FAA Awards $26.7M Contract for NAS Support Equipment Maintenance to Hughey & Phillips LLC

Contract Overview

Contract Amount: $26,775 ($26.8K)

Contractor: Hughey & Phillips LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-08

End Date: 2026-05-22

Contract Duration: 44 days

Daily Burn Rate: $609/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: URBANA, CHAMPAIGN County, OHIO, 43078

State: Ohio Government Spending

Plain-Language Summary

Department of Transportation obligated $26,775 to HUGHEY & PHILLIPS LLC for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. The contract value of $26.7 million for equipment repair and maintenance is significant. 2. Competition details are limited, with the award under SAP suggesting a potentially less competitive process. 3. The primary risk lies in the potential for overpricing due to limited competition and the specialized nature of the equipment. 4. The sector is Commercial and Industrial Machinery and Equipment Repair and Maintenance.

Value Assessment

Rating: fair

The contract value of $26.7 million for 44 days of service appears high. Benchmarking against similar contracts for specialized equipment maintenance is difficult without more data, but the duration suggests a high daily rate.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves fewer vendors and potentially less robust price discovery than full and open competition. This limited competition could lead to higher prices.

Taxpayer Impact: Taxpayer funds are being used for this contract. The impact depends on whether the price reflects fair market value, which is uncertain given the limited competition.

Public Impact

Ensures continued operation of critical National Airspace System (NAS) assets. Supports the Federal Aviation Administration's (FAA) mission to maintain a safe and efficient air traffic system. The contract award impacts the specialized industrial equipment repair and maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 60 / 10

Warning Flags

Limited competition may lead to inflated pricing.
Short contract duration for a high value could indicate urgency or potential overestimation of needs.
Lack of detailed performance metrics makes assessing value difficult.

Positive Signals

Supports critical national infrastructure (NAS).
Contract awarded to a single vendor, potentially indicating specialized expertise.

Sector Analysis

The Commercial and Industrial Machinery and Equipment Repair and Maintenance sector is vital for supporting government operations. Spending benchmarks for specialized NAS equipment maintenance are not readily available, but $26.7M for 44 days is substantial.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if opportunities were missed.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of Transportation and the Federal Aviation Administration. The use of SAP warrants scrutiny to ensure fair pricing and prevent waste.

Related Government Programs

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for overpricing due to limited competition.
Lack of transparency regarding the specific assets and services.
High daily rate raises concerns about value for money.
Reliance on Simplified Acquisition Procedures (SAP) may limit robust price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $26,775 to HUGHEY & PHILLIPS LLC. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is HUGHEY & PHILLIPS LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26,775.

What is the period of performance?

Start: 2026-04-08. End: 2026-05-22.

What is the specific nature of the 'assets in support of the NAS' being maintained, and why is this particular vendor selected?

The assets are likely specialized equipment critical to the functioning of the National Airspace System. Hughey & Phillips LLC was selected, presumably due to possessing the unique technical expertise, certifications, or proprietary knowledge required for this specific maintenance. Further details on the equipment and vendor qualifications would clarify the necessity of this sole-source or limited-competition approach.

How does the $26.7 million price tag for a 44-day period compare to industry standards for similar specialized equipment maintenance?

Without specific details on the equipment and the scope of work, a direct comparison is challenging. However, a daily rate exceeding $600,000 ($26.7M / 44 days) is exceptionally high. This suggests either extremely complex, high-risk equipment, or a potential for overpricing due to the limited competitive environment under SAP. Benchmarking against comparable government or commercial contracts for similar specialized machinery is crucial.

What mechanisms are in place to ensure the effectiveness and value for money of this contract, given the limited competition?

Effectiveness and value are typically ensured through performance metrics, clear deliverables, and post-award reviews. Given the limited competition under SAP, the FAA should have robust internal oversight, potentially including independent technical reviews of the work performed and verification of costs against established benchmarks, if available. Transparency in the justification for limited competition is also key.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

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: 240 W TWAIN AVE, URBANA, OH, 43078

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

Financial Breakdown

Contract Ceiling: $26,775

Exercised Options: $26,775

Current Obligation: $26,775

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline