFFIC CONTROL SERVICE INC. MIDWEST FOR AREA 7 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 $47.4 million.
What is the period of performance?
Start: 2015-04-07. End: 2025-01-31.
What is the historical performance of Midwest Air Traffic Control Service Inc. on similar contracts?
Assessing the contractor's past performance is crucial for understanding their reliability and capability in delivering air traffic control services. Reviewing previous contracts, client feedback, and any documented issues can provide valuable insights into their track record and help mitigate potential risks associated with this current award.
Are there any potential risks associated with the long contract duration and firm fixed price?
A long contract duration (over 9 years) with a firm fixed price could expose the government to risks if market conditions or service requirements change significantly. The contractor might face challenges in maintaining profitability if costs escalate unexpectedly, or the government might miss out on potential cost savings if prices decrease. Regular performance reviews and contract modifications might be necessary.
How does the pricing of this contract compare to industry benchmarks for similar air traffic control services?
Comparing the per-unit cost or overall contract value against industry benchmarks for comparable air traffic control services is essential for validating its fairness. If the pricing is significantly higher than market rates, it could indicate a lack of sufficient competition or potential inefficiencies. Conversely, if it's substantially lower, it might raise concerns about the contractor's ability to deliver quality services.
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: $63,249,486
Exercised Options: $47,449,694
Current Obligation: $47,449,694
Actual Outlays: $24,014,868
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-07
Current End Date: 2025-01-31
Potential End Date: 2025-10-24 00:00:00
Last Modified: 2025-09-24
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