DOT's FAA awards $51.3M contract to SAAB, INC for navigation systems, extending a long-standing relationship

Contract Overview

Contract Amount: $51,324,102 ($51.3M)

Contractor: Saab, Inc

Awarding Agency: Department of Transportation

Start Date: 2014-02-12

End Date: 2018-03-31

Contract Duration: 1,508 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: RWSL CONTRACT EXTENSION

Place of Performance

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

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $51.3 million to SAAB, INC for work described as: RWSL CONTRACT EXTENSION Key points: 1. Contract value represents a significant investment in critical aviation infrastructure. 2. SAAB, INC has a demonstrated history with this specific type of equipment. 3. The contract's duration suggests a need for sustained support and potential for future growth. 4. Fixed-price contract type offers cost certainty for the government. 5. Geographic location in New York may indicate a concentration of related aviation activity.

Value Assessment

Rating: good

The contract value of $51.3 million over its period of performance appears reasonable for specialized navigation systems. Benchmarking against similar contracts for advanced aeronautical and nautical instruments is challenging without more specific technical details. However, the firm-fixed-price structure suggests that SAAB, INC assumed the primary cost risk, which is generally favorable for the government. The extension of an existing contract also implies a level of established value and performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the designation suggests a competitive process was initiated. Full and open competition is generally expected to yield the best value and pricing for the government by allowing a wide range of qualified contractors to participate.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces and encouraging innovation among potential bidders.

Public Impact

The Federal Aviation Administration (FAA) benefits through the acquisition of essential navigation and guidance systems. Aviation safety and efficiency are enhanced by reliable and modern navigation technology. The contract supports the operational capabilities of air traffic control and management within the United States. The workforce in New York may see continued employment opportunities within the aerospace and defense sector related to this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a sole-source extension of a proprietary system.
Reliance on a single contractor for critical navigation infrastructure could pose a risk if performance degrades.
The long duration of the contract might not fully account for rapid technological advancements in navigation systems.

Positive Signals

SAAB, INC's established presence and likely expertise in this niche area suggest a high probability of successful delivery.
The firm-fixed-price contract type provides budget predictability and limits the government's exposure to cost overruns.
The extension of a contract implies a positive past performance record and satisfaction with the delivered goods or services.

Sector Analysis

This contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector, a specialized area of the aerospace and defense industry. This sector is characterized by high technological barriers to entry, stringent quality and safety standards, and significant government procurement. The market size is substantial, driven by national security, air traffic management, and commercial aviation needs. This specific contract contributes to the modernization and maintenance of critical aviation infrastructure.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the specialized nature of navigation systems and the prime contractor (SAAB, INC), it is possible that larger, established firms are the primary recipients of the contract value. Further analysis would be needed to determine if small businesses are involved in the supply chain or if there are opportunities for subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and quality assurance clauses. Transparency is facilitated through contract award databases and public reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Air Traffic Control Systems
Department of Defense Navigation and Guidance Systems
National Airspace System Modernization Programs
Aerospace Manufacturing and Support Contracts

Risk Flags

Long contract duration may not align with rapid technological advancements.
Potential for vendor lock-in with specialized equipment.
Reliance on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $51.3 million to SAAB, INC. RWSL CONTRACT EXTENSION

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 $51.3 million.

What is the period of performance?

Start: 2014-02-12. End: 2018-03-31.

What is SAAB, INC's track record with the FAA for similar navigation systems?

SAAB, INC has a significant history of providing advanced technology solutions, including those related to defense and civil security. For the Federal Aviation Administration (FAA), their involvement in navigation, detection, and guidance systems is well-established. This particular contract, valued at approximately $51.3 million, represents an extension of services or products related to aeronautical and nautical systems. While specific details on past performance metrics for this exact contract are not publicly detailed in the summary, the renewal or extension of such a substantial contract typically implies a satisfactory performance history and a proven ability to meet the FAA's stringent requirements for safety, reliability, and technological capability in critical aviation infrastructure.

How does the $51.3 million value compare to other similar navigation system contracts?

The $51.3 million contract value for navigation systems is substantial and reflects the complexity and criticality of such equipment within the aviation sector. To provide a precise comparison, one would need to benchmark against contracts for similar 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' (NAICS 334511) awarded by agencies like the FAA, Department of Defense, or international aviation authorities. Factors influencing value include the specific technological capabilities (e.g., radar, GPS augmentation, communication systems), the scope of services (e.g., manufacturing, installation, maintenance, software updates), and the contract duration. Without access to a comprehensive database of comparable contracts with detailed specifications, it's difficult to definitively state if $51.3 million is high or low, but it indicates a significant investment in maintaining and upgrading essential air traffic management technology.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract for the government include potential technological obsolescence if the systems are not updated to keep pace with advancements, performance degradation over time leading to reduced reliability, and the risk of vendor lock-in if SAAB, INC's systems become proprietary and difficult to integrate with future technologies or replace with competitors. Dependence on a single supplier for critical infrastructure also poses a risk in terms of supply chain disruptions or unexpected price increases during potential future extensions. Furthermore, ensuring continuous compliance with evolving aviation safety regulations and cybersecurity standards throughout the contract's lifecycle is a key risk area that requires diligent oversight.

How effective are these navigation systems in improving air traffic management?

Navigation systems are fundamental to the effectiveness of air traffic management (ATM). They provide the precise positional data, guidance, and situational awareness necessary for air traffic controllers to safely and efficiently manage aircraft movements in the airspace and on the ground. Systems procured under contracts like this one, which fall under 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing,' are crucial for enabling advanced ATM capabilities such as Required Navigation Performance (RNP) operations, enhanced surveillance, and optimized flight paths. The effectiveness is measured by improvements in safety (reduced separation minima, fewer incidents), efficiency (reduced delays, fuel savings), and capacity (increased throughput of the airspace). The FAA's investment in these systems directly supports its mission to ensure the safety and efficiency of the National Airspace System.

What has been the historical spending trend for similar navigation systems by the FAA?

Historical spending trends for similar navigation systems by the FAA indicate a consistent and significant investment in maintaining and modernizing the National Airspace System (NAS). The FAA regularly procures and upgrades various components, including radar, communication systems, navigation aids (like VORs, ILS), and surveillance technologies. Spending in this category, often falling under the NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing) or related service codes, fluctuates based on major modernization initiatives, such as the Next Generation Air Transportation System (NextGen). While specific year-over-year figures for 'navigation systems' alone are not readily available without deep dives into budget documents, the overall trend shows a sustained commitment to technological advancement to enhance safety, efficiency, and capacity, often involving multi-year procurements and extensions of existing contracts like the one awarded to SAAB, INC.

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: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saab Inc

Address: 5717 ENTERPRISE PKWY, EAST SYRACUSE, NY, 13057

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: $258,061,521

Exercised Options: $51,324,102

Current Obligation: $51,324,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA09D00010

IDV Type: IDC

Timeline