FAA's $1M Radio System Contract Awarded to Hughey & Phillips LLC for Air Traffic Control

Contract Overview

Contract Amount: $1,004,410 ($1.0M)

Contractor: Hughey & Phillips LLC

Awarding Agency: Department of Transportation

Start Date: 2022-11-02

End Date: 2026-10-31

Contract Duration: 1,459 days

Daily Burn Rate: $688/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE VSBP PROVIDES AIR TRAFFIC CONTROLLERS WITH EMERGENCY ACCESS AND CONTROL OVER FAA-FURNISHED VHF AND UHF RADIO RECEIVER/TRANSMITTERS AND ASSOCIATED SIGNALING SYSTEMS. THE AIR/GROUND (A/G) CONNECTIVITY ENABLES AIR TRAFFIC CONTROLLERS TO ESTABLISH AN

Place of Performance

Location: URBANA, CHAMPAIGN County, OHIO, 43078

State: Ohio Government Spending

Plain-Language Summary

Department of Transportation obligated $1.0 million to HUGHEY & PHILLIPS LLC for work described as: THE VSBP PROVIDES AIR TRAFFIC CONTROLLERS WITH EMERGENCY ACCESS AND CONTROL OVER FAA-FURNISHED VHF AND UHF RADIO RECEIVER/TRANSMITTERS AND ASSOCIATED SIGNALING SYSTEMS. THE AIR/GROUND (A/G) CONNECTIVITY ENABLES AIR TRAFFIC CONTROLLERS TO ESTABLISH AN Key points: 1. The contract aims to provide emergency radio access for air traffic controllers. 2. Competition was not pursued for this contract. 3. Potential risks include reliance on a single vendor and lack of price discovery. 4. The sector is Miscellaneous Electrical Equipment Manufacturing.

Value Assessment

Rating: questionable

The contract value of $1,004,409.56 is for a specialized system. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for this critical air traffic control system.

Public Impact

Ensures critical communication infrastructure for air traffic controllers. Potential for increased costs due to sole-source award. Impacts the safety and efficiency of air travel by providing essential radio control.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpricing

Positive Signals

Provides essential emergency radio access
Supports critical air traffic control functions

Sector Analysis

This contract falls under the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector. Spending in this area is often driven by specialized needs for government infrastructure, where unique solutions may limit competitive opportunities.

Small Business Impact

This contract was not awarded to a small business. Further analysis would be needed to determine if small businesses could have provided a comparable solution.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract duration.

Related Government Programs

All Other Miscellaneous Electrical Equipment and Component Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of market pressure.
Reliance on a single vendor for critical infrastructure.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $1.0 million to HUGHEY & PHILLIPS LLC. THE VSBP PROVIDES AIR TRAFFIC CONTROLLERS WITH EMERGENCY ACCESS AND CONTROL OVER FAA-FURNISHED VHF AND UHF RADIO RECEIVER/TRANSMITTERS AND ASSOCIATED SIGNALING SYSTEMS. THE AIR/GROUND (A/G) CONNECTIVITY ENABLES AIR TRAFFIC CONTROLLERS TO ESTABLISH AN

Who is the contractor on this award?

The obligated recipient is HUGHEY & PHILLIPS LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $1.0 million.

What is the period of performance?

Start: 2022-11-02. End: 2026-10-31.

What is the justification for the sole-source award, and were alternative solutions explored?

The justification for a sole-source award typically involves unique capabilities or proprietary technology that only one vendor can provide. Without further details on the specific requirements of the VSBP, it's difficult to ascertain if alternatives were thoroughly explored. Agencies are generally required to document extensive market research before awarding sole-source contracts to ensure no other viable options exist.

How does the government ensure fair pricing without competition for this critical system?

In sole-source procurements, agencies often rely on cost realism analyses, price certifications, and negotiation techniques to ensure fair pricing. They may also benchmark against historical data or similar, albeit not identical, contracts. However, the absence of competitive bids inherently reduces the government's leverage in price discovery, making robust oversight and negotiation crucial.

What is the long-term strategy for maintaining and upgrading this essential air traffic control technology?

The long-term strategy for maintaining and upgrading this technology is unclear from the provided data. Given the sole-source nature of the current award, future procurements might face similar challenges. A proactive approach involving market research for potential future competition or alternative technologies would be beneficial to ensure continued access to advanced and cost-effective solutions.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 240 W TWAIN AVE, URBANA, OH, 43078

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

Financial Breakdown

Contract Ceiling: $5,200,000

Exercised Options: $1,004,410

Current Obligation: $1,004,410

Actual Outlays: $803,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline