DOT awards $10.3M for IT hardware, with a short 25-day performance period

Contract Overview

Contract Amount: $10,300 ($10.3K)

Contractor: Comark, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-05-05

End Date: 2025-05-30

Contract Duration: 25 days

Daily Burn Rate: $412/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ASSETS IN SUPPORT OF THE NAS

Place of Performance

Location: LOWELL, MIDDLESEX County, MASSACHUSETTS, 01851

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $10,300 to COMARK, LLC for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. The contract value of $10.3 million for a 25-day period suggests a high daily burn rate. 2. Limited competition under SAP may have impacted price discovery and value for money. 3. The short duration raises questions about the long-term strategic need for this specific hardware acquisition. 4. Fixed-price contract type mitigates cost overrun risk for the government. 5. The specific North American Industry Classification System (NAICS) code 334111 points to computer manufacturing, indicating the nature of the assets. 6. The award to COM ARK, LLC, requires further investigation into their track record with similar procurements.

Value Assessment

Rating: fair

The contract value of $10.3 million for a mere 25-day performance period is exceptionally high on a daily basis. This suggests either a critical, time-sensitive need for the IT assets or a potential overvaluation if the scope is standard hardware. Benchmarking against similar IT hardware procurements with comparable specifications and delivery timelines is crucial to assess if the pricing reflects fair market value. The firm fixed-price nature offers cost certainty, but the high unit cost per day warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders and is intended for procurements below certain dollar thresholds. While this method can expedite the acquisition process, it inherently offers less robust competition than full and open competition. The fact that only two bidders were involved suggests that the market may not have been fully explored, potentially leading to less competitive pricing.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the lowest possible prices achievable through a broader bidding process. This could result in a higher overall cost for the government compared to a more widely competed contract.

Public Impact

Federal Aviation Administration (FAA) personnel will benefit from the acquisition of necessary IT hardware. The hardware is intended to support the National Airspace System (NAS), crucial for air traffic control and management. The geographic impact is national, as the NAS serves the entire United States. Workforce implications are likely minimal, as this appears to be a hardware acquisition rather than a service contract requiring significant new personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Short performance period (25 days) for a significant dollar amount ($10.3M) raises concerns about efficient resource utilization and potential urgency pricing.
Limited competition under SAP may have restricted price discovery and potentially led to a higher cost for taxpayers.
Lack of detailed scope of work in the provided data makes it difficult to assess the true value and necessity of the hardware.

Positive Signals

Firm Fixed Price contract type provides cost certainty and protects the government from potential cost overruns.
The acquisition directly supports the critical National Airspace System (NAS), indicating a necessary government function.
The contract is awarded to COM ARK, LLC, suggesting a vendor capable of meeting the government's IT hardware needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer hardware manufacturing and supply. The market for IT hardware is vast and competitive, with numerous manufacturers and resellers. The $10.3 million value for a short-term acquisition is substantial, suggesting a need for specialized or a large quantity of equipment. Comparable spending benchmarks would involve analyzing other federal procurements for similar IT hardware under expedited timelines or for critical infrastructure support.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award to COM ARK, LLC, does not specify if they are a small or large business, which could have indirect implications for small business participation if COM ARK, LLC, utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a branch of the Department of Transportation. As a purchase order, it is likely subject to internal agency procurement regulations and financial controls. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected related to this procurement.

Related Government Programs

IT Hardware Procurement
National Airspace System (NAS) Modernization
Federal Aviation Administration (FAA) IT Investments
Simplified Acquisition Procedures (SAP) Awards

Risk Flags

High daily cost
Limited competition
Short performance period
Lack of detailed scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10,300 to COMARK, LLC. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is COMARK, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10,300.

What is the period of performance?

Start: 2025-05-05. End: 2025-05-30.

What is the specific type and quantity of IT hardware being procured under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 334111, which pertains to Electronic Computer Manufacturing. However, the specific type and quantity of IT hardware are not detailed in the summary data. This could range from servers and workstations to networking equipment or specialized components. Understanding the exact nature of the hardware is crucial for assessing its necessity, value for money, and potential for obsolescence, especially given the short performance period. Further details would typically be found in the contract's statement of work or line item details.

How does the daily cost of this contract compare to typical IT hardware procurements of similar scale?

With a contract value of $10.3 million over just 25 days, the daily expenditure is approximately $412,000. This is an exceptionally high daily burn rate for IT hardware. Typical IT hardware procurements, even for substantial amounts, are usually spread over longer periods or involve phased deliveries. A daily cost of this magnitude suggests either a very high-value, specialized set of equipment, or potentially a premium for rapid deployment or a specific, urgent need. Benchmarking against similar rapid-deployment IT hardware contracts or large-scale infrastructure component purchases would be necessary to determine if this daily rate is justified.

What are the potential risks associated with acquiring IT hardware under a 25-day performance period?

The primary risks associated with a 25-day performance period for a $10.3 million IT hardware contract include potential for rushed deployment leading to errors, insufficient testing and validation, and limited time for the contractor to procure and deliver specialized items. There's also a risk that the government may pay a premium for expedited delivery. Furthermore, if the hardware is complex or requires significant integration, 25 days may be insufficient for proper implementation, potentially leading to performance issues or delays in realizing the intended benefits. The short timeframe also limits the government's ability to conduct thorough quality assurance checks.

What is COM ARK, LLC's track record with the Federal Aviation Administration or similar IT hardware procurements?

Information regarding COM ARK, LLC's specific track record with the Federal Aviation Administration (FAA) or similar IT hardware procurements is not detailed in the provided summary data. To assess their capability and past performance, one would need to consult federal procurement databases (like FPDS) for previous awards, contract performance evaluations (e.g., CPARS reports), and any relevant past performance questionnaires. A review of their history would help determine their reliability, quality of products/services, and adherence to delivery schedules in similar government contracting environments.

How does the 'COMPETED UNDER SAP' designation impact the overall value and transparency of this procurement?

Competing under Simplified Acquisition Procedures (SAP) means this procurement likely involved fewer than the maximum number of bidders typically seen in full and open competition. SAP is designed for procurements below certain dollar thresholds (e.g., $250,000, though exceptions exist) and aims for efficiency. While it can expedite the process, it generally offers less robust price discovery and potentially less competition than broader solicitations. This can mean taxpayers may not achieve the absolute lowest price. Transparency is maintained through reporting in federal databases, but the limited bidder pool inherently reduces the breadth of market engagement and price comparison.

What are the implications of the 'Electronic Computer Manufacturing' NAICS code for this contract's scope?

The NAICS code 334111, 'Electronic Computer Manufacturing,' suggests that the contract is for the procurement of computers or related electronic components that are either manufactured by the vendor or sourced directly from manufacturers. This implies the government is acquiring tangible hardware, such as servers, desktops, laptops, or potentially specialized computing devices. It differentiates this contract from one for IT services, software development, or general IT consulting. The focus on manufacturing implies a need for specific technical capabilities from the vendor, either in production or in sourcing directly from production lines.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Comark LLC

Address: 59 TECHNOLOGY DR, LOWELL, MA, 01851

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

Financial Breakdown

Contract Ceiling: $10,300

Exercised Options: $10,300

Current Obligation: $10,300

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline