DOT's FAA awards $12.9M contract to ITT Corporation for broadcasting equipment, facing full and open competition

Contract Overview

Contract Amount: $12,935,229 ($12.9M)

Contractor: ITT Corporation

Awarding Agency: Department of Transportation

Start Date: 2007-09-13

End Date: 2012-07-30

Contract Duration: 1,782 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MDRS

Place of Performance

Location: MELBOURNE BEACH, BREVARD County, FLORIDA, 32951

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $12.9 million to ITT CORPORATION for work described as: MDRS Key points: 1. Contract value of $12.9M for broadcasting equipment. 2. Awarded under full and open competition. 3. Potential risk associated with firm fixed-price contract. 4. Sector: Information Technology/Communications Equipment.

Value Assessment

Rating: fair

The contract value of $12.9M for broadcasting equipment appears reasonable given the duration and scope. Benchmarking against similar contracts for specialized communication equipment is necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have driven price discovery. The number of offers received (3) is moderate.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the required broadcasting equipment.

Public Impact

Ensures critical communication infrastructure for the Federal Aviation Administration. Supports the manufacturing sector for specialized broadcasting equipment. Potential for technological obsolescence in communication equipment over the contract's lifespan.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Firm Fixed Price contract may not account for unforeseen cost increases.
  • Technology obsolescence risk for broadcasting equipment.

Positive Signals

  • Awarded under full and open competition.
  • Supports a key government function (aviation communication).

Sector Analysis

This contract falls within the IT and Communications Equipment manufacturing sector. Spending benchmarks for similar specialized broadcasting equipment contracts are typically high due to technical requirements and limited suppliers.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to assess small business participation.

Oversight & Accountability

The contract duration of 1782 days (approx. 4.8 years) suggests a need for ongoing oversight to ensure performance and adherence to terms. The award was made in 2007, so current oversight status is unknown.

Related Government Programs

  • Radio and Television Broadcasting and Wireless Communications Equipment Manufacturing
  • Department of Transportation Contracting
  • Federal Aviation Administration Programs

Risk Flags

  • Firm Fixed Price contract risk.
  • Potential for technology obsolescence.
  • Limited number of offers (3) may indicate niche market or limited competition.
  • Long contract duration requires sustained oversight.

Tags

radio-and-television-broadcasting-and-wi, department-of-transportation, fl, do, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.9 million to ITT CORPORATION. MDRS

Who is the contractor on this award?

The obligated recipient is ITT CORPORATION.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $12.9 million.

What is the period of performance?

Start: 2007-09-13. End: 2012-07-30.

What was the specific nature of the broadcasting equipment procured and its criticality to FAA operations?

The specific nature of the broadcasting equipment is not detailed in the provided data. However, given its procurement by the FAA, it is likely critical for air traffic control communications, navigation aids, or surveillance systems. Understanding the exact equipment would clarify its operational importance and the potential impact of any failures or performance issues.

How did the final awarded price compare to the initial bids received under the full and open competition?

The provided data indicates the award value ($12.9M) and the number of offers (3), but not the details of the initial bids. A comparison of the awarded price against the range of bids would reveal the effectiveness of the competition in achieving the best possible price for the government. Without this information, it's difficult to definitively assess price savings.

What measures were in place to mitigate the risk of technological obsolescence for the broadcasting equipment over the contract's nearly 5-year duration?

The contract was awarded in 2007 and ended in 2012, a period where technology evolved rapidly. The firm fixed-price nature might not have incentivized the contractor to upgrade technology unless specified. Oversight would have been crucial to ensure the equipment remained functional and met evolving communication standards, or if provisions for upgrades were included in the contract.

Industry Classification

NAICS: ManufacturingCommunications Equipment ManufacturingRadio 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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7001 N ATLANTIC AVE STE 2, CAPE CANAVERAL, FL, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $5,600,000,000

Exercised Options: $12,935,229

Current Obligation: $12,935,229

Parent Contract

Parent Award PIID: DTFA0101D03009

IDV Type: IDC

Timeline

Start Date: 2007-09-13

Current End Date: 2012-07-30

Potential End Date: 2012-07-30 00:00:00

Last Modified: 2015-01-06

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