Transportation's $13.14B contract for electronic components awarded to O.C.E.M. ACQUISITION CORP

Contract Overview

Contract Amount: $13,144 ($13.1K)

Contractor: O.c.e.m. Acquisition Corp.

Awarding Agency: Department of Transportation

Start Date: 2026-04-06

End Date: 2026-05-29

Contract Duration: 53 days

Daily Burn Rate: $248/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ASSETS IN SUPPORT OF THE NAS

Place of Performance

Location: FRANKLIN PARK, COOK County, ILLINOIS, 60131

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $13,144.35 to O.C.E.M. ACQUISITION CORP. for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. Value-for-money assessment pending detailed cost analysis and benchmarking. 2. Competition dynamics indicate a potentially competitive award process. 3. Risk indicators are low based on initial data, but performance monitoring is key. 4. Performance context suggests a short-term need for electronic components. 5. Sector positioning places this contract within the broader electronic component manufacturing industry.

Value Assessment

Rating: fair

The total contract value of $13.14 billion is substantial, but without specific details on the components or quantities, a direct value-for-money assessment is challenging. Benchmarking against similar large-scale procurements for electronic components would be necessary to determine if the pricing is competitive. The firm fixed-price nature suggests cost certainty for the government, but the ultimate value depends on the efficiency of the contractor's production and supply chain.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting it was likely a competitive process with multiple bidders. The award to O.C.E.M. ACQUISITION CORP. indicates they were the most advantageous offer. The number of bidders is not specified, but SAP is generally intended to promote competition for procurements below certain thresholds.

Taxpayer Impact: A full and open competition, even under SAP, generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of Transportation, specifically the Federal Aviation Administration, is the primary beneficiary, likely for aviation-related systems. The contract will deliver essential electronic components, crucial for the functioning of various transportation infrastructure and systems. The geographic impact is likely concentrated in Illinois, where the contractor is located, but the components may be distributed nationally or internationally. Workforce implications could include job creation or maintenance at O.C.E.M. ACQUISITION CORP. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of obsolescence for electronic components over the contract duration.
Dependence on a single contractor for a large volume of critical components.

Positive Signals

Firm fixed-price contract provides cost certainty.
Competitive award process suggests potential for good value.
Contractor located in Illinois, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the electronic component manufacturing sector, a critical industry supporting numerous other sectors, including aerospace, defense, and telecommunications. The market for electronic components is vast and highly competitive, with significant global players. The size of this award suggests a substantial requirement for specific types of components, potentially related to advanced avionics or infrastructure upgrades within the FAA's purview. Comparable spending benchmarks would involve looking at other large-scale procurements for similar electronic parts by government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if O.C.E.M. ACQUISITION CORP. chooses to engage them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight will likely be managed by the Federal Aviation Administration contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring delivery of specified components. Transparency is facilitated by the contract award notice, but detailed performance metrics and spending breakdowns would require further inquiry. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Procurement
Department of Transportation IT and Electronics Procurement
Defense Production Act Investments
National Defense Stockpile Purchases
Infrastructure Investment and Jobs Act Funding

Risk Flags

Potential for supply chain disruption
Risk of technological obsolescence
Contractor dependency risk
Quality assurance challenges for large volume components

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13,144.35 to O.C.E.M. ACQUISITION CORP.. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is O.C.E.M. ACQUISITION CORP..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13,144.35.

What is the period of performance?

Start: 2026-04-06. End: 2026-05-29.

What specific types of electronic components are being procured under this contract?

The provided data indicates the North American Industry Classification System (NAICS) code is 334419, which covers 'Other Electronic Component Manufacturing.' This broad category includes a wide range of products such as semiconductors, printed circuit boards, capacitors, resistors, and other passive and active electronic components. Without further details from the contract itself, the exact nature of the 'ASSETS IN SUPPORT OF THE NAS' (National Airspace System) being procured remains unspecified. Understanding the specific components is crucial for assessing their criticality, potential for obsolescence, and the contractor's capability to deliver.

How does the $13.14 billion contract value compare to historical spending on similar electronic components by the FAA?

Comparing the $13.14 billion contract value to historical spending requires access to detailed procurement databases and analysis of past contracts for electronic components by the Federal Aviation Administration (FAA). Given the substantial amount, this likely represents a significant portion of the FAA's annual spending in this category or a multi-year investment in a specific program. Historical data would reveal if this award is an outlier, a continuation of previous large-scale procurements, or indicative of a new strategic initiative. Benchmarking against average contract values for similar components over the last 5-10 years would provide context on whether this represents an increase or decrease in investment.

What are the primary risks associated with a contract of this magnitude for electronic components?

A contract of this magnitude for electronic components carries several significant risks. Firstly, supply chain vulnerability is a major concern; disruptions due to geopolitical events, natural disasters, or manufacturing issues could delay or halt production. Secondly, technological obsolescence is a constant threat in the electronics sector; components procured today might be outdated by the time they are integrated or deployed, especially if the contract duration is long or the technology cycle is rapid. Thirdly, the concentration of such a large procurement with a single contractor, O.C.E.M. ACQUISITION CORP., creates dependency. If the contractor faces financial difficulties, quality control issues, or fails to meet delivery schedules, the impact on the National Airspace System (NAS) could be severe. Finally, ensuring the quality and reliability of billions of dollars worth of components is a substantial oversight challenge.

What is the track record of O.C.E.M. ACQUISITION CORP. in fulfilling large federal contracts, particularly for electronic components?

Information regarding O.C.E.M. ACQUISITION CORP.'s track record in fulfilling large federal contracts, especially for electronic components, is not detailed in the provided data. A thorough assessment would require examining their past performance ratings, contract history (including awards, modifications, and terminations), and any reported issues or successes with previous government procurements. Understanding their experience with similar scale and complexity contracts, their financial stability, and their demonstrated ability to meet quality and delivery requirements is crucial for evaluating the risk associated with this $13.14 billion award. Publicly available contract databases and contractor performance systems would be the primary sources for this information.

How does the firm fixed-price (FFP) contract type influence the potential value and risk for the government?

The firm fixed-price (FFP) contract type is generally favored by the government for procurements where the scope of work is well-defined and risks are understood. For the government, an FFP contract offers the highest degree of cost certainty, as the contractor assumes most of the risk for cost overruns. This means the $13.14 billion is the maximum the government expects to pay, barring any contract modifications. This structure incentivizes the contractor to control costs and improve efficiency to maximize their profit margin. However, if the contractor underestimated costs or faces unforeseen challenges, they might cut corners on quality or attempt to seek modifications, which could introduce risk for the government. The value is maximized when the contractor is efficient and the price accurately reflects market rates.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10501 FRANKLIN AVE STE 400, FRANKLIN PARK, IL, 60131

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

Financial Breakdown

Contract Ceiling: $13,144

Exercised Options: $13,144

Current Obligation: $13,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline