DOT awards $13.4M for Runway Status Lights, with SAAB Inc. securing the contract

Contract Overview

Contract Amount: $13,411,912 ($13.4M)

Contractor: Saab Inc

Awarding Agency: Department of Transportation

Start Date: 2008-11-10

End Date: 2011-06-30

Contract Duration: 962 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: RUNWAY STATUS LIGHTS (RWSL)

Place of Performance

Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $13.4 million to SAAB INC for work described as: RUNWAY STATUS LIGHTS (RWSL) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control but also carries inherent risk. 3. The duration of the contract is 962 days, indicating a medium-term project. 4. The North American Industry Classification System (NAICS) code 334511 points to a focus on manufacturing navigation and guidance systems. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The base contract value is $13.4 million, providing a significant investment in aviation safety technology.

Value Assessment

Rating: fair

The contract value of $13.4 million for Runway Status Lights (RWSL) needs further benchmarking against similar procurements for advanced aviation safety systems. The CPIF contract type introduces variability in the final cost, making direct price comparisons challenging without detailed performance data and incentive payouts. The base award amount provides an initial reference point, but the total expenditure could fluctuate based on contractor performance and cost efficiencies achieved.

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 number of bidders is not specified, but this approach generally fosters a competitive environment, which can lead to better pricing and innovation. The open competition suggests the government sought the best available solution and price from the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for critical aviation safety infrastructure.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the flying public, through enhanced runway safety. The services delivered involve the manufacturing and potentially integration of Runway Status Lights (RWSL) systems. The geographic impact is likely focused on airports where these systems are deployed, improving air traffic control and safety. Workforce implications may include specialized manufacturing roles within SAAB Inc. and related supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPIF contract type can lead to costs exceeding initial estimates if not managed carefully.
Lack of specific details on competition level (number of bidders) limits assessment of true price discovery.
The base award amount does not reflect the potential final cost under an incentive fee structure.

Positive Signals

Awarded through full and open competition, suggesting a robust market response.
Focus on a critical safety system (RWSL) indicates investment in aviation security.
SAAB Inc. is a known entity in defense and aerospace, potentially bringing relevant expertise.

Sector Analysis

The contract falls within the aerospace and defense manufacturing sector, specifically focusing on navigation and guidance systems. The market for aviation safety technology is driven by stringent regulatory requirements and the continuous need for modernization to improve air traffic efficiency and safety. Spending in this area is significant, with governments worldwide investing in advanced air traffic management solutions. Comparable spending benchmarks would involve other procurements for airport infrastructure, air traffic control systems, and related electronic equipment.

Small Business Impact

There is no explicit indication of small business set-asides for this contract. As a delivery order potentially under a larger IDIQ, subcontracting opportunities for small businesses may exist, but this depends on SAAB Inc.'s subcontracting plan. The primary awardee, SAAB Inc., is a large corporation, suggesting the direct impact on the small business ecosystem might be limited unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a branch of the Department of Transportation. Accountability measures are inherent in the CPIF contract type, which links contractor payment to performance and cost targets. Transparency is facilitated by public contract databases, though detailed performance metrics and incentive payouts may not be fully public. The FAA's Inspector General would have jurisdiction over investigations into fraud, waste, or abuse related to this contract.

Related Government Programs

Runway Safety Technology
Air Traffic Control Systems
Aviation Navigation and Guidance Equipment
Federal Aviation Administration Procurements

Risk Flags

CPIF Contract Type
Potential for Cost Overruns
Limited Competition Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.4 million to SAAB INC. RUNWAY STATUS LIGHTS (RWSL)

Who is the contractor on this award?

The obligated recipient is SAAB INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.4 million.

What is the period of performance?

Start: 2008-11-10. End: 2011-06-30.

What is SAAB Inc.'s track record with similar aviation safety system contracts awarded by the FAA or other government agencies?

SAAB Inc. has a significant history in providing advanced technology solutions, including those for aviation and defense. While specific details on their past FAA contracts for RWSL are not provided in this data snippet, the company is known for its work in areas such as air traffic management, radar systems, and integrated defense solutions. Their experience in complex system integration and manufacturing for government clients suggests a capacity to handle such procurements. A deeper analysis would involve reviewing their contract history for performance ratings, past issues, and the scale of previous related awards to fully assess their suitability and track record for this specific RWSL contract.

How does the $13.4 million award value compare to the typical cost of similar Runway Status Lights (RWSL) system procurements?

Benchmarking the $13.4 million award value for RWSL requires comparing it against similar procurements for advanced aviation safety systems. Without specific details on the scope, quantity, and technological sophistication of the RWSL systems procured in this instance, a direct comparison is challenging. However, investments in airport infrastructure and air traffic control technology often run into millions of dollars. Factors such as the number of runways, airport size, integration complexity with existing systems, and the specific features of the RWSL technology will influence the cost. Further research into other FAA procurements for similar safety enhancements or system upgrades would be necessary to establish a robust value-for-money assessment.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for aviation technology?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for aviation technology revolve around cost control and potential for cost overruns. While CPIF aims to incentivize efficiency by sharing cost savings or overruns between the government and the contractor based on pre-defined targets, it inherently carries more financial uncertainty than fixed-price contracts. Risks include the contractor potentially incurring higher costs than anticipated, which, depending on the incentive structure, could still result in a higher final price for the government. There's also a risk that the incentive targets might be set too leniently, reducing the effectiveness of cost control, or too stringently, potentially compromising quality or timely delivery if the contractor focuses solely on meeting targets. Effective oversight and clear performance metrics are crucial to mitigate these risks.

What is the expected program effectiveness and impact of the Runway Status Lights (RWSL) system being procured?

The Runway Status Lights (RWSL) system is designed to significantly enhance runway safety by providing pilots and vehicle operators with unambiguous information about runway occupancy. Its effectiveness lies in reducing the risk of runway incursions, which are critical safety events that can lead to collisions. By illuminating lights embedded in the runway and taxiway markings, RWSL alerts individuals when a runway is not clear for them to enter or cross. The expected impact is a measurable decrease in runway incursions, leading to improved air traffic safety, reduced delays caused by incidents, and potentially lower insurance costs for airlines. The successful deployment and integration of this system are crucial for realizing these safety benefits.

How has federal spending on aviation safety and navigation systems evolved over the past five years, and where does this contract fit in?

Federal spending on aviation safety and navigation systems has generally seen consistent investment, driven by the FAA's mandate to maintain and modernize the National Airspace System (NAS). Over the past five years, there has been a sustained focus on technologies aimed at improving air traffic control efficiency, enhancing situational awareness for pilots and controllers, and bolstering cybersecurity. This $13.4 million contract for Runway Status Lights (RWSL) fits within this broader trend of investing in critical safety infrastructure. It represents a specific allocation towards mitigating runway incursion risks, a key safety priority for the FAA. Analyzing historical spending patterns for similar safety enhancement projects would provide context on the scale and frequency of such procurements.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saab Aktiebolag (UEI: 354001059)

Address: 85 COLLAMER CROSSING PKWY, EAST SYRACUSE, NY, 13057

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

Financial Breakdown

Contract Ceiling: $13,411,912

Exercised Options: $13,411,912

Current Obligation: $13,411,912

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA09D00010

IDV Type: IDC

Timeline