DOI's $3.98M contract for spectrum reallocation awarded to Aviat U.S., Inc. after full and open competition

Contract Overview

Contract Amount: $3,980,942 ($4.0M)

Contractor: Aviat U.S., Inc.

Awarding Agency: Department of the Interior

Start Date: 2017-11-08

End Date: 2026-04-30

Contract Duration: 3,095 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USGS AWS3 SPECTRUM REALLOCATION - IMPLEMENTATION PHASE

Place of Performance

Location: MILPITAS, SANTA CLARA County, CALIFORNIA, 95035

State: California Government Spending

Plain-Language Summary

Department of the Interior obligated $4.0 million to AVIAT U.S., INC. for work described as: USGS AWS3 SPECTRUM REALLOCATION - IMPLEMENTATION PHASE Key points: 1. The contract value of $3.98 million appears reasonable for a multi-year implementation phase of spectrum reallocation. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The definitive contract type with a firm fixed price indicates a clear scope and predictable costs. 4. The contract duration of approximately 8.5 years (3095 days) is substantial, requiring careful performance monitoring. 5. The North American Industry Classification System (NAICS) code 334220 points to the wireless communications equipment manufacturing sector. 6. The contract is being performed in California, a state with significant telecommunications infrastructure and activity.

Value Assessment

Rating: good

The contract value of $3.98 million for spectrum reallocation implementation seems within a reasonable range for a project of this nature and duration. Without specific benchmarks for similar spectrum reallocation projects, a direct comparison is difficult. However, the firm fixed-price structure suggests that the government has a clear understanding of the costs involved, and the competitive award process should have driven a fair market price. The total award amount is modest in the context of federal IT and communications spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 7 bidders suggests a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of potential solutions being considered, maximizing the value for the government's investment.

Public Impact

The primary beneficiaries are likely federal agencies requiring spectrum reallocation services, ensuring efficient use of radio frequencies. The contract supports the implementation phase of spectrum reallocation, which is crucial for modernizing wireless communications. The geographic impact is focused on California, where the implementation activities will take place. Workforce implications may include specialized technical roles in telecommunications engineering, project management, and equipment deployment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) increases the risk of scope creep or performance degradation over time.
Reliance on a single contractor for a long-term, complex implementation could pose risks if the contractor faces financial or operational challenges.
The specific nature of spectrum reallocation can involve complex technical challenges and regulatory hurdles that may impact project timelines and costs.

Positive Signals

Awarded under full and open competition with multiple bidders (7), indicating a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
The contractor, Aviat U.S., Inc., is likely experienced in the wireless communications sector, given the contract's nature.

Sector Analysis

This contract falls within the telecommunications equipment manufacturing and services sector, specifically related to radio frequency management and spectrum reallocation. This is a critical area for national infrastructure, enabling the deployment of new wireless technologies and services. The market for spectrum management solutions is driven by evolving technological demands and regulatory frameworks. Comparable spending benchmarks are difficult to pinpoint without more specific project details, but federal investments in spectrum efficiency and management are ongoing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Geological Survey (USGS) within the Department of the Interior. As a definitive contract with a firm fixed price, oversight would focus on performance milestones, adherence to the contract scope, and timely delivery of services. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General for the Department of the Interior would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Federal Spectrum Management
Wireless Communications Infrastructure
Telecommunications Modernization
Radio Frequency Allocation

Risk Flags

Long contract duration
Potential for technological obsolescence
Complexity of spectrum reallocation

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.0 million to AVIAT U.S., INC.. USGS AWS3 SPECTRUM REALLOCATION - IMPLEMENTATION PHASE

Who is the contractor on this award?

The obligated recipient is AVIAT U.S., INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $4.0 million.

What is the period of performance?

Start: 2017-11-08. End: 2026-04-30.

What is the track record of Aviat U.S., Inc. with federal contracts, particularly in spectrum reallocation or related areas?

A review of federal contract databases would be necessary to fully assess Aviat U.S., Inc.'s track record. However, their involvement in a contract for spectrum reallocation implementation suggests they possess relevant expertise in wireless communications technology and potentially government contracting. Further analysis would involve examining past performance reviews, contract values, and the types of services they have provided to federal agencies. Understanding their history with similar projects, including any challenges or successes, would provide valuable context for evaluating their capability to execute this current contract effectively.

How does the $3.98 million contract value compare to similar federal spectrum reallocation projects?

Direct comparison of the $3.98 million contract value to similar federal spectrum reallocation projects is challenging without access to a comprehensive database of such contracts with detailed scope and duration. Spectrum reallocation projects can vary significantly in complexity, technology involved, and geographic scope. However, considering this is an implementation phase over approximately 8.5 years, the annual value is roughly $468,000. This figure needs to be benchmarked against projects of comparable scale and technical requirements. The firm fixed-price nature and the competitive award process suggest that the pricing was determined through market mechanisms, which should provide a degree of value assurance.

What are the primary risks associated with a long-term (over 8 years) definitive contract for spectrum reallocation?

The primary risks associated with a long-term definitive contract for spectrum reallocation include technological obsolescence, as wireless technology evolves rapidly, potentially making the implemented solutions outdated before the contract ends. There's also the risk of scope creep, where the project's requirements may expand beyond the original agreement, leading to cost overruns or delays if not managed properly. Performance degradation over such an extended period is another concern, as contractor capabilities or commitment might wane. Furthermore, market shifts or changes in regulatory policy could impact the project's relevance or feasibility. Effective risk mitigation would involve robust contract management, regular performance reviews, and clear change control processes.

How effective is the firm fixed-price contract type in managing costs for complex implementation projects like spectrum reallocation?

The firm fixed-price (FFP) contract type is generally effective in managing costs for projects where the scope of work is well-defined and risks are understood. For spectrum reallocation implementation, an FFP contract provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to manage resources efficiently and control expenses. However, if the project scope is not fully understood at the outset or if unforeseen technical challenges arise, an FFP contract can lead to disputes or pressure the contractor to cut corners on quality. For complex projects, careful initial scope definition and robust change management are crucial to realizing the cost-control benefits of FFP.

What is the significance of the NAICS code 334220 (Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing) for this contract?

The NAICS code 334220 signifies that the primary business activity related to this contract involves the manufacturing of radio and television broadcasting and wireless communications equipment. For a spectrum reallocation implementation contract, this code suggests that the work may involve the deployment, integration, or management of equipment necessary for efficient spectrum use. This could include antennas, transmitters, receivers, or other components critical to wireless networks. It indicates the contractor's domain expertise lies in the hardware and technology aspects of wireless communications, which is directly relevant to the technical challenges of reallocating and optimizing radio frequency spectrum.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: G17PS00950

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 860 N MCCARTHY BLVD, STE 200, MILPITAS, CA, 95035

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

Financial Breakdown

Contract Ceiling: $3,980,942

Exercised Options: $3,980,942

Current Obligation: $3,980,942

Actual Outlays: $624,408

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline