DOT awards $2.67M for aeronautical instrument manufacturing, with 3 bidders competing

Contract Overview

Contract Amount: $266,950 ($266.9K)

Contractor: Kingsbury Inc.

Awarding Agency: Department of Transportation

Start Date: 2025-05-06

End Date: 2026-08-04

Contract Duration: 455 days

Daily Burn Rate: $587/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ASSETS IN SUPPORT OF THE NAS

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19154

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Transportation obligated $266,950 to KINGSBURY INC. for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. Value for money appears reasonable given the firm-fixed-price structure and competitive bidding. 2. Competition dynamics indicate a healthy market for these specialized instruments. 3. Risk indicators are low due to established contractor and fixed-price terms. 4. Performance context suggests a need for ongoing support of aeronautical systems. 5. Sector positioning places this contract within the critical aerospace manufacturing industry.

Value Assessment

Rating: good

The contract's firm-fixed-price nature provides cost certainty. With three bidders, the pricing is likely competitive. Benchmarking against similar contracts for aeronautical navigation and guidance systems would provide further insight into value, but the competitive award suggests a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The presence of three bidders suggests adequate market interest and a reasonable level of competition for this specialized product.

Taxpayer Impact: The competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging multiple suppliers to offer their best terms.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring the availability of critical navigation and guidance instruments. Services delivered include the manufacturing of specialized aeronautical systems. Geographic impact is national, supporting aviation safety and efficiency across the US. Workforce implications include supporting skilled manufacturing jobs in the aerospace sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Firm-fixed-price contract type limits cost overrun risk for the government.
Competitive award with multiple bidders suggests a healthy market and fair pricing.
Contractor is established, potentially indicating a track record of performance.
Contract duration is defined, allowing for clear performance expectations.

Sector Analysis

This contract falls within the aerospace manufacturing sector, specifically focusing on instruments for navigation, guidance, and detection. The market for such specialized components is driven by defense and civilian aviation needs. Spending in this area is crucial for maintaining air traffic control systems and aircraft safety standards. Comparable spending benchmarks would involve analyzing other FAA procurements for similar systems.

Small Business Impact

The data indicates this contract was competed under SAP and awarded as a Purchase Order, with no specific mention of small business set-asides. While the prime contractor is KINGSBURY INC., it is important to assess if subcontracting opportunities exist for small businesses within the supply chain for these specialized instruments.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm-fixed-price structure simplifies financial oversight. Accountability will be managed through contract performance monitoring by the FAA. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

Aeronautical System Manufacturing
Navigation and Guidance Systems
Aircraft Instrument Production
Federal Aviation Administration Procurement

Risk Flags

Potential for technology obsolescence over contract duration.
Dependence on specific supplier capabilities for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $266,950 to KINGSBURY INC.. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is KINGSBURY INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $266,950.

What is the period of performance?

Start: 2025-05-06. End: 2026-08-04.

What is the historical spending pattern for KINGSBURY INC. with the Federal Aviation Administration?

Analyzing historical spending data for KINGSBURY INC. with the FAA is crucial for understanding their past performance and relationship with the agency. A review of federal procurement databases would reveal the volume and types of contracts previously awarded to this company. Consistent awards suggest a positive track record and reliability, while a significant increase or decrease might warrant further investigation into performance or market shifts. Understanding this history provides context for the current $2.67 million award, helping to assess if it aligns with past engagement levels or represents a new area of focus.

How does the $2.67 million award compare to typical contract values for similar aeronautical instruments?

To benchmark the value of this $2.67 million award, it's essential to compare it against similar contracts for aeronautical navigation, guidance, and detection systems. This involves searching procurement databases for contracts with comparable scope, duration, and technical specifications awarded by the FAA or other agencies. Factors like the number of bidders, contract type (firm-fixed-price), and the specific technological sophistication of the instruments will influence price. If this award falls within the typical range, it suggests fair market pricing. Significant deviations, either higher or lower, would necessitate a deeper dive into the specifics of the requirement and the competitive landscape.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract appear to be relatively low, given the firm-fixed-price (FFP) structure and the competitive award. FFP contracts shift the cost overrun risk to the contractor, KINGSBURY INC. The competition among three bidders suggests a healthy market and reduces the risk of sole-source dependency or inflated pricing. Potential risks could include performance issues, delivery delays, or the obsolescence of the technology over the contract's lifespan. Mitigation strategies likely involve robust contract management by the FAA, including clear performance metrics, regular progress reviews, and adherence to delivery schedules. The established nature of the contractor may also imply a lower risk of performance failure.

What is the expected impact of this contract on the aerospace instrument manufacturing sector?

This $2.67 million contract is expected to have a positive impact on the aerospace instrument manufacturing sector by stimulating demand for specialized components. It supports KINGSBURY INC. and potentially its supply chain, contributing to job stability and growth within this high-skill industry. The award reinforces the importance of domestic manufacturing capabilities for critical aviation infrastructure. Furthermore, the competitive nature of the award encourages innovation and efficiency among manufacturers vying for government contracts, potentially leading to advancements in navigation and guidance technologies that benefit the broader aviation ecosystem.

Are there any indications of potential cost savings or efficiencies achieved through this procurement?

The firm-fixed-price (FFP) contract type is a key indicator of potential cost savings and efficiencies. By locking in a price before performance begins, the government transfers the risk of cost overruns to the contractor. This incentivizes the contractor to manage their own costs effectively and deliver the product within the agreed budget. The fact that the contract was competed under Simplified Acquisition Procedures (SAP) with three bidders also suggests that competitive pressures likely drove the price down to a reasonable level, maximizing the value of taxpayer funds. While specific cost-saving initiatives aren't detailed, the procurement structure itself is designed for efficiency.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 6973GH-25-Q-00091

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10385 DRUMMOND ROAD, PHILADELPHIA, PA, 19154

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

Financial Breakdown

Contract Ceiling: $266,950

Exercised Options: $266,950

Current Obligation: $266,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline