DOT's FAA Awards $4.6M to Eaton for UPS Equipment, Highlighting Firm Fixed Price Contract
Contract Overview
Contract Amount: $4,586,700 ($4.6M)
Contractor: Eaton Corporation
Awarding Agency: Department of Transportation
Start Date: 2021-02-10
End Date: 2025-04-29
Contract Duration: 1,539 days
Daily Burn Rate: $3.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: UPS EQUIPMENT PURCHASE
Place of Performance
Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615
Plain-Language Summary
Department of Transportation obligated $4.6 million to EATON CORPORATION for work described as: UPS EQUIPMENT PURCHASE Key points: 1. Significant investment in critical UPS equipment for aviation infrastructure. 2. Eaton Corporation, a major player, secured the contract. 3. Potential for price escalation or performance issues under firm fixed price. 4. Spending falls within the 'Electrical Equipment' manufacturing sector.
Value Assessment
Rating: good
The $4.6M award for UPS equipment appears reasonable given the duration and the nature of the goods. Benchmarking against similar large-scale electrical equipment procurements would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove price discovery. This method generally leads to better pricing outcomes for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential equipment.
Public Impact
Ensures reliable power for critical FAA systems, preventing disruptions. Supports the operational integrity of air traffic control and related infrastructure. Investment in aging infrastructure to maintain safety and efficiency standards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Firm Fixed Price risk of contractor absorbing losses or seeking change orders.
- Long contract duration (over 4 years) may lead to price drift.
- Reliance on a single supplier for critical components.
Positive Signals
- Awarded under full and open competition.
- Essential equipment purchase for operational continuity.
- Contractor is a well-established industry leader.
Sector Analysis
This purchase falls under the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector. Spending in this area is crucial for maintaining and upgrading national infrastructure, with benchmarks varying widely based on specific equipment needs.
Small Business Impact
The data indicates no specific set-aside for small businesses, suggesting larger prime contractors were involved. Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The award was a delivery order against an existing contract, implying prior oversight. The firm fixed price structure provides cost certainty, but monitoring performance and delivery schedules is key.
Related Government Programs
- All Other Miscellaneous Electrical Equipment and Component Manufacturing
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Firm Fixed Price risk
- Long contract duration
- Potential for price drift
- Lack of specific equipment details for benchmarking
Tags
all-other-miscellaneous-electrical-equip, department-of-transportation, nc, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $4.6 million to EATON CORPORATION. UPS EQUIPMENT PURCHASE
Who is the contractor on this award?
The obligated recipient is EATON CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $4.6 million.
What is the period of performance?
Start: 2021-02-10. End: 2025-04-29.
What is the specific type and capacity of UPS equipment being procured, and how does its cost compare to industry standards for similar specifications?
The specific UPS equipment details are not provided in the data. A comprehensive value assessment requires comparing the unit cost and specifications against market rates for comparable UPS systems, considering factors like power capacity, battery runtime, and advanced features. Without this, the $4.6M figure is difficult to benchmark accurately.
What are the potential risks associated with a firm fixed price contract for long-duration equipment delivery, particularly concerning obsolescence or maintenance?
A firm fixed price contract for long-duration delivery carries risks of price becoming uncompetitive if market prices fall, or the contractor facing losses if costs rise unexpectedly. For equipment, there's also a risk of obsolescence if technology advances rapidly during the contract period, potentially impacting long-term maintainability and support.
How effectively does this procurement support the FAA's mission, and are there alternative solutions that could offer better value or resilience?
This procurement directly supports the FAA's mission by ensuring reliable power for critical systems, thus maintaining air safety and operational continuity. Alternative solutions might include exploring different power management technologies, distributed power architectures, or longer-term service agreements that could potentially offer better long-term value or enhanced resilience against grid failures.
Industry Classification
NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Eaton Corporation Public Limited Company
Address: 8609 SIX FORKS RD, RALEIGH, NC, 27615
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: $4,586,700
Exercised Options: $4,586,700
Current Obligation: $4,586,700
Actual Outlays: $3,793,361
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 6973GH18D00082
IDV Type: IDC
Timeline
Start Date: 2021-02-10
Current End Date: 2025-04-29
Potential End Date: 2025-04-29 00:00:00
Last Modified: 2026-03-31
More Contracts from Eaton Corporation
- FY-08 1ST Quarter Funding — $29.7M (Department of Transportation)
- UPS, Generators and Chiller Replacement — $22.1M (Department of Defense)
- TAS::36 0158::TAS Installation of a Turn-Key Solar Photovoltaic (PV) System AT the Albuqueque VA Healthcare System Located in Albuquerque, NM — $19.4M (Department of Veterans Affairs)
- Research and Development Effort Proposed in Response to Broad Agency Announcement (BAA) W911nf-17-S-0003 — $16.7M (Department of Defense)
- Firm Fixed Price - Recurring Services — $8.1M (Department of Defense)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)