Forest Service awards $2.8M BPA Call to RELM Communications for radio maintenance, highlighting a 5-year service contract

Contract Overview

Contract Amount: $2,800,000 ($2.8M)

Contractor: Relm Communications, Inc.

Awarding Agency: Department of Agriculture

Start Date: 2021-03-29

End Date: 2026-03-29

Contract Duration: 1,826 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA CALL FOR BK TECHNOLOGIES RADIO MAINTENANCE AND REPAIR

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Agriculture obligated $2.8 million to RELM COMMUNICATIONS, INC. for work described as: BPA CALL FOR BK TECHNOLOGIES RADIO MAINTENANCE AND REPAIR Key points: 1. Value for money assessed through fixed-price contract terms and a 5-year duration. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators include contract duration and reliance on a single vendor for maintenance. 4. Performance context is a 5-year service agreement for essential communication equipment. 5. Sector positioning within broadcasting equipment manufacturing and maintenance services.

Value Assessment

Rating: good

The contract value of $2.8 million over five years for radio maintenance and repair appears reasonable, especially given the critical nature of communication systems for the Forest Service. Benchmarking against similar maintenance contracts for specialized equipment suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the agency, mitigating risks associated with fluctuating service costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the open competition suggests a healthy market for these services. This process is designed to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring that the awarded price reflects the most competitive available rates for the required services.

Public Impact

Forest Service personnel in Florida will benefit from reliable radio communications. Essential radio maintenance and repair services will be delivered to ensure operational continuity. Geographic impact is primarily focused on Florida, where the Forest Service operates. Workforce implications may include specialized technicians employed by RELM Communications for service delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract.
Dependence on a single provider for critical communication equipment maintenance.
Limited visibility into the specific performance metrics and service level agreements.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a competitive award process.
Long-term contract ensures consistent service availability for essential equipment.

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, specifically focusing on maintenance and repair services. The market for such specialized technical services is often niche, with a limited number of qualified providers. The Forest Service's spending here is critical for maintaining operational infrastructure in remote areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless RELM Communications voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Forest Service contracting officer and program managers. Accountability is established through the firm fixed-price terms and the contract's duration, requiring RELM Communications to meet service obligations. Transparency is facilitated by the contract award notice, though detailed performance reports may not be publicly available.

Related Government Programs

Forest Service Communications Equipment Maintenance
BPA Call Agreements
Radio and Wireless Communications Services
Federal Communications Maintenance Contracts

Risk Flags

Long-term contract duration may limit flexibility.
Reliance on a single vendor for critical equipment maintenance.
Potential for price increases if market conditions change significantly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $2.8 million to RELM COMMUNICATIONS, INC.. BPA CALL FOR BK TECHNOLOGIES RADIO MAINTENANCE AND REPAIR

Who is the contractor on this award?

The obligated recipient is RELM COMMUNICATIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2021-03-29. End: 2026-03-29.

What is the track record of RELM Communications, Inc. with federal contracts, particularly for radio maintenance?

A review of federal procurement data would be necessary to fully assess RELM Communications, Inc.'s track record. Key indicators to examine would include the number of previous federal contracts awarded, their value, the agencies served, and performance ratings if available. Specifically, identifying past contracts for similar radio maintenance and repair services would provide direct insight into their experience and reliability. A history of successful contract completions and positive performance feedback would suggest a lower risk for this current BPA Call. Conversely, any history of contract disputes, performance issues, or late deliveries would raise concerns about their capacity to fulfill the Forest Service's requirements effectively over the five-year term.

How does the $2.8 million value compare to similar Forest Service or other agency radio maintenance contracts?

To benchmark the $2.8 million value, one would compare it against similar firm fixed-price contracts for radio maintenance and repair services awarded by the Forest Service or other federal agencies over the past 3-5 years. Factors to consider in the comparison include the duration of the contract, the scope of services (e.g., types of radios, geographic coverage), and the specific technical requirements. If comparable contracts for similar scope and duration are valued significantly higher or lower, it could indicate potential overpricing or underbidding. Given this is a 5-year contract, an annualized value of approximately $560,000 should be used for comparison. Without access to a detailed database of comparable contracts, it's difficult to provide a precise benchmark, but the value appears within a plausible range for specialized, long-term technical support.

What are the primary risks associated with a 5-year firm fixed-price contract for radio maintenance?

A primary risk with a 5-year firm fixed-price contract for radio maintenance is the potential for RELM Communications, Inc. to face unforeseen cost increases in labor, parts, or operational expenses that are not adequately accounted for in the initial pricing. If their cost projections are inaccurate, they might struggle to maintain profitability, potentially leading to reduced service quality or attempts to renegotiate terms. For the Forest Service, the risk lies in the possibility that the fixed price, if set too high initially, could result in paying above-market rates over the contract's life. Additionally, a long-term commitment to a single vendor can reduce flexibility if technology changes or if a better service provider emerges during the contract period. Ensuring robust performance standards and clear deliverables within the contract is crucial to mitigate these risks.

What is the expected effectiveness of this contract in ensuring reliable communication for the Forest Service in Florida?

The effectiveness of this contract hinges on the quality of service provided by RELM Communications, Inc. and the Forest Service's diligent oversight. A 5-year duration suggests an expectation of sustained, reliable service, which is critical for the Forest Service's operations, particularly in potentially remote or challenging environments in Florida. The firm fixed-price nature should incentivize RELM to perform efficiently to maintain their profit margins. However, effectiveness will ultimately be measured by the uptime of the radio systems, the responsiveness of maintenance crews, and the successful resolution of technical issues. Regular performance reviews, adherence to service level agreements (SLAs), and proactive communication between the Forest Service and RELM will be key determinants of the contract's success in ensuring operational readiness.

How has Forest Service spending on radio maintenance and repair evolved over the past five years?

Analyzing historical Forest Service spending on radio maintenance and repair over the past five years would provide valuable context for this $2.8 million BPA Call. This would involve examining annual expenditures on similar contracts, identifying trends in spending (increasing, decreasing, or stable), and noting any significant shifts in procurement strategies, such as a move towards longer-term agreements or different contract types. Understanding this historical spending pattern can help determine if the current award represents a continuation of established practices, a strategic increase in investment, or a cost-saving measure. It could also reveal if previous contracts experienced cost overruns or underspending, offering lessons for managing the current agreement effectively.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12760421Q0009

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Relm Communications Inc.

Address: 7100 TECHNOLOGY DR, MELBOURNE, FL, 32904

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,800,000

Exercised Options: $2,800,000

Current Obligation: $2,800,000

Actual Outlays: $2,575,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 12760421A0002

IDV Type: BPA

Timeline