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

Positive Signals

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

Risk Flags

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: ManufacturingCommunications Equipment ManufacturingTelephone 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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