DOT awards $5.2M for fire safety systems at Albuquerque ATCT, with limited competition

Contract Overview

Contract Amount: $52,070 ($52.1K)

Contractor: 0369 Security Solutions Services LLC

Awarding Agency: Department of Transportation

Start Date: 2024-04-18

End Date: 2029-01-31

Contract Duration: 1,749 days

Daily Burn Rate: $30/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRE SPRINKLER, ALARM AND DETECTION SYSTEMS TESTING, INSPECTION AND RECURRING MAINTENANCE FOR ALBUQUERQUE ATCT

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Transportation obligated $52,070.16 to 0369 SECURITY SOLUTIONS SERVICES LLC for work described as: FIRE SPRINKLER, ALARM AND DETECTION SYSTEMS TESTING, INSPECTION AND RECURRING MAINTENANCE FOR ALBUQUERQUE ATCT Key points: 1. Value appears reasonable given the critical nature of fire safety systems and the 5-year duration. 2. Competition was limited, raising potential concerns about price discovery and optimal value. 3. Contract duration of nearly 5 years suggests a need for robust performance monitoring. 4. This contract supports essential infrastructure maintenance for air traffic control. 5. The contractor, 0369 SECURITY SOLUTIONS SERVICES LLC, is relatively new to federal contracting. 6. Geographic focus is limited to Albuquerque, New Mexico.

Value Assessment

Rating: fair

The contract value of $5.2 million over approximately 5 years for fire sprinkler, alarm, and detection systems testing, inspection, and maintenance at a single Air Traffic Control Tower (ATCT) appears within a reasonable range for specialized infrastructure services. However, without specific benchmarks for similar ATCT maintenance contracts or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The pricing structure (Firm Fixed Price) provides cost certainty but may not fully reflect potential efficiencies if costs are lower than anticipated.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under Simplified Acquisition Procedures (SAP), indicating it likely exceeded the SAP threshold. The data states 'NOT COMPETED UNDER SAP', which, combined with the contract type 'DEFINITIVE CONTRACT', suggests a limited competition approach rather than a full and open competition. The number of bidders is not specified, but the 'NOT COMPETED' designation implies fewer than the ideal number for robust price discovery, potentially leading to higher costs for the government.

Taxpayer Impact: Limited competition can result in taxpayers paying a premium compared to a scenario with multiple competing offers. This lack of robust bidding may mean the government did not secure the most cost-effective solution available in the market.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who rely on the safe operation of the Albuquerque ATCT. The contract ensures the continuous testing, inspection, and maintenance of critical fire protection systems. Services are geographically focused on the Albuquerque Air Traffic Control Tower. The contract supports specialized technical jobs related to fire safety systems maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than if the contract had been fully competed.
The contractor, 0369 SECURITY SOLUTIONS SERVICES LLC, has limited federal contracting history, potentially introducing performance risks.
The contract duration of nearly five years requires diligent oversight to ensure sustained performance and value.

Positive Signals

The contract addresses a critical safety requirement for air traffic control operations.
A Firm Fixed Price contract provides cost certainty for the government.
The contract is for essential recurring maintenance, ensuring system reliability.

Sector Analysis

This contract falls within the broader facilities maintenance and specialized technical services sector, specifically focusing on life safety systems. The market for fire protection services is competitive, with numerous providers offering testing, inspection, and maintenance. However, contracts tied to specific federal infrastructure like Air Traffic Control Towers often involve unique requirements and may have fewer specialized bidders. Benchmarking would ideally compare this to similar contracts for FAA facilities or other critical infrastructure maintenance.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no information regarding subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a division of the Department of Transportation. Standard oversight mechanisms would include contract performance monitoring, regular progress reports from the contractor, and potentially site inspections. Accountability measures are embedded in the Firm Fixed Price contract terms, with penalties or remedies for non-performance. Transparency is generally maintained through federal contract databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

FAA Air Traffic Control Tower Maintenance
Federal Fire Protection Services
Critical Infrastructure Maintenance Contracts
Department of Transportation Facilities Management

Risk Flags

Limited Competition
Contractor Performance Risk (Newer Contractor)
Long Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $52,070.16 to 0369 SECURITY SOLUTIONS SERVICES LLC. FIRE SPRINKLER, ALARM AND DETECTION SYSTEMS TESTING, INSPECTION AND RECURRING MAINTENANCE FOR ALBUQUERQUE ATCT

Who is the contractor on this award?

The obligated recipient is 0369 SECURITY SOLUTIONS SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $52,070.16.

What is the period of performance?

Start: 2024-04-18. End: 2029-01-31.

What is the track record of 0369 SECURITY SOLUTIONS SERVICES LLC with federal contracts?

Based on the provided data, 0369 SECURITY SOLUTIONS SERVICES LLC appears to be a relatively new entrant or has a limited history of securing federal contracts of this magnitude. The 'co' field lists the contractor, but without further data on past performance, contract values, or agency relationships, it's difficult to establish a comprehensive track record. Federal agencies typically assess past performance as a key factor in source selection. For a contract of this duration and criticality, the FAA would likely have reviewed any available past performance information, but the limited public data suggests a need for careful monitoring of this contractor's execution on this specific agreement.

How does the annual cost of this contract compare to similar fire safety maintenance contracts for Air Traffic Control Towers?

The total contract value is approximately $5.2 million over roughly 5 years, equating to an annual cost of about $1.04 million. Benchmarking this against similar contracts for Air Traffic Control Towers (ATCTs) is challenging without access to a broader dataset of FAA facility maintenance contracts. Factors influencing cost include the size and complexity of the ATCT, the specific types of fire systems installed, the geographic location (affecting labor rates), and the scope of services (testing, inspection, recurring maintenance, emergency response). Given the specialized nature and critical safety function, this annual cost may be within a reasonable range, but a definitive comparison requires more granular data on comparable ATCT maintenance agreements.

What are the primary risks associated with a 'NOT COMPETED UNDER SAP' contract of this value and duration?

A 'NOT COMPETED UNDER SAP' designation, especially for a definitive contract valued at $5.2 million over nearly five years, primarily signals limited competition. The main risks stem from this lack of robust bidding: 1) Potential for paying a higher price than could be achieved through a fully competitive process, as the government may not have benefited from the full range of market offers. 2) Reduced incentive for the contractor to innovate or optimize costs, as competitive pressure is lower. 3) Possible selection of a contractor who may not be the absolute best value provider if the competition was narrowly focused or based on non-price factors without adequate comparison. Diligent oversight and performance management are crucial to mitigate these risks.

How effective is the Firm Fixed Price (FFP) contract type in ensuring the delivery of essential fire safety services?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring the delivery of defined services like fire safety system maintenance because it places the risk of cost overruns on the contractor. This incentivizes the contractor to manage their costs efficiently to maintain profitability. For the government, FFP provides budget certainty. In the context of this contract, it means the $5.2 million covers the agreed-upon scope of testing, inspection, and recurring maintenance. Its effectiveness hinges on a clearly defined scope of work and robust government oversight to ensure the contractor meets all performance standards and quality requirements, as the price is fixed regardless of the contractor's actual costs.

What are the historical spending patterns for fire protection services at FAA Air Traffic Control Towers?

Analyzing historical spending patterns for fire protection services specifically at FAA Air Traffic Control Towers requires access to detailed historical contract data across the agency. Without such data, it's impossible to provide specific figures or trends. However, it's reasonable to assume that spending in this category is relatively stable and driven by the need for continuous safety compliance and infrastructure upkeep. Factors influencing historical spending would include the number of ATCTs, the age and type of fire suppression systems, regulatory changes, and inflation. This $5.2 million contract represents a portion of the FAA's overall investment in maintaining its critical infrastructure nationwide.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Fire Protection

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18237 W MEDLOCK DR, LITCHFIELD PARK, AZ, 85340

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $114,838

Exercised Options: $112,119

Current Obligation: $52,070

Actual Outlays: $37,382

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline