DOT's FAA awards $92.8M R&D contract for Airport Surface Surveillance Capability to SAAB, Inc

Contract Overview

Contract Amount: $92,847,158 ($92.8M)

Contractor: Saab, Inc

Awarding Agency: Department of Transportation

Start Date: 2012-04-05

End Date: 2025-07-02

Contract Duration: 4,836 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: AIRPORT SURFACE SURVEILLANCE CAPABILITY (ASSC) IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $92.8 million to SAAB, INC for work described as: AIRPORT SURFACE SURVEILLANCE CAPABILITY (ASSC) IGF::CL::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of the contract is substantial at over 4,000 days, indicating a long-term project. 4. The contract is for Research and Development in Physical, Engineering, and Life Sciences, a critical area for technological advancement. 5. The contractor, SAAB, Inc., is a significant player in the aerospace and defense industry. 6. The contract is focused on enhancing airport surface surveillance, a key safety and efficiency component.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging due to its specialized nature and long duration. The Cost Plus Fixed Fee (CPFF) structure means the final cost is not fixed upfront, making direct price comparisons difficult without detailed cost breakdowns. However, the award to a single, established contractor like SAAB, Inc. suggests a potentially fair price for the specialized research and development required. Further analysis would require comparing the scope of work and deliverables against similar R&D efforts in aviation technology.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders (as suggested by 'no': 3) implies a reasonable level of competition for this specialized R&D requirement. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers for its needs.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. It also provides assurance that the chosen contractor offers the best value among the available options.

Public Impact

The Federal Aviation Administration (FAA) benefits through the development of advanced airport surface surveillance technology. The contract aims to deliver enhanced safety and efficiency for air traffic management on airport surfaces. The geographic impact is primarily national, focusing on improving airport operations across the United States. The workforce implications may include specialized R&D roles within SAAB, Inc. and potentially within the FAA for oversight and integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts carry inherent risks of cost escalation if not rigorously managed.
The long contract duration (over 10 years) increases the risk of scope creep or technological obsolescence.
The specialized nature of R&D makes it difficult to benchmark performance and cost-effectiveness definitively.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contractor, SAAB, Inc., is a reputable firm with significant experience in aerospace and defense technologies.
The contract addresses a critical need for improved airport safety and efficiency.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The aviation technology market is a significant segment within this broader R&D landscape, characterized by high innovation and substantial government investment. Comparable spending benchmarks would typically involve other large-scale R&D contracts for advanced defense or aerospace systems, where innovation and specialized expertise are paramount.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or impacts on the small business ecosystem stemming from a small business set-aside. The focus is on a large prime contractor, SAAB, Inc.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Federal Aviation Administration (FAA). Accountability measures would be embedded within the contract's Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is expected through contract reporting mechanisms, though specific public transparency levels for R&D contracts can vary. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Airport Improvement Program (AIP)
Next Generation Air Transportation System (NextGen)
Federal Aviation Administration Research and Development Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration increases potential for scope creep and technological obsolescence.
R&D contracts have inherent uncertainty in outcomes and cost estimation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $92.8 million to SAAB, INC. AIRPORT SURFACE SURVEILLANCE CAPABILITY (ASSC) IGF::CL::IGF

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 $92.8 million.

What is the period of performance?

Start: 2012-04-05. End: 2025-07-02.

What is SAAB, Inc.'s track record with the Federal Aviation Administration and similar R&D contracts?

SAAB, Inc. is a global company with a strong presence in the aerospace and defense sectors. While specific details of their past FAA contracts are not provided in this data snippet, their general reputation suggests experience in complex technological development. For R&D contracts, their track record would likely involve delivering innovative solutions within budget and schedule constraints, though CPFF contracts inherently require close monitoring. A deeper dive into their contract history with the FAA and other government agencies would reveal their performance trends, including any past issues with cost overruns or schedule delays on similar research and development initiatives.

How does the $92.8 million award compare to other FAA R&D investments in surveillance technology?

Comparing the $92.8 million award requires context on the scope and duration of other FAA R&D investments in surveillance technology. This contract, spanning over 10 years (4836 days), represents a significant, long-term commitment to developing the Airport Surface Surveillance Capability (ASSC). Without specific data on comparable projects, it's difficult to definitively benchmark this award. However, large-scale R&D initiatives in aviation technology, especially those aimed at enhancing safety and efficiency under programs like NextGen, often involve multi-million dollar investments over extended periods. The value is derived not just from the dollar amount but from the technological advancements and safety improvements it promises.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D include potential cost overruns and reduced contractor incentive for efficiency. In a CPFF structure, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial estimates, the government bears the burden, while the contractor's profit remains fixed. This can disincentivize cost control. For R&D, where the scope and technical challenges are often uncertain, estimating costs accurately is difficult, increasing the likelihood of cost growth. Rigorous oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

How effective is the Airport Surface Surveillance Capability (ASSC) likely to be given the R&D nature of the contract?

The effectiveness of the Airport Surface Surveillance Capability (ASSC) will depend on the successful execution of the R&D outlined in the contract and the subsequent integration of the developed technology. As an R&D contract, its immediate output is innovation and prototype development, not a fully operational system. The success hinges on SAAB, Inc.'s ability to meet the technical objectives and performance specifications set by the FAA. The long duration suggests a complex development process. The FAA's oversight and testing protocols will be critical in ensuring the final capability meets its intended purpose of enhancing safety and efficiency on airport surfaces, reducing the risk of ground collisions and improving air traffic flow.

What are the historical spending patterns for airport surveillance technology R&D by the FAA?

Historical spending patterns for airport surveillance technology R&D by the FAA are likely characterized by phased investments aligned with broader air traffic modernization initiatives, such as the Next Generation Air Transportation System (NextGen). While specific figures for 'ASSC IGF::CL::IGF' are not detailed here, the FAA has consistently invested in technologies to improve situational awareness on the ground. These investments often involve significant R&D components, reflecting the complexity and critical safety implications of air traffic control. Spending tends to increase during periods of technological transition and when new safety mandates or efficiency goals are established, indicating a strategic allocation of resources towards advancing surveillance capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Saab Defense and Security USA LLC

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: $120,000,000

Exercised Options: $92,847,158

Current Obligation: $92,847,158

Actual Outlays: $17,861,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline