DHS awards $12.5M contract for multi-band mobile radios to ACG Systems, Inc

Contract Overview

Contract Amount: $12,501,049 ($12.5M)

Contractor: ACG Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-22

End Date: 2028-05-02

Contract Duration: 2,414 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT 25 MULTI-BAND MOBILE RADIOS FOR USE THROUGHOUT THE U.S. COAST GUARD.

Place of Performance

Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.5 million to ACG SYSTEMS, INC. for work described as: PROJECT 25 MULTI-BAND MOBILE RADIOS FOR USE THROUGHOUT THE U.S. COAST GUARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract has a duration of approximately 2414 days, indicating a long-term need. 3. The firm-fixed-price contract type shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The radios are intended for use throughout the U.S. Coast Guard, highlighting a national operational scope.

Value Assessment

Rating: fair

The total contract value is $12.5 million over approximately 6.7 years. Benchmarking this against similar procurements for mobile radio systems is challenging without more specific technical details and quantities. However, the firm-fixed-price structure is generally favorable for the government in managing cost certainty. The value appears reasonable for a national deployment of specialized communication equipment, but a detailed cost-benefit analysis would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bids suggests a moderate level of competition for this requirement. While multiple bidders participated, the specific number (6) does not inherently guarantee the lowest possible price, but it does provide a basis for price comparison and selection.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The participation of multiple bidders increases the likelihood that the government is receiving a fair market price for the radios.

Public Impact

The U.S. Coast Guard will benefit from enhanced communication capabilities across its operations. The contract supports the delivery of multi-band mobile radios, crucial for operational effectiveness. The radios will be deployed throughout the United States, impacting national maritime security and safety. The contract supports jobs in the wireless communications equipment manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of radio technology over the contract's long duration.
Dependence on a single contractor for delivery and potential support of specialized equipment.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, allowing for a broad range of potential suppliers.
Long contract duration suggests a sustained operational need and potential for economies of scale.

Sector Analysis

This contract falls within the Information Technology and Communications sector, specifically related to wireless communication equipment manufacturing. The market for such equipment is characterized by rapid technological advancements and a mix of large established players and specialized manufacturers. The U.S. Coast Guard's need for robust, multi-band radios aligns with the broader trend of modernizing communication systems for critical infrastructure and public safety agencies.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While ACG Systems, Inc. may be a small business itself, the contract was not formally competed as a small business set-aside. There is no explicit information on subcontracting plans for small businesses within this award, which could represent missed opportunities for the small business ecosystem.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, U.S. Coast Guard. Oversight would typically involve contract administration by the contracting officer and potentially program management offices. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Homeland Security Procurement
U.S. Coast Guard Equipment Procurement
Mobile Communication Systems Contracts
Wireless Communications Equipment Manufacturing

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.5 million to ACG SYSTEMS, INC.. PROJECT 25 MULTI-BAND MOBILE RADIOS FOR USE THROUGHOUT THE U.S. COAST GUARD.

Who is the contractor on this award?

The obligated recipient is ACG SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2021-09-22. End: 2028-05-02.

What is the specific technical capability of the 'PROJECT 25 MULTI-BAND MOBILE RADIOS' being procured?

The term 'PROJECT 25' (P25) refers to a set of standards for digital radio communications used by public safety agencies in North America. Multi-band capability implies the radios can operate on multiple frequency bands, offering flexibility in communication across different environments or with various user groups. Without access to the detailed technical specifications within the contract, it's difficult to ascertain the exact features, such as encryption levels, interoperability protocols, or specific band support (e.g., VHF, UHF, 700/800 MHz). This information is crucial for understanding the radios' suitability for diverse Coast Guard missions and their potential for future upgrades or integration with other systems.

How does the awarded price of $12.5 million compare to similar procurements for P25 multi-band radios?

Comparing the $12.5 million total contract value requires detailed information on the number of units procured, specific technical requirements, and the contract duration. A direct price-per-unit comparison is not feasible with the provided data. However, the contract spans approximately 6.7 years (2414 days), suggesting a phased delivery or long-term support. If this value represents the total potential value over the contract's life, it would need to be benchmarked against other large-scale P25 radio procurements by federal or state agencies. Factors like advanced features, ruggedization for maritime environments, and integration capabilities would influence the price. A preliminary assessment suggests the value is substantial, reflecting a significant national deployment.

What are the primary risks associated with a long-duration contract (2414 days) for radio equipment?

The primary risks associated with a 2414-day (approximately 6.7 years) contract for radio equipment include technological obsolescence and vendor lock-in. Radio technology evolves rapidly; by the end of the contract term, the procured equipment might be outdated, lacking newer features or interoperability standards. This could necessitate premature replacement, negating the long-term investment. Furthermore, a long-term commitment to a single vendor for a critical system like radios can lead to vendor lock-in, potentially limiting future flexibility and bargaining power if better solutions emerge or if the incumbent vendor's performance declines. Ensuring robust technical refresh clauses and exit strategies within the contract can mitigate these risks.

What is the track record of ACG Systems, Inc. in delivering similar communication systems to government agencies?

Information regarding ACG Systems, Inc.'s specific track record in delivering Project 25 multi-band mobile radios or similar complex communication systems to government agencies is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal contracts. Understanding their experience with large-scale deployments, adherence to delivery schedules, product quality, and post-delivery support is crucial for evaluating the reliability of this award. Without this context, it's difficult to definitively assess their capability to meet the U.S. Coast Guard's requirements over the contract's extended duration.

How does the number of bidders (6) impact the government's ability to secure competitive pricing?

The submission of 6 bids under a full and open competition provides a reasonable basis for price discovery and competition. A higher number of bidders generally increases the likelihood of receiving competitive pricing, as vendors vie to win the contract. Six bidders suggest that the market is sufficiently interested and capable of meeting the requirement. However, the quality and competitiveness of these bids depend on various factors, including the clarity of the solicitation, the complexity of the requirement, and the specific capabilities of the bidding firms. While six is a healthy number, it's not the highest possible, and further analysis of the bid prices submitted would be necessary to confirm if truly optimal pricing was achieved.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z04421F21002600

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 133 DEFENSE HWY STE 207, ANNAPOLIS, MD, 21401

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

Financial Breakdown

Contract Ceiling: $29,487,950

Exercised Options: $12,501,049

Current Obligation: $12,501,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000025

IDV Type: IDC

Timeline