FAA Awards $8M for GNSS Devices to Zeta Associates Inc. Under Sole-Source Contract

Contract Overview

Contract Amount: $8,040,488 ($8.0M)

Contractor: Zeta Associates Inc

Awarding Agency: Department of Transportation

Start Date: 2024-04-29

End Date: 2026-04-30

Contract Duration: 731 days

Daily Burn Rate: $11.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GNSS AWARD

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.0 million to ZETA ASSOCIATES INC for work described as: GNSS AWARD Key points: 1. Contract awarded to Zeta Associates Inc. for GNSS devices. 2. The contract is a definitive contract with a firm fixed price. 3. No competition was involved in this award. 4. The contract duration is 731 days. 5. The award is for 'Other Measuring and Controlling Device Manufacturing'.

Value Assessment

Rating: questionable

The contract value of $8.04 million for GNSS devices is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar contracts in the market.

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 raises concerns about the efficient use of taxpayer funds, as a potentially lower price might have been achievable through a competitive process.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The FAA receives critical GNSS technology, but the procurement method warrants scrutiny. The award impacts the 'Other Measuring and Controlling Device Manufacturing' sector by directing significant funds to a single vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Potential for overpayment

Positive Signals

Definitive contract awarded
Firm fixed price contract type

Sector Analysis

The 'Other Measuring and Controlling Device Manufacturing' sector encompasses a wide range of products. Without specific details on the GNSS devices, it's hard to benchmark against industry standards, but $8 million is a substantial award for a single contract.

Small Business Impact

This contract was awarded to Zeta Associates Inc., a single entity. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The sole-source nature of this award suggests limited oversight in the initial procurement phase. Further review would be needed to understand the justification for not competing the requirement and ensure accountability.

Related Government Programs

Other Measuring and Controlling Device Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Limited transparency in procurement justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.0 million to ZETA ASSOCIATES INC. GNSS AWARD

Who is the contractor on this award?

The obligated recipient is ZETA ASSOCIATES INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.0 million.

What is the period of performance?

Start: 2024-04-29. End: 2026-04-30.

What is the specific justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without further documentation from the FAA, the specific reason for bypassing competition remains unclear. This lack of transparency can hinder accountability and raise questions about the necessity of a sole-source procurement.

What are the risks associated with awarding an $8 million contract without competition?

The primary risk is financial: the government may have overpaid for the goods or services compared to what could have been achieved through a competitive bidding process. There's also a risk of reduced innovation and market distortion if a single vendor consistently receives sole-source contracts, potentially stifling competition in the long run.

How will the effectiveness of the GNSS devices be measured to ensure value for money?

Effectiveness will likely be measured against performance metrics outlined in the contract's statement of work. This includes ensuring the devices meet technical specifications, reliability standards, and operational requirements for the FAA's intended use. Regular performance reviews and acceptance testing are crucial to validate the value delivered.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Other Measuring and Controlling Device Manufacturing

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 693KA8-24-R-00011

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Lockheed Martin Corp

Address: 10302 EATON PL, FAIRFAX, VA, 22030

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,418,149

Exercised Options: $8,040,488

Current Obligation: $8,040,488

Actual Outlays: $6,722,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline