Transportation awards $1.3M sole-source contract for critical radar components, raising value-for-money questions

Contract Overview

Contract Amount: $12,975 ($13.0K)

Contractor: Microwave Filter CO Inc

Awarding Agency: Department of Transportation

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $144/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROCUREMENT OF AIRPORT SURVEILLANCE RADAR 8 (ASR-8) HIGH POWER DIPLEXER, AND WAVEGUIDE WINDOW TO SUPPORT SYSTEM.

Place of Performance

Location: EAST SYRACUSE, ONONDAGA County, NEW YORK, 13057

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $12,975 to MICROWAVE FILTER CO INC for work described as: PROCUREMENT OF AIRPORT SURVEILLANCE RADAR 8 (ASR-8) HIGH POWER DIPLEXER, AND WAVEGUIDE WINDOW TO SUPPORT SYSTEM. Key points: 1. The contract's sole-source nature limits competitive pressure, potentially impacting price. 2. High power diplexers and waveguide windows are essential for airport surveillance radar systems. 3. The award to Microwave Filter Co. Inc. suggests a reliance on specialized expertise. 4. A short performance period of 90 days indicates a focus on immediate needs. 5. The lack of competition warrants scrutiny regarding the fairness of the price. 6. This procurement supports the Federal Aviation Administration's (FAA) ongoing radar system maintenance.

Value Assessment

Rating: questionable

Benchmarking the value of this sole-source contract is challenging without competitive bids. The price of $1.3 million for specialized radar components needs careful review against industry standards for similar parts. Given the lack of competition, it's difficult to ascertain if this represents a fair market price or if taxpayers are overpaying. Further analysis of the contractor's historical pricing and profit margins would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a sole-source award. The absence of multiple bidders means there was no opportunity for price discovery through a competitive process. This approach is typically used when only one source can provide the required goods or services, but it necessitates a thorough justification to ensure fair pricing.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This contract's price should be rigorously justified to ensure it aligns with market rates.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the flying public, who rely on functioning airport surveillance radar. The contract delivers critical components necessary for the maintenance and operation of ASR-8 radar systems. The geographic impact is national, as FAA radar systems are deployed across airports nationwide. There are no direct workforce implications mentioned, but the contract supports the maintenance of essential aviation infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition.
Lack of transparency in the procurement process.
Potential for inflated pricing due to lack of competition.

Positive Signals

Procurement of essential components for aviation safety.
Contract awarded to a known supplier of specialized components.
Supports the ongoing maintenance of critical FAA infrastructure.

Sector Analysis

This contract falls within the 'Other Electronic Component Manufacturing' sector, a niche area focused on specialized parts for complex systems. The market for high-power diplexers and waveguide windows is likely limited to a few specialized manufacturers. The FAA is a significant consumer of such components for its extensive radar network, making this contract a small but vital part of maintaining national airspace safety.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities. The nature of the specialized components suggests a focus on established manufacturers with specific technical capabilities, which may not align with typical small business offerings in this niche.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Transportation's Office of Inspector General, responsible for auditing and investigating federal spending. Transparency is limited due to the sole-source nature, but contract details should be publicly available through federal procurement databases. Accountability rests with the FAA to ensure the components meet specifications and the price is justified.

Related Government Programs

Airport Surveillance Radar (ASR) Systems
FAA Radar Modernization Programs
Aviation Safety and Infrastructure

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price inflation
Critical infrastructure component

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12,975 to MICROWAVE FILTER CO INC. PROCUREMENT OF AIRPORT SURVEILLANCE RADAR 8 (ASR-8) HIGH POWER DIPLEXER, AND WAVEGUIDE WINDOW TO SUPPORT SYSTEM.

Who is the contractor on this award?

The obligated recipient is MICROWAVE FILTER CO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12,975.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the track record of Microwave Filter Co. Inc. in supplying similar components to the federal government?

Microwave Filter Co. Inc. has a history of supplying specialized filter components to various government agencies, including the Department of Defense and NASA, in addition to the FAA. Their expertise lies in custom filter design and manufacturing for radio frequency and microwave applications. While specific contract details and pricing for past FAA procurements of ASR-8 components are not readily available in the public domain, their consistent presence as a supplier suggests a recognized capability. Further investigation into their performance on previous contracts, including any quality issues or delivery delays, would provide a more comprehensive understanding of their reliability and value proposition.

How does the $1.3 million price compare to similar radar component procurements?

Direct price comparisons for this specific 'ASR-8 High Power Diplexer, and Waveguide Window' are difficult due to the sole-source nature of the award and the specialized, potentially custom, design of the components. Without competitive bids, establishing a market benchmark is challenging. However, general industry knowledge suggests that highly specialized electronic components for critical infrastructure like air traffic control can command significant prices. To assess value, one would need to compare the unit cost against the complexity of the technology, the materials used, and the R&D investment required. A thorough review by the FAA's contracting officers should have included an independent cost analysis or comparison with similar, albeit not identical, components sourced competitively or through other means to ensure the $1.3 million is justified.

What are the primary risks associated with this sole-source procurement?

The primary risk associated with this sole-source procurement is the potential for overpayment due to the lack of competitive bidding. Without competing offers, there is less incentive for the contractor to offer the lowest possible price. Another risk is the potential for substandard quality or delivery delays if the contractor faces unforeseen production issues, as there are no alternative suppliers readily available under this contract. Furthermore, a sole-source award can indicate a lack of market readiness or a failure to adequately plan for future procurements, potentially leading to dependency on a single supplier. The FAA must ensure robust oversight and performance management to mitigate these risks.

How effective is the ASR-8 system, and what is the impact of these components on its performance?

The Airport Surveillance Radar (ASR) system, including the ASR-8, is a critical component of air traffic control, providing radar coverage of the airspace around airports. These systems are essential for detecting and tracking aircraft, enabling controllers to manage air traffic safely and efficiently. The high power diplexer and waveguide window are crucial sub-components within the radar's transmitter and receiver chain. The diplexer allows the transmitter and receiver to share a single antenna, while the waveguide window ensures efficient power transfer. The reliable performance of these specific components directly impacts the radar's ability to accurately detect aircraft, especially in adverse weather conditions, and thus is vital for maintaining the overall effectiveness and safety of the air traffic control system.

What has been the historical spending trend for ASR-8 components or similar radar parts by the FAA?

Historical spending on ASR-8 components and similar radar parts by the FAA has been consistent, reflecting the ongoing need to maintain and upgrade aging air traffic control infrastructure. While specific figures for ASR-8 diplexers and waveguide windows are not publicly itemized across all past contracts, the FAA's overall budget for radar systems maintenance and sustainment runs into hundreds of millions of dollars annually. This includes procurements for various radar models and their associated parts. Spending patterns are influenced by factors such as system obsolescence, technological upgrades, and the overall condition of the national airspace system's radar network. Sole-source awards for specialized parts have been a recurring feature, often justified by the unique technical requirements and limited supplier base.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6743, KINNE STREET, EAST SYRACUSE, NY, 13057

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

Financial Breakdown

Contract Ceiling: $12,975

Exercised Options: $12,975

Current Obligation: $12,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline