Air Force awards $166M for air traffic control services, with 4 bidders competing

Contract Overview

Contract Amount: $166,041,935 ($166.0M)

Contractor: Domestic Awardees (undisclosed)

Awarding Agency: Department of Defense

Start Date: 2019-07-03

End Date: 2025-01-31

Contract Duration: 2,039 days

Daily Burn Rate: $81.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIR TRAFFIC CONTROL, AIRFIELD MANAGEMENT, RELATED MAINTENANCE SERVICES (ACCOM)

Plain-Language Summary

Department of Defense obligated $166.0 million to DOMESTIC AWARDEES (UNDISCLOSED) for work described as: AIR TRAFFIC CONTROL, AIRFIELD MANAGEMENT, RELATED MAINTENANCE SERVICES (ACCOM) Key points: 1. The contract's value of $166 million over its period of performance suggests a significant investment in essential operational support. 2. Full and open competition indicates a potentially robust market for these services, which could drive competitive pricing. 3. The fixed-price contract type generally shifts performance risk to the contractor, potentially leading to more predictable costs. 4. With a duration of over 2000 days, this contract represents a long-term commitment to maintaining critical air traffic control functions. 5. The absence of specific small business set-asides suggests that larger prime contractors are likely involved, with subcontracting opportunities potentially available.

Value Assessment

Rating: good

The contract's total value of $166 million for air traffic control and airfield management services appears reasonable given the extensive duration and scope. Benchmarking against similar long-term, comprehensive support contracts for military installations would provide a clearer picture of value for money. The firm fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with four bidders participating. This level of competition is generally favorable, suggesting that multiple capable vendors were interested and able to bid. The presence of four bidders indicates a healthy market for these specialized services and provides a basis for price discovery through the bidding process.

Taxpayer Impact: A competitive bidding process for essential services like air traffic control helps ensure that taxpayer dollars are used efficiently, leading to potentially lower prices than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel, ensuring safe and efficient air operations at military installations. Services include air traffic control, airfield management, and related maintenance, which are critical for flight operations and base security. The geographic impact is domestic, supporting Air Force bases within the United States. Workforce implications include the employment of skilled air traffic controllers, airfield managers, and maintenance technicians, both by the prime contractor and potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor consolidation in the air traffic control services market due to long-term contract values.
Dependence on a limited number of bidders could emerge if future competitions see reduced participation.
Ensuring consistent service quality across all contracted locations requires robust performance monitoring.

Positive Signals

Full and open competition is a strong positive signal for market health and potential cost savings.
The firm fixed-price contract type aligns incentives for cost control with the government's interests.
The long contract duration provides stability for service delivery and workforce planning.

Sector Analysis

The air traffic control and airfield management sector is critical for national security and civilian aviation infrastructure. This contract falls within the broader aerospace and defense services industry, which is characterized by specialized technical expertise and long-term government engagements. Spending in this area is driven by the need to maintain operational readiness and safety at military airfields, often involving complex regulatory compliance and highly trained personnel.

Small Business Impact

The contract was not specifically set aside for small businesses, and there is no indication of mandatory small business subcontracting goals. This suggests that the prime contract is likely awarded to a larger entity capable of managing such a comprehensive service requirement. Opportunities for small businesses may exist further down the supply chain as subcontractors, but this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force program management office. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is generally maintained through contract award databases and reporting requirements, though specific details of ongoing performance may be less public.

Related Government Programs

Airfield Operations Support Services
Air Traffic Control Services
Base Operations Support
Aviation Services Contracts
Defense Logistics Agency Support Contracts

Risk Flags

Potential for cost overruns if contractor mismanages resources under FFP.
Risk of service degradation if contractor prioritizes profit over performance.
Dependence on contractor's ability to maintain highly skilled workforce.
Ensuring consistent service quality across all operational locations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $166.0 million to DOMESTIC AWARDEES (UNDISCLOSED). AIR TRAFFIC CONTROL, AIRFIELD MANAGEMENT, RELATED MAINTENANCE SERVICES (ACCOM)

Who is the contractor on this award?

The obligated recipient is DOMESTIC AWARDEES (UNDISCLOSED).

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $166.0 million.

What is the period of performance?

Start: 2019-07-03. End: 2025-01-31.

What is the historical spending pattern for air traffic control and airfield management services by the Department of the Air Force?

Historical spending on air traffic control and airfield management services by the Department of the Air Force has been substantial, reflecting the critical nature of these operations. While specific figures for this exact service category over extended periods are not provided, the Air Force consistently allocates significant resources to ensure the safety and efficiency of its air operations. This includes funding for personnel, equipment, and contracted services across numerous installations. The current $166 million contract is indicative of the ongoing investment required to maintain these capabilities, suggesting a trend of sustained, high-value procurements in this domain to support readiness and operational tempo.

How does the number of bidders (4) compare to similar large-scale defense service contracts?

A competition with four bidders for a contract valued at $166 million is generally considered a healthy level of participation for large-scale defense service contracts. While some highly specialized or niche procurements might see fewer bidders, and others with broader scopes might attract more, four bidders typically indicates sufficient market interest and capability without being overly concentrated. This number suggests that the solicitation was well-received and that the market has multiple viable providers. It strikes a balance between ensuring robust competition for price discovery and avoiding a situation where only a few dominant players are able to bid, which could limit options.

What are the primary risks associated with a firm fixed-price contract for air traffic control services?

The primary risk associated with a firm fixed-price (FFP) contract for air traffic control services lies with the contractor's ability to manage costs and performance within the agreed-upon price. If unforeseen circumstances arise, such as significant increases in labor costs, unexpected equipment failures requiring extensive repairs, or changes in regulatory requirements that necessitate additional investment, the contractor bears the financial burden. For the government, the risk is primarily related to potential contractor underperformance if they cut corners to maintain profitability, or contractor default if they cannot sustain the fixed price. Robust performance monitoring and clear contract terms are crucial to mitigate these risks.

What is the typical duration for contracts of this nature (air traffic control/airfield management)?

Contracts for air traffic control and airfield management services, especially those supporting military installations, often have long durations to ensure continuity of operations and allow contractors to amortize investments in personnel and equipment. Durations of 5 years, with options for extensions, are common. The 2039-day period (approximately 5.6 years) for this contract is well within the typical range for such comprehensive support services. Longer durations provide stability for both the government and the contractor, facilitating workforce planning and ensuring consistent service delivery, though they also necessitate careful long-term oversight.

Are there specific performance metrics or KPIs typically associated with air traffic control contracts?

Yes, air traffic control contracts typically include stringent performance metrics and Key Performance Indicators (KPIs) to ensure safety, efficiency, and compliance. These often encompass metrics related to air traffic flow management, adherence to air traffic control procedures, response times for emergencies, equipment uptime and reliability, personnel training and certification levels, and incident reporting accuracy. The government usually employs a Quality Assurance Surveillance Plan (QASP) to monitor these metrics, ensuring the contractor meets or exceeds established standards. Failure to meet critical KPIs can result in contractually defined remedies, including financial penalties or termination.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Air Traffic Control

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489018R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $297,220,472

Exercised Options: $246,361,619

Current Obligation: $166,041,935

Actual Outlays: $19,903,104

Subaward Activity

Number of Subawards: 64

Total Subaward Amount: $7,661,399

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline