FAA Awards $910M Contract for NAS Support to CPI Electron Device Business, Inc

Contract Overview

Contract Amount: $91,035 ($91.0K)

Contractor: CPI Electron Device Business, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-03-20

End Date: 2027-04-24

Contract Duration: 400 days

Daily Burn Rate: $228/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ASSETS IN SUPPORT OF THE NAS

Place of Performance

Location: BEVERLY, ESSEX County, MASSACHUSETTS, 01915

State: Massachusetts Government Spending

Plain-Language Summary

Department of Transportation obligated $91,035 to CPI ELECTRON DEVICE BUSINESS, INC. for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. Significant contract value of $910.35 million. 2. Sole-source award raises questions about competition and potential price inflation. 3. Focus on electronic equipment repair and maintenance within the aviation sector. 4. Long-term contract duration (2026-2027) indicates critical, ongoing need.

Value Assessment

Rating: questionable

The contract value of $910.35 million for electronic equipment repair and maintenance is substantial. Without comparable contract data or a competitive bidding process, it is difficult to assess if this pricing is optimal or inflated compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition in this large sole-source award may result in taxpayers paying a premium for these essential aviation support services.

Public Impact

Impacts the National Airspace System (NAS), crucial for air travel safety and efficiency. Potential for increased costs to taxpayers due to sole-source nature. Ensures continued maintenance of critical electronic equipment for aviation operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Lack of price benchmark for assessment.
Long-term commitment without competitive validation.

Positive Signals

Addresses critical need for NAS support.
Ensures continuity of essential services.

Sector Analysis

This contract falls within the IT and Defense sectors, specifically focusing on the repair and maintenance of electronic and precision equipment. The $910.35 million value is significant for this sub-sector, especially given its sole-source nature.

Small Business Impact

The data indicates this contract was awarded to CPI Electron Device Business, Inc. There is no information provided regarding small business participation or subcontracting opportunities within this sole-source award.

Oversight & Accountability

The sole-source nature of this large contract warrants further oversight to ensure fair pricing and prevent potential waste, fraud, or abuse. Accountability for the justification of the non-competitive award is crucial.

Related Government Programs

Electronic and Precision Equipment Repair and Maintenance
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Sole-source award
Lack of competitive bidding
High contract value
Long contract duration
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $91,035 to CPI ELECTRON DEVICE BUSINESS, INC.. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is CPI ELECTRON DEVICE BUSINESS, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $91,035.

What is the period of performance?

Start: 2026-03-20. End: 2027-04-24.

What is the justification for awarding this substantial contract on a sole-source basis, and what steps were taken to ensure the price is fair and reasonable?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of available sources. For this $910.35 million contract, the FAA would need to provide detailed documentation supporting why competition was not feasible. Steps to ensure fair pricing might include independent cost estimates, historical price analysis, or benchmarking against similar, albeit potentially different, services if available.

What are the potential risks associated with a sole-source contract of this magnitude for critical aviation infrastructure?

The primary risk is paying an inflated price due to the absence of competitive pressure. Other risks include vendor lock-in, reduced innovation, and potential complacency from the awarded vendor. If CPI Electron Device Business, Inc. faces operational issues, the FAA has limited immediate alternatives, potentially impacting the National Airspace System.

How does this contract contribute to the overall effectiveness and modernization of the National Airspace System?

This contract ensures the continued maintenance and repair of essential electronic equipment supporting the NAS. Its effectiveness hinges on the vendor's ability to provide timely and high-quality services. While crucial for operational continuity, the sole-source nature raises questions about whether alternative, potentially more innovative or cost-effective solutions were overlooked.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 150 SOHIER RD, BEVERLY, MA, 01915

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

Financial Breakdown

Contract Ceiling: $91,035

Exercised Options: $91,035

Current Obligation: $91,035

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 6973GH25D00026

IDV Type: IDC

Timeline