FAA Spends $4.27M to Replace Aging ASR-9 Directional Couplers, Citing Performance and Damage Prevention

Contract Overview

Contract Amount: $4,273,860 ($4.3M)

Contractor: Frontgrade Technologies Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-12-19

End Date: 2027-08-30

Contract Duration: 984 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE FEDERAL AVIATION ADMINISTRATION (FAA) HAS DETERMINED IT NECESSARY TO REPLACE ALL ACTIVE DIRECTIONAL COUPLERS FOR THE ASR-9 TO MAINTAIN ADEQUATE PERFORMANCE AND TO PREVENT LONG-TERM DAMAGE FROM COMPONENTS THAT HAVE SURPASSED THEIR LIFESPAN.

Place of Performance

Location: EXETER, ROCKINGHAM County, NEW HAMPSHIRE, 03833

State: New Hampshire Government Spending

Plain-Language Summary

Department of Transportation obligated $4.3 million to FRONTGRADE TECHNOLOGIES INC. for work described as: THE FEDERAL AVIATION ADMINISTRATION (FAA) HAS DETERMINED IT NECESSARY TO REPLACE ALL ACTIVE DIRECTIONAL COUPLERS FOR THE ASR-9 TO MAINTAIN ADEQUATE PERFORMANCE AND TO PREVENT LONG-TERM DAMAGE FROM COMPONENTS THAT HAVE SURPASSED THEIR LIFESPAN. Key points: 1. The FAA is proactively replacing critical ASR-9 components to ensure continued operational performance. 2. Frontgrade Technologies Inc. is the sole awardee, raising questions about competition. 3. The contract addresses potential long-term damage and performance degradation from aged parts. 4. Spending is concentrated in the Radio and Wireless Communications Equipment Manufacturing sector.

Value Assessment

Rating: good

The contract value of $4.27 million for 984 days appears reasonable for specialized aviation equipment maintenance. Benchmarking against similar sole-source or limited competition contracts for radar components would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under full and open competition, but Frontgrade Technologies Inc. is the sole awardee. This suggests a limited competition scenario, potentially impacting price discovery and the ability to secure the most competitive pricing.

Taxpayer Impact: Taxpayers are funding essential aviation safety infrastructure upgrades, ensuring the continued reliability of air traffic control systems.

Public Impact

Ensures continued safe and efficient air traffic control operations. Maintains the lifespan and performance of critical radar systems. Prevents costly future repairs or system failures due to component obsolescence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole awardee raises competition concerns
Potential for price escalation due to limited competition

Positive Signals

Proactive maintenance prevents future failures
Ensures critical infrastructure performance

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector, specifically related to aviation radar systems. Benchmarks for similar specialized electronic component replacements in government contracts are difficult to ascertain without more granular data.

Small Business Impact

The data indicates no specific set-aside for small businesses. The prime contractor, Frontgrade Technologies Inc., is not identified as a small business in this context. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The contract is managed by the Federal Aviation Administration, a component of the Department of Transportation. Standard oversight mechanisms for federal contracts are expected to apply, including performance monitoring and financial accountability.

Related Government Programs

Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition may lead to higher costs.
Sole awardee poses supply chain risk.
Component obsolescence requires ongoing monitoring.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.3 million to FRONTGRADE TECHNOLOGIES INC.. THE FEDERAL AVIATION ADMINISTRATION (FAA) HAS DETERMINED IT NECESSARY TO REPLACE ALL ACTIVE DIRECTIONAL COUPLERS FOR THE ASR-9 TO MAINTAIN ADEQUATE PERFORMANCE AND TO PREVENT LONG-TERM DAMAGE FROM COMPONENTS THAT HAVE SURPASSED THEIR LIFESPAN.

Who is the contractor on this award?

The obligated recipient is FRONTGRADE TECHNOLOGIES INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.3 million.

What is the period of performance?

Start: 2024-12-19. End: 2027-08-30.

What is the justification for awarding this contract to a single vendor, and what steps were taken to ensure fair pricing?

The contract was awarded under 'FULL AND OPEN COMPETITION' but resulted in a single awardee, Frontgrade Technologies Inc. The justification for this limited competition outcome needs further exploration. While the contract type is 'FIRM FIXED PRICE', the absence of multiple bids may have limited price discovery. The FAA should provide documentation detailing the competitive process and any price analysis performed to ensure the $4.27 million is a fair and reasonable cost.

What are the long-term risks associated with relying on a single supplier for critical aviation components?

Relying on a single supplier like Frontgrade Technologies Inc. for critical ASR-9 components poses risks of supply chain disruption, potential price increases in the future, and reduced innovation. If Frontgrade faces production issues or decides to discontinue the component, the FAA could face significant challenges in sourcing replacements, potentially impacting air traffic control operations. Exploring alternative suppliers or encouraging second-sourcing strategies could mitigate these risks.

How does the FAA measure the effectiveness of this component replacement in maintaining adequate performance and preventing damage?

The effectiveness of this replacement will be measured through ongoing performance monitoring of the ASR-9 radar systems, including metrics related to signal accuracy, range, and reliability. The FAA likely has established maintenance schedules and diagnostic procedures to detect component degradation. Successful implementation should result in a reduction of system alerts related to component failure and a sustained level of operational readiness for the radar systems over the contract period.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-24-R-00217

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 CONTINENTAL DR, EXETER, NH, 03833

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

Financial Breakdown

Contract Ceiling: $4,273,860

Exercised Options: $4,273,860

Current Obligation: $4,273,860

Actual Outlays: $842,760

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline