DOT awards $148.6K for fabricated enclosures, raising questions about competition and value

Contract Overview

Contract Amount: $148,571 ($148.6K)

Contractor: Protospace MFG USA Inc

Awarding Agency: Department of Transportation

Start Date: 2026-04-05

End Date: 2026-06-30

Contract Duration: 86 days

Daily Burn Rate: $1.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCURE FABRICATED ENCLOSURES FOR THE AC CONTROL TO SUPPORT THE COMMUNICATION REMOTE MAINTENANCE & MONITORING (CRMM) SECOND-LEVEL ENGINEERING (SLE) EQUIPMENT BUILD

Place of Performance

Location: WILMINGTON, NEW HANOVER County, NORTH CAROLINA, 28401

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $148,570.95 to PROTOSPACE MFG USA INC for work described as: PROCURE FABRICATED ENCLOSURES FOR THE AC CONTROL TO SUPPORT THE COMMUNICATION REMOTE MAINTENANCE & MONITORING (CRMM) SECOND-LEVEL ENGINEERING (SLE) EQUIPMENT BUILD Key points: 1. The contract's value appears reasonable for specialized fabricated enclosures, but a lack of competition limits definitive value assessment. 2. Competition dynamics are a significant concern, with the contract being sole-sourced. 3. Risk indicators include limited competition and a short performance period, potentially impacting long-term support. 4. Performance context suggests a need for specific equipment build support, but details on past performance are absent. 5. Sector positioning is within instrument manufacturing, a niche area requiring specialized fabrication capabilities.

Value Assessment

Rating: fair

The awarded amount of $148,570.95 for fabricated enclosures seems within a plausible range for custom manufacturing. However, without competitive bids, it's difficult to benchmark against market rates or determine if this represents optimal value for money. The short duration and specific nature of the requirement might also influence pricing. Further analysis would require understanding the complexity of the 'communication remote maintenance & monitoring (CRMM) second-level engineering (SLE) equipment build' and the specific materials and labor involved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under simplified acquisition procedures (SAP) and is listed as 'NOT COMPETED UNDER SAP'. This indicates a sole-source award, meaning only one vendor, PROTOSPACE MFG USA INC, was solicited. The lack of competition prevents a robust price discovery process and raises concerns about whether the government received the best possible price and terms. It is unclear why full and open competition was not pursued.

Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium compared to what could have been achieved through a competitive bidding process. Without competition, there's less incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are likely the Federal Aviation Administration (FAA) within the Department of Transportation, receiving critical components for their communication systems. The services delivered include the fabrication of specialized enclosures essential for the CRMM SLE equipment build. The geographic impact is localized to North Carolina, where the contractor is based, and potentially wherever the FAA equipment is deployed. Workforce implications are minimal, likely involving a small team at the contractor's facility for fabrication.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases costs for taxpayers.
Short performance period (approx. 2 months) may not allow for thorough vetting or long-term relationship building.
Absence of detailed past performance information makes it difficult to assess contractor reliability.
The specific nature of the 'CRMM SLE equipment build' is not fully detailed, making it hard to gauge the complexity and associated risks.

Positive Signals

The contract is for a specific, likely necessary component for FAA's communication infrastructure.
The award is a firm-fixed-price purchase order, which provides cost certainty for the government.
The contractor, PROTOSPACE MFG USA INC, is identified, allowing for some level of accountability.

Sector Analysis

This contract falls within the Instrument Manufacturing sector, specifically for electrical and testing equipment. This is a niche market requiring specialized fabrication capabilities. The total federal spending on instrument manufacturing can vary significantly year to year, but typically represents a small fraction of overall federal procurement. This specific contract, at $148.6K, is relatively small within the broader context of federal spending, but critical for the specific operational needs it supports.

Small Business Impact

This contract was not awarded to a small business and does not appear to have a small business set-aside component (ss: false, sb: false). There is no indication of subcontracting plans related to small businesses. Therefore, this award does not directly contribute to the small business contracting goals and may not have a significant positive impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Federal Aviation Administration contracting officers and potentially their Inspector General's office. As a sole-source award under simplified acquisition procedures (though not explicitly competed under SAP), oversight might be less rigorous than for larger, competitively bid contracts. Transparency is limited due to the lack of public justification for the sole-source award.

Related Government Programs

FAA Communication Systems
Instrument Manufacturing
Specialized Equipment Fabrication
Remote Maintenance & Monitoring Systems

Risk Flags

Sole-source award
Lack of competition justification
Limited performance data available
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $148,570.95 to PROTOSPACE MFG USA INC. PROCURE FABRICATED ENCLOSURES FOR THE AC CONTROL TO SUPPORT THE COMMUNICATION REMOTE MAINTENANCE & MONITORING (CRMM) SECOND-LEVEL ENGINEERING (SLE) EQUIPMENT BUILD

Who is the contractor on this award?

The obligated recipient is PROTOSPACE MFG 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 $148,570.95.

What is the period of performance?

Start: 2026-04-05. End: 2026-06-30.

What is the specific technical requirement for these fabricated enclosures, and why was a sole-source award necessary?

The data indicates the fabricated enclosures are for the 'Communication Remote Maintenance & Monitoring (CRMM) Second-Level Engineering (SLE) Equipment Build'. The specific technical requirements are not detailed in the provided data. However, the sole-source nature of the award ('NOT COMPETED UNDER SAP') suggests that either the government determined only one vendor, PROTOSPACE MFG USA INC, could meet the unique requirements, or that the justification for not competing was based on factors like urgency, proprietary technology, or a lack of available sources. Without further documentation or justification from the agency, it is impossible to definitively state why full and open competition was bypassed. This lack of transparency is a key concern for assessing value and accountability.

How does the price of $148,570.95 compare to similar fabricated enclosure contracts for government or commercial clients?

Benchmarking this specific contract's price is challenging without more detailed specifications of the enclosures (materials, dimensions, complexity, quantity) and the scope of work. The provided data indicates a firm-fixed-price purchase order for instrument manufacturing support. Generally, custom fabricated enclosures can range widely in price. For specialized, low-volume production runs, costs can be higher due to setup and engineering time. The $148.6K award for a short duration (approx. 2 months) suggests a potentially complex or highly specific requirement. A lack of competitive bids prevents a direct comparison to determine if this price is optimal. Further investigation into similar FAA or DoD procurements for custom enclosures would be needed for a more robust comparison.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing, as the contractor faces no direct competition. This can lead to reduced value for taxpayer money. Another risk is limited innovation, as the government doesn't benefit from the diverse solutions or efficiencies that multiple bidders might offer. Furthermore, it can create a perception of favoritism or a lack of due diligence in seeking the best value. For the government, it might also limit future sourcing options if the sole-source contractor becomes the only known provider for a specific niche.

What is the track record of PROTOSPACE MFG USA INC in fulfilling government contracts, particularly for fabricated enclosures?

The provided data does not include information on the track record of PROTOSPACE MFG USA INC. To assess their reliability and past performance, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contract awards, performance reviews, and any reported issues. Without this information, it's difficult to gauge their experience, quality of work, and ability to deliver on time and within budget for similar requirements.

What is the historical spending pattern for 'Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals' by the FAA or DOT?

The provided data does not contain historical spending patterns for this specific North American Industry Classification System (NAICS) code ('Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals') by the FAA or DOT. Analyzing historical spending would require accessing comprehensive federal procurement databases to identify trends, average contract values, and the number of awards within this category over several fiscal years. This would help contextualize the current $148.6K award and identify any significant deviations or patterns.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Instrument Manufacturing for Measuring and Testing Electricity and Electrical Signals

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 N FRONT ST STE 460, WILMINGTON, NC, 28401

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

Financial Breakdown

Contract Ceiling: $148,571

Exercised Options: $148,571

Current Obligation: $148,571

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline