Transportation awards $2.5M for electronic equipment repair, with no competition

Contract Overview

Contract Amount: $2,500,686 ($2.5M)

Contractor: Clear Align LLC

Awarding Agency: Department of Transportation

Start Date: 2024-08-06

End Date: 2025-04-30

Contract Duration: 267 days

Daily Burn Rate: $9.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 6973GH-21-D-00056 CONTRACT FUNDING

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $2.5 million to CLEAR ALIGN LLC for work described as: 6973GH-21-D-00056 CONTRACT FUNDING Key points: 1. Value for money is difficult to assess due to lack of competition. 2. The contract was awarded on a sole-source basis, limiting price discovery. 3. Risk indicators are moderate, with a fixed-price contract type mitigating some cost uncertainty. 4. Performance context is limited to repair and maintenance of electronic equipment. 5. This contract falls within the broader IT and equipment maintenance sector. 6. The award amount is relatively small in the context of federal spending.

Value Assessment

Rating: fair

Benchmarking the value for money is challenging as this contract was not competed. The fixed-price contract type provides some cost certainty for the government. However, without competitive bids, it's difficult to determine if the price is optimal or if it aligns with market rates for similar repair and maintenance services. Further analysis would require comparing the specific services and equipment covered to industry benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning only one vendor, CLEAR ALIGN LLC, was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified in specific circumstances (e.g., unique capabilities or urgent needs), they typically result in less price competition and potentially higher costs for the government compared to fully competed contracts.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these services, as there was no market pressure to drive down costs.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by ensuring the continued operation of essential electronic equipment. Services delivered include repair and maintenance for electronic and precision equipment. The geographic impact is likely concentrated in areas where the FAA operates and requires this specific equipment. Workforce implications are minimal, primarily involving the technical staff of CLEAR ALIGN LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Limited transparency into the justification for sole-source award.
No clear mechanism for performance comparison against other potential providers.

Positive Signals

Fixed-price contract type helps control costs once the price is set.
The contractor, CLEAR ALIGN LLC, is being utilized for specific repair and maintenance needs.
The contract has a defined period of performance, limiting long-term financial commitment.

Sector Analysis

This contract falls within the broader category of IT and electronic equipment maintenance and repair services. The federal market for such services is substantial, encompassing a wide range of equipment from IT infrastructure to specialized operational technology. Benchmarking this specific award requires understanding the niche of electronic and precision equipment repair, which can vary significantly in complexity and cost.

Small Business Impact

This contract was awarded to CLEAR ALIGN LLC and does not appear to have a small business set-aside component. There is no information provided regarding subcontracting plans. The sole-source nature of the award limits opportunities for small businesses to participate in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officer and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is limited due to the sole-source nature of the award, with details of the justification not publicly detailed in the provided data.

Related Government Programs

Federal Aviation Administration Maintenance Contracts
Electronic Equipment Repair Services
IT Maintenance and Support Contracts
Department of Transportation Procurement

Risk Flags

Sole-source award lacks competitive pricing.
Limited public information on award justification.
Potential for unbenchmarked pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.5 million to CLEAR ALIGN LLC. 6973GH-21-D-00056 CONTRACT FUNDING

Who is the contractor on this award?

The obligated recipient is CLEAR ALIGN LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.5 million.

What is the period of performance?

Start: 2024-08-06. End: 2025-04-30.

What is the track record of CLEAR ALIGN LLC in performing similar federal contracts?

Information regarding CLEAR ALIGN LLC's specific track record with federal contracts is not detailed in the provided data. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS-NG for past awards, contract performance evaluations (e.g., CPARS), and any reported issues or successes. Without this historical data, it's difficult to gauge their reliability and expertise in fulfilling the requirements of this specific contract.

How does the awarded price compare to market rates for similar electronic equipment repair services?

Direct comparison of the awarded price to market rates is challenging without knowing the specific type of electronic and precision equipment being repaired and the scope of services. Since this was a sole-source award, there's no direct competitive benchmark. To perform a robust comparison, one would need to identify comparable contracts awarded through full and open competition, analyze the unit costs for similar repair tasks, and consider factors like labor rates, parts costs, and overhead specific to the equipment's complexity and the contractor's location.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract include potential overpricing due to the lack of competition, limited transparency into the justification for the award, and a reduced incentive for the contractor to innovate or offer cost-saving efficiencies. There's also a risk that the government may not be aware of alternative solutions or more cost-effective providers. The government's ability to negotiate favorable terms is also diminished in a sole-source scenario.

How effective is the Federal Aviation Administration in managing its electronic equipment maintenance contracts?

The effectiveness of the FAA in managing its electronic equipment maintenance contracts cannot be determined solely from this single contract award. A comprehensive assessment would require analyzing a portfolio of such contracts, including their performance metrics, cost-effectiveness, and adherence to schedules. Factors to consider include the FAA's internal oversight processes, the quality of their performance evaluations, and their ability to leverage competition where appropriate to ensure value for taxpayer dollars.

What has been the historical spending pattern for electronic equipment repair and maintenance by the Federal Aviation Administration?

Historical spending patterns for electronic equipment repair and maintenance by the FAA would require analyzing procurement data over several fiscal years. This would involve identifying all contracts awarded for similar services, their values, and the types of equipment covered. Understanding these patterns can reveal trends in spending, identify key contractors, and highlight areas where spending may be increasing or decreasing, providing context for the current $2.5 million award.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Other Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 24 SIMON ST, NASHUA, NH, 03060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Manufacturer of Goods, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $2,500,686

Exercised Options: $2,500,686

Current Obligation: $2,500,686

Actual Outlays: $2,500,461

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 6973GH20D00017

IDV Type: IDC

Timeline