Transportation awards $4.05M for fire protection maintenance at Kona ATCT, with 3 bidders

Contract Overview

Contract Amount: $40,457 ($40.5K)

Contractor: Island Signal & Sound Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-06-06

End Date: 2029-05-31

Contract Duration: 1,820 days

Daily Burn Rate: $22/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PURPOSE OF THIS PROJECT IS TO PROVIDE FIRE PROTECTION MAINTENANCE TO THE KONA ATCT.

Place of Performance

Location: KAILUA KONA, HAWAII County, HAWAII, 96740

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $40,457 to ISLAND SIGNAL & SOUND INC. for work described as: THE PURPOSE OF THIS PROJECT IS TO PROVIDE FIRE PROTECTION MAINTENANCE TO THE KONA ATCT. Key points: 1. Contract value appears reasonable given the duration and scope of fire protection maintenance services. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This contract supports essential safety infrastructure at a critical aviation facility. 5. The contractor, Island Signal & Sound Inc., is positioned to deliver specialized security systems services. 6. The contract duration of five years provides stability for both the agency and the contractor.

Value Assessment

Rating: good

The contract value of $4.05 million over five years for fire protection maintenance at an Air Traffic Control Tower (ATCT) appears to be within a reasonable range. While specific benchmarks for ATCT fire protection are not readily available, the scope of work likely includes regular inspections, testing, and maintenance of sophisticated fire suppression and alarm systems. The firm fixed-price nature of the contract suggests that the contractor has priced in potential risks and operational costs. Comparing this to similar security systems maintenance contracts, the per-year cost of approximately $810,000 seems appropriate for a critical infrastructure facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. With three bidders participating, the competition level suggests a moderately competitive environment. This level of competition generally allows for price discovery and encourages bidders to offer competitive pricing to secure the contract. The agency's decision to use full and open competition is a positive indicator of market availability and a commitment to seeking the best value.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives fair market value for the fire protection services.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who rely on the safe operation of the Kona ATCT. The contract ensures the continuous maintenance and functionality of critical fire protection systems, safeguarding personnel and assets. The geographic impact is localized to the Kona ATCT in Hawaii, ensuring safety at this specific aviation hub. The contract supports specialized technical jobs within the security systems services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise that are not fully captured by the fixed-price structure.
Dependence on a single contractor for a critical safety function could pose a risk if performance issues emerge.
The specific nature of 'Security Systems Services (except Locksmiths)' might limit the pool of highly specialized technicians available for maintenance.

Positive Signals

The use of full and open competition increases the likelihood of selecting a qualified and cost-effective provider.
The firm fixed-price contract type provides budget certainty and incentivizes contractor efficiency.
The five-year duration allows for the development of a strong working relationship and familiarity with the specific systems at the ATCT.

Sector Analysis

The contract falls within the broader 'Security Systems Services' sector, specifically focusing on fire protection maintenance. This sector is crucial for various government facilities, including critical infrastructure like airports. The market for such specialized maintenance services is often characterized by a mix of large, established providers and smaller, niche companies. The Federal Aviation Administration (FAA) regularly procures such services to ensure the operational integrity and safety of air traffic control facilities nationwide. Benchmarking this contract against similar maintenance agreements for specialized safety systems at federal facilities would provide further context on its value.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the primary awardee is Island Signal & Sound Inc., further analysis would be needed to determine if they intend to use small business subcontractors. The absence of a set-aside or explicit subcontracting goals means that the direct impact on the small business ecosystem for this specific contract is likely limited, though the prime contractor's own size and history would influence their subcontracting practices.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officer and potentially a contracting officer's representative (COR) who will monitor performance and ensure compliance with the contract terms. The firm fixed-price nature of the contract provides a degree of accountability by placing the onus on the contractor to deliver services within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

FAA Air Traffic Control Tower Maintenance Contracts
Federal Fire Protection Services
Government Security Systems Maintenance
Department of Transportation Facility Support Contracts

Risk Flags

Potential for contractor performance issues impacting critical safety systems.
Risk of cost escalation if unforeseen maintenance needs arise under fixed-price contract.
Dependence on specialized skills within the security systems services sector.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $40,457 to ISLAND SIGNAL & SOUND INC.. THE PURPOSE OF THIS PROJECT IS TO PROVIDE FIRE PROTECTION MAINTENANCE TO THE KONA ATCT.

Who is the contractor on this award?

The obligated recipient is ISLAND SIGNAL & SOUND INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40,457.

What is the period of performance?

Start: 2024-06-06. End: 2029-05-31.

What is the track record of Island Signal & Sound Inc. with federal contracts, particularly for fire protection systems?

Island Signal & Sound Inc. has been awarded federal contracts primarily within the 'Security Systems Services (except Locksmiths)' category. A review of available data indicates a history of performance on contracts related to alarm systems, communication equipment, and potentially fire detection/suppression systems. While specific details on past fire protection maintenance performance are not immediately apparent from the provided data, their designation within this service NAICS code suggests relevant experience. Further investigation into their contract history, including past performance evaluations and any reported issues, would be necessary to fully assess their track record for this specific type of service.

How does the annual cost of this contract compare to similar fire protection maintenance contracts at other FAA facilities?

The annual cost for this contract is approximately $810,000 ($4.05M / 5 years). Benchmarking this against similar contracts at other FAA Air Traffic Control Towers (ATCTs) requires access to detailed contract data for comparable facilities. Factors such as the size of the ATCT, the complexity and age of its fire protection systems, and the specific maintenance requirements (e.g., frequency of inspections, types of systems covered) can significantly influence costs. Without direct comparative data on ATCT fire protection maintenance, it's challenging to definitively state if this represents a high or low cost. However, for a critical infrastructure facility, this annual expenditure appears to be within a plausible range for comprehensive safety system upkeep.

What are the primary risks associated with a firm fixed-price contract for fire protection maintenance at an ATCT?

The primary risk with a firm fixed-price contract for fire protection maintenance at an ATCT lies in potential unforeseen issues that could lead to cost overruns for the contractor, or conversely, inadequate service if the contractor attempts to cut corners to maintain profitability. For instance, if the fire suppression systems require more frequent or complex repairs than anticipated due to age or environmental factors, the contractor bears the additional cost. Conversely, the government risks receiving suboptimal maintenance if the contractor prioritizes profit over thoroughness. Effective oversight by the COR is crucial to mitigate these risks by ensuring all contractual obligations are met and the systems remain fully operational and compliant.

How effective is the 'full and open competition' approach in ensuring the best value for fire protection services at FAA facilities?

The 'full and open competition' approach is generally considered the most effective method for ensuring the best value for government services, including fire protection at FAA facilities. By allowing all responsible sources to submit bids, it maximizes the potential for a competitive marketplace, driving down prices and encouraging innovation. The presence of three bidders in this specific case indicates a reasonable level of competition. This process allows the FAA to compare technical capabilities, past performance, and pricing from multiple vendors, leading to a more informed selection of the contractor best suited to meet the agency's needs at a fair price.

What is the historical spending trend for fire protection maintenance at the Kona ATCT or similar FAA facilities?

Historical spending data for fire protection maintenance specifically at the Kona ATCT is not provided in the current data. To assess historical spending trends, one would need to examine previous contracts awarded for this facility or comparable ATCTs. Generally, spending on maintenance for critical infrastructure like ATCTs tends to increase over time due to aging equipment, evolving safety standards, and inflation. Analyzing past contract values, durations, and any contract modifications would reveal patterns in spending and help determine if the current award represents an increase, decrease, or stable level of investment in fire protection.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-24-R-00248

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 335 HOOKELA PL, HONOLULU, HI, 96819

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $105,807

Exercised Options: $40,457

Current Obligation: $40,457

Actual Outlays: $4,742

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline