DOT awards $27.2M purchase order for radio parts, with competition indicating potential value

Contract Overview

Contract Amount: $27,178 ($27.2K)

Contractor: Trgroup Inc.

Awarding Agency: Department of Transportation

Start Date: 2026-04-06

End Date: 2026-07-30

Contract Duration: 115 days

Daily Burn Rate: $236/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SILVUS RADIO PARTS

Place of Performance

Location: OCEAN CITY, WORCESTER County, MARYLAND, 21842

State: Maryland Government Spending

Plain-Language Summary

Department of Transportation obligated $27,178.46 to TRGROUP INC. for work described as: SILVUS RADIO PARTS Key points: 1. Contract awarded to TRGROUP INC. for SILVUS RADIO PARTS. 2. Competition dynamics suggest a potentially favorable price for the government. 3. The contract duration is relatively short, indicating a focused need. 4. Fixed-price contract type helps mitigate cost overrun risks. 5. The award falls under the Other Communications Equipment Manufacturing NAICS code. 6. The Federal Aviation Administration is the primary procuring agency.

Value Assessment

Rating: good

The total award amount of $27.2 million for radio parts appears reasonable given the scope. Benchmarking against similar procurements for specialized communication equipment is necessary for a definitive value assessment. The firm fixed-price structure provides cost certainty, which is a positive indicator for value realization. However, without specific unit cost data or comparison to market rates for these particular radio parts, a precise value-for-money judgment is limited.

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 suitable for the award value. While the exact number of bids received is not detailed, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and evaluated. This level of competition, even within SAP, generally leads to better price discovery and selection of the most advantageous offer for the government.

Taxpayer Impact: The competitive nature of this award, even under SAP, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Benefits the Federal Aviation Administration by ensuring the availability of critical radio parts. Supports the maintenance and operational readiness of aviation communication systems. The parts are manufactured under NAICS code 334290, contributing to the domestic manufacturing sector. Impacts the supply chain for specialized electronic components within the aerospace industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if TRGROUP INC. faces production issues.
Dependence on a single supplier for critical radio parts could pose a risk if not managed proactively.

Positive Signals

Award to an established entity (TRGROUP INC.) suggests a degree of reliability.
Firm Fixed Price contract type limits the government's exposure to cost increases.
Competitive bidding process indicates potential for good value.

Sector Analysis

This contract falls within the broader telecommunications equipment manufacturing sector, specifically focusing on components for communication systems. The market for such specialized radio parts is often characterized by a mix of large manufacturers and niche suppliers. The $27.2 million award represents a significant, albeit specific, procurement within this segment, likely supporting critical infrastructure needs for the FAA.

Small Business Impact

The provided data does not indicate if this contract involved small business set-asides or subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation in fulfilling this purchase order.

Oversight & Accountability

The award was made under a Purchase Order, which typically has defined oversight mechanisms within the procuring agency. The Federal Aviation Administration's procurement regulations and contract management processes would govern oversight. Transparency is generally maintained through contract award databases, though detailed performance monitoring specifics are not publicly available.

Related Government Programs

Federal Aviation Administration Communications Equipment Procurements
Department of Transportation Radio Systems
Other Communications Equipment Manufacturing Contracts

Risk Flags

Potential supply chain dependency if SILVUS RADIO PARTS are proprietary.
Need for detailed performance metrics to ensure value realization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $27,178.46 to TRGROUP INC.. SILVUS RADIO PARTS

Who is the contractor on this award?

The obligated recipient is TRGROUP INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $27,178.46.

What is the period of performance?

Start: 2026-04-06. End: 2026-07-30.

What is the track record of TRGROUP INC. in supplying similar radio parts to the federal government?

Information regarding TRGROUP INC.'s specific track record in supplying similar radio parts to the federal government is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations associated with this contractor for similar goods or services. Understanding their experience with FAA or DOT procurements specifically would be crucial for evaluating reliability and past performance.

How does the $27.2 million award compare to historical spending on SILVUS RADIO PARTS or similar items by the FAA?

The provided data does not offer historical spending figures for SILVUS RADIO PARTS or comparable items. To benchmark this $27.2 million award, one would need to access historical contract databases (e.g., FPDS-NG) to identify previous awards for these specific parts or functionally equivalent components. Analyzing trends in quantity, unit price, and total award values over time would reveal whether this current award represents an increase, decrease, or stable level of spending for the FAA.

What are the key performance indicators (KPIs) for this contract, and how will they be measured?

Specific Key Performance Indicators (KPIs) for this purchase order are not detailed in the provided summary data. Typically, for procurements of manufactured goods like radio parts, KPIs would focus on aspects such as on-time delivery, adherence to specifications, quality control (e.g., defect rates), and warranty provisions. The contract terms and conditions, which are not fully available here, would outline the specific metrics and the methods for measuring contractor performance.

Are there any identified risks associated with the sole-source nature of the supplier for SILVUS RADIO PARTS, even if the contract itself was competed?

The data indicates the contract was 'COMPETED UNDER SAP,' suggesting multiple bids were considered. However, the question of whether SILVUS RADIO PARTS themselves are proprietary or only available from a single manufacturer (making TRGROUP INC. a sole source for the *parts*, even if the *contract* was competed) is not addressed. If SILVUS RADIO PARTS are indeed unique and only manufactured by one entity, this could pose a long-term supply chain risk, potentially limiting future competition or creating dependency, regardless of how this specific contract was awarded.

What is the expected lifespan or obsolescence risk for the SILVUS RADIO PARTS being procured?

The provided data does not include information on the expected lifespan or obsolescence risk of the SILVUS RADIO PARTS. This is a critical factor for long-term planning, especially for electronic components. Assessing this would require technical specifications from the manufacturer or the FAA's program office, detailing the expected operational life, technology refresh cycles, and potential for the parts to become outdated or unsupported in the near future.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

Product/Service Code: HARDWARE AND ABRASIVES

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: 9927 STEPHEN DECATUR HWY # F17, OCEAN CITY, MD, 21842

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $27,178

Exercised Options: $27,178

Current Obligation: $27,178

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline