NOTICE OF INTENT TO CONTRACT WITH A SINGLE SOURCE: FAA Contract Tower (FCT) Aviation Liability Insurance Contract Award Public Announcement

1. Introduction/Statement of Intent This announcement is for informational purposes only and not a solicitation or request for offer. In accordance with Federal Aviation Administration (FAA) Acquisition Management System (AMS) 3.2.2.4, the FAA intends to award a single source contract for twenty-four (24) months consisting of a 12-month base and 12-month option to Alliant Insurance Services, Inc. of 18100 Von Karman Avenue, 10th Floor, Irvine, CA, 92612.

2. Description of Supplies/Services The FAA Contract Tower (FCT) Aviation Liability Insurance contract provides a structured approach for acquiring Aviation Liability Insurance to cover current and future FCTs. The economic objective of the Aviation Liability Insurance Program is to gain FCT liability insurance at costs favorable to the FAA. In support of the FCT Aviation Liability Insurance program, Alliant provides brokerage services, advisory services, claim management services, and other Aviation Liability program management functions.

3. Single Source Rationale A single source contract to Alliant to continue providing brokerage services to acquire aviation liability insurance is in the best interest of the FAA. The FAA Contract Tower Program is an integral part of the National Airspace System (NAS). The FCT Aviation Liability Insurance Program is critical to the stability of that Program as it ensures that contract air traffic control (ATC) providers operating towers on behalf of the FAA have consistent liability coverage.

The FAA Reauthorization Act of 2024 reinforces the importance of the coverage through § 620. Therefore, it is essential to maintain uninterrupted liability coverage to the FCT program which currently includes 265 towers. Extending the current contract minimizes operational risk and ensures that the FCT vendors are appropriately insured. Continuity of services is mandatory to sustain the safe operations of the NAS for the flying public.

The impact of the loss of aviation insurance to 265 FCT towers poses potential financial risk to the FAA and the affected local communities, which could be significant. Sufficient time is required to evaluate and award a new competitive contract and to implement the requirements of Section 620 of FAA Reauthorization Act of 2024. The FAA is planning to compete the follow-on acquisition and anticipates publishing the final SIR in 3rd quarter FY2026.

The award of the competitive follow-on contract is anticipated no later than 3rd quarter FY2027. Please direct any inquiries to this award announcement to Chontice Boykin at chontice.boykin@faa.gov and Jasmine Royal at jasmine.royal@faa.gov.