DoD Awards $5.2M Firm Fixed Price Contract for Iraq ILS/DME System to Indra Air Traffic

Contract Overview

Contract Amount: $5,225,539 ($5.2M)

Contractor: Indra AIR Traffic, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-09

End Date: 2026-12-08

Contract Duration: 2,709 days

Daily Burn Rate: $1.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, INSTALL INSTRUMENT LANDING SYSTEM (ILS)/DISTANCE MEASURING EQUIPMENT (DME) FMS CASE IQ-D-QBE (IRAQ)

Place of Performance

Location: OVERLAND PARK, JOHNSON County, KANSAS, 66214

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $5.2 million to INDRA AIR TRAFFIC, INC. for work described as: DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, INSTALL INSTRUMENT LANDING SYSTEM (ILS)/DISTANCE MEASURING EQUIPMENT (DME) FMS CASE IQ-D-QBE (IRAQ) Key points: 1. Contract awarded to Indra Air Traffic, Inc. for Instrument Landing System (ILS)/Distance Measuring Equipment (DME) in Iraq. 2. The contract is a definitive contract with a firm fixed price type. 3. The contract duration is 2709 days, with an estimated completion date of December 8, 2026. 4. This contract was not available for competition, raising potential concerns about price discovery. 5. The primary agency is the Department of the Air Force within the Department of Defense.

Value Assessment

Rating: questionable

The contract is a firm fixed price type, which shifts risk to the contractor. However, without competitive bidding, it's difficult to assess if the $5.2M price is optimal or if it reflects market value for similar ILS/DME systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This lack of competition may have hindered effective price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: The absence of competition raises concerns about whether taxpayers received the best possible value for this essential aviation infrastructure.

Public Impact

Ensures critical aviation navigation infrastructure for U.S. forces or allies in Iraq. Supports safe aircraft operations in potentially challenging weather conditions. Long contract duration suggests a significant, long-term need for the system's functionality. Potential for cost overruns or inefficiencies due to lack of competitive pressure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Long contract duration
Foreign Military Sales case

Positive Signals

Firm Fixed Price contract type
Essential aviation infrastructure

Sector Analysis

This contract falls under the Communication Equipment Repair and Maintenance sector, specifically for aviation navigation systems. Spending benchmarks for similar ILS/DME systems are difficult to ascertain without competitive data, but large-scale FMS procurements often involve significant investment.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). The prime contractor, Indra Air Traffic, Inc., is likely a large business, and there is no indication of subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight will be crucial given the sole-source nature of the award and the long duration. The Department of Defense and the Air Force must ensure rigorous monitoring of performance, costs, and adherence to contract terms to safeguard taxpayer funds.

Related Government Programs

Communication Equipment Repair and Maintenance
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Lack of competitive bidding
Potential for price inflation
Long contract duration may lead to obsolescence
Limited transparency on justification for limited competition
Foreign Military Sales case complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.2 million to INDRA AIR TRAFFIC, INC.. DESIGN, DEVELOP, FABRICATE, INTEGRATE, TEST, INSTALL INSTRUMENT LANDING SYSTEM (ILS)/DISTANCE MEASURING EQUIPMENT (DME) FMS CASE IQ-D-QBE (IRAQ)

Who is the contractor on this award?

The obligated recipient is INDRA AIR TRAFFIC, 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 $5.2 million.

What is the period of performance?

Start: 2019-07-09. End: 2026-12-08.

What is the justification for limiting competition on this critical aviation system procurement?

The justification for limiting competition is not provided in the data. Typically, sole-source or limited competition awards occur when only one vendor possesses the necessary technology, expertise, or security clearance, or in urgent situations. Further investigation into the specific circumstances surrounding this FMS case is needed to understand the rationale and ensure it was appropriate.

What are the potential risks associated with a long-term, non-competitive contract for navigation equipment?

Risks include inflated pricing due to lack of market pressure, potential for contractor complacency leading to lower quality or delayed delivery, and difficulty in adapting to technological advancements during the contract's long lifespan. Without competition, there's less incentive for the contractor to innovate or offer cost savings.

How will the effectiveness of the ILS/DME system be measured and ensured over its operational life?

Effectiveness will be measured through performance metrics outlined in the contract, such as system uptime, accuracy, and compliance with aviation standards. Regular testing, maintenance, and potential upgrades will be critical. The Air Force must establish clear acceptance criteria and conduct post-installation evaluations to confirm the system meets operational requirements.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Communication Equipment Repair and Maintenance

Product/Service Code: AEROSPACE CRAFT LAUNCHING, LANDING, GROUND HANDLING AND SERVICING EQUIPMENT

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: 11300 W 89TH ST, OVERLAND PARK, KS, 66214

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,284,824

Exercised Options: $5,284,824

Current Obligation: $5,225,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline