Transportation awards $124K task order for STARS system installation at Azores air base

Contract Overview

Contract Amount: $124,057 ($124.1K)

Contractor: Leader Communications Inc.

Awarding Agency: Department of Transportation

Start Date: 2013-03-12

End Date: 2015-03-31

Contract Duration: 749 days

Daily Burn Rate: $166/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF THIS IS A NEW TASK ORDER UNDER THE ATCALS CONTRACT TO INSTALL A STARS SYSTEM AT LAJES AIR BASE AZORES, PORTUGAL

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73135

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $124,057.32 to LEADER COMMUNICATIONS INC. for work described as: IGF::OT::IGF THIS IS A NEW TASK ORDER UNDER THE ATCALS CONTRACT TO INSTALL A STARS SYSTEM AT LAJES AIR BASE AZORES, PORTUGAL Key points: 1. Contract awarded via 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 749 days indicates a significant project timeline. 4. The contractor, Leader Communications Inc., has a track record that warrants review for performance on similar projects. 5. The project involves engineering services, aligning with NAICS code 541330. 6. The geographic location of the installation in the Azores, Portugal, presents logistical considerations.

Value Assessment

Rating: fair

The awarded amount of $124,057.32 for a STARS system installation over approximately two years appears reasonable for a specialized engineering service. However, without specific benchmarks for STARS system installations or comparable projects by the Department of Transportation, a definitive value-for-money assessment is challenging. The Cost Plus Fixed Fee structure introduces inherent risk to cost control, necessitating close monitoring of expenditures against the fixed fee to ensure efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing price discovery, the number of bidders can influence the intensity of that competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by encouraging multiple companies to offer their best pricing and technical solutions, potentially leading to a more cost-effective outcome.

Public Impact

The primary beneficiaries are likely the Department of Transportation and potentially military or civilian aviation operations at Lajes Air Base. The service delivered is the installation of a STARS (Standard Terminal Automation and Replacement System) system. The geographic impact is localized to Lajes Air Base in the Azores, Portugal. Workforce implications may include specialized technicians for installation and integration, potentially sourced by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
The project's international location may introduce unforeseen logistical and regulatory challenges.
Performance history of Leader Communications Inc. on similar complex installations needs thorough vetting.
The duration of the contract (749 days) increases the risk of scope creep or changing technological requirements.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
The task order is part of a larger contract (ATCALS), implying potential for streamlined processes and established relationships.
The project addresses a specific need for aviation infrastructure at a key strategic location.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to aviation infrastructure and technology. The market for specialized aviation systems installation is competitive, with a mix of large defense contractors and specialized engineering firms. Spending in this area is driven by modernization efforts, safety upgrades, and operational requirements for air traffic control and management systems. Benchmarking would ideally involve comparing costs for similar STARS installations or air traffic control system upgrades at other government facilities.

Small Business Impact

There is no indication that this contract involved small business set-asides, nor is there information suggesting subcontracting opportunities for small businesses. The focus appears to be on specialized technical capabilities likely held by larger or more established firms in the engineering services sector.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of Transportation's Immediate Office of the Secretary. Accountability measures would be tied to the contract's performance metrics and milestones. Transparency is facilitated by the contract award being publicly available, but detailed project expenditures and progress reports may not be fully public.

Related Government Programs

ATCALS Contract
Air Traffic Control Systems Modernization
Aviation Infrastructure Projects
Department of Transportation IT and Engineering Services

Risk Flags

Cost Plus Fixed Fee contract type
International deployment risks
Contractor performance history unknown
Potential for scope creep due to long duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $124,057.32 to LEADER COMMUNICATIONS INC.. IGF::OT::IGF THIS IS A NEW TASK ORDER UNDER THE ATCALS CONTRACT TO INSTALL A STARS SYSTEM AT LAJES AIR BASE AZORES, PORTUGAL

Who is the contractor on this award?

The obligated recipient is LEADER COMMUNICATIONS INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $124,057.32.

What is the period of performance?

Start: 2013-03-12. End: 2015-03-31.

What is the track record of Leader Communications Inc. in completing similar STARS system installations, particularly in overseas locations?

Assessing Leader Communications Inc.'s track record for similar STARS system installations requires a deep dive into their past performance evaluations and project history. Specifically, their experience with international deployments is crucial, as overseas projects often involve unique logistical, regulatory, and security challenges not present in domestic installations. Reviewing past contract performance metrics, client feedback, and any documented issues or successes on comparable projects would provide insight into their capability to execute this task order effectively. Without access to detailed performance data, it's difficult to definitively gauge their suitability beyond the fact they were selected in a competitive process.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of engineering service, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, as might be the case with installing a new system like STARS. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the contractor bears more risk for cost overruns, or cost-reimbursement contracts without a fixed fee, which can offer less incentive for cost control. The primary risk with CPFF for the government is that the contractor has less incentive to control costs, as their profit (the fixed fee) remains constant regardless of the actual expenses incurred. This necessitates robust government oversight to monitor costs and ensure efficiency.

What are the specific performance metrics and milestones associated with this task order, and how are they being monitored?

Specific performance metrics and milestones for this task order would typically be detailed within the contract's Statement of Work (SOW) and Performance Work Statement (PWS). These would likely include criteria related to the successful installation, testing, and integration of the STARS system, adherence to project schedules, quality of workmanship, and compliance with technical specifications. Monitoring is usually conducted by a Contracting Officer's Representative (COR) who tracks progress against these metrics, reviews contractor reports, conducts site visits, and approves deliverables. The effectiveness of oversight depends heavily on the COR's diligence and the clarity of the defined performance standards.

What is the historical spending pattern for similar aviation system installation projects within the Department of Transportation or related agencies?

Analyzing historical spending for similar aviation system installations within the Department of Transportation (DOT) and related agencies like the FAA is crucial for benchmarking. This involves examining past contracts for air traffic control systems, radar installations, or other critical aviation technology upgrades. Key data points to consider include the total contract values, duration, contract types (e.g., fixed-price vs. cost-reimbursement), number of bidders, and the final costs incurred relative to initial estimates. Understanding these patterns helps determine if the current $124,057.32 task order represents a fair market price and if the project is being managed efficiently compared to previous efforts. Without access to a comprehensive database of past DOT aviation system contracts, this analysis remains qualitative.

What are the potential risks associated with installing a STARS system in an overseas location like the Azores, Portugal?

Installing a STARS system in the Azores, Portugal, presents several potential risks beyond standard project execution. Logistical challenges are significant, including transportation of sensitive equipment, potential customs delays, and ensuring availability of specialized tools and personnel in a remote location. Geopolitical and regulatory risks include navigating Portuguese and potentially EU aviation regulations, labor laws, and security protocols. Furthermore, establishing reliable communication lines and power infrastructure, as well as managing currency exchange fluctuations if applicable, can add complexity. The contractor must demonstrate robust planning to mitigate these international-specific risks to ensure project success.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 2601 NW EXPRESSWAY STE 330E, OKLAHOMA CITY, OK, 73112

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $124,057

Exercised Options: $124,057

Current Obligation: $124,057

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTRT5710D30028

IDV Type: IDC

Timeline