FAA awards $16.1M contract to SAAB, Inc. for Surface Awareness Initiative deployment at Nashville airport

Contract Overview

Contract Amount: $16,085,589 ($16.1M)

Contractor: Saab, Inc

Awarding Agency: Department of Transportation

Start Date: 2024-04-02

End Date: 2025-12-31

Contract Duration: 638 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS CONTRACT REPRESENTS AN ORDER AGAINST THE BASIC ORDERING AGREEMENT BETWEEN THE FAA AND SAAB, EXECUTED ON APRIL 1, 2024 IN SUPPORT OF THE SURFACE AWARENESS INITIATIVE (SAI) PROGRAM. THIS ORDER IS FOR A THE DEPLOYMENT OF A SITE AT NASHVILLE INTERN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20597

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $16.1 million to SAAB, INC for work described as: THIS CONTRACT REPRESENTS AN ORDER AGAINST THE BASIC ORDERING AGREEMENT BETWEEN THE FAA AND SAAB, EXECUTED ON APRIL 1, 2024 IN SUPPORT OF THE SURFACE AWARENESS INITIATIVE (SAI) PROGRAM. THIS ORDER IS FOR A THE DEPLOYMENT OF A SITE AT NASHVILLE INTERN Key points: 1. Contract awarded under an existing Basic Ordering Agreement, indicating a pre-established relationship and streamlined process. 2. The contract is for a definitive contract type with a firm fixed price, suggesting clear scope and cost control. 3. Deployment is for the Surface Awareness Initiative (SAI) program, crucial for airport safety and efficiency. 4. The contract duration is approximately 1.7 years, from April 2024 to December 2025. 5. The contract was awarded using full and open competition, implying a competitive bidding process. 6. The National Item Identification Number (NAICS) code 518210 points to services related to computing infrastructure and data processing.

Value Assessment

Rating: good

The contract value of $16.1 million for a 638-day period appears reasonable for a critical infrastructure deployment. Benchmarking against similar airport technology deployments would provide further insight into value for money. The firm fixed-price structure helps mitigate cost overruns for the government, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This competitive environment is generally expected to lead to more favorable pricing and innovative solutions. The specific number of bidders is not provided, but the "full and open" designation is a positive indicator of market engagement.

Taxpayer Impact: Taxpayers benefit from the competitive process, which should drive down costs and ensure the FAA receives the best possible value for its investment in airport safety technology.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, through enhanced airport safety and operational efficiency. The contract supports the deployment of a Surface Awareness Initiative (SAI) site, likely involving advanced surveillance and data processing technologies. The geographic impact is specific to Nashville International Airport (BNA), improving its surface management capabilities. Workforce implications may include roles in installation, maintenance, and operation of the new system, potentially creating or shifting jobs within the aviation technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the SAI program requirements evolve significantly during the deployment phase.
Dependence on SAAB, Inc. for successful deployment and ongoing support, highlighting vendor-specific risk.
Integration challenges with existing airport infrastructure could lead to delays or increased costs.

Positive Signals

Awarded under an existing Basic Ordering Agreement, suggesting a mature and tested vendor relationship.
Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition indicates a robust market assessment and potential for competitive pricing.

Sector Analysis

This contract falls within the broader Information Technology and Aerospace sectors, specifically focusing on specialized aviation infrastructure and data processing. The market for airport safety and efficiency technologies is competitive, driven by increasing air traffic and regulatory demands for enhanced security and operational awareness. Spending in this area is often characterized by long-term investments in complex systems.

Small Business Impact

The data indicates that small business participation (SB set-aside and subcontracting) is not a primary focus for this specific contract, as both 'ss' and 'sb' are false. This suggests the contract was likely awarded to a large prime contractor, and any small business involvement would be through subcontracting opportunities determined by SAAB, Inc. Further analysis of SAAB's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring SAAB, Inc. to deliver specified services within budget. Transparency is facilitated by the contract award notice, but detailed performance metrics and ongoing reporting would be subject to the terms of the Basic Ordering Agreement and this specific order.

Related Government Programs

Airport Surveillance Systems
Air Traffic Control Technology
Aviation Safety Programs
Surface Management Systems
IT Infrastructure Services

Risk Flags

Vendor Lock-in Potential
Integration Complexity
Cybersecurity Vulnerabilities
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.1 million to SAAB, INC. THIS CONTRACT REPRESENTS AN ORDER AGAINST THE BASIC ORDERING AGREEMENT BETWEEN THE FAA AND SAAB, EXECUTED ON APRIL 1, 2024 IN SUPPORT OF THE SURFACE AWARENESS INITIATIVE (SAI) PROGRAM. THIS ORDER IS FOR A THE DEPLOYMENT OF A SITE AT NASHVILLE INTERN

Who is the contractor on this award?

The obligated recipient is SAAB, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $16.1 million.

What is the period of performance?

Start: 2024-04-02. End: 2025-12-31.

What is the historical spending pattern for the Surface Awareness Initiative (SAI) program?

The provided data focuses on a single order against a Basic Ordering Agreement (BOA) for the SAI program, totaling $16.1 million. To understand the historical spending pattern, one would need to examine all orders placed against this BOA and any previous contracts or funding allocated to the SAI program. Without access to a broader contract history or budget allocations for SAI, it's impossible to determine if this $16.1 million represents a significant increase, decrease, or consistent level of investment for the program. Analyzing past expenditures would reveal trends in program funding, identify key vendors involved over time, and assess the overall financial commitment to enhancing surface awareness at airports.

How does the per-unit cost of this deployment compare to similar airport technology installations?

The provided data does not include specific 'per-unit' metrics for this deployment, such as the cost per sensor, per gate, or per square mile of coverage. The total contract value is $16.1 million for a deployment at Nashville International Airport. To benchmark the per-unit cost, we would need to identify comparable airport technology installations (e.g., similar surveillance or data processing systems at airports of comparable size and complexity) and their associated costs. Without such comparative data, it is difficult to definitively assess whether the cost is high or low. Factors like the specific technology used, the scope of the deployment, and the prevailing market rates for similar services would all influence this comparison.

What is SAAB, Inc.'s track record with the FAA and similar government contracts?

SAAB, Inc. is the contractor for this order, which is placed against a Basic Ordering Agreement (BOA) between the FAA and SAAB executed on April 1, 2024. This indicates a pre-existing contractual relationship and likely a history of engagement with the FAA. To fully assess SAAB's track record, a review of their past performance on FAA contracts, particularly those related to aviation infrastructure, surveillance, or data processing, would be necessary. This would involve examining past performance evaluations, any documented issues or successes, and their experience with similar large-scale technology deployments. Their ability to successfully execute this $16.1 million order will further inform their track record.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The provided contract data does not explicitly list the Key Performance Indicators (KPIs) or the specific metrics by which the success of this deployment will be measured. However, as this is a firm fixed-price contract for the deployment of a Surface Awareness Initiative (SAI) site, success will likely be tied to the timely and complete installation of the specified system, its successful integration with existing airport infrastructure, and its operational readiness. The FAA's program managers and contracting officers will be responsible for monitoring performance against the contract's technical requirements and delivery schedules. Specific KPIs might include system uptime, data accuracy rates, latency in alerts, and user satisfaction from airport operations personnel.

What is the potential risk associated with the technology being deployed for the SAI program?

The potential risks associated with the technology for the Surface Awareness Initiative (SAI) program are multifaceted. These could include technological obsolescence if the system is not designed for future upgrades, cybersecurity vulnerabilities that could compromise sensitive airport data or operations, and integration challenges with existing legacy systems at Nashville International Airport. Furthermore, the reliability and accuracy of the system are paramount; any failure could have significant safety implications. The effectiveness of the system in diverse weather conditions or high-traffic scenarios would also be a key performance risk. Mitigation strategies would likely involve rigorous testing, robust cybersecurity protocols, phased implementation, and comprehensive training.

Industry Classification

NAICS: Information › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services › Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: 693KA7SAI

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saab Defense and Security USA LLC

Address: 5717 ENTERPRISE PKWY, EAST SYRACUSE, NY, 13057

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

Financial Breakdown

Contract Ceiling: $16,085,589

Exercised Options: $16,085,589

Current Obligation: $16,085,589

Actual Outlays: $3,586,348

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline