Department of Transportation awards $43.5M contract for Iraqi railway digital communications network to MAFEKS INTERNATIONAL LLC

Contract Overview

Contract Amount: $43,537,560 ($43.5M)

Contractor: Mafeks International LLC

Awarding Agency: Department of Transportation

Start Date: 2006-09-20

End Date: 2012-07-25

Contract Duration: 2,135 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THIS PROJECT WILL ENTAIL DESIGNING A TURNKEY DIGITAL MICROWAVE RADIO COMMUNICATIONS NETWORK (DMRCN) THAT WILL FUNCTION AS THE COMMUNICATIONS BACKBONE FOR THE IRAQI REPUBLIC RAILWAY FROM UMM QASR TO RABIYA THROUGH BAGHDAD, IRAQ. THIS WILL CONSIST OF INSTALLING RADIO ANTENNAS, EQUIPMENT SHELTERS, POWER SYSTEMS AND COMMUNICATIONS EQUIPMENT AT AN ESTIMATED TWENTY-ONE (21) LOCATIONS FROM UMM QASR TO BALAD, IRAQ. THIS PROJECT WILL ALSO CONSIST OF INSTALLING AND INTEGRATING THE DMRCN WITH AN EXISTING COMMUNICATIONS-BASED TRAIN CONTROL SYSTEM.

Place of Performance

Location: BOCA RATON, PALM BEACH County, FLORIDA, 33431

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $43.5 million to MAFEKS INTERNATIONAL LLC for work described as: THIS PROJECT WILL ENTAIL DESIGNING A TURNKEY DIGITAL MICROWAVE RADIO COMMUNICATIONS NETWORK (DMRCN) THAT WILL FUNCTION AS THE COMMUNICATIONS BACKBONE FOR THE IRAQI REPUBLIC RAILWAY FROM UMM QASR TO RABIYA THROUGH BAGHDAD, IRAQ. THIS WILL CONSIST OF INSTALLING RADIO ANTENNAS, EQU… Key points: 1. Contract aims to establish a critical communications backbone for the Iraqi Republic Railway, enhancing operational efficiency and safety. 2. The project involves significant infrastructure development, including installation of equipment at multiple locations across Iraq. 3. The firm fixed-price contract structure suggests a defined scope and cost, though potential for cost overruns exists in complex environments. 4. Competition was full and open, indicating a broad market search and potential for competitive pricing. 5. The contract duration of over 5 years highlights the long-term nature of infrastructure projects in challenging geopolitical regions. 6. Performance will be closely monitored given the critical nature of the communication network for railway operations.

Value Assessment

Rating: fair

The contract value of $43.5 million for a digital microwave radio communications network across a significant railway line in Iraq appears substantial. Benchmarking this against similar international infrastructure projects is difficult due to unique geopolitical and logistical factors. The firm fixed-price nature provides some cost certainty, but the complexity of deployment in Iraq could lead to unforeseen expenses. Value for money will ultimately depend on the successful and timely delivery of a robust and reliable communication system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The number of bidders is not specified, but this approach generally fosters competitive pricing and encourages a wider pool of qualified contractors. The open competition is a positive indicator for price discovery and ensuring the government receives competitive offers for complex infrastructure projects.

Taxpayer Impact: Taxpayers benefit from the potential for a more competitive price due to the open bidding process. This approach aims to prevent inflated costs and ensure that public funds are used efficiently.

Public Impact

The Iraqi Republic Railway will benefit from an upgraded, reliable communication system, improving train control and operational safety. The project will deliver a digital microwave radio communications network serving as the backbone for railway operations from Umm Qasr to Rabiya. Geographic impact is concentrated along the Iraqi railway line, specifically from Umm Qasr to Baghdad and extending to Rabiya. Workforce implications may include the need for specialized technical personnel for installation, integration, and maintenance, potentially involving both local and international labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in Iraq could impact project timelines, costs, and the safety of personnel.
Logistical challenges in delivering equipment and personnel to remote locations within Iraq may arise.
Integration with existing, potentially outdated, communication systems could present technical hurdles.
The long duration of the contract increases exposure to changing economic conditions and currency fluctuations.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government, assuming the scope remains unchanged.
Full and open competition suggests a robust market search, potentially leading to better pricing and quality.
The contract addresses a critical infrastructure need for the Iraqi railway system, indicating strategic importance.
The contractor, MAFEKS INTERNATIONAL LLC, is tasked with a comprehensive design and implementation, suggesting a high level of capability.

Sector Analysis

This contract falls within the telecommunications infrastructure sector, specifically focusing on specialized radio communications for transportation networks. The market for such systems involves a mix of large defense contractors and specialized communication firms. The value of this contract is significant for a project of this nature, especially considering the challenging operating environment. Comparable spending benchmarks are scarce for projects of this scale and location, making direct comparisons difficult.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not explicitly detailed in the provided data. Without this information, it is difficult to assess the impact on the small business ecosystem. Typically, large infrastructure contracts may include provisions for small business subcontracting, but this needs specific confirmation.

Oversight & Accountability

Oversight for this contract would likely be managed by the Department of Transportation's contracting officers and potentially the Immediate Office of the Secretary of Transportation. Given the international nature and significant value, robust oversight mechanisms would be expected to ensure compliance, manage risks, and verify performance. Transparency would be facilitated through contract reporting requirements, though specific details on public accessibility are not provided.

Related Government Programs

Iraqi Republic Railway Modernization Projects
US Department of Transportation International Programs
Global Communications Infrastructure Contracts
Defense Communications Systems (analogous technology)

Risk Flags

Geopolitical Risk
Logistical Complexity
Integration Challenges
Long-Term Performance Dependency
Security Concerns

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $43.5 million to MAFEKS INTERNATIONAL LLC. THIS PROJECT WILL ENTAIL DESIGNING A TURNKEY DIGITAL MICROWAVE RADIO COMMUNICATIONS NETWORK (DMRCN) THAT WILL FUNCTION AS THE COMMUNICATIONS BACKBONE FOR THE IRAQI REPUBLIC RAILWAY FROM UMM QASR TO RABIYA THROUGH BAGHDAD, IRAQ. THIS WILL CONSIST OF INSTALLING RADIO ANTENNAS, EQUIPMENT SHELTERS, POWER SYSTEMS AND COMMUNICATIONS EQUIPMENT AT AN ESTIMATED TWENTY-ONE (21) LOCATIONS FROM UMM QASR TO BALAD, IRAQ. THIS PROJECT WILL ALSO CONSIST OF INSTALLING AND INTEGRATING THE DMRCN WITH AN EXISTING

Who is the contractor on this award?

The obligated recipient is MAFEKS INTERNATIONAL LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Immediate Office of the Secretary of Transportation).

What is the total obligated amount?

The obligated amount is $43.5 million.

What is the period of performance?

Start: 2006-09-20. End: 2012-07-25.

What is the track record of MAFEKS INTERNATIONAL LLC in executing large-scale international communication infrastructure projects?

Assessing MAFEKS INTERNATIONAL LLC's track record requires a review of their past performance on similar contracts. Information on their experience with digital microwave radio communications networks, particularly in complex or post-conflict environments like Iraq, would be crucial. A detailed analysis would involve examining project completion rates, adherence to budget and schedule, client satisfaction, and any history of contract disputes or performance issues. Without specific data on their prior projects, it's challenging to definitively gauge their capability to successfully deliver this critical infrastructure.

How does the $43.5 million cost compare to similar digital communication network projects in other regions?

Direct cost comparisons for digital microwave radio communications networks are challenging due to significant variations in project scope, technology employed, labor costs, security requirements, and logistical complexities across different regions. A $43.5 million contract for a network spanning hundreds of kilometers in Iraq is substantial. To benchmark effectively, one would need to identify projects with comparable network length, number of nodes, technology generation, and the specific challenges of the operating environment. Projects in less volatile regions or with simpler deployment needs might cost less per kilometer, but this contract's value must be considered within its unique context.

What are the primary risks associated with deploying this communication network in Iraq?

The primary risks associated with deploying this communication network in Iraq are multifaceted. Security risks are paramount, including potential threats to personnel and equipment due to ongoing instability. Logistical challenges are significant, involving the transportation of sensitive equipment and personnel across potentially difficult terrain and through various checkpoints. Technical risks include integrating the new digital system with potentially aging existing infrastructure and ensuring interoperability. Furthermore, political and economic instability could impact project continuity, funding, and the long-term sustainability of the network. Contractor performance and unforeseen environmental factors also represent risks.

How will the success of this communication network be measured?

The success of this communication network will likely be measured against several key performance indicators (KPIs) defined in the contract. These would typically include network availability and uptime (e.g., 99.9% reliability), data transmission speeds and capacity, latency, signal strength and coverage across the designated railway line, and the successful integration with the existing train control system. Timely completion of installation and commissioning phases, adherence to budget, and overall system performance under operational load will also be critical metrics. User feedback from the Iraqi Republic Railway operations staff will provide qualitative insights into the network's effectiveness.

What has been the historical spending by the Department of Transportation on similar international infrastructure projects?

Historical spending by the Department of Transportation (DOT) on international infrastructure projects, particularly those involving telecommunications or railway modernization in foreign countries, is not a primary focus of their domestic mandate. While DOT does engage in international cooperation and technical assistance, large-scale capital investments like this Iraqi railway network are less common and may be handled through specific interagency agreements or foreign aid mechanisms, potentially involving other US government departments like the State Department or USAID. Analyzing DOT's specific historical spending in this niche area would require delving into specialized program data beyond typical domestic transportation infrastructure budgets.

What are the potential long-term implications for the Iraqi Republic Railway's operational efficiency and safety?

The long-term implications for the Iraqi Republic Railway's operational efficiency and safety are expected to be significantly positive. A modern digital microwave radio communications network will provide real-time voice and data capabilities, enabling better coordination between train operators, dispatchers, and maintenance crews. This enhanced communication is crucial for efficient train scheduling, reducing delays, and improving overall throughput. Critically, it supports advanced train control systems, which can prevent collisions and improve safety margins. Reliable communication is fundamental to modern railway operations, and its implementation should lead to a more secure, efficient, and dependable rail service for Iraq.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 621 NW 53RD ST STE 360, BOCA RATON, FL, 33487

Business Categories: Category Business, Emerging Small Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $44,922,874

Exercised Options: $44,922,874

Current Obligation: $43,537,560

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline