DHS Coast Guard awards $2.7M contract for antennas and multicouplers to ACG Systems, Inc

Contract Overview

Contract Amount: $2,708,209 ($2.7M)

Contractor: ACG Systems, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-09-23

End Date: 2028-05-02

Contract Duration: 2,413 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MARINE BAND, BROADBAND AND AIR BAND ANTENNAS AND MULTICOUPLERS.

Place of Performance

Location: PORTSMOUTH, PORTSMOUTH CITY County, VIRGINIA, 23703

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $2.7 million to ACG SYSTEMS, INC. for work described as: MARINE BAND, BROADBAND AND AIR BAND ANTENNAS AND MULTICOUPLERS. Key points: 1. Contract awarded for essential communication equipment, supporting Coast Guard operations. 2. ACG Systems, Inc. secured the contract through full and open competition. 3. The contract duration spans over five years, indicating a long-term need. 4. Fixed-price contract type suggests predictable costs for the government. 5. The North American Industry Classification System (NAICS) code 334220 points to a specialized manufacturing sector. 6. This award represents a small portion of overall federal spending in the communications equipment sector.

Value Assessment

Rating: good

The contract value of $2.7 million for antennas and multicouplers appears reasonable given the five-year duration and the specialized nature of the equipment. Benchmarking against similar contracts for advanced communication systems is challenging without more specific technical details. However, the firm fixed-price structure provides cost certainty. The award to a single contractor suggests a competitive process that resulted in a determined price, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, leading to better pricing and innovation. The data does not specify the number of bids received, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government obtains the best value by considering a wide range of qualified vendors.

Public Impact

The U.S. Coast Guard benefits from enhanced communication capabilities, crucial for its maritime security and safety missions. The contract delivers essential broadband and air band antennas and multicouplers, vital for maintaining operational readiness. The geographic impact is national, supporting Coast Guard units across various operational areas. The contract supports the manufacturing sector, potentially involving skilled labor in the production of specialized electronic equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The long contract duration could present risks if technology rapidly evolves beyond the scope of the awarded equipment.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm fixed-price contract type provides cost predictability.
The contractor, ACG Systems, Inc., is established in the relevant industry.

Sector Analysis

This contract falls within the Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing sector (NAICS 334220). This sector is characterized by the production of a wide range of electronic communication equipment. Federal spending in this area supports national security, public safety, and critical infrastructure by ensuring access to reliable communication technologies. Comparable spending benchmarks would depend on the specific technical specifications of the antennas and multicouplers, but federal procurement in this niche is consistent with supporting defense and homeland security agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The primary awardee, ACG Systems, Inc., is likely a larger entity, and the contract's impact on the broader small business ecosystem would be indirect, potentially through supply chain opportunities if ACG engages small businesses as suppliers.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Coast Guard contracting officers and program managers. Accountability measures are embedded in the contract terms, including delivery schedules and performance specifications. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Communications Equipment Procurement
Federal Aviation Administration Air Traffic Control Equipment
National Oceanic and Atmospheric Administration Weather Monitoring Systems

Risk Flags

Potential for technological obsolescence over the contract duration.
Dependence on a single contractor for critical communication components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $2.7 million to ACG SYSTEMS, INC.. MARINE BAND, BROADBAND AND AIR BAND ANTENNAS AND MULTICOUPLERS.

Who is the contractor on this award?

The obligated recipient is ACG 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 $2.7 million.

What is the period of performance?

Start: 2021-09-23. End: 2028-05-02.

What is the track record of ACG Systems, Inc. in fulfilling federal contracts, particularly for communication equipment?

ACG Systems, Inc. has a history of receiving federal contracts, primarily within the Department of Defense and Department of Homeland Security. Their awards often relate to electronic systems, including communication and navigation equipment. While specific performance metrics for past contracts are not detailed in this data, their continued selection for awards suggests a satisfactory performance history. Further analysis would involve reviewing contract performance reports and any documented past performance issues or commendations to fully assess their track record in delivering similar communication hardware and systems.

How does the awarded price compare to market rates for similar antennas and multicouplers?

Benchmarking the exact price against market rates is difficult without precise technical specifications of the antennas and multicouplers. However, the contract value of $2.7 million over approximately five years, awarded through full and open competition, suggests a competitive pricing outcome. The firm fixed-price nature also indicates that the government has secured a defined cost. To perform a more robust comparison, one would need to identify comparable systems procured by other federal agencies or commercial entities, considering factors like frequency range, power output, data rates, and environmental hardening.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include technological obsolescence, given the five-year duration, and potential performance issues with the specialized equipment. Mitigation strategies likely involve clearly defined technical specifications in the contract, rigorous testing and acceptance procedures, and performance-based payment schedules. The firm fixed-price structure also incentivizes the contractor to manage costs and deliver within budget. The Coast Guard's oversight and the potential for contract modifications or termination for default serve as further risk mitigation tools.

How effective is the U.S. Coast Guard in leveraging competition for communication equipment procurement?

The U.S. Coast Guard's use of 'full and open competition' for this contract indicates a commitment to leveraging competition effectively. This approach maximizes the pool of potential bidders, fostering price discovery and innovation. While the number of bidders isn't specified, the process itself is designed to achieve the best value for the government. The Coast Guard's consistent use of competitive procedures for significant procurements suggests a general effectiveness in this area, although specific outcomes can vary based on market dynamics and the complexity of the required equipment.

What is the historical spending trend for similar communication equipment by the U.S. Coast Guard?

Historical spending data for similar communication equipment by the U.S. Coast Guard would reveal trends in procurement volume, average contract values, and the types of systems acquired. Analyzing past awards for antennas, multicouplers, and related radio communication gear would provide context for the $2.7 million award. This could indicate whether spending in this category is increasing, decreasing, or remaining stable, and whether the Coast Guard relies on a consistent set of vendors or frequently seeks new sources.

What is the potential impact of this contract on the wireless communications equipment manufacturing market?

This contract contributes to the overall demand within the wireless communications equipment manufacturing sector. For ACG Systems, Inc., it represents a significant revenue stream and potentially enhances their reputation and capabilities. For the broader market, it signals continued federal investment in advanced communication technologies. The value of $2.7 million, while substantial for the contractor, is likely a small fraction of the total market size, suggesting a limited direct impact on overall market dynamics but potentially influencing specific niche segments related to maritime and defense communications.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70Z04421R21003200

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 133 DEFENSE HWY STE 207, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,927,029

Exercised Options: $2,708,209

Current Obligation: $2,708,209

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B04C19D00000025

IDV Type: IDC

Timeline