Transportation Department awards $3.1M for battery replacement at San Juan VOR, enhancing aviation safety

Contract Overview

Contract Amount: $31,336 ($31.3K)

Contractor: First Logistex, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-04-07

End Date: 2027-07-13

Contract Duration: 462 days

Daily Burn Rate: $68/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Transportation

Official Description: IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. SJU VOR: IIJA DC SYSTEMS BATTERY. JCN: 23004795, LOC: SJU VOR, SAN JUAN, PR. FUNDING FOR BATTERY REPLACEMENT AT SJU VOR. SJU VOR SHIPPING ADDRESS: DOT/FAA, 5000 CARR 190, CAROLINA, PR 0

Place of Performance

Location: PEYTON, EL PASO County, COLORADO, 80831

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $31,336 to FIRST LOGISTEX, INC. for work described as: IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. SJU VOR: IIJA DC SYSTEMS BATTERY. JCN: 23004795, LOC: SJU VOR, SAN JUAN, PR. FUNDING FOR BATTERY REPLACEMENT AT SJU VOR. SJU VOR SHIPPING ADDRESS: DOT/FAA, 5000 CARR 190, CAROLINA, PR 0 Key points: 1. Contract addresses critical infrastructure needs for aviation navigation systems. 2. Funding is allocated through the Infrastructure Investment and Jobs Act (IIJA). 3. The contract value represents a significant investment in regional aviation reliability. 4. Competition dynamics suggest a potentially competitive bidding process for this award. 5. Performance period extends over two years, indicating a phased implementation. 6. The award is for battery equipment purchase and installation, a key operational component.

Value Assessment

Rating: good

The contract value of $3.1 million for battery replacement and installation at SJU VOR appears reasonable given the critical nature of aviation infrastructure. Benchmarking against similar IIJA-funded projects for critical equipment upgrades would provide further context. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for awards below certain thresholds. While the specific number of bidders is not detailed, SAP generally encourages multiple bids, leading to better price discovery and value for the government. The fact that it was competed suggests that multiple vendors were capable of meeting the requirements.

Taxpayer Impact: A competed award under SAP is beneficial for taxpayers as it helps ensure that the government is not overpaying for essential services and equipment, fostering a more efficient use of public funds.

Public Impact

Aviation safety and reliability in the San Juan, Puerto Rico region will be enhanced. Passengers and cargo relying on air transport through SJU VOR will benefit from improved navigation. The Federal Aviation Administration (FAA) will receive upgraded critical infrastructure. The project supports the modernization of air traffic control systems funded by the IIJA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting battery delivery timelines.
Ensuring long-term maintenance and support for the new battery systems.

Positive Signals

Awarded under the Infrastructure Investment and Jobs Act, indicating alignment with national modernization goals.
Firm-fixed-price contract structure limits cost uncertainty for the government.
The contract duration allows for phased implementation and testing of new equipment.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aviation infrastructure modernization. The IIJA has allocated significant funds towards upgrading critical infrastructure, including aviation systems. The market for aviation navigation equipment and battery systems is specialized, with a few key manufacturers and integrators. This award contributes to the overall spending on maintaining and improving the National Airspace System.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, FIRST LOGISTEX, INC., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award, which could represent a missed opportunity to engage the small business ecosystem in this critical infrastructure project.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Transportation's Federal Aviation Administration. As a federal contract, it is subject to standard government oversight mechanisms, including contract performance monitoring and financial accountability. The Inspector General for the Department of Transportation may also have jurisdiction for audits and investigations related to the use of IIJA funds.

Related Government Programs

Infrastructure Investment and Jobs Act (IIJA)
Federal Aviation Administration (FAA) Operations
Air Traffic Control Systems Modernization
Critical Infrastructure Upgrades

Risk Flags

Supply Chain Risk
Infrastructure Modernization Dependency
Operational Continuity Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $31,336 to FIRST LOGISTEX, INC.. IIJA DC SYSTEMS BATTERY EQUIPMENT PURCHASE AND INSTALLATION. SJU VOR: IIJA DC SYSTEMS BATTERY. JCN: 23004795, LOC: SJU VOR, SAN JUAN, PR. FUNDING FOR BATTERY REPLACEMENT AT SJU VOR. SJU VOR SHIPPING ADDRESS: DOT/FAA, 5000 CARR 190, CAROLINA, PR 0

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 $31,336.

What is the period of performance?

Start: 2026-04-07. End: 2027-07-13.

What is the track record of FIRST LOGISTEX, INC. in performing similar aviation infrastructure contracts?

Information regarding FIRST LOGISTEX, INC.'s specific track record with aviation infrastructure, particularly battery systems for VORs, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar government or commercial projects. Understanding their experience with FAA specifications and compliance requirements would be crucial for evaluating their capability to successfully execute this contract.

How does the $3.1 million award compare to the typical cost of similar battery replacement projects for VORs?

Benchmarking the $3.1 million award requires access to data on comparable projects. The cost of battery replacement can vary significantly based on the specific VOR's power requirements, the type and capacity of batteries needed, installation complexity, and geographic location. Without specific data on similar FAA VOR battery upgrade projects, it is difficult to definitively state whether this award represents a high, low, or average cost. However, the IIJA funding context suggests a focus on modernization, which may involve higher-spec equipment.

What are the primary risks associated with the installation and long-term performance of these new battery systems?

Key risks include potential delays in equipment delivery due to supply chain issues, challenges during the installation process that could disrupt VOR operations, and the long-term reliability and lifespan of the batteries. Ensuring compatibility with existing VOR infrastructure and meeting stringent FAA operational requirements are critical. Furthermore, environmental factors at the San Juan site could impact battery performance and longevity. The firm-fixed-price nature of the contract shifts some financial risk to the contractor, but operational risks remain.

How effective is the IIJA funding in addressing the modernization needs of the National Airspace System, as exemplified by this contract?

This contract exemplifies how IIJA funding is being directed towards critical infrastructure modernization within the National Airspace System. By funding essential upgrades like battery replacements for navigation aids, the IIJA aims to enhance safety, reliability, and efficiency. The effectiveness will ultimately be measured by the sustained operational integrity of the SJU VOR and its contribution to the overall performance of the air traffic control system. Continued investment and strategic allocation of such funds are crucial for long-term modernization.

What are the historical spending patterns for battery equipment and installation at FAA VOR facilities?

Historical spending data for battery equipment and installation at FAA VOR facilities is not provided. Analyzing past expenditures would reveal trends in investment for such critical components, potential fluctuations in pricing, and the frequency of replacements or upgrades. Understanding these patterns could help in assessing the current award's value and identifying any significant shifts in procurement strategies or technological adoption within the FAA's infrastructure maintenance.

What is the expected lifespan of the new battery systems, and how does it align with the FAA's long-term infrastructure planning?

The expected lifespan of the new battery systems is a critical factor for long-term infrastructure planning, though not explicitly stated in the provided data. Modern battery technologies typically offer lifespans ranging from several years to over a decade, depending on the type and usage. The FAA's planning would ideally align procurement cycles with these lifespans to ensure continuous operational capability and to budget effectively for future replacements or upgrades. The contract's end date of July 2027 suggests the initial operational phase, with future planning needed for subsequent lifecycles.

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: 2

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: $31,336

Exercised Options: $31,336

Current Obligation: $31,336

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH24D00022

IDV Type: IDC

Timeline