DHS Coast Guard Awards $4.3M for Communication/Navigation Equipment to Virginia Electronic Systems
Contract Overview
Contract Amount: $4,307,166 ($4.3M)
Contractor: Virginia Electronic Systems, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2022-11-29
End Date: 2026-09-01
Contract Duration: 1,372 days
Daily Burn Rate: $3.1K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: CONTRACT FOR THE PURCHASE AND INSTALLATION OF COMMUNICATION AND NAVIGATION EQUIPMENT UNDER FMS CASE LE-P-SAG LEBANON.
Place of Performance
Location: CURTIS BAY, ANNE ARUNDEL County, MARYLAND, 21226
State: Maryland Government Spending
Plain-Language Summary
Department of Homeland Security obligated $4.3 million to VIRGINIA ELECTRONIC SYSTEMS, INC. for work described as: CONTRACT FOR THE PURCHASE AND INSTALLATION OF COMMUNICATION AND NAVIGATION EQUIPMENT UNDER FMS CASE LE-P-SAG LEBANON. Key points: 1. The contract is for communication and navigation equipment for Lebanon under an FMS case. 2. Virginia Electronic Systems, Inc. is the sole awardee. 3. The contract type is Firm Fixed Price, indicating price certainty. 4. The primary sector is IT/Communications equipment manufacturing.
Value Assessment
Rating: fair
The contract value of $4.3M is for a 4-year period. Without specific unit details or historical data for this specialized equipment, a direct pricing comparison is difficult. The award is a Purchase Order.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, suggesting a limited or sole-source justification. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: Taxpayer funds are used for this foreign military sale, impacting the overall budget for defense and security assistance.
Public Impact
Supports U.S. foreign military sales and international security cooperation. Provides critical equipment for maritime safety and security operations in Lebanon. Enhances communication and navigation capabilities for partner nation forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Limited transparency on pricing justification
Positive Signals
- Supports foreign military sales objectives
- Specific equipment for operational needs
Sector Analysis
This contract falls under the IT and Defense sectors, specifically focusing on specialized communication and navigation systems. Benchmarks for similar FMS equipment purchases are highly variable due to customization and specific case requirements.
Small Business Impact
The awardee, Virginia Electronic Systems, Inc., is not identified as a small business. There is no indication of small business participation in this specific contract.
Oversight & Accountability
The award is a Purchase Order, which typically has less stringent oversight than larger, more complex contracts. The limited competition aspect warrants careful review of the justification for award.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Limited competition
- Potential for inflated pricing due to lack of competition
- Lack of detailed cost breakdown
- Foreign military sale context may obscure domestic value assessment
Tags
search-detection-navigation-guidance-aer, department-of-homeland-security, md, purchase-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $4.3 million to VIRGINIA ELECTRONIC SYSTEMS, INC.. CONTRACT FOR THE PURCHASE AND INSTALLATION OF COMMUNICATION AND NAVIGATION EQUIPMENT UNDER FMS CASE LE-P-SAG LEBANON.
Who is the contractor on this award?
The obligated recipient is VIRGINIA ELECTRONIC SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $4.3 million.
What is the period of performance?
Start: 2022-11-29. End: 2026-09-01.
What is the specific justification for awarding this contract on a limited/non-competitive basis?
The justification for limited competition is not provided in the data. Typically, such awards are made when only one source can provide the required specialized equipment, or for urgent needs. Further investigation into the contract file would be necessary to ascertain the precise reason and ensure it aligns with federal procurement regulations.
How does the unit cost of this equipment compare to similar systems procured competitively?
A direct comparison of unit cost is not possible with the provided data. The contract is for a package of equipment and installation, and the award was not competitively solicited. Without a benchmark from similar competitive procurements, it's difficult to assess if the price is optimal. The firm fixed price nature provides cost certainty for the government.
What is the long-term effectiveness and maintainability of the installed equipment?
The data does not provide details on the long-term effectiveness or maintainability of the communication and navigation equipment. The contract duration extends to September 2026, suggesting a focus on initial installation and functionality. Information regarding warranties, training, and support plans would be needed to assess long-term value and operational readiness.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4465 SHORE DR, VIRGINIA BEACH, VA, 23455
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $4,307,166
Exercised Options: $4,307,166
Current Obligation: $4,307,166
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-11-29
Current End Date: 2026-09-01
Potential End Date: 2026-09-01 12:42:00
Last Modified: 2026-02-26
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