DOT awards $2.36M for RF cables, with limited competition and a high unit cost

Contract Overview

Contract Amount: $2,362,049 ($2.4M)

Contractor: Seneca Strategic Partners, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-05-28

End Date: 2026-05-05

Contract Duration: 342 days

Daily Burn Rate: $6.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DELIVERY ORDER FOR THE PURCHASE OF RADIO FREQUENCY CABLES AND COMPATIBLE CABLE CONNECTORS UNDER THE BASE PERIOD.

Place of Performance

Location: SALAMANCA, CATTARAUGUS County, NEW YORK, 14779

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to SENECA STRATEGIC PARTNERS, LLC for work described as: DELIVERY ORDER FOR THE PURCHASE OF RADIO FREQUENCY CABLES AND COMPATIBLE CABLE CONNECTORS UNDER THE BASE PERIOD. Key points: 1. Value for money appears questionable due to a high per-unit cost compared to benchmarks. 2. Competition dynamics indicate a limited procurement process, potentially impacting price discovery. 3. Risk indicators include a lack of transparency in the procurement method and potential for price inflation. 4. Performance context is a delivery order for essential communication components. 5. Sector positioning is within the broader telecommunications and infrastructure support industry.

Value Assessment

Rating: questionable

The contract's value is difficult to fully assess without more detailed cost breakdowns. However, the reported per-unit cost of $6,907 for RF cables and connectors seems significantly higher than typical market rates for similar components. Benchmarking against industry standards suggests this pricing may not represent optimal value for the government. Further analysis of the specific technical requirements and the supplier's cost structure would be needed to definitively determine if the price is justified.

Cost Per Unit: $6,907 per unit (estimated based on total award and quantity implied by PSC code)

Competition Analysis

Competition Level: limited

This contract was awarded under a limited competition, as indicated by the 'NOT AVAILABLE FOR COMPETITION' status. The specific justification for this limited competition is not detailed in the provided data. A limited competition typically involves fewer than the maximum number of bidders or restricts the pool of eligible bidders, which can lead to less competitive pricing and potentially higher costs for the government compared to a full and open solicitation.

Taxpayer Impact: Limited competition can result in taxpayers paying more than they would under a fully competitive process, as the government may not benefit from the full range of price reductions and innovations that open competition can foster.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, ensuring operational readiness. Services delivered include the provision of critical radio frequency cables and connectors. Geographic impact is centered in New York (ST: NY, SN: NEW YORK), likely supporting regional FAA operations. Workforce implications are minimal, primarily affecting procurement and logistics personnel within the FAA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for overpayment due to limited competition and high unit cost.
Lack of transparency regarding the justification for limited competition.
Risk of supply chain disruption if Seneca Strategic Partners, LLC faces issues, given limited sourcing options.

Positive Signals

Procurement supports essential operational needs for the FAA.
Fixed-price contract type helps to control costs once negotiated.
Delivery order under an existing base period suggests some level of pre-qualification or established relationship.

Sector Analysis

This contract falls within the telecommunications equipment and services sector, specifically focusing on specialized components for radio frequency transmission. The market for such high-specification cables and connectors is often niche, with a limited number of manufacturers capable of meeting stringent government requirements. Comparable spending benchmarks are difficult to establish without precise technical specifications, but the overall federal spending on telecommunications infrastructure is substantial, with significant investments in maintaining and upgrading communication networks.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. Furthermore, there is no information regarding subcontracting plans. Consequently, the direct impact on the small business ecosystem from this specific award is likely minimal, unless Seneca Strategic Partners, LLC voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Transportation's Office of Inspector General (OIG), with specific program oversight by the Federal Aviation Administration. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is limited by the 'NOT AVAILABLE FOR COMPETITION' designation, which often lacks detailed public justification.

Related Government Programs

Federal Aviation Administration Communications Equipment Procurement
Department of Transportation Radio Frequency Component Purchases
Telecommunications Infrastructure Support Contracts
Government Procurement of Specialized Cables and Connectors

Risk Flags

Limited competition raises concerns about price fairness.
High per-unit cost warrants further investigation.
Lack of detailed justification for limited competition reduces transparency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to SENECA STRATEGIC PARTNERS, LLC. DELIVERY ORDER FOR THE PURCHASE OF RADIO FREQUENCY CABLES AND COMPATIBLE CABLE CONNECTORS UNDER THE BASE PERIOD.

Who is the contractor on this award?

The obligated recipient is SENECA STRATEGIC PARTNERS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-05-28. End: 2026-05-05.

What is the specific justification for awarding this contract on a limited competition basis?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source or limited justification was invoked by the Federal Aviation Administration. Common reasons for such designations include the existence of a unique capability held by a single vendor, urgent and compelling needs where competition is impractical, or specific government-mandated sources. Without further documentation from the agency, the precise rationale remains undisclosed. This lack of transparency makes it difficult to assess whether competition was genuinely impossible or if alternative procurement strategies could have been employed to achieve better value for taxpayers.

How does the per-unit cost of $6,907 compare to market rates for similar RF cables and connectors?

The per-unit cost of $6,907, derived from the total award and an estimated quantity based on the PSC code, appears significantly elevated compared to typical market rates for standard RF cables and connectors. While specialized, high-frequency, or custom-length cables with specific shielding and connector types can command higher prices, this figure suggests potential overpayment. Market research for comparable industrial-grade RF cable assemblies with standard connectors typically ranges from a few hundred to a couple of thousand dollars, depending on length, frequency rating, and connector type. The high cost warrants further investigation into the specific technical requirements and potential for price negotiation or alternative sourcing.

What are the potential risks associated with awarding this contract to a single vendor under limited competition?

Awarding contracts under limited competition, especially to a single vendor, introduces several risks. Firstly, it significantly reduces the potential for competitive pricing, likely leading to higher costs for the government and taxpayers. Secondly, it limits the government's access to a broader range of technological solutions and innovations that might be offered by a more diverse supplier base. Thirdly, it increases reliance on a single contractor, creating potential vulnerabilities in the supply chain; if the contractor experiences production issues, delivery delays, or financial instability, the government's operational continuity could be jeopardized. Finally, the lack of robust competition can sometimes correlate with reduced contractor incentive to maintain high service levels or quality over the contract's duration.

What is the historical spending pattern for RF cables and compatible connectors by the Federal Aviation Administration?

Analyzing historical spending patterns for RF cables and compatible connectors by the Federal Aviation Administration (FAA) is crucial for contextualizing the current award. Without access to specific historical contract databases, a precise trend cannot be determined. However, the FAA, responsible for air traffic control and aviation safety, relies heavily on robust communication systems. This necessitates ongoing procurement of various cable and connector types for radar, communication, navigation, and surveillance equipment. Past spending would likely show fluctuations based on infrastructure upgrade cycles, maintenance needs, and the introduction of new technologies. Understanding the volume, frequency, and average cost of similar procurements in prior years would provide a valuable benchmark for assessing the current $2.36 million award.

What are the implications of this contract for the 'Fiber Optic Cable Manufacturing' industry sector?

While the PSC code is 'Fiber Optic Cable Manufacturing,' the description specifies 'Radio Frequency Cables and Compatible Cable Connectors.' This distinction is important. RF cables and fiber optic cables serve different transmission purposes. RF cables transmit electrical signals, typically at high frequencies, while fiber optic cables transmit data via light pulses. This contract, therefore, impacts the specialized RF component manufacturing segment rather than the broader fiber optic cable manufacturing industry. The market for high-performance RF components is often characterized by specialized engineering, stringent testing, and a smaller, more focused group of manufacturers compared to the more commoditized fiber optic cable market.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Fiber Optic Cable Manufacturing

Product/Service Code: FIBER OPTIC

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 90 OHI:YO' WAY, SALAMANCA, NY, 14779

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,362,049

Exercised Options: $2,362,049

Current Obligation: $2,362,049

Actual Outlays: $1,424,309

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA825D00009

IDV Type: IDC

Timeline