DOT's FAA awarded $32M engineering services contract to LS Technologies LLC over 3 years
Contract Overview
Contract Amount: $32,090,262 ($32.1M)
Contractor: LS Technologies LLC
Awarding Agency: Department of Transportation
Start Date: 2016-09-07
End Date: 2020-10-06
Contract Duration: 1,490 days
Daily Burn Rate: $21.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: "TORP 5069 " IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $32.1 million to LS TECHNOLOGIES LLC for work described as: "TORP 5069 " IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. Contract duration and delivery order structure present moderate performance risk. 4. Services align with critical infrastructure support for the Federal Aviation Administration. 5. Engineering services sector is characterized by specialized expertise and significant government reliance.
Value Assessment
Rating: good
The contract value of approximately $32 million over three years for engineering services appears to be within a reasonable range for specialized support to the Federal Aviation Administration. Benchmarking against similar contracts for engineering services within the transportation sector would provide a more precise value-for-money assessment. The pricing structure, likely based on labor hours and materials, needs to be evaluated against industry standards for the specific engineering disciplines involved.
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, indicating that multiple bidders were likely considered. The level of competition, while not explicitly detailed by the number of bidders, suggests that the FAA sought to leverage market forces to obtain competitive pricing and qualified services. This approach generally benefits the government by fostering a wider pool of potential contractors and encouraging more favorable terms.
Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it typically leads to more cost-effective solutions and prevents potential price inflation associated with limited sourcing.
Public Impact
The Federal Aviation Administration benefits from specialized engineering expertise to support its mission. Services delivered likely include technical analysis, design, and program management related to aviation infrastructure. The geographic impact is primarily within the District of Columbia, where the contractor is located. Workforce implications include employment for skilled engineers and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep given the time and materials pricing structure.
- Reliance on a single contractor for critical engineering services could pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition, indicating a robust selection process.
- Contract duration of three years provides stability for service delivery.
- Contractor has experience in providing engineering services, as indicated by the award.
Sector Analysis
The engineering services sector is a vital component of government contracting, supporting a wide array of federal agencies with specialized technical expertise. This contract falls within the broader engineering services market, which is characterized by high barriers to entry due to required technical skills and certifications. Government spending in this area is often driven by the need for complex project management, design, and technical consultation for infrastructure and technology development. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts within the Department of Transportation and similar agencies.
Small Business Impact
There is no indication that this contract included a small business set-aside. The prime contractor, LS Technologies LLC, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on small business set-asides is likely minimal. However, the potential for subcontracting opportunities with small businesses should be assessed to understand the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- FAA Air Traffic Control Modernization
- Department of Transportation Engineering Support
- Federal Aviation Systems Engineering
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Performance risk associated with a multi-year contract duration.
- Need for clear definition and management of contract scope.
Tags
engineering-services, department-of-transportation, federal-aviation-administration, district-of-columbia, time-and-materials, full-and-open-competition, delivery-order, large-contract, aviation, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $32.1 million to LS TECHNOLOGIES LLC. "TORP 5069 " 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 $32.1 million.
What is the period of performance?
Start: 2016-09-07. End: 2020-10-06.
What is the track record of LS Technologies LLC in performing similar engineering services for the federal government?
LS Technologies LLC has a history of performing engineering and technical services for various government agencies. While the provided data focuses on this specific contract with the FAA, a deeper dive into their contract history would reveal their performance on other projects. Key indicators to examine would include past performance evaluations, any contract disputes or terminations, and the types of engineering disciplines they have supported. Understanding their experience with aviation-specific engineering challenges would be particularly relevant for assessing their capability on this TORP 5069 contract.
How does the awarded value of $32 million compare to similar engineering services contracts awarded by the FAA or other transportation agencies?
To benchmark the $32 million contract value, one would need to compare it against similar engineering services contracts awarded by the FAA or other Department of Transportation agencies over a comparable timeframe and for similar scope of work. Factors such as the specific engineering disciplines (e.g., systems engineering, civil engineering, electrical engineering), contract duration, and complexity of the projects are crucial for a fair comparison. Without access to a comprehensive database of comparable contracts, it is difficult to definitively state whether this award represents excellent, good, or fair value. However, the duration of three years suggests a substantial, ongoing need for services.
What are the primary risks associated with a Time and Materials (T&M) contract for engineering services, and how are they mitigated in this case?
Time and Materials (T&M) contracts, like the one awarded to LS Technologies LLC, carry inherent risks, primarily the potential for cost overruns if not managed carefully. The government is billed based on labor hours and material costs, which can escalate if project scope is not well-defined or if contractor efficiency is low. Mitigation strategies typically include establishing labor hour ceilings, detailed monitoring of work progress, requiring regular reporting, and having strong government oversight. The FAA's contracting officer and technical representatives play a critical role in managing the T&M aspects of this contract to ensure cost control and prevent scope creep.
What specific engineering services does TORP 5069 entail, and how do they contribute to the FAA's overall mission?
While the provided data categorizes the contract under 'Engineering Services' (NAICS 541330), the specific details of TORP 5069 are not fully elaborated. Typically, such contracts for the FAA could involve a range of activities including systems engineering, technical analysis, research and development support, program management, infrastructure design, and safety assessments. These services are crucial for the FAA's mission of ensuring the safety, efficiency, and capacity of the National Airspace System. For instance, they might support the modernization of air traffic control systems, the development of new aviation technologies, or the evaluation of airport infrastructure projects.
What is the historical spending pattern for engineering services by the Federal Aviation Administration over the past five years?
Analyzing the historical spending patterns for engineering services by the Federal Aviation Administration over the past five years would provide valuable context for this $32 million award. This would involve examining aggregate spending data for NAICS code 541330 and similar engineering-related codes. Trends in spending could indicate increasing or decreasing reliance on external engineering support, shifts in priorities (e.g., towards modernization vs. maintenance), and the average contract values. Such analysis helps in understanding the overall budget allocation for engineering expertise and identifying any significant deviations or patterns.
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: $32,090,262
Exercised Options: $32,090,262
Current Obligation: $32,090,262
Actual Outlays: $1,022,065
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $21,876,998
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DTFAWA15D00030
IDV Type: IDC
Timeline
Start Date: 2016-09-07
Current End Date: 2020-10-06
Potential End Date: 2021-09-06 00:00:00
Last Modified: 2021-07-13
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