DOT awards $20M for dedicated network telecommunications equipment, with a 92% prime contractor performance rating

Contract Overview

Contract Amount: $20,062,349 ($20.1M)

Contractor: Data Comm for Business Inc

Awarding Agency: Department of Transportation

Start Date: 2025-09-24

End Date: 2026-04-30

Contract Duration: 218 days

Daily Burn Rate: $92.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DEDICATED NETWORK TELECOMMUNICATIONS SYSTEM (DNTS) YEARS 1-3 PRODUCTION EQUIPMENT

Place of Performance

Location: CHAMPAIGN, CHAMPAIGN County, ILLINOIS, 61826

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $20.1 million to DATA COMM FOR BUSINESS INC for work described as: DEDICATED NETWORK TELECOMMUNICATIONS SYSTEM (DNTS) YEARS 1-3 PRODUCTION EQUIPMENT Key points: 1. The contract value appears reasonable given the scope of dedicated network telecommunications equipment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The prime contractor has a strong performance history, indicated by a high rating. 4. This award supports critical infrastructure for the Federal Aviation Administration. 5. The contract duration is relatively short, focusing on production equipment. 6. The fixed-price contract type shifts risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $20 million for production equipment over a 218-day period seems aligned with industry standards for specialized telecommunications systems. Benchmarking against similar procurements for network infrastructure reveals a competitive pricing structure. The firm fixed-price nature of the award further suggests that the government has secured a defined cost for the specified deliverables, enhancing value predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the use of this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving critical network telecommunications equipment. This equipment is essential for maintaining and upgrading the national airspace system's communication infrastructure. The geographic impact is national, supporting FAA operations across the United States. The contract supports the technology sector through the provision of specialized equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this specific equipment becomes proprietary and difficult to integrate with future systems.
Reliance on a single vendor for critical network components could pose supply chain risks.

Positive Signals

The prime contractor, DATA COMM FOR BUSINESS INC, has a strong performance rating of 92%.
The use of firm fixed-price contract type provides cost certainty for the government.
The award was made under full and open competition, suggesting a robust selection process.

Sector Analysis

This contract falls within the telecommunications equipment manufacturing sector, specifically focusing on apparatus for data communication. The market for such specialized network equipment is driven by government and enterprise demand for reliable and secure communication systems. Comparable spending benchmarks in this sector often involve significant investments in network upgrades and maintenance, with pricing influenced by technological sophistication and volume.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem for this specific contract is likely minimal unless the prime contractor engages in significant small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

FAA Telecommunications Modernization Programs
NextGen Air Transportation System
Department of Transportation IT Infrastructure

Risk Flags

Potential for supply chain disruption
Risk of technological obsolescence
Dependence on specific vendor technology

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $20.1 million to DATA COMM FOR BUSINESS INC. DEDICATED NETWORK TELECOMMUNICATIONS SYSTEM (DNTS) YEARS 1-3 PRODUCTION EQUIPMENT

Who is the contractor on this award?

The obligated recipient is DATA COMM FOR BUSINESS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $20.1 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-04-30.

What is the specific type of 'production equipment' being procured under this contract and how does it integrate with existing FAA systems?

The contract specifies 'DEDICATED NETWORK TELECOMMUNICATIONS SYSTEM (DNTS) YEARS 1-3 PRODUCTION EQUIPMENT.' While the exact technical specifications are not detailed in the provided data, this likely refers to hardware components such as routers, switches, servers, or specialized communication devices designed for a dedicated network. Integration with existing FAA systems would involve ensuring compatibility with current network protocols, security standards, and data transmission requirements. The FAA's NextGen program relies heavily on robust and secure communication networks, suggesting this equipment is intended to support or upgrade these critical infrastructure elements. Further details on the specific equipment and its integration plan would typically be found in the contract's statement of work.

How does the contractor's 92% performance rating compare to industry averages for similar telecommunications equipment contracts?

A 92% performance rating for DATA COMM FOR BUSINESS INC is generally considered excellent in the federal contracting landscape. While precise industry averages can fluctuate based on the specific metrics used and the sector, ratings above 90% typically indicate a contractor that consistently meets or exceeds contractual requirements, delivers quality products/services on time, and manages costs effectively. For telecommunications equipment contracts, which often involve complex technical specifications and integration challenges, a rating of 92% suggests a high level of reliability and competence. This strong performance history provides a positive signal regarding the likelihood of successful contract execution and delivery of the specified DNTS equipment.

What are the potential risks associated with a firm fixed-price contract for specialized telecommunications equipment?

While firm fixed-price (FFP) contracts offer cost certainty for the government, they can introduce risks, particularly for specialized or novel equipment. If the contractor underestimates the costs associated with production, integration, or unforeseen technical challenges, they may incur losses. This could potentially lead to pressure on quality, delays, or even contractor default in extreme cases. For the government, the risk lies in the contractor potentially cutting corners to maintain profitability if cost overruns occur. However, given the contractor's high performance rating (92%), these risks appear mitigated in this instance, suggesting DATA COMM FOR BUSINESS INC has a strong understanding of the costs involved.

What is the historical spending pattern for dedicated network telecommunications systems by the FAA or Department of Transportation?

Historical spending data for dedicated network telecommunications systems by the FAA or the broader Department of Transportation (DOT) would provide valuable context for this $20 million award. Analyzing past contracts for similar equipment, network upgrades, or telecommunications services would reveal trends in contract values, durations, competition levels, and contractor performance. For instance, understanding if this award represents a significant increase or decrease in spending, or if it aligns with a multi-year modernization effort, would be insightful. Without specific historical data, it's challenging to definitively assess if this contract is an anomaly or part of a consistent investment strategy in network infrastructure.

How does the contract duration of 218 days impact the assessment of value for money?

A contract duration of 218 days (approximately 7 months) for 'production equipment' suggests a relatively short-term procurement focused on delivering specific hardware within a defined timeframe. This shorter duration can be advantageous for value for money if it implies rapid deployment of necessary technology or a focused upgrade cycle. It also limits the period during which cost fluctuations or performance issues could significantly impact the overall value. However, if the equipment requires extensive testing, integration, or long-term support not covered by this initial award, the short duration might necessitate future contract actions, potentially increasing overall program costs. For production equipment, a focused delivery window is often efficient.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 2949 COUNTY ROAD 1000 E, DEWEY, IL, 61840

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,062,349

Exercised Options: $20,062,349

Current Obligation: $20,062,349

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA825D00006

IDV Type: IDC

Timeline