DOT Awards $3.8M for NAS Support to CPI Electron Device Business, Inc

Contract Overview

Contract Amount: $37,965 ($38.0K)

Contractor: CPI Electron Device Business, Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-04-02

End Date: 2027-02-12

Contract Duration: 316 days

Daily Burn Rate: $120/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

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 $37,965 to CPI ELECTRON DEVICE BUSINESS, INC. for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. Spending focuses on electronic components crucial for National Airspace System (NAS) operations. 2. Contract awarded to CPI Electron Device Business, Inc., a single entity. 3. Potential risk associated with reliance on a single supplier for critical components. 4. Spending falls under the 'Other Electronic Component Manufacturing' sector.

Value Assessment

Rating: fair

The contract value of $3.8 million for a 316-day duration appears reasonable given the specialized nature of electronic components for aviation. Benchmarking against similar contracts for NAS support components is difficult without more specific data on the exact components and their complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition approach. This method is typically used for smaller dollar value procurements and may not achieve the best possible price discovery compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential aviation infrastructure support. The limited competition may result in a slightly higher cost than if broader competition were pursued.

Public Impact

Ensures continued operation and modernization of the National Airspace System. Supports the supply chain for critical electronic components used in aviation infrastructure. Potential impact on air travel reliability if component supply is disrupted.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Reliance on a single vendor for critical components.
Contract duration is relatively short, requiring potential future procurements.

Positive Signals

Supports essential aviation infrastructure.
Firm fixed price contract provides cost certainty.
Procurement under SAP can be efficient for smaller buys.

Sector Analysis

This spending falls within the 'Other Electronic Component Manufacturing' sector, which is vital for national infrastructure. Benchmarks for this specific niche are hard to establish without detailed component specifications, but the overall value is moderate for a federal contract.

Small Business Impact

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

Oversight & Accountability

Oversight would typically be managed by the Federal Aviation Administration (FAA) to ensure contract compliance and performance. The use of SAP suggests a streamlined process, but accountability for component quality and delivery remains crucial.

Related Government Programs

Other Electronic Component Manufacturing
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition
Potential single-source reliance
Lack of detailed component specification
No explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $37,965 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 $37,965.

What is the period of performance?

Start: 2026-04-02. End: 2027-02-12.

What is the specific nature of the electronic components being procured and their criticality to NAS operations?

The specific nature of the electronic components is not detailed in the provided data. However, their procurement for 'ASSETS IN SUPPORT OF THE NAS' implies they are critical for the functioning and modernization of the National Airspace System. This could range from communication systems to navigation aids or air traffic control equipment, all essential for safe and efficient air travel.

What are the risks associated with limited competition under SAP for these critical aviation components?

Limited competition under SAP for critical aviation components poses risks of higher costs due to reduced price pressure, potential for less innovation, and a narrower pool of qualified suppliers. This could also lead to vendor lock-in and make it difficult to switch suppliers if performance issues arise or if better alternatives become available.

How does this $3.8 million expenditure contribute to the overall modernization and effectiveness of the National Airspace System?

This $3.8 million expenditure contributes to the overall effectiveness of the NAS by ensuring the availability of necessary electronic components for existing systems and potentially for upgrades. Maintaining a robust supply chain for these components is fundamental to the reliability and safety of air traffic control, communication, and navigation, thereby supporting the NAS's operational integrity.

Industry Classification

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

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

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: $37,965

Exercised Options: $37,965

Current Obligation: $37,965

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline