FAA Awards $1.6M for NEXCOM Segment 2 Cables, Sole-Source Contract to Seneca Strategic Partners

Contract Overview

Contract Amount: $1,617,663 ($1.6M)

Contractor: Seneca Strategic Partners, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2027-05-05

Contract Duration: 398 days

Daily Burn Rate: $4.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PURCHASE OPTION YEAR 1 CABLES AND CONNECTORS FOR NEXCOM SEGMENT 2 BNATCS INSTALLATIONS.

Place of Performance

Location: SALAMANCA, CATTARAUGUS County, NEW YORK, 14779

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $1.6 million to SENECA STRATEGIC PARTNERS, LLC for work described as: PURCHASE OPTION YEAR 1 CABLES AND CONNECTORS FOR NEXCOM SEGMENT 2 BNATCS INSTALLATIONS. Key points: 1. Spending on fiber optic cables and connectors for aviation communication systems. 2. Sole-source award to Seneca Strategic Partners, LLC, raising competition concerns. 3. Contract duration of 398 days with a firm fixed price. 4. Potential for higher costs due to lack of competitive bidding.

Value Assessment

Rating: fair

The contract value of $1.6M for cables and connectors appears reasonable for a sole-source award, but without competitive bids, it's difficult to ascertain true market value. Benchmarking against similar sole-source procurements for specialized aviation components would be necessary for a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not available for competition, indicating a sole-source procurement. This method limits price discovery and potentially leads to higher costs for taxpayers as there is no market pressure to drive down prices.

Taxpayer Impact: Taxpayers may bear a higher cost due to the absence of competitive bidding, potentially funding a premium for the sole-source provider.

Public Impact

Ensures continued operation and upgrades of critical aviation communication infrastructure (NEXCOM Segment 2). Supports the Federal Aviation Administration's (FAA) mission to maintain safe and efficient air travel. Potential impact on future procurements if sole-source justifications become a trend.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
Sole-source justification validity

Positive Signals

Supports critical FAA infrastructure
Firm fixed price contract limits cost overrun risk

Sector Analysis

This procurement falls within the IT and telecommunications sector, specifically focusing on fiber optic cable manufacturing for critical infrastructure. Spending benchmarks for similar sole-source procurements in aviation are difficult to establish due to the nature of the award.

Small Business Impact

The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The justification for a sole-source award requires rigorous oversight to ensure it is valid and that the government is not foregoing potential cost savings. The FAA's procurement process should include checks to ensure competition is pursued whenever feasible.

Related Government Programs

Fiber Optic Cable Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
Limited transparency in price justification
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.6 million to SENECA STRATEGIC PARTNERS, LLC. PURCHASE OPTION YEAR 1 CABLES AND CONNECTORS FOR NEXCOM SEGMENT 2 BNATCS INSTALLATIONS.

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 $1.6 million.

What is the period of performance?

Start: 2026-04-02. End: 2027-05-05.

What is the specific technical requirement that necessitates a sole-source award for these cables and connectors?

The justification for a sole-source award typically stems from unique technical specifications, proprietary technology, or an urgent need where only one vendor can meet the requirements within the necessary timeframe. Without further details on the NEXCOM Segment 2 installations, it's difficult to pinpoint the exact reason, but it likely relates to compatibility with existing specialized systems or a critical, time-sensitive upgrade.

How does the FAA ensure fair pricing when awarding sole-source contracts for specialized IT components?

When sole-source contracts are unavoidable, agencies like the FAA typically rely on various methods to ensure fair pricing. This can include conducting market research to establish a price reasonableness baseline, reviewing the contractor's cost proposals, negotiating profit margins, and utilizing historical pricing data from similar, albeit potentially non-competitive, procurements. Independent cost estimates are also often employed.

What is the potential long-term impact on the FAA's IT infrastructure if this sole-source award leads to higher costs or delays?

Higher costs from a sole-source award can strain the FAA's budget, potentially diverting funds from other critical IT modernization projects or operational needs. If the pricing is significantly inflated, it represents inefficient use of taxpayer money. Delays, though less likely with a fixed-price contract, could impact the timely upgrade of the NEXCOM Segment 2, potentially affecting communication reliability or security.

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: $1,617,663

Exercised Options: $1,617,663

Current Obligation: $1,617,663

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA825D00009

IDV Type: IDC

Timeline