DOT Awards $122M for Airfield Communication Systems to Frequentis USA, Inc
Contract Overview
Contract Amount: $122,306,155 ($122.3M)
Contractor: Frequentis USA, Inc
Awarding Agency: Department of Transportation
Start Date: 2025-03-01
End Date: 2026-08-11
Contract Duration: 528 days
Daily Burn Rate: $231.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: PRODUCTION OF APC UNITS AND APCMS'.
Place of Performance
Location: COLUMBIA, HOWARD County, MARYLAND, 21046
State: Maryland Government Spending
Plain-Language Summary
Department of Transportation obligated $122.3 million to FREQUENTIS USA, INC for work described as: PRODUCTION OF APC UNITS AND APCMS'. Key points: 1. Significant contract value of $122.3M for critical airfield communication technology. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. Potential risk associated with a long contract duration (528 days). 4. Spending falls within the IT sector, specifically related to communication apparatus.
Value Assessment
Rating: fair
The contract is a delivery order under a larger award, making direct per-unit cost comparison difficult without more detail. The Time and Materials pricing structure can lead to cost overruns if not managed closely.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value for the communication systems.
Public Impact
Enhances critical communication infrastructure for the Federal Aviation Administration. Supports air traffic control operations, directly impacting aviation safety. Procurement of specialized telephone apparatus for government use.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs.
- Long contract duration may present management challenges.
Positive Signals
- Awarded under full and open competition.
- Supports essential FAA operations.
Sector Analysis
This contract falls under the Information Technology sector, specifically for manufacturing telephone apparatus. The NAICS code 334210 relates to communication equipment manufacturing, with typical contract values varying widely based on system complexity and scale.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific award, as the prime contractor is Frequentis USA, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract is a delivery order, suggesting it may be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on the management of this specific order and adherence to the terms of the parent contract.
Related Government Programs
- Telephone Apparatus Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration requires diligent oversight.
- Lack of specific unit cost data hinders detailed value analysis.
- No indication of small business participation in this specific award.
Tags
telephone-apparatus-manufacturing, department-of-transportation, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $122.3 million to FREQUENTIS USA, INC. PRODUCTION OF APC UNITS AND APCMS'.
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 $122.3 million.
What is the period of performance?
Start: 2025-03-01. End: 2026-08-11.
What is the estimated total value of the parent contract from which this delivery order was issued?
The provided data only details a specific delivery order valued at $122.3 million. The total value of the parent contract, if applicable, is not specified. Understanding the parent contract's scope and total value is crucial for a comprehensive assessment of the overall federal spending and potential long-term commitment.
How does the per-unit cost of these APC units compare to industry benchmarks or previous government procurements?
Without specific unit quantities and detailed pricing breakdowns, a direct per-unit cost comparison is not feasible. The Time and Materials (T&M) pricing structure further complicates this, as costs are based on labor hours and materials used rather than a fixed unit price. Benchmarking would require access to detailed cost data and similar contract information.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract to ensure effectiveness?
The provided data does not specify the KPIs or SLAs for this contract. Effective oversight would require clear performance metrics related to system reliability, uptime, response times, and delivery schedules. These would be essential for the FAA to ensure the communication systems meet operational requirements and taxpayer value.
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: 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: $122,306,155
Exercised Options: $122,306,155
Current Obligation: $122,306,155
Actual Outlays: $63,247,139
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 693KA824D00007
IDV Type: IDC
Timeline
Start Date: 2025-03-01
Current End Date: 2026-08-11
Potential End Date: 2026-08-11 00:00:00
Last Modified: 2025-08-13
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