DOT's FAA awarded $51.25M for cybersecurity engineering and technical support to LS Technologies LLC

Contract Overview

Contract Amount: $51,253,503 ($51.3M)

Contractor: LS Technologies LLC

Awarding Agency: Department of Transportation

Start Date: 2016-08-31

End Date: 2021-08-30

Contract Duration: 1,825 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TORP 5076 TASK ORDER 0010. CYBER SECURITY PROGRAM, ENGINEERING AND TECHNICAL SERVICES SUPPORT TASK ORDER. IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $51.3 million to LS TECHNOLOGIES LLC for work described as: TORP 5076 TASK ORDER 0010. CYBER SECURITY PROGRAM, ENGINEERING AND TECHNICAL SERVICES SUPPORT TASK ORDER. IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 3. The Time and Materials (T&M) contract type can pose cost control challenges if not managed closely. 4. LS Technologies LLC is the sole awardee for this specific task order. 5. The contract falls under Engineering Services (NAICS 541330). 6. The task order was issued under a larger contract vehicle, details of which are not provided. 7. The award was made by the Department of Transportation's Federal Aviation Administration. 8. The contract was awarded in August 2016 and completed in August 2021.

Value Assessment

Rating: fair

The total award amount of $51.25 million over five years averages to approximately $10.25 million annually. Without specific performance metrics or a detailed breakdown of services rendered, it is difficult to definitively benchmark the value for money. The Time and Materials pricing structure, while common for evolving technical needs, can lead to higher costs if not tightly managed through labor rates and hours. Comparing this to similar cybersecurity support contracts across federal agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the initial solicitation may have had some restrictions, the final award was made after a broad competition. The specific number of bidders is not detailed, but the 'full and open' designation suggests multiple entities had the opportunity to compete, which generally promotes competitive pricing and innovation.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down prices through market forces. This approach typically yields better value compared to sole-source or limited competition scenarios.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced cybersecurity posture, crucial for aviation safety and operations. Services delivered include engineering and technical support for the FAA's cybersecurity programs. The geographic impact is primarily within the District of Columbia, where the FAA is headquartered. The contract supports specialized technical and engineering roles within the cybersecurity domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not diligently monitored for labor hours and rates.
Lack of specific performance metrics in the provided data makes it challenging to assess the effectiveness and efficiency of the services rendered.
The 'after exclusion of sources' clause in the competition type warrants further investigation into any initial limitations.
The provided data does not detail the specific cybersecurity threats or programs addressed, limiting a full risk assessment.
The contract's completion date means current cybersecurity needs may require new solicitations.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The five-year duration suggests a sustained commitment to critical cybersecurity functions.
The contract supports essential cybersecurity programs for a vital federal agency (FAA).
LS Technologies LLC was selected, implying they met the technical and performance requirements.
The task order was likely part of a strategic approach to managing complex cybersecurity needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically addressing cybersecurity needs. The federal IT and cybersecurity market is substantial, with agencies consistently investing in protecting sensitive data and critical infrastructure. This contract represents a portion of the FAA's broader spending on IT and security services, aiming to maintain a secure operational environment against evolving cyber threats. Comparable spending benchmarks would involve analyzing other large-scale cybersecurity support contracts awarded to engineering firms by agencies like the Department of Defense or DHS.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific task order. This suggests the contract was not specifically targeted towards small businesses, and the prime contractor, LS Technologies LLC, is likely a larger entity. There is no information available regarding subcontracting plans or their impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. The Time and Materials nature of the contract necessitates close monitoring of labor hours, costs, and deliverables to ensure compliance and prevent overspending. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected. Transparency is generally facilitated through contract databases like FPDS, though detailed performance reports are often internal.

Related Government Programs

FAA Cybersecurity Initiatives
Department of Transportation IT Services
Federal Cybersecurity Contracts
Engineering and Technical Support Services
Task Orders under Larger IDIQs

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Limited Performance Data Provided
Competition Details Not Fully Specified

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $51.3 million to LS TECHNOLOGIES LLC. TORP 5076 TASK ORDER 0010. CYBER SECURITY PROGRAM, ENGINEERING AND TECHNICAL SERVICES SUPPORT TASK ORDER. IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is LS TECHNOLOGIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $51.3 million.

What is the period of performance?

Start: 2016-08-31. End: 2021-08-30.

What specific cybersecurity threats or vulnerabilities was this contract designed to address for the FAA?

The provided data does not specify the exact cybersecurity threats or vulnerabilities this contract was intended to address. However, given the nature of the Federal Aviation Administration's operations, common threats likely included network intrusions, data breaches, malware attacks, insider threats, and potential disruptions to air traffic control systems. The 'Cyber Security Program, Engineering and Technical Services Support' designation implies a broad mandate to provide expertise in areas such as threat detection, vulnerability assessment, incident response, security architecture design, and implementation of security controls to protect the FAA's critical IT infrastructure and sensitive data.

How does the $51.25 million award compare to other cybersecurity support contracts awarded by the FAA or DOT?

Benchmarking this $51.25 million award requires comparing it to similar cybersecurity engineering and technical support contracts within the Department of Transportation (DOT) and specifically the Federal Aviation Administration (FAA). Without access to a comprehensive database of all FAA/DOT cybersecurity contracts, a direct comparison is difficult. However, for a five-year period, this amount suggests a significant investment in specialized cybersecurity expertise. Larger agencies like the Department of Defense often award contracts in the hundreds of millions or billions for similar services, indicating that the FAA's spending is substantial but likely proportionate to its specific mission and threat landscape.

What are the potential risks associated with the Time and Materials (T&M) contract type for this cybersecurity support?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to LS Technologies LLC, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If not managed rigorously, contractors may bill for excessive hours or less efficient work, driving up the total cost beyond initial estimates. For cybersecurity services, where the scope can be dynamic, T&M offers flexibility but requires robust oversight from the government to ensure fair pricing, control labor utilization, and prevent scope creep without corresponding value.

What was the track record of LS Technologies LLC in performing similar cybersecurity services prior to this award?

Information regarding LS Technologies LLC's specific track record for cybersecurity services prior to this $51.25 million FAA contract is not detailed in the provided data. However, the fact that they were awarded this significant task order under full and open competition suggests they likely demonstrated the necessary technical capabilities, past performance, and competitive pricing to win the contract. To fully assess their track record, one would need to examine their performance on previous government contracts, client references, and any past performance evaluations available through federal procurement databases or agency records.

How has FAA spending on cybersecurity engineering and technical support evolved since this contract was awarded?

This contract was awarded in August 2016 and completed in August 2021. To understand the evolution of FAA spending on cybersecurity engineering and technical support since then, one would need to analyze subsequent contract awards and spending data from 2021 onwards. Cybersecurity threats and technologies evolve rapidly, so it's expected that FAA's investment in these areas would continue, potentially increasing in value and shifting towards newer technological solutions or service models. Examining annual reports, budget requests, and contract databases for the FAA post-2021 would reveal trends in their cybersecurity spending.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the bidding environment?

The 'Full and Open Competition After Exclusion of Sources' designation suggests a nuanced approach to competition. Initially, there might have been specific criteria or a pre-qualification process that excluded certain potential bidders (the 'exclusion of sources' part). However, the subsequent 'Full and Open Competition' phase means that among the eligible or qualified entities, the solicitation was open to all, allowing any capable offeror meeting the requirements to submit a bid. This implies a competitive environment among a potentially narrowed but still open field, aiming to balance specialized requirements with broad market participation to achieve best value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 2750 PROSPERITY AVE STE 400, FAIRFAX, VA, 22031

Business Categories: Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $51,685,736

Exercised Options: $51,253,503

Current Obligation: $51,253,503

Actual Outlays: $15,279,712

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $19,385,042

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00030

IDV Type: IDC

Timeline