DoD awards $3.2M for AN/TPS-70 radar modernization kit to Venetic, Inc. in Florida

Contract Overview

Contract Amount: $3,195,290 ($3.2M)

Contractor: Venetic, Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-02

End Date: 2027-12-03

Contract Duration: 1,096 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS REQUIREMENT IS TO PROCURE, INSTALL, INTEGRATE, AND TEST ONE (1) AN/ TPS-70 NEXT GENERATION TRANSMITTER (NGTX) MODERNIZATION KIT FOR THE RADAR LOCATED AT THE CACOM-2 RADAR SITE IN SAN JOSE DEL GUAVIARE, COLOMBIA.

Place of Performance

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

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $3.2 million to VENETIC, INC for work described as: THIS REQUIREMENT IS TO PROCURE, INSTALL, INTEGRATE, AND TEST ONE (1) AN/ TPS-70 NEXT GENERATION TRANSMITTER (NGTX) MODERNIZATION KIT FOR THE RADAR LOCATED AT THE CACOM-2 RADAR SITE IN SAN JOSE DEL GUAVIARE, COLOMBIA. Key points: 1. Contract focuses on modernizing a specific radar system, indicating a targeted upgrade rather than broad system replacement. 2. The sole-source nature of this award warrants scrutiny regarding potential cost efficiencies and market alternatives. 3. A firm-fixed-price contract type suggests that cost risks are primarily borne by the contractor, which can incentivize efficiency. 4. The duration of nearly three years for installation, integration, and testing points to a complex technical undertaking. 5. The geographic location of the radar site in Colombia highlights the global operational scope of U.S. defense assets. 6. The contract's value is relatively modest for a defense modernization project, suggesting a specific component upgrade.

Value Assessment

Rating: fair

The contract value of $3.2 million for a single radar modernization kit appears within a reasonable range for specialized defense equipment. However, without specific details on the scope of the 'modernization kit' and the baseline performance of the existing system, a precise value-for-money assessment is challenging. Benchmarking against similar radar system upgrades would provide better context, but such data is not readily available for this specific niche technology. The firm-fixed-price structure offers some cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary technical expertise, proprietary technology, or when urgent needs cannot be met through competitive bidding. The lack of competition means the government did not benefit from potential price reductions or innovative solutions that might have emerged from a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid. It also limits opportunities for other qualified businesses to secure government contracts.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Air Force, which will receive an upgraded radar system. The services delivered include the procurement, installation, integration, and testing of a Next Generation Transmitter (NGTX) modernization kit. The upgrade impacts the radar site located in San Jose del Guaviare, Colombia, enhancing its operational capabilities. Workforce implications are likely limited to specialized technical personnel required for the installation and testing phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher price than if the contract had been competed.
Sole-source awards can reduce opportunities for other businesses to participate in government contracting.
The specific nature of the modernization kit and its integration complexity could pose technical risks.
Reliance on a single vendor for critical upgrades can create long-term dependency.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor, potentially leading to better cost control.
Modernizing existing radar systems can extend their operational life and improve performance without full replacement.
The contract specifies clear deliverables: procurement, installation, integration, and testing.
The upgrade targets a specific, critical component (transmitter) of the AN/TPS-70 radar system.

Sector Analysis

The contract falls within the 'Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing' sector. This industry is characterized by high technological complexity, significant R&D investment, and often long product lifecycles. Defense spending in this area is crucial for maintaining national security and technological superiority. Comparable spending benchmarks are difficult to establish without more granular data on specific radar modernization kits, but investments in upgrading aging defense systems are common.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of radar system modernization and the sole-source award, it is unlikely that small businesses would have been primary recipients or subcontractors unless they were part of Venetic, Inc.'s supply chain. Further analysis would be needed to determine if any subcontracting opportunities were mandated or pursued.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified modernization kit within the agreed-upon price. Transparency regarding the justification for the sole-source award and the technical specifications of the kit would be key areas for oversight. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

AN/TPS-70 Radar Systems
Defense Radar Modernization Programs
Air Force Command and Control Systems
Global Surveillance and Reconnaissance Assets

Risk Flags

Sole-source award may indicate limited competition, potentially leading to higher costs.
Integration of new technology into legacy systems can present technical and schedule risks.
Lack of detailed performance metrics in the award data makes value assessment difficult.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.2 million to VENETIC, INC. THIS REQUIREMENT IS TO PROCURE, INSTALL, INTEGRATE, AND TEST ONE (1) AN/ TPS-70 NEXT GENERATION TRANSMITTER (NGTX) MODERNIZATION KIT FOR THE RADAR LOCATED AT THE CACOM-2 RADAR SITE IN SAN JOSE DEL GUAVIARE, COLOMBIA.

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 $3.2 million.

What is the period of performance?

Start: 2024-12-02. End: 2027-12-03.

What is the specific technical scope of the AN/TPS-70 Next Generation Transmitter (NGTX) Modernization Kit, and what are the expected performance improvements?

The provided data indicates the requirement is to procure, install, integrate, and test one (1) AN/TPS-70 Next Generation Transmitter (NGTX) Modernization Kit. While the exact technical specifications of the NGTX kit are not detailed, modernization kits for radar transmitters typically aim to improve signal processing, increase power output, enhance reliability, reduce maintenance requirements, and potentially incorporate digital technologies to replace older analog components. Expected performance improvements could include extended detection range, better target resolution, improved resistance to jamming, and increased operational uptime. Without access to the technical exhibit or statement of work, a precise quantification of these improvements is not possible.

What is the justification for awarding this contract on a sole-source basis to Venetic, Inc.?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent and compelling circumstances. For a specialized component like a Next Generation Transmitter (NGTX) modernization kit for a specific radar system (AN/TPS-70), it is plausible that Venetic, Inc. is the sole entity capable of providing this particular upgrade due to intellectual property rights, unique manufacturing processes, or prior development of the technology. Alternatively, if the existing system is nearing obsolescence and requires immediate upgrades to maintain operational readiness, and only Venetic can provide the necessary kit within the required timeframe, a sole-source justification might be invoked. A formal Justification and Approval (J&A) document would typically detail these reasons.

How does the $3.2 million contract value compare to historical spending on AN/TPS-70 radar system maintenance or upgrades?

Comparing the $3.2 million contract value for this specific NGTX modernization kit to historical spending on the AN/TPS-70 requires access to historical contract data for this particular radar system. The AN/TPS-70 is a relatively older system, and modernization efforts can vary significantly in scope and cost. A single transmitter modernization kit might represent a substantial investment for a specific component upgrade, but it could be a fraction of the cost of a full system overhaul or replacement. Without specific historical data points for similar AN/TPS-70 upgrades or maintenance contracts, it is difficult to definitively benchmark this $3.2 million award. However, for a single, advanced component upgrade, this value is not inherently excessive, though the lack of competition warrants scrutiny.

What are the potential risks associated with integrating a 'Next Generation Transmitter' into an existing AN/TPS-70 radar system?

Integrating a 'Next Generation Transmitter' (NGTX) into an existing AN/TPS-70 radar system presents several potential risks. Firstly, compatibility issues are a primary concern; ensuring the new transmitter seamlessly interfaces with the radar's existing power, cooling, control, and signal processing systems is critical. Secondly, the integration process itself can be complex and time-consuming, potentially leading to schedule delays and cost overruns if unforeseen technical challenges arise. Thirdly, the performance of the integrated system may not meet expectations if the NGTX technology is not fully optimized for the older radar platform. Finally, there's a risk of obsolescence if the NGTX technology itself is new and lacks a proven track record in operational environments, or if future support for the combined system becomes difficult to secure.

What is Venetic, Inc.'s track record with Department of Defense contracts, particularly related to radar systems?

Information regarding Venetic, Inc.'s specific track record with Department of Defense contracts, especially concerning radar systems, is not provided in the data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, types of contracts awarded (e.g., R&D, manufacturing, services), and their success in delivering on those contracts. Without this information, it's challenging to evaluate their experience and capability in handling a project of this nature. Publicly available contract databases (like SAM.gov or FPDS) would typically contain such details, allowing for an analysis of their performance, past issues, and overall reliability as a defense contractor.

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, 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: $3,195,290

Exercised Options: $3,195,290

Current Obligation: $3,195,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline