FAA Awards Northrop Grumman $33.6M for Voice Switching Support, Competition Limited
Contract Overview
Contract Amount: $33,581,629 ($33.6M)
Contractor: Sonoma Photonics, Inc
Awarding Agency: Department of Transportation
Start Date: 2015-09-28
End Date: 2021-04-30
Contract Duration: 2,041 days
Daily Burn Rate: $16.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE FEDERAL AVIATION ADMINISTRATION AWARDS NORTHROP GRUMMAN SYSTEMS CORPORATION (NGSC) A CONTRACT FOR MAINTENANCE AND LOGISTICS SUPPORT OF NORTHROP GRUMMAN-MANUFACTURED RAPID DEPLOYMENT VOICE SWITCHIN IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591
Plain-Language Summary
Department of Transportation obligated $33.6 million to SONOMA PHOTONICS, INC for work described as: THE FEDERAL AVIATION ADMINISTRATION AWARDS NORTHROP GRUMMAN SYSTEMS CORPORATION (NGSC) A CONTRACT FOR MAINTENANCE AND LOGISTICS SUPPORT OF NORTHROP GRUMMAN-MANUFACTURED RAPID DEPLOYMENT VOICE SWITCHIN IGF::OT::IGF Key points: 1. Contract value of $33.6M for maintenance and logistics. 2. Limited competition may impact price discovery. 3. Risk of vendor lock-in due to reliance on manufacturer-specific equipment. 4. IT/Communications sector spending benchmark analysis needed.
Value Assessment
Rating: fair
The contract value of $33.6M for a 6.7-year period suggests a moderate annual spend. Benchmarking against similar maintenance and logistics contracts for specialized communication equipment is necessary to assess pricing fairness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under limited competition, potentially to Northrop Grumman Systems Corporation as the original equipment manufacturer. This limits price discovery and may lead to higher costs compared to a fully open competition.
Taxpayer Impact: Limited competition can result in higher costs for taxpayers if effective price negotiation is not achieved.
Public Impact
Ensures continued operational readiness of critical FAA communication systems. Supports the maintenance of specialized voice switching equipment. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for sole-source reliance
- Long contract duration
Positive Signals
- Supports critical FAA infrastructure
- Firm Fixed Price contract type
Sector Analysis
This contract falls within the IT and Communications sector, specifically for the repair and maintenance of communication equipment. Spending benchmarks for similar government contracts supporting complex communication systems are essential for evaluating value.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small businesses had an opportunity to participate in the limited competition.
Oversight & Accountability
Oversight by the Federal Aviation Administration is crucial to ensure contract performance and manage costs, especially given the limited competition. Regular performance reviews and cost audits are recommended.
Related Government Programs
- Communication Equipment Repair and Maintenance
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition may lead to inflated pricing.
- Potential for vendor lock-in due to proprietary technology.
- Contract duration extends over multiple fiscal years.
- Lack of small business participation noted.
Tags
communication-equipment-repair-and-maint, department-of-transportation, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $33.6 million to SONOMA PHOTONICS, INC. THE FEDERAL AVIATION ADMINISTRATION AWARDS NORTHROP GRUMMAN SYSTEMS CORPORATION (NGSC) A CONTRACT FOR MAINTENANCE AND LOGISTICS SUPPORT OF NORTHROP GRUMMAN-MANUFACTURED RAPID DEPLOYMENT VOICE SWITCHIN IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is SONOMA PHOTONICS, INC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $33.6 million.
What is the period of performance?
Start: 2015-09-28. End: 2021-04-30.
What is the specific technical justification for limiting competition for this maintenance and logistics support contract?
The justification for limited competition likely stems from the specialized nature of Northrop Grumman-manufactured Rapid Deployment Voice Switching equipment. Maintaining and supporting such proprietary systems often requires specific technical expertise, proprietary knowledge, or access to unique parts and diagnostics that only the original manufacturer or an authorized agent possesses, thus limiting the pool of eligible contractors.
How does the firm fixed price (FFP) contract type mitigate risks associated with potential cost overruns in this limited competition scenario?
The Firm Fixed Price (FFP) contract type shifts the risk of cost overruns to the contractor, Northrop Grumman Systems Corporation. This means the government pays a set price regardless of the contractor's actual costs. While this protects the government from unexpected cost increases, it also necessitates careful negotiation upfront to ensure the fixed price is fair and reasonable, especially given the limited competitive landscape.
What are the potential long-term implications for the FAA's communication system modernization if maintenance is tied to a single vendor's proprietary technology?
Tying maintenance to a single vendor's proprietary technology can create vendor lock-in, potentially hindering future system modernization efforts. The FAA might face challenges integrating newer, potentially more cost-effective technologies from other vendors or negotiating favorable upgrade paths. This reliance could also lead to escalating maintenance costs over time if the vendor faces limited competitive pressure.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
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
Parent Company: Northrop Grumman Corporation
Address: 1750 NORTHPOINT PKWY STE C, SANTA ROSA, CA, 95407
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,754,252
Exercised Options: $33,581,629
Current Obligation: $33,581,629
Actual Outlays: $3,985,746
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-09-28
Current End Date: 2021-04-30
Potential End Date: 2023-10-06 00:00:00
Last Modified: 2023-09-06
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