DHS Coast Guard Awards $2.1M for Navigation Equipment to Virginia Electronic Systems

Contract Overview

Contract Amount: $2,138,776 ($2.1M)

Contractor: Virginia Electronic Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2025-03-10

End Date: 2026-03-09

Contract Duration: 364 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SRI LANKA CE-P-SAK COMNAV EQUIPMENT

Place of Performance

Location: CURTIS BAY, ANNE ARUNDEL County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.1 million to VIRGINIA ELECTRONIC SYSTEMS, INC. for work described as: SRI LANKA CE-P-SAK COMNAV EQUIPMENT Key points: 1. Contract awarded for critical navigation equipment to the U.S. Coast Guard. 2. Virginia Electronic Systems, Inc. is the sole awardee. 3. The contract is for a firm-fixed-price definitive contract. 4. The award is for a duration of 364 days.

Value Assessment

Rating: fair

The contract value of $2.14 million for navigation equipment appears reasonable given the specialized nature of the systems. However, without specific details on the equipment's capabilities and the number of units procured, a precise benchmark is difficult. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive bidding process. The justification for sole-source procurement is not provided.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for this essential navigation equipment.

Public Impact

Ensures operational readiness of U.S. Coast Guard vessels. Supports critical search, detection, and navigation functions. Maintains safety and security of maritime operations. Potential for increased costs due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 58 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of justification for sole-source procurement.
Potential for higher costs impacting taxpayer value.

Positive Signals

Essential equipment for Coast Guard operations.
Firm-fixed-price contract provides cost certainty.
Contract duration aligns with operational needs.

Sector Analysis

The procurement falls under the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. Spending in this area is crucial for national security and maritime safety. Benchmarks are difficult without specific equipment details, but specialized systems often command higher prices.

Small Business Impact

The awardee, Virginia Electronic Systems, Inc., is not identified as a small business. There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the justification was sound and that fair market value was obtained. Accountability for the procurement process and cost-effectiveness should be a focus.

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

Sole-source award without clear justification.
Potential for inflated pricing due to lack of competition.
Limited transparency on specific equipment capabilities.
No apparent small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.1 million to VIRGINIA ELECTRONIC SYSTEMS, INC.. SRI LANKA CE-P-SAK COMNAV EQUIPMENT

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 $2.1 million.

What is the period of performance?

Start: 2025-03-10. End: 2026-03-09.

What is the specific justification for awarding this contract on a sole-source basis, and was a market research conducted to confirm no other vendors could meet the requirement?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. However, the specific justification for this determination is absent. A thorough review of the agency's market research and justification for sole-source procurement is necessary to ensure compliance with federal acquisition regulations and to confirm that taxpayers are receiving fair value.

How does the unit cost of this navigation equipment compare to similar systems procured competitively by other government agencies or in the commercial market?

Without detailed specifications of the 'SRI LANKA CE-P-SAK COMNAV EQUIPMENT' and the quantity procured, a direct unit cost comparison is challenging. The firm-fixed-price nature of the contract provides cost certainty, but the lack of competition means the government may not have achieved the lowest possible price. Benchmarking against similar, competitively procured systems would be essential for a comprehensive value assessment.

What is the expected impact of this navigation equipment on the operational effectiveness and safety of the U.S. Coast Guard's missions?

This contract is for essential navigation equipment, directly supporting the U.S. Coast Guard's core missions of search, detection, and guidance. Reliable and advanced navigation systems are critical for operational effectiveness, ensuring vessels can safely and efficiently patrol U.S. waters, interdict illegal activities, and respond to emergencies. The equipment's performance is therefore directly linked to the agency's ability to fulfill its mandate.

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: COMM/DETECT/COHERENT RADIATION

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,138,776

Exercised Options: $2,138,776

Current Obligation: $2,138,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline