DOT Awards $519K for Secure Fax Systems to Gateway Fax Systems, Inc
Contract Overview
Contract Amount: $51,973 ($52.0K)
Contractor: Gateway FAX Systems, Inc.
Awarding Agency: Department of Transportation
Start Date: 2023-04-25
End Date: 2027-09-25
Contract Duration: 1,614 days
Daily Burn Rate: $32/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: TO PROCURE SIXTY LOW-VOLUME SECURE FAX SYSTEMS COTS FAX, 90SI AND FAX TO VIPER ADAPTER CABLE FOR THE SECURE COMMUNICATIONS PROGRAM.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of Transportation obligated $51,973 to GATEWAY FAX SYSTEMS, INC. for work described as: TO PROCURE SIXTY LOW-VOLUME SECURE FAX SYSTEMS COTS FAX, 90SI AND FAX TO VIPER ADAPTER CABLE FOR THE SECURE COMMUNICATIONS PROGRAM. Key points: 1. The contract is for secure fax systems and related cables, indicating a need for specialized communication hardware. 2. Gateway Fax Systems, Inc. is the sole awardee, raising questions about competition and potential price discovery. 3. The firm fixed-price contract type aims to control costs, but the lack of competition could inflate the price. 4. The sector appears to be IT/Communications, with a focus on secure government operations.
Value Assessment
Rating: questionable
The award amount of $519,730 for six years seems reasonable for specialized secure fax systems. However, without competitive bidding, it's difficult to definitively assess if this represents excellent value.
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 may result in higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition for this procurement could lead to a higher overall cost for taxpayers.
Public Impact
Ensures secure communication capabilities for the Federal Aviation Administration. Supports the operational needs of the Secure Communications Program. Procurement of specialized hardware may be critical for specific government functions.
Waste & Efficiency Indicators
Waste Risk Score: 32 / 10
Warning Flags
- Lack of competition
- Sole-source award
Positive Signals
- Firm fixed-price contract
Sector Analysis
The procurement falls within the IT and Communications sector, specifically for secure hardware. Benchmarks for similar secure communication systems are difficult to ascertain without competitive data.
Small Business Impact
The data indicates that small business participation was not a factor in this award, as the awardee is not listed as a small business and the contract was sole-sourced.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight may be needed to confirm the justification for not competing.
Related Government Programs
- Other Computer Related Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of competitive bidding.
- Lack of transparency in vendor selection.
- No small business participation noted.
Tags
other-computer-related-services, department-of-transportation, dc, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $51,973 to GATEWAY FAX SYSTEMS, INC.. TO PROCURE SIXTY LOW-VOLUME SECURE FAX SYSTEMS COTS FAX, 90SI AND FAX TO VIPER ADAPTER CABLE FOR THE SECURE COMMUNICATIONS PROGRAM.
Who is the contractor on this award?
The obligated recipient is GATEWAY FAX 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 $51,973.
What is the period of performance?
Start: 2023-04-25. End: 2027-09-25.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or a lack of available alternatives that meet the specific requirements. Without further documentation, it is assumed that Gateway Fax Systems, Inc. possesses the exclusive ability to provide these specific secure fax systems and adapters required by the FAA's Secure Communications Program.
What is the risk associated with a sole-source procurement for secure fax systems?
The primary risk of a sole-source procurement is the potential for inflated pricing due to the absence of competitive pressure. Additionally, it limits the government's ability to explore potentially more innovative or cost-effective solutions from other vendors, and could foster vendor lock-in.
How effective is this procurement in ensuring secure communications for the FAA?
The effectiveness hinges on the reliability and security features of the procured systems. Assuming the systems meet the stringent security requirements of the FAA's Secure Communications Program, the procurement is effective in fulfilling the stated need. However, the long-term effectiveness and value are impacted by the lack of competitive validation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: COMM/DETECT/COHERENT RADIATION
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: 11032 MERGANSER TER, CHESTERFIELD, VA, 23838
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $155,919
Exercised Options: $51,973
Current Obligation: $51,973
Actual Outlays: $51,973
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2023-04-25
Current End Date: 2027-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2026-04-02
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