DOT awards $55.4M for Air-to-Ground Protocol Converter System support, with a 51M benchmark

Contract Overview

Contract Amount: $55,417,418 ($55.4M)

Contractor: Frequentis USA, Inc

Awarding Agency: Department of Transportation

Start Date: 2024-03-07

End Date: 2027-02-26

Contract Duration: 1,086 days

Daily Burn Rate: $51.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE PERIOD SUPPORT SERVICES AND SUPPLIES FOR THE AIR=TO-GROUND PROTOCOL CONVERTER SYSTEM (APCS) TO INCLUDE IFAT AND FAT.

Place of Performance

Location: COLUMBIA, HOWARD County, MARYLAND, 21046

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $55.4 million to FREQUENTIS USA, INC for work described as: BASE PERIOD SUPPORT SERVICES AND SUPPLIES FOR THE AIR=TO-GROUND PROTOCOL CONVERTER SYSTEM (APCS) TO INCLUDE IFAT AND FAT. Key points: 1. Value for money appears fair, with a benchmark suggesting potential for cost savings. 2. Competition dynamics indicate a full and open process, likely promoting price discovery. 3. Risk indicators are moderate, with a long contract duration and firm-fixed-price structure. 4. Performance context is for essential aviation communication systems, highlighting critical infrastructure. 5. Sector positioning is within the aviation technology and telecommunications domain.

Value Assessment

Rating: fair

The contract's base period value of $55.4 million for support services and supplies for the Air-to-Ground Protocol Converter System (APCS) is benchmarked against a comparable contract value of $51 million. This suggests the awarded price is within a reasonable range, though not exceptionally low. The firm-fixed-price contract type provides cost certainty for the government, but limits flexibility if requirements change significantly. Further analysis of the specific services and supplies included would be needed to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but a full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's decision to use this procurement method suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The Federal Aviation Administration (FAA) benefits through the continued operational support of its Air-to-Ground Protocol Converter System (APCS). Essential services and supplies for maintaining and operating critical aviation communication infrastructure are delivered. The geographic impact is national, supporting air traffic control communications across the United States. Workforce implications may include specialized technical roles for system support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 3 years) could lead to scope creep or evolving technological needs not fully captured in the initial award.
Firm-fixed-price contracts can sometimes disincentivize contractor innovation if not managed carefully.
Reliance on a single contractor for critical system support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract provides cost predictability for the government.
Focus on essential aviation communication systems indicates a high-priority government function.

Sector Analysis

The contract falls within the telecommunications and aviation technology sector, specifically focusing on communication systems vital for air traffic management. The market for such specialized systems involves a limited number of highly technical firms capable of meeting stringent government requirements. Comparable spending benchmarks in this niche area are crucial for assessing value, and the provided benchmark of $51 million offers a point of reference for the $55.4 million award.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Frequentis USA, Inc., may engage small businesses as subcontractors for specific components or services, depending on their own subcontracting plans and the nature of the support required.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. The firm-fixed-price nature of the contract provides a degree of cost control. Accountability measures would typically involve performance metrics, delivery schedules, and quality assurance checks outlined in the contract. Transparency is facilitated by the contract's award under full and open competition, with details often made public through federal procurement databases.

Related Government Programs

Air Traffic Control Systems
Aviation Communication Equipment
Federal Telecommunications Services
Department of Transportation IT Support
Critical Infrastructure Communications

Risk Flags

Potential for cost overruns if contractor faces unforeseen technical challenges under FFP.
Risk of performance degradation if contractor prioritizes profit over quality.
Long contract duration may not adapt well to rapidly evolving technology.
Dependence on a single vendor for critical system support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $55.4 million to FREQUENTIS USA, INC. BASE PERIOD SUPPORT SERVICES AND SUPPLIES FOR THE AIR=TO-GROUND PROTOCOL CONVERTER SYSTEM (APCS) TO INCLUDE IFAT AND FAT.

Who is the contractor on this award?

The obligated recipient is FREQUENTIS USA, INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.4 million.

What is the period of performance?

Start: 2024-03-07. End: 2027-02-26.

What is the track record of Frequentis USA, Inc. in supporting similar government aviation communication systems?

Frequentis USA, Inc. is a known entity in the air traffic management (ATM) and public safety communication sector. They specialize in voice communication systems, including air traffic control (ATC) solutions. Their experience often includes providing integrated communication platforms for airports and air navigation service providers. While specific details on their past performance on the Air-to-Ground Protocol Converter System (APCS) are not provided in this data, their general market presence suggests a capability to handle such contracts. A deeper dive into their contract history with the FAA and other defense or civilian agencies would reveal their performance trends, including on-time delivery, quality of service, and any past performance issues or commendations.

How does the awarded price of $55.4 million compare to historical spending on APCS support?

The provided data includes a benchmark value of $51 million, which is close to the awarded base period value of $55.4 million. This suggests that the current award is in line with recent market valuations or previous contract levels for similar support. Without historical spending data specifically for APCS support over multiple years or contract periods, it's difficult to ascertain trends in price escalation or reduction. However, the proximity of the benchmark to the award suggests a stable pricing environment for this specific service, rather than a significant deviation upwards or downwards from previous levels.

What are the primary risks associated with the firm-fixed-price contract type for this system support?

The primary risk associated with a firm-fixed-price (FFP) contract for system support like the APCS is that it can limit flexibility if unforeseen technical challenges or scope changes arise during the contract period. While FFP provides cost certainty for the government, the contractor bears the risk of cost overruns. If the contractor encounters unexpected difficulties in providing the support or supplies, they may cut corners on quality or service to maintain profitability, potentially impacting system reliability. Conversely, if the contractor is highly efficient, the government may have overpaid relative to the actual cost incurred. Effective contract management and clear performance standards are crucial to mitigate these risks.

What is the potential impact of this contract on the broader aviation communication technology market?

This contract, awarded to Frequentis USA, Inc., reinforces their position as a key provider of critical communication systems for the Federal Aviation Administration. It signifies continued investment in the Air-to-Ground Protocol Converter System (APCS), indicating its ongoing importance in the national airspace system. For the broader market, it suggests a stable demand for specialized aviation communication hardware and support services. It may also signal to competitors the agency's preferred technology or vendor, potentially influencing future procurement strategies and R&D investments by other companies in the sector.

Are there any specific performance metrics or KPIs tied to this contract that are publicly available?

The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are outlined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). These metrics would define the expected quality, timeliness, and reliability of the support and supplies provided by Frequentis USA, Inc. for the APCS. While the contract is firm-fixed-price, performance standards are still crucial for ensuring the government receives the intended value and that the critical aviation communication systems remain operational. Information on specific KPIs might be available through agency-specific contract databases or Freedom of Information Act (FOIA) requests.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: IT AND TELECOM - DATA CENTER

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8661 ROBERT FULTON DR STE 100, COLUMBIA, MD, 21046

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: $55,417,418

Exercised Options: $55,417,418

Current Obligation: $55,417,418

Actual Outlays: $37,692,738

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA824D00007

IDV Type: IDC

Timeline