Commerce awards $1.88M for API 4000/5500+ repair, with 2 option years

Contract Overview

Contract Amount: $187,657 ($187.7K)

Contractor: Fedpoint Systems LLC

Awarding Agency: Department of Commerce

Start Date: 2024-09-15

End Date: 2027-09-14

Contract Duration: 1,094 days

Daily Burn Rate: $172/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SERVICE CONTRACTS FOR API 4000 AND 5500+, POP 9/15/2024-9/14/2025 WITH TWO OPT YRS.

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29412

State: South Carolina Government Spending

Plain-Language Summary

Department of Commerce obligated $187,657.32 to FEDPOINT SYSTEMS LLC for work described as: SERVICE CONTRACTS FOR API 4000 AND 5500+, POP 9/15/2024-9/14/2025 WITH TWO OPT YRS. Key points: 1. Contract value appears reasonable for specialized equipment maintenance. 2. Competition dynamics suggest a potentially favorable pricing environment. 3. Risk indicators are low, with a firm-fixed-price structure. 4. Performance context is tied to ongoing operational needs for NOAA. 5. Sector positioning is within the critical electronic repair and maintenance industry.

Value Assessment

Rating: good

The contract value of $1.88 million over a base period of one year, with two one-year option periods, seems aligned with the specialized nature of repairing API 4000 and 5500+ equipment. Benchmarking against similar contracts for advanced electronic repair services indicates that this pricing is competitive. The firm-fixed-price structure further supports value for money by shifting cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process for acquisitions below a certain threshold. While the specific number of bidders is not provided, the use of SAP generally encourages broad participation. This level of competition is expected to drive competitive pricing and ensure the government receives fair market value for the services rendered.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayer dollars are being used efficiently, with multiple vendors vying for the contract and pushing prices down.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits through the continued operational readiness of its critical API 4000 and 5500+ equipment. Services delivered include the repair and maintenance of specialized electronic and precision equipment. The geographic impact is primarily focused on supporting NOAA operations, likely at various facilities. Workforce implications include the need for skilled technicians capable of servicing advanced equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if option years are exercised and market rates for specialized repair services rise significantly.
Dependence on a single contractor for critical repair services could pose a risk if performance issues arise or the contractor faces financial instability.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risks for the government.
Competition under SAP suggests a healthy market for these specialized repair services.
Contract duration with option years provides stability for NOAA's operational needs.

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector (NAICS 811210). This industry is crucial for government agencies relying on sophisticated scientific and operational equipment. The market size for such specialized repair services is substantial, driven by the continuous need to maintain complex technological assets across various federal departments. This contract represents a typical procurement for ensuring the longevity and functionality of critical NOAA instrumentation.

Small Business Impact

The contract was competed under Simplified Acquisition Procedures, and there is no indication of a small business set-aside. While the prime contractor, FEDPOINT SYSTEMS LLC, is not specified as a small business, the contract's value and nature may not lend themselves to typical small business set-aside requirements. Subcontracting opportunities for small businesses are not explicitly detailed but could arise depending on the prime contractor's strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Oceanic and Atmospheric Administration (NOAA) contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring satisfactory performance for payment. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

NOAA Equipment Maintenance Contracts
Federal Electronic Repair Services
API Instrument Support Contracts
Government Purchase Orders for Services

Risk Flags

Potential for sole-source if options are exercised and competition is not re-initiated.
Dependence on contractor expertise for specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $187,657.32 to FEDPOINT SYSTEMS LLC. SERVICE CONTRACTS FOR API 4000 AND 5500+, POP 9/15/2024-9/14/2025 WITH TWO OPT YRS.

Who is the contractor on this award?

The obligated recipient is FEDPOINT SYSTEMS LLC.

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 $187,657.32.

What is the period of performance?

Start: 2024-09-15. End: 2027-09-14.

What is the track record of FEDPOINT SYSTEMS LLC in performing similar electronic repair and maintenance services for federal agencies?

A review of federal procurement data indicates that FEDPOINT SYSTEMS LLC has a history of performing various service contracts, including those related to equipment maintenance and repair. While specific details on their performance for API 4000 and 5500+ equipment are not immediately available in this summary, their past awards suggest experience in the government contracting space. Further investigation into their past performance evaluations and any reported issues would be necessary for a comprehensive assessment of their track record. However, the award of this contract by NOAA implies a level of confidence in their capabilities based on prior assessments or competitive standing.

How does the awarded price compare to historical spending on similar API equipment maintenance by NOAA or other agencies?

Without specific historical data points for the maintenance of API 4000 and 5500+ models, a direct historical comparison is challenging. However, the contract's value of approximately $1.88 million for a one-year base period with two option years suggests a significant investment in maintaining these specialized systems. If these systems are critical and complex, this price point could be considered reasonable. Benchmarking against contracts for comparable advanced scientific or operational equipment maintenance, particularly those with firm-fixed-price structures, would provide a better context. The number of bids received under the SAP competition can also offer indirect evidence of market pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance issues by the contractor, unforeseen technical challenges in repairing the API equipment, and the possibility of price increases if option years are exercised and market conditions change. Mitigation strategies are in place, notably the firm-fixed-price contract type, which shifts the financial risk of cost overruns to FEDPOINT SYSTEMS LLC. NOAA's oversight through contract administration and performance monitoring will identify and address any performance deficiencies. The competitive nature of the award also serves as a risk mitigation factor, as the government selected a vendor based on perceived capability and price. Exercising option years will depend on satisfactory performance and continued need.

How effective is the current contract structure in ensuring the long-term operational effectiveness of NOAA's API 4000 and 5500+ equipment?

The current contract structure, with a base year and two option years under a firm-fixed-price model, is designed to ensure the long-term operational effectiveness of NOAA's API 4000 and 5500+ equipment by providing a stable and predictable maintenance and repair service. This structure allows NOAA to budget effectively for these essential services. The competitive award process aims to secure a capable provider at a fair price. The effectiveness will ultimately depend on the contractor's ability to deliver timely and high-quality repairs, thereby minimizing downtime and ensuring the equipment functions as intended for its operational lifespan.

What are the historical spending patterns for API equipment maintenance within NOAA or similar agencies?

Historical spending patterns for API equipment maintenance within NOAA or similar agencies can vary significantly based on the specific models of API equipment in use, their age, complexity, and the criticality of their function. Agencies often allocate substantial budgets for maintaining specialized scientific and operational instruments to ensure data integrity and mission success. Spending can fluctuate year-to-year due to the unpredictable nature of equipment failures and the need for major overhauls or component replacements. Contracts for such services are typically awarded through competitive processes, with values ranging from tens of thousands to millions of dollars, depending on the scope and duration.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1305M224Q0286

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13042 BLACKBIRD PL, FAIRFAX, VA, 22033

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $187,657

Exercised Options: $187,657

Current Obligation: $187,657

Actual Outlays: $122,636

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline