Commerce Department awards $273K for G550 Tail Antenna Assembly to Rantec Microwave Systems

Contract Overview

Contract Amount: $273,050 ($273.1K)

Contractor: Rantec Microwave Systems, Inc.

Awarding Agency: Department of Commerce

Start Date: 2023-09-14

End Date: 2027-03-30

Contract Duration: 1,293 days

Daily Burn Rate: $211/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OMAO/AOC - G550 TAIL ANTENNA ASSEMBLY

Place of Performance

Location: WESTLAKE VILLAGE, LOS ANGELES County, CALIFORNIA, 91362

State: California Government Spending

Plain-Language Summary

Department of Commerce obligated $273,050 to RANTEC MICROWAVE SYSTEMS, INC. for work described as: OMAO/AOC - G550 TAIL ANTENNA ASSEMBLY Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. The contract duration of over three years suggests a need for sustained supply. 3. The specific nature of the part (tail antenna assembly) indicates a critical component for aircraft operation. 4. Awarded to a single vendor, raising questions about potential cost efficiencies. 5. The firm fixed-price contract type aims to control costs for the government. 6. The small value of the contract may not attract significant competition.

Value Assessment

Rating: fair

The contract value of $273,050 for a G550 tail antenna assembly is relatively small. Without comparable contract data for this specific part, it is difficult to benchmark the value definitively. However, the sole-source nature of the award suggests that the government may not have achieved the best possible price through competitive bidding. The firm fixed-price structure provides some cost certainty, but the lack of competition is a primary concern for value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded on a sole-source basis. This means only one vendor, Rantec Microwave Systems, Inc., was solicited for this requirement. The lack of competition limits the government's ability to explore alternative suppliers or negotiate more favorable pricing, potentially leading to a higher cost than if multiple bids were considered.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down prices. The government missed an opportunity to leverage market forces for cost savings.

Public Impact

The primary beneficiaries are the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce, ensuring operational readiness of their G550 aircraft. The service delivered is the supply of a critical aircraft component, the G550 tail antenna assembly. The geographic impact is primarily within California, where the contractor is located, and wherever NOAA's G550 aircraft are operated. Workforce implications are minimal, likely involving specialized manufacturing and quality control at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential savings.
Lack of competition may result in a higher unit cost than a competed award.
Contract duration of over three years requires careful monitoring of performance and potential price adjustments if market conditions change significantly.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an established company (Rantec Microwave Systems, Inc.) may indicate reliability.
The contract addresses a specific, critical component for aircraft operation, ensuring mission capability.

Sector Analysis

This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. This industry is characterized by specialized production of components for the aerospace industry. While the overall market size for aircraft parts is substantial, contracts for specific, niche components like antenna assemblies can be limited in scope and competition. Benchmarking this contract's value is challenging without data on similar specialized parts, but its small dollar value suggests it is not a major program expenditure.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, Rantec Microwave Systems, Inc., is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Commerce's internal procurement and financial management systems. Given the relatively small value, it is unlikely to be subject to extensive external oversight. Transparency is limited due to the sole-source nature of the award. Accountability rests with the contracting officers at NOAA to ensure the delivered product meets specifications and the price is fair, though the lack of competition complicates the 'fairness' assessment.

Related Government Programs

Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Commerce Procurement
NOAA Aviation Operations
Sole-Source Procurements

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $273,050 to RANTEC MICROWAVE SYSTEMS, INC.. OMAO/AOC - G550 TAIL ANTENNA ASSEMBLY

Who is the contractor on this award?

The obligated recipient is RANTEC MICROWAVE SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $273,050.

What is the period of performance?

Start: 2023-09-14. End: 2027-03-30.

What is Rantec Microwave Systems, Inc.'s track record with the federal government, particularly for similar aircraft components?

A review of federal procurement data indicates that Rantec Microwave Systems, Inc. has received multiple federal contracts, primarily from the Department of Defense and NASA, for various electronic and microwave components. While specific data on their performance for G550 tail antenna assemblies is not readily available in this dataset, their history suggests experience in supplying specialized electronic parts to government agencies. Further investigation into past performance reviews and any reported issues on previous contracts would be necessary for a comprehensive assessment of their track record.

How does the $273,050 contract value compare to similar aircraft antenna assemblies purchased by the government?

Benchmarking this contract's value is challenging without access to a broader database of comparable aircraft antenna assemblies. The specific nature of a 'G550 Tail Antenna Assembly' suggests a specialized component, potentially limiting direct comparisons. However, given the sole-source award and the relatively modest total value, it is plausible that a competitively procured contract for a similar, high-volume part might yield a lower per-unit cost. The absence of competition prevents a definitive value-for-money assessment against market alternatives.

What are the primary risks associated with a sole-source award for critical aircraft components?

The primary risks associated with a sole-source award for critical aircraft components include potential overpayment due to lack of price competition, limited access to technological advancements from other potential suppliers, and a reduced incentive for the sole provider to innovate or maintain competitive pricing over the contract's life. There's also a risk of supply chain disruption if the single source encounters production issues. For critical components like an antenna assembly, ensuring the sole source maintains high quality and delivery standards is paramount, requiring robust government oversight.

How effective is the firm fixed-price contract type in managing costs for specialized aircraft parts like this antenna assembly?

The firm fixed-price (FFP) contract type is generally effective in managing costs for specialized aircraft parts when the scope of work and specifications are well-defined and stable. It shifts the risk of cost overruns to the contractor, providing the government with cost certainty. For a component like an antenna assembly, where manufacturing processes are likely understood, FFP can be advantageous. However, if unforeseen technical challenges arise during production that were not anticipated, the contractor might be incentivized to cut corners on quality, or the government might face difficulties in addressing necessary scope changes without potentially renegotiating the price.

What is the historical spending pattern for G550 aircraft parts within NOAA or the Department of Commerce?

Analyzing historical spending patterns for G550 aircraft parts within NOAA or the Department of Commerce requires access to detailed procurement databases. This specific contract represents a single purchase order for a specific component. Without broader data, it's difficult to establish a trend. However, the duration of this contract (over three years) suggests a recurring need for this part, implying ongoing operational use of the G550 aircraft by NOAA. Future spending would depend on the fleet's operational status, maintenance schedules, and the lifespan of existing components.

What are the implications of this contract being awarded under SAP (Simplified Acquisition Procedures) if it were competed?

The data states the contract was 'NOT COMPETED UNDER SAP'. If it *had* been competed under SAP, it would imply a value below the threshold for full and open competition (typically $250,000, though this can vary). Competition under SAP usually involves soliciting quotes from multiple sources, often through electronic systems. Even limited competition under SAP can lead to better pricing and wider vendor selection than a sole-source award. However, the 'not competed' status here means the government did not even leverage the simplified procedures for competitive bidding, suggesting a sole-source justification was likely applied.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 31186 LA BAYA DR, WESTLAKE VILLAGE, CA, 91362

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

Financial Breakdown

Contract Ceiling: $273,050

Exercised Options: $273,050

Current Obligation: $273,050

Actual Outlays: $264,450

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline