ARINC INCORPORATED awarded $2.6M contract for telecommunications services by FAA

Contract Overview

Contract Amount: $2,599,078 ($2.6M)

Contractor: Arinc Incorporated

Awarding Agency: Department of Transportation

Start Date: 2017-07-13

End Date: 2025-09-30

Contract Duration: 3,001 days

Daily Burn Rate: $866/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF, ACS CONTRACT # DTFAWA-15-D-00042

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $2.6 million to ARINC INCORPORATED for work described as: IGF::OT::IGF, ACS CONTRACT # DTFAWA-15-D-00042 Key points: 1. Contract value of $2.6M over its period of performance. 2. Services are for telecommunications, falling under the 'All Other Telecommunications' NAICS code. 3. The contract was awarded under full and open competition. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. The period of performance spans from July 2017 to September 2025. 6. The contract is a delivery order under a larger IDIQ contract. 7. The contractor, ARINC INCORPORATED, has a significant presence in the telecommunications sector.

Value Assessment

Rating: fair

The total contract value of $2.6M over approximately 8 years suggests a moderate annual spend. Benchmarking this against similar telecommunications contracts is challenging without more specific service details. The firm fixed price structure provides cost certainty for the government, but the overall value-for-money assessment depends heavily on the criticality and scope of the telecommunications services provided. Without comparable contract data or detailed service descriptions, it's difficult to definitively assess if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method of procurement generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for a selection based on a balance of price and technical factors. The open competition suggests a healthy market for these telecommunications services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, potentially reducing overall costs for the government.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving essential telecommunications services. These services likely support critical aviation operations, communication networks, and data transmission. The contract's geographic impact is likely nationwide, supporting FAA facilities and operations across the United States. The contract supports jobs within ARINC INCORPORATED and potentially its subcontractors in the telecommunications field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the telecommunications services provided makes it difficult to assess performance against requirements.
The long performance period (over 8 years) could lead to technology obsolescence if not managed proactively.
Without knowing the number of bidders, it's hard to gauge the true level of competition and its impact on price.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost predictability for the government.
The contract is a delivery order, implying it's part of a larger, potentially pre-vetted framework.

Sector Analysis

The telecommunications sector is vast and critical to government operations, encompassing everything from basic voice and data services to complex network infrastructure and specialized communication systems. The Federal Aviation Administration, as a major government agency, relies heavily on robust and secure telecommunications for air traffic control, operational coordination, and administrative functions. This contract, falling under NAICS code 517919 (All Other Telecommunications), likely covers a range of services not easily categorized elsewhere, potentially including specialized data links, network management, or communication equipment. Benchmarking spending in this specific sub-sector is difficult without more granular data, but overall federal spending on telecommunications is substantial.

Small Business Impact

There is no indication that this contract included a small business set-aside. The contract was awarded to ARINC INCORPORATED, a large business. Subcontracting opportunities for small businesses are not explicitly detailed in the provided data, but large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on whether ARINC INCORPORATED actively seeks out and utilizes small business subcontractors for this specific contract.

Oversight & Accountability

As a delivery order under a larger contract, oversight mechanisms are likely established within the parent contract's framework. The FAA's contracting officers and program managers are responsible for overseeing contract performance and ensuring compliance with terms and conditions. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to this contract.

Related Government Programs

FAA Telecommunications Services
Department of Transportation IT Contracts
Federal Communications Infrastructure
Air Traffic Control Communications

Risk Flags

Potential for technological obsolescence due to long performance period.
Lack of specific performance metrics makes value assessment difficult.
Limited insight into the number of bidders impacts competition assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.6 million to ARINC INCORPORATED. IGF::OT::IGF, ACS CONTRACT # DTFAWA-15-D-00042

Who is the contractor on this award?

The obligated recipient is ARINC INCORPORATED.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2017-07-13. End: 2025-09-30.

What specific telecommunications services are being provided under this contract?

The provided data indicates the contract falls under NAICS code 517919, 'All Other Telecommunications.' This broad category suggests services beyond standard voice and data, potentially including specialized network services, communication equipment maintenance, or data transmission solutions critical for aviation operations. Without further details from the contract's statement of work, it is difficult to pinpoint the exact nature of the services. However, given the agency (FAA), these services are likely integral to air traffic management, flight operations support, or internal communication systems that ensure the safety and efficiency of the National Airspace System. The specific nature of these services is crucial for a comprehensive value assessment.

How does the pricing of this contract compare to similar telecommunications contracts awarded by the FAA or other agencies?

Direct price comparison is challenging without knowing the specific services rendered and their scope. The total contract value of $2.6M over approximately 8 years averages around $325,000 annually. This figure needs to be contextualized by the complexity and criticality of the telecommunications provided. If these are basic network services, the price might be high; if they involve highly specialized, secure, or mission-critical systems for aviation, it could be competitive. Benchmarking would require access to detailed contract data for similar telecommunications procurements, including service descriptions, performance periods, and number of bidders, which is not available in the provided summary.

What is ARINC INCORPORATED's track record with the Federal Aviation Administration and similar government contracts?

ARINC INCORPORATED (now part of Jacobs Engineering Group) has a long history of providing aviation and defense-related services, including telecommunications and IT solutions. Their track record with the FAA likely includes numerous contracts supporting air traffic control systems, communication networks, and operational infrastructure. While specific performance details for this particular contract (DTFAWA-15-D-00042) are not provided, ARINC's established presence suggests a level of familiarity and capability in meeting the agency's requirements. A deeper dive into past performance reviews and contract close-out data would offer a more definitive assessment of their reliability and quality of service.

What are the potential risks associated with a long-term telecommunications contract like this?

The primary risks associated with this contract's duration (July 2017 - September 2025) include technological obsolescence, potential for cost overruns if scope changes significantly, and vendor lock-in. Telecommunications technology evolves rapidly, and services or equipment procured early in the contract term might become outdated before its conclusion. If the contract is not structured with flexibility for technological upgrades or service adjustments, the FAA might be constrained by legacy systems. Furthermore, the firm fixed price nature, while offering cost certainty, could become a disadvantage if unforeseen technical challenges or necessary upgrades arise, potentially leading to disputes or a need for contract modifications.

How does this contract fit into the broader landscape of federal telecommunications spending?

This $2.6M contract represents a small fraction of the overall federal spending on telecommunications, which runs into billions of dollars annually across various agencies. The FAA, in particular, invests heavily in communication infrastructure to ensure the safety and efficiency of air travel. This contract likely supports a specific, albeit important, set of telecommunications needs within the FAA's operational framework. Its significance lies in its contribution to the agency's mission rather than its sheer dollar amount in the context of total federal IT and telecommunications budgets. It exemplifies the ongoing need for reliable communication services to support critical government functions.

Industry Classification

NAICS: Information › Other Telecommunications › All Other Telecommunications

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 2551 RIVA RD, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $3,393,822

Exercised Options: $2,599,078

Current Obligation: $2,599,078

Actual Outlays: $1,728,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA15D00042

IDV Type: IDC

Timeline