DoD Awards $5.78M Contract for Colombian FMS Radar Upgrades to Venetic, Inc

Contract Overview

Contract Amount: $5,777,866 ($5.8M)

Contractor: Venetic, Inc

Awarding Agency: Department of Defense

Start Date: 2023-10-23

End Date: 2025-12-31

Contract Duration: 800 days

Daily Burn Rate: $7.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: COLOMBIA FMS RADAR UPGRADES

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33166

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.8 million to VENETIC, INC for work described as: COLOMBIA FMS RADAR UPGRADES Key points: 1. Contract awarded to Venetic, Inc. for radar upgrades. 2. Significant value of $5.78 million for Foreign Military Sales. 3. Limited competition due to contract type and vendor. 4. Focus on Search, Detection, Navigation, Guidance systems.

Value Assessment

Rating: fair

The contract value of $5.78 million for radar upgrades appears reasonable given the specialized nature of FMS requirements. Benchmarking against similar FMS radar upgrade contracts is difficult without more specific data on system complexity and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, suggesting a limited or sole-source approach. This limits price discovery and potentially increases costs for taxpayers compared to a fully competitive process.

Taxpayer Impact: The limited competition may result in a higher cost to the Colombian government, indirectly impacting U.S. taxpayer funds allocated for FMS programs.

Public Impact

Enhances radar capabilities for a foreign partner, potentially improving regional security. Supports U.S. foreign military sales objectives and defense industrial base. Funds specialized technology development and manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing

Positive Signals

Supports allied defense capabilities
Utilizes specialized industry expertise

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on electronic systems and instrumentation. Spending in this area is driven by national security needs and international partnerships.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. Further analysis would be needed to determine if subcontracting opportunities exist.

Oversight & Accountability

Oversight will be crucial to ensure the contractor meets performance requirements and that the funds are used efficiently, especially given the limited competition.

Related Government Programs

Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition
Potential for cost escalation
Lack of detailed technical specifications
Foreign Military Sales complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.8 million to VENETIC, INC. COLOMBIA FMS RADAR UPGRADES

Who is the contractor on this award?

The obligated recipient is VENETIC, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $5.8 million.

What is the period of performance?

Start: 2023-10-23. End: 2025-12-31.

What is the specific radar system being upgraded and what are the key performance improvements expected?

The specific radar system is not detailed in the provided data. However, the contract aims to upgrade Search, Detection, Navigation, Guidance, Aeronautical, and Nautical systems. Expected improvements likely include enhanced detection range, accuracy, and potentially new functionalities to meet evolving operational requirements for the Colombian Air Force.

What are the risks associated with awarding this contract without full and open competition?

The primary risk of limited competition is the potential for inflated pricing due to a lack of market pressure. It also reduces the opportunity for innovative solutions from a wider range of vendors and may lead to vendor lock-in. Ensuring fair pricing and performance requires robust government oversight and negotiation.

How does this upgrade contribute to the overall effectiveness of Colombia's defense capabilities?

Upgraded radar systems are critical for modern air defense, surveillance, and navigation. This contract likely enhances Colombia's ability to monitor its airspace, detect threats, and conduct operations more effectively, contributing to national security and regional stability. The specific impact depends on the capabilities of the upgraded system.

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: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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: 7255 NW 68TH ST STE 17, MIAMI, FL, 33166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,777,866

Exercised Options: $5,777,866

Current Obligation: $5,777,866

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline