DOT awards $7.1M for electronic equipment repair, highlighting a competitive procurement process

Contract Overview

Contract Amount: $7,155 ($7.2K)

Contractor: Tempest Telecom Solutions, LLC

Awarding Agency: Department of Transportation

Start Date: 2026-04-10

End Date: 2026-05-15

Contract Duration: 35 days

Daily Burn Rate: $204/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: COPPELL, DALLAS County, TEXAS, 75019

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $7,155 to TEMPEST TELECOM SOLUTIONS, LLC for work described as: ASSETS IN SUPPORT OF THE NAS Key points: 1. The contract value of $7.1 million for electronic and precision equipment repair and maintenance appears reasonable given the scope. 2. A competitive procurement process was utilized, suggesting potential for favorable pricing and vendor selection. 3. The short duration of 35 days may indicate a focused, task-specific requirement rather than a long-term program. 4. The contract is for repair and maintenance, a critical but often overlooked aspect of asset management. 5. The award to TEMPEST TELECOM SOLUTIONS, LLC places them within the FAA's vendor ecosystem for specialized repair services.

Value Assessment

Rating: good

While specific per-unit cost data is not provided, the overall contract value of $7.1 million for electronic and precision equipment repair and maintenance seems aligned with typical government spending for such services. Benchmarking against similar contracts for repair and maintenance of specialized electronic equipment would provide a more precise value assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process likely involving multiple bids. The fact that it was competed suggests that the FAA actively sought multiple vendors to ensure fair pricing and access to qualified providers. The presence of two bidders, as indicated by the data, is a positive sign of competition within the relevant market for these services.

Taxpayer Impact: The use of a competitive process, even under SAP, is beneficial for taxpayers as it drives down costs and encourages efficiency among potential awardees.

Public Impact

The Federal Aviation Administration (FAA) benefits from this contract by ensuring the continued operational readiness of critical electronic and precision equipment. Services delivered include the repair and maintenance of specialized electronic components essential for aviation safety and operations. The geographic impact is primarily within Texas, where the contractor is located, but the equipment serviced likely supports broader FAA operations. The contract supports a specialized segment of the technical workforce involved in electronics repair and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial 35-day duration is insufficient for the complexity of repairs.
Dependence on a single contractor for critical repair services could pose a risk if performance issues arise.
Limited historical data on this specific contractor's performance for the FAA makes long-term reliability assessment challenging.

Positive Signals

The use of a firm-fixed-price contract shifts cost risk to the contractor.
The competitive procurement process indicates a healthy market for these services.
The contract addresses a clear need for maintenance of essential electronic equipment.

Sector Analysis

The market for electronic and precision equipment repair and maintenance is a specialized segment within the broader industrial services sector. This contract falls under the North American Industry Classification System (NAICS) code 811210, which covers electronic and precision equipment repair and maintenance. Government spending in this area is crucial for maintaining the operational capabilities of various agencies, particularly those with complex technological infrastructure like the FAA. Comparable spending benchmarks would typically be found by analyzing other government contracts for similar repair services across different agencies and equipment types.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The award to TEMPEST TELECOM SOLUTIONS, LLC, whose size is not specified, means that opportunities for small business subcontractors would depend on the prime contractor's own subcontracting plans and needs.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officer and program officials. Accountability measures are embedded in the firm-fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

FAA Maintenance and Repair Contracts
Electronic Equipment Servicing
Government Procurement of Specialized Services
Department of Transportation Asset Management

Risk Flags

Potential for scope creep
Contractor performance risk
Limited competition data

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7,155 to TEMPEST TELECOM SOLUTIONS, LLC. ASSETS IN SUPPORT OF THE NAS

Who is the contractor on this award?

The obligated recipient is TEMPEST TELECOM SOLUTIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7,155.

What is the period of performance?

Start: 2026-04-10. End: 2026-05-15.

What is the track record of TEMPEST TELECOM SOLUTIONS, LLC with the Federal Aviation Administration or other government agencies?

Information regarding the specific track record of TEMPEST TELECOM SOLUTIONS, LLC with the Federal Aviation Administration (FAA) or other government agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations. Without this historical data, it is difficult to definitively gauge the contractor's reliability and past success in fulfilling similar government contracts. Further research into federal procurement databases and past performance information systems would be necessary to establish a robust understanding of their performance history.

How does the $7.1 million award compare to similar electronic equipment repair contracts awarded by the FAA or other agencies?

The $7.1 million award for electronic and precision equipment repair and maintenance by the FAA is a significant sum, but its value-for-money can only be truly assessed through comparative analysis. To benchmark this contract, one would need to examine similar contracts awarded by the FAA or other agencies for the repair and maintenance of comparable electronic and precision equipment. Factors such as the type of equipment, complexity of repairs, service level agreements, and contract duration would need to be considered. Without access to a database of comparable contracts, it is challenging to definitively state whether this award represents excellent, fair, or questionable value. However, the competitive nature of the procurement suggests an effort to achieve a fair market price.

What are the primary risks associated with this contract, given its short duration and focus on repair?

The primary risks associated with this contract, despite its short 35-day duration, include potential for unforeseen complexities in the repair process that could exceed the initial scope or timeline, leading to potential cost overruns if not managed strictly under the firm-fixed-price agreement. Another risk is the dependency on a single contractor for critical repair services; any performance issues or failure to deliver could disrupt FAA operations. Furthermore, the limited duration might indicate a reactive maintenance approach rather than proactive, which could lead to higher long-term maintenance costs if underlying issues are not addressed comprehensively. Ensuring clear deliverables and performance standards within the contract is crucial to mitigate these risks.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for this specific repair and maintenance service?

The firm-fixed-price (FFP) contract type is generally effective in ensuring value for repair and maintenance services like this one, as it places the primary risk of cost overruns on the contractor. This incentivizes TEMPEST TELECOM SOLUTIONS, LLC to perform the work efficiently and within budget. For the government, it provides cost certainty, making budgeting more predictable. However, the effectiveness hinges on the accuracy of the initial scope definition; if the scope is poorly defined, the contractor might be incentivized to cut corners to maintain profitability, potentially impacting quality. The FAA's oversight will be critical in ensuring that the FFP structure does not compromise the quality or completeness of the repair work performed.

What does the competition level (two bidders under SAP) imply for the government's ability to secure favorable pricing?

The competition level, with two bidders identified under Simplified Acquisition Procedures (SAP), suggests a moderate level of competition. While more than one bidder is always preferable to a sole-source award, two bidders may not represent the full competitive potential of the market. This level of competition is generally sufficient to drive down prices compared to a sole-source scenario, providing some assurance of fair market value. However, a larger number of bidders typically leads to more aggressive pricing and a wider selection of qualified vendors. The FAA's use of SAP indicates they are likely seeking efficiency for smaller dollar amounts, and two bids suggest they found at least one alternative to the lowest bidder, which is a positive outcome for price discovery.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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: 1461 S BELT LINE RD STE 100, COPPELL, TX, 75019

Business Categories: Category Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,155

Exercised Options: $7,155

Current Obligation: $7,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline