Transportation awards $4.5M for battery equipment to First Logistex, Inc. under a competed contract

Contract Overview

Contract Amount: $45,018 ($45.0K)

Contractor: First Logistex, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-03-24

End Date: 2027-05-01

Contract Duration: 403 days

Daily Burn Rate: $112/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. JCN:23001421 & LOC:OKM VOR, JCN:23001440 & LOC:TTT VOR. FUNDING FLI FOR BATTERY REPLACEMENT PROJECTS AT TTT AND OKM VOR SITES.

Place of Performance

Location: PEYTON, EL PASO County, COLORADO, 80831

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $45,018 to FIRST LOGISTEX, INC. for work described as: IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. JCN:23001421 & LOC:OKM VOR, JCN:23001440 & LOC:TTT VOR. FUNDING FLI FOR BATTERY REPLACEMENT PROJECTS AT TTT AND OKM VOR SITES. Key points: 1. The contract value of $4.5 million for battery equipment purchase and installation appears reasonable for the scope. 2. Competition dynamics indicate a competed award, suggesting potential for price discovery and value for taxpayer funds. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. Performance is contextually framed by the need for battery replacement at specific VOR sites. 5. This contract fits within the broader context of infrastructure modernization and energy resilience efforts. 6. The duration of 403 days is standard for such equipment installation projects.

Value Assessment

Rating: good

The contract value of $4.5 million for battery equipment purchase and installation is within a reasonable range for similar federal projects. Benchmarking against other battery replacement or energy storage system procurements would provide further context, but the firm fixed-price nature suggests a defined cost expectation. The award to First Logistex, Inc. warrants review of their past performance on similar contracts to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating that multiple bids were likely solicited and evaluated. The award to First Logistex, Inc. suggests they offered the best value among the bidders. The number of bidders (4) is a positive sign for competition, potentially leading to more competitive pricing.

Taxpayer Impact: A competed award under SAP generally benefits taxpayers by ensuring that the government receives competitive pricing and that funds are used efficiently. The presence of multiple bidders helps drive down costs compared to a sole-source procurement.

Public Impact

The Federal Aviation Administration (FAA) benefits through the modernization of critical infrastructure at TTT and OKM VOR sites. Essential services related to air navigation safety are supported by reliable battery backup systems. The geographic impact is localized to the TTT and OKM VOR sites in Colorado. Workforce implications may include installation and maintenance jobs related to battery systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring long-term battery performance and maintenance support.
Integration challenges with existing VOR system infrastructure.

Positive Signals

Firm fixed-price contract reduces financial risk for the government.
Award to a single contractor streamlines project management.
Modernization of critical infrastructure enhances operational reliability.

Sector Analysis

This contract falls within the broader 'Other' sector, specifically related to infrastructure modernization and equipment procurement for critical government operations. The market for battery energy storage systems is growing, driven by renewable energy integration and grid resilience needs. Comparable spending benchmarks would involve looking at other federal or state procurements for similar battery systems for critical facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary contractor, First Logistex, Inc., will manage the project, and their subcontracting practices would need to be assessed separately if they are a large business.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Aviation Administration (FAA). Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified equipment and installation. Transparency is facilitated through federal contract databases where this award is reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Operations
National Airspace System Infrastructure
Energy Storage Systems Procurement
Critical Infrastructure Modernization

Risk Flags

Supply Chain Risk
Performance Risk
Integration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $45,018 to FIRST LOGISTEX, INC.. IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. JCN:23001421 & LOC:OKM VOR, JCN:23001440 & LOC:TTT VOR. FUNDING FLI FOR BATTERY REPLACEMENT PROJECTS AT TTT AND OKM VOR SITES.

Who is the contractor on this award?

The obligated recipient is FIRST LOGISTEX, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45,018.

What is the period of performance?

Start: 2026-03-24. End: 2027-05-01.

What is the track record of First Logistex, Inc. in delivering similar battery equipment and installation services to federal agencies?

A review of First Logistex, Inc.'s contract history would be necessary to assess their track record. Specifically, examining past performance on firm fixed-price contracts for battery systems or related electrical infrastructure projects for agencies like the FAA or other branches of the Department of Transportation would provide insight. Data on on-time delivery, adherence to specifications, and any past performance issues or awards would be crucial. Without this specific data, the assessment of their reliability for this $4.5 million contract remains preliminary.

How does the awarded price compare to market rates for similar battery equipment and installation services?

Benchmarking the $4.5 million award against current market rates for comparable battery equipment and installation services is essential for a comprehensive value assessment. This would involve researching pricing for similar capacity batteries, inverter systems, and installation labor in the relevant geographic region (Colorado). Factors such as battery chemistry (e.g., lithium-ion), total energy capacity (kWh/MWh), power output (kW/MW), and warranty terms would need to be considered. A comparison to other federal or state government contracts for similar projects, if publicly available, would also provide valuable context for determining if this award represents good value for money.

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

The primary risks associated with this contract include potential delays in equipment delivery due to supply chain issues, unforeseen site conditions during installation, and ensuring the long-term performance and maintenance of the battery systems. Mitigation strategies are partly addressed by the firm fixed-price contract type, which shifts some cost risk to the contractor. The FAA's oversight and the contractor's own project management plan are expected to address schedule and installation risks. Long-term performance risk is typically managed through warranty provisions and service agreements, which should be detailed in the contract.

How effective is the competition level (4 bidders) in ensuring optimal pricing and value for this procurement?

Having four bidders for this contract, competed under Simplified Acquisition Procedures (SAP), suggests a healthy level of competition. This number generally indicates that the opportunity was visible enough to attract multiple interested parties, but not so large as to be dominated by a few major players. The competition likely pressured bidders to offer competitive pricing and terms to win the award. While more bidders could theoretically drive prices lower, four is often considered a sufficient number to achieve price discovery and ensure the government is not unduly disadvantaged by a lack of alternatives.

What is the historical spending pattern for battery equipment and installation at VOR sites within the FAA?

Analyzing historical spending patterns for battery equipment and installation at FAA VOR (VHF Omnidirectional Range) sites would provide crucial context for this $4.5 million award. This involves reviewing past contracts for similar procurements, noting the frequency, value, and types of battery systems purchased. Understanding trends in spending, such as increasing investment in energy storage or specific technology upgrades, can help assess whether the current award is consistent with past investment strategies or represents a significant shift. It also helps in identifying potential cost escalation or savings over time.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › Battery Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13795 JUDGE ORR RD, PEYTON, CO, 80831

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $45,018

Exercised Options: $45,018

Current Obligation: $45,018

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH24D00022

IDV Type: IDC

Timeline