FAA Modernizes VCS with $53M IP-Capable Upgrade from Frequentis USA, Inc
Contract Overview
Contract Amount: $53,084,759 ($53.1M)
Contractor: Frequentis USA, Inc
Awarding Agency: Department of Transportation
Start Date: 2025-03-01
End Date: 2026-03-31
Contract Duration: 395 days
Daily Burn Rate: $134.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PROJECT LIFT VCS LETTER CONTRACT FOR MODERNIZATION OF FAA VCS' IN THE NAS WHICH INCLUDES REPLACEMENT OF VCS' DEPENDENT ON TDM TECHNOLOGY TO VCS' THAT ARE IP CAPABLE.
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $53.1 million to FREQUENTIS USA, INC for work described as: PROJECT LIFT VCS LETTER CONTRACT FOR MODERNIZATION OF FAA VCS' IN THE NAS WHICH INCLUDES REPLACEMENT OF VCS' DEPENDENT ON TDM TECHNOLOGY TO VCS' THAT ARE IP CAPABLE. Key points: 1. Significant investment in critical FAA infrastructure modernization. 2. Sole-source award to Frequentis USA, Inc. raises competition concerns. 3. Contract focuses on replacing TDM-dependent technology with IP-capable solutions. 4. Potential for improved network efficiency and future scalability.
Value Assessment
Rating: questionable
The contract value of $53.1M for a 15-month duration appears high, especially given the sole-source nature. Benchmarking against similar modernization efforts for critical communication systems is difficult without competitive data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers. The justification for sole-source is not provided.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential system upgrade.
Public Impact
Enhances the reliability and capability of the National Airspace System (NAS). Modernizes critical communication infrastructure, improving safety and efficiency. Potential for reduced maintenance costs and increased system lifespan.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award lacks competition.
- High contract value for the duration.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Modernizes critical infrastructure.
- Improves NAS capabilities.
- Utilizes advanced IP technology.
Sector Analysis
This contract falls within the IT and Telecommunications sector, specifically for specialized communication systems. Spending benchmarks for similar sole-source modernization projects are difficult to establish due to the unique nature of such upgrades.
Small Business Impact
No information is available regarding small business participation in this contract. The sole-source nature may limit opportunities for small businesses to participate in this significant modernization effort.
Oversight & Accountability
Oversight will be crucial to ensure the project stays within budget and meets performance requirements, especially given the sole-source award. The FAA's contracting office will be responsible for monitoring progress and deliverables.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of competition.
- Potential for cost overruns.
- Limited transparency on justification.
- Contract type (T&M) can be prone to overspending.
- Dependence on a single vendor.
Tags
telephone-apparatus-manufacturing, department-of-transportation, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $53.1 million to FREQUENTIS USA, INC. PROJECT LIFT VCS LETTER CONTRACT FOR MODERNIZATION OF FAA VCS' IN THE NAS WHICH INCLUDES REPLACEMENT OF VCS' DEPENDENT ON TDM TECHNOLOGY TO VCS' THAT ARE IP CAPABLE.
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 $53.1 million.
What is the period of performance?
Start: 2025-03-01. End: 2026-03-31.
What is the justification for the sole-source award, and were any market research efforts conducted to identify potential competitors?
The provided data does not include the justification for the sole-source award or details on market research. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services. Without this information, it's impossible to assess if alternative solutions or competitors were overlooked, potentially impacting value for money.
How does the per-unit cost of this modernization compare to similar projects, and what cost controls are in place?
A direct per-unit cost comparison is not feasible without detailed breakdowns of the system components and their associated costs. Given the sole-source nature, robust cost controls and independent government cost estimates are essential to mitigate the risk of overpayment. The contract type (Time and Materials) also requires careful monitoring to prevent scope creep and uncontrolled cost escalation.
What are the key performance indicators (KPIs) for this modernization, and how will their achievement be measured to ensure effectiveness?
The data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined KPIs related to system performance, reliability, interoperability, and user satisfaction. Regular performance reviews and independent testing would be necessary to verify that the modernization meets its objectives and delivers the expected improvements to the NAS.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing
Product/Service Code: IT AND TELECOM - NETWORK
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
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: $53,084,759
Exercised Options: $53,084,759
Current Obligation: $53,084,759
Actual Outlays: $20,029,578
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-03-01
Current End Date: 2026-03-31
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-29
More Contracts from Frequentis USA, Inc
- Voice Switch Replacemetn System (vsrs) Award — $147.3M (Department of Transportation)
- Production of APC Units and Apcms' — $122.3M (Department of Transportation)
- Base Period Support Services and Supplies for the Air=to-Ground Protocol Converter System (apcs) to Include Ifat and FAT — $55.4M (Department of Transportation)
- Move Supplies and Services — $39.9M (National Aeronautics and Space Administration)
- Ivsr Funding for NEW Contract — $33.6M (Department of Transportation)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)