DOT awards $2.7M to Eaton Corp for UPS maintenance, continuing a sole-source relationship

Contract Overview

Contract Amount: $2,717,831 ($2.7M)

Contractor: Eaton Corporation

Awarding Agency: Department of Transportation

Start Date: 2026-04-06

End Date: 2027-04-30

Contract Duration: 389 days

Daily Burn Rate: $7.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR DEPOT LOGISTICS SUPPORT (CDLS) FOR UNINTERRUPTIBLE POWER SYSTEMS - OPTION YEAR II

Place of Performance

Location: RALEIGH, WAKE County, NORTH CAROLINA, 27615

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $2.7 million to EATON CORPORATION for work described as: CONTRACTOR DEPOT LOGISTICS SUPPORT (CDLS) FOR UNINTERRUPTIBLE POWER SYSTEMS - OPTION YEAR II Key points: 1. The contract value represents a modest portion of overall federal spending on equipment maintenance. 2. Eaton Corporation has a long-standing relationship with the FAA for this specific service. 3. The firm-fixed-price contract type suggests predictable costs for the government. 4. The duration of the option year is substantial, indicating ongoing need. 5. Lack of competition raises questions about potential cost efficiencies. 6. The service is critical for maintaining operational continuity of essential systems.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed service scope and historical pricing data. However, the $2.7 million for a single year of support for uninterruptible power systems appears within a reasonable range for specialized equipment maintenance. Comparisons to similar contracts for UPS maintenance across federal agencies would be necessary for a more definitive value assessment. The firm-fixed-price structure provides cost certainty, but the absence of competition limits the ability to verify if the price is truly optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Federal Aviation Administration (FAA) has opted to continue its existing relationship with Eaton Corporation for the support of uninterruptible power systems. While sole-source awards can be justified for specialized services or when a single vendor possesses unique capabilities, they limit the government's ability to leverage market competition to drive down prices and ensure the best value.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive bidding. Without a competitive process, there is less pressure on the contractor to offer the lowest possible price.

Public Impact

The Federal Aviation Administration benefits from the continued reliable operation of its uninterruptible power systems. This contract ensures the continuity of critical power infrastructure supporting aviation safety and operations. The services are delivered primarily within FAA facilities where the UPS equipment is located. The contract supports specialized technical roles related to power systems maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in procurement.
Dependence on a single vendor could create future supply chain risks.

Positive Signals

Eaton Corporation is a known entity with established performance history for this service.
The firm-fixed-price contract provides cost predictability.
The contract ensures the continued availability of critical power infrastructure.

Sector Analysis

The market for uninterruptible power systems (UPS) maintenance and support is a specialized segment within the broader electronic and precision equipment repair industry. Federal spending in this area is driven by the need to maintain critical infrastructure across various agencies, including aviation, defense, and data centers. While specific market size data for federal UPS maintenance is not readily available, it is a consistent expenditure. This contract with Eaton Corporation fits within the category of essential support services for high-value, mission-critical equipment.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate in this particular procurement. The impact on the small business ecosystem is therefore minimal for this specific contract, as the work is being performed by a large, established corporation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Aviation Administration's contracting officers and program managers. Accountability is established through the firm-fixed-price contract terms, requiring Eaton Corporation to deliver specified maintenance services by the end date. Transparency is limited due to the sole-source nature of the award, as the justification and details of the procurement are not publicly debated through a competitive process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration (FAA) Maintenance Contracts
Uninterruptible Power Supply (UPS) Systems Procurement
Electronic and Precision Equipment Repair and Maintenance Services
Department of Transportation (DOT) Operations Support

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Vendor lock-in risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.7 million to EATON CORPORATION. CONTRACTOR DEPOT LOGISTICS SUPPORT (CDLS) FOR UNINTERRUPTIBLE POWER SYSTEMS - OPTION YEAR II

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 $2.7 million.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-30.

What is Eaton Corporation's track record with the FAA for providing UPS maintenance?

Eaton Corporation has a demonstrated history of providing uninterruptible power systems (UPS) maintenance and support to the Federal Aviation Administration (FAA). This contract, an option year for their services, indicates a continuation of a previously established relationship. While specific performance metrics or past issues are not detailed in the provided data, the renewal and extension of the contract suggest a level of satisfaction with their performance. Further analysis would require reviewing past performance evaluations, delivery order history, and any formal feedback or complaints lodged against Eaton by the FAA for similar services.

How does the $2.7 million contract value compare to previous years or similar contracts?

The provided data indicates this is Option Year II of a contract, with a value of $2.7 million for the period ending April 30, 2027. To compare this value, one would need to examine the award amounts for Option Year I and the base period, if applicable, to identify any significant price escalations or reductions. Benchmarking against similar UPS maintenance contracts awarded by other federal agencies or even within different FAA regions would also be crucial. Without this comparative data, it is difficult to definitively state whether $2.7 million represents a fair market value or an inflated price, especially given the sole-source nature of the award.

What are the primary risks associated with this sole-source contract for UPS maintenance?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competition. When a contract is not competed, the government loses the benefit of market forces driving down costs. Another risk is vendor lock-in; the FAA becomes dependent on Eaton Corporation for this specific service, potentially making it difficult or costly to switch providers in the future. Furthermore, sole-source awards can sometimes indicate a lack of available qualified vendors or a failure in the government's market research, which could represent a systemic risk in procurement planning. Ensuring robust oversight and performance management becomes critical to mitigate these risks.

How critical are these uninterruptible power systems to FAA operations?

Uninterruptible Power Systems (UPS) are critically important to the operations of the Federal Aviation Administration (FAA). These systems provide backup power to essential electronic equipment, ensuring continuous operation during power outages or fluctuations. For the FAA, this includes vital air traffic control systems, communication networks, navigation aids, and radar installations. A failure in these power systems could lead to disruptions in air traffic management, potentially compromising safety and security. Therefore, reliable maintenance and support for UPS units are paramount to maintaining the integrity and functionality of the national airspace system.

What is the historical spending trend for UPS maintenance by the FAA?

Historical spending trends for UPS maintenance by the FAA are not detailed in the provided data. However, given that this is Option Year II of a contract with Eaton Corporation, it suggests a consistent need and expenditure for these services over multiple years. To establish a trend, one would need to access historical contract databases (like USASpending.gov or FPDS) to aggregate spending on UPS maintenance, specifically by the FAA, over the past 5-10 years. Analyzing this data would reveal whether spending has increased, decreased, or remained stable, and identify the primary contractors involved.

What specific types of UPS equipment are covered under this contract?

The provided data does not specify the exact types or models of uninterruptible power systems (UPS) covered under this contract with Eaton Corporation. However, Eaton is a major manufacturer of UPS systems, ranging from small units for individual workstations to large-scale systems for data centers and critical infrastructure. Given the context of supporting the Federal Aviation Administration (FAA), it is likely that the contract covers a range of industrial-grade UPS units essential for powering air traffic control, communication, and other critical aviation support systems. A detailed inventory of covered equipment would typically be found in the contract's statement of work or associated technical exhibits.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $2,717,831

Exercised Options: $2,717,831

Current Obligation: $2,717,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH24D00055

IDV Type: IDC

Timeline