TSI Power Corp awarded $15.6M for MALSR SLEP, with 2 bidders indicating moderate competition

Contract Overview

Contract Amount: $15,630 ($15.6K)

Contractor: TSI Power Corp

Awarding Agency: Department of Transportation

Start Date: 2026-04-08

End Date: 2026-06-20

Contract Duration: 73 days

Daily Burn Rate: $214/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TSI POWER VRX FOR MALSR SLEP

Place of Performance

Location: ANTIGO, LANGLADE County, WISCONSIN, 54409

State: Wisconsin Government Spending

Plain-Language Summary

Department of Transportation obligated $15,630 to TSI POWER CORP for work described as: TSI POWER VRX FOR MALSR SLEP Key points: 1. Contract value of $15.6 million for a 73-day period suggests a focus on specialized, short-term needs. 2. The award was made under Simplified Acquisition Procedures (SAP), typically for smaller value procurements. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. The North American Industry Classification System (NAICS) code 334419 points to a focus on electronic component manufacturing. 5. The Federal Aviation Administration (FAA) is the awarding agency, indicating a need related to aviation infrastructure. 6. The contract is for MALSR SLEP, likely referring to a specific aviation system upgrade or maintenance program.

Value Assessment

Rating: fair

The contract value of $15.6 million for a 73-day duration appears high for a purchase order, suggesting a potentially specialized or urgent requirement. Benchmarking against similar MALSR SLEP contracts is difficult without more specific details on the scope of work. However, the per-unit cost for the components or services rendered would be a key factor in assessing value for money. Given the limited competition and SAP award, further scrutiny of pricing is warranted.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for less formal competition than full and open procedures. With only two bidders, the level of competition is limited. While SAP aims to streamline procurement for smaller purchases, a low number of bidders can sometimes lead to less competitive pricing. The specific details of the solicitation and the outreach to potential bidders would determine if adequate competition was achieved.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing possible. The limited competition could result in a higher overall cost compared to a scenario with more robust bidding.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving services or components for the MALSR SLEP. The contract supports the maintenance or upgrade of critical aviation infrastructure, potentially enhancing safety and efficiency. The geographic impact is likely concentrated around the locations where the MALSR systems are deployed, primarily within Wisconsin (ST='WI'). The contract may have implications for the workforce within the electronic component manufacturing sector, specifically for TSI POWER CORP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) under SAP may not yield the best price for taxpayers.
The high contract value relative to the short duration warrants scrutiny of cost-effectiveness.
Lack of detailed scope of work makes it difficult to fully assess value and performance.
The specific nature of 'MALSR SLEP' requires further clarification to understand the criticality and potential risks.

Positive Signals

Firm Fixed Price contract transfers cost overrun risk to the contractor.
Award to a single vendor (TSI POWER CORP) suggests they possess specialized capabilities.
The contract is for a defined, short period, limiting long-term financial exposure.
The FAA's involvement indicates a focus on essential aviation infrastructure.

Sector Analysis

The contract falls within the 'Other Electronic Component Manufacturing' sector (NAICS 334419). This sector is crucial for various industries, including aerospace and defense. The total federal spending in this sector can be substantial, but individual contracts like this one are typically for specific components or specialized services. The MALSR SLEP likely represents a niche requirement within the broader aviation electronics market, where specialized manufacturers like TSI POWER CORP play a vital role in maintaining and upgrading complex systems.

Small Business Impact

The data indicates that small business participation (SB=false) and set-asides (SS=false) were not factors in this specific award. Therefore, this contract does not appear to directly benefit small businesses through set-aside provisions. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is likely minimal unless TSI POWER CORP voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA). As a purchase order awarded under Simplified Acquisition Procedures, the level of formal oversight might be less intensive than for larger, more complex contracts. However, the FAA is responsible for ensuring that the terms of the Firm Fixed Price contract are met and that the delivered components or services are adequate. Transparency is generally good for federal contract awards, but detailed performance metrics and specific oversight reports may not be publicly available for smaller procurements.

Related Government Programs

Federal Aviation Administration (FAA) Operations
Aviation Systems Maintenance
Electronic Component Manufacturing
Navigation Aids and Systems

Risk Flags

Limited competition may lead to higher costs.
High contract value for short duration warrants cost-effectiveness review.
Potential for performance issues if contractor lacks specific MALSR SLEP experience.
SAP awards may have less stringent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $15,630 to TSI POWER CORP. TSI POWER VRX FOR MALSR SLEP

Who is the contractor on this award?

The obligated recipient is TSI POWER CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15,630.

What is the period of performance?

Start: 2026-04-08. End: 2026-06-20.

What is the specific nature of the MALSR SLEP and why is it critical for the FAA?

MALSR typically refers to the Minimum Altitude Landing System (MALS) or similar runway lighting and navigation systems. SLEP likely stands for Systems Life Extension Program. Therefore, MALSR SLEP refers to a program aimed at extending the operational life of these critical aviation systems. These systems are vital for ensuring safe aircraft landings, especially in low visibility conditions, by providing pilots with visual cues and guidance. Their reliability is paramount for air traffic safety and operational efficiency at airports. The criticality stems from their direct role in preventing accidents and enabling continuous airport operations.

How does the $15.6 million value compare to typical MALSR SLEP contracts or similar electronic component manufacturing procurements?

Without specific details on the scope of work for this particular MALSR SLEP, a direct comparison is challenging. However, $15.6 million for a 73-day duration is a significant amount, suggesting either a high-value component replacement, a complex upgrade, or an urgent need. Typical contracts for electronic component manufacturing can vary widely. For specialized aviation components or systems upgrades, this value might be within a reasonable range, especially if it involves proprietary technology or extensive testing. However, compared to standard component manufacturing, it appears on the higher end, necessitating a closer look at the specific deliverables and the contractor's cost structure.

What are the potential risks associated with a limited competition award under SAP for this type of contract?

The primary risk associated with limited competition (two bidders) under Simplified Acquisition Procedures (SAP) is the potential for suboptimal pricing. When fewer vendors participate, the incentive to offer the most competitive bid can be reduced, potentially leading to higher costs for the government. Additionally, SAP awards may involve less rigorous documentation and oversight compared to full and open competition, which could increase the risk of non-compliance or performance issues if not managed carefully. For a critical system like MALSR, ensuring the quality and reliability of the components or services is paramount, and limited competition might not guarantee the best possible outcome in terms of both cost and quality.

What is TSI POWER CORP's track record with the FAA or similar defense/aviation contracts?

Information regarding TSI POWER CORP's specific track record with the FAA or similar defense/aviation contracts is not provided in the data. A thorough analysis would require accessing contract databases (like FPDS or SAM.gov) to review their past performance, award history, and any reported issues or successes. Understanding their experience with aviation-specific electronic components and life extension programs would be crucial for assessing their capability to successfully execute this MALSR SLEP contract and manage associated risks.

What are the implications of the 'Other Electronic Component Manufacturing' NAICS code for this contract's scope?

The NAICS code 334419, 'Other Electronic Component Manufacturing,' indicates that the contract likely involves the production or supply of specialized electronic parts rather than complete systems. This could include semiconductors, circuit boards, sensors, or other discrete electronic elements that are integral to the MALSR system. The 'Other' designation suggests these components might be custom-made or not fall into more specific manufacturing categories. This implies that TSI POWER CORP is likely a manufacturer or supplier of these specific electronic parts, and the contract focuses on their production, quality assurance, and delivery for the MALSR SLEP.

How does the 'FIRM FIXED PRICE' contract type affect risk allocation and potential cost overruns?

A Firm Fixed Price (FFP) contract type is designed to place the maximum risk on the contractor for managing costs and completing the work within the agreed-upon price. Under an FFP agreement, the contractor is obligated to deliver the specified goods or services for the stated price, regardless of their actual costs. This means that if TSI POWER CORP incurs higher expenses than anticipated during the MALSR SLEP, those additional costs will reduce their profit margin, not increase the contract's total value. Conversely, if they manage costs efficiently, their profit will be higher. This structure incentivizes the contractor to control costs and perform efficiently, while providing cost certainty to the government.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1103 W PIERCE AVE, ANTIGO, WI, 54409

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

Financial Breakdown

Contract Ceiling: $15,630

Exercised Options: $15,630

Current Obligation: $15,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline