DOT's FAA awards $18.9M for Voice Recorder System to NICE SYSTEMS INC under full and open competition
Contract Overview
Contract Amount: $18,918,050 ($18.9M)
Contractor: Nice Systems Inc
Awarding Agency: Department of Transportation
Start Date: 2020-04-01
End Date: 2022-07-31
Contract Duration: 851 days
Daily Burn Rate: $22.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PURCHASE OF VOICE RECORDER SYSTEM AND ANCILLARY EQUIPMENT
Place of Performance
Location: HOBOKEN, HUDSON County, NEW JERSEY, 07030
Plain-Language Summary
Department of Transportation obligated $18.9 million to NICE SYSTEMS INC for work described as: PURCHASE OF VOICE RECORDER SYSTEM AND ANCILLARY EQUIPMENT Key points: 1. The contract value of $18.9 million for a voice recorder system is significant. 2. NICE SYSTEMS INC secured the award through full and open competition. 3. Potential risks include system integration challenges and long-term maintenance costs. 4. The sector is IT/Communications, with a focus on specialized recording equipment.
Value Assessment
Rating: good
The contract value of $18.9 million appears reasonable for a specialized voice recorder system, especially considering the 2.5-year duration. Benchmarking against similar large-scale audio recording and analysis systems would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives the best value and price for its procurements.
Public Impact
Enhances critical communication recording capabilities for the FAA. Supports operational efficiency and safety by capturing vital audio data. Potential for improved incident investigation and analysis through detailed recordings.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with specialized equipment.
- Long-term sustainment and upgrade costs may exceed initial estimates.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost overruns.
- Delivery order structure allows for phased implementation.
Sector Analysis
The procurement falls within the IT and Communications sector, specifically for specialized audio recording and analysis systems. Spending benchmarks for similar government contracts in this niche area are difficult to establish without more granular data on system capabilities.
Small Business Impact
The data indicates this contract was awarded to NICE SYSTEMS INC, a large business. There is no explicit indication of small business participation or subcontracting in the provided details.
Oversight & Accountability
The use of a delivery order under a larger contract vehicle suggests that oversight mechanisms are in place. However, detailed oversight of system performance, integration, and long-term support would be managed by the FAA contracting officer.
Related Government Programs
- Other Sound Recording Industries
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Potential for vendor lock-in.
- Long-term sustainment and upgrade costs.
- Integration complexity with existing systems.
- Dependence on a single supplier for critical components.
Tags
other-sound-recording-industries, department-of-transportation, nj, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $18.9 million to NICE SYSTEMS INC. PURCHASE OF VOICE RECORDER SYSTEM AND ANCILLARY EQUIPMENT
Who is the contractor on this award?
The obligated recipient is NICE SYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $18.9 million.
What is the period of performance?
Start: 2020-04-01. End: 2022-07-31.
What is the specific functionality and technical capability of this voice recorder system compared to commercial off-the-shelf alternatives?
The provided data does not detail the specific technical functionalities or capabilities of the voice recorder system. A comprehensive analysis would require reviewing the system's specifications, performance metrics, and comparing them against available commercial off-the-shelf (COTS) solutions to determine if the unique requirements justify the cost and potential limitations.
What are the long-term maintenance and upgrade costs associated with this system, and how were they factored into the overall value assessment?
The provided data does not include information on long-term maintenance and upgrade costs. These costs are crucial for a complete value assessment and should be considered in future analyses. Understanding the total cost of ownership, including support contracts and potential technology refresh cycles, is essential for taxpayer impact.
How effectively will this system integrate with existing FAA communication and data management infrastructure to ensure seamless operation and data accessibility?
The provided data does not offer insights into the system's integration capabilities. Successful integration is critical for realizing the full benefits of the voice recorder system. The FAA's project management and technical teams will need to ensure robust integration planning and execution to avoid operational disruptions and data silos.
Industry Classification
NAICS: Information › Sound Recording Industries › Other Sound Recording Industries
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Nice Ltd
Address: 461 FROM RD, PARAMUS, NJ, 07652
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $18,999,999
Exercised Options: $18,918,050
Current Obligation: $18,918,050
Actual Outlays: $18,915,896
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA819D00006
IDV Type: IDC
Timeline
Start Date: 2020-04-01
Current End Date: 2022-07-31
Potential End Date: 2028-07-31 00:00:00
Last Modified: 2025-10-27
More Contracts from Nice Systems Inc
- National Airspace System Voice Recorder — $15.4M (Department of Transportation)
Other Department of Transportation Contracts
- Dafis UDO Reconstruct W/O Advance — $3.8B (Lockheed Martin Services, LLC)
- THE Purpose of This Delivery Order Award IS to ADD Funding for FTI Telecommunications Services — $1.9B (Harris Corporation)
- Provide Funding for Clin 302 for Pre-Flight and In-Flight Services. Contract Number Dtfawa-05-C-00031, Lockheed Martin. POP 01/16/08-03/31/08 — $1.9B (Leidos, Inc.)
- Center for Advanced Aviation Development (caasd) Ffrdc Mitre — $1.7B (THE Mitre Corporation)
- Dafis UDO Reconstruct W/O Advance — $1.5B (Harris Corporation)