DoD Awards $17.6M for FACSFAC/ATC Systems O&M, Trandes Corp Selected

Contract Overview

Contract Amount: $17,565,257 ($17.6M)

Contractor: Trandes Corp

Awarding Agency: Department of Defense

Start Date: 2011-01-01

End Date: 2017-03-31

Contract Duration: 2,281 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: COMPETITIVE PROCUREMENT OF OPERATIONS AND MAINTENANCE SERVICES SUPPORTING FLEET AREA CONTROL AND SURVEILLANCE FACILITY (FACSFAC) AND AIR TRAFFIC CONTROL (ATC) SYSTEMS AND THEIR REPLACEMENTS. SERVICES IN 14 CURRENT LOCATIONS AND ADDITIONAL LOCATIONS.

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to TRANDES CORP for work described as: COMPETITIVE PROCUREMENT OF OPERATIONS AND MAINTENANCE SERVICES SUPPORTING FLEET AREA CONTROL AND SURVEILLANCE FACILITY (FACSFAC) AND AIR TRAFFIC CONTROL (ATC) SYSTEMS AND THEIR REPLACEMENTS. SERVICES IN 14 CURRENT LOCATIONS AND ADDITIONAL LOCATIONS. Key points: 1. Contract awarded for critical fleet surveillance and air traffic control systems. 2. Trandes Corp secured the contract, indicating potential specialization in this niche. 3. The contract spans 14 locations, suggesting a broad operational footprint. 4. Full and open competition was utilized, promoting market-based pricing. 5. Services include operations, maintenance, and support for system replacements.

Value Assessment

Rating: good

The contract value of $17.6 million over approximately 6 years appears reasonable for specialized engineering services supporting complex systems across multiple locations. Benchmarking against similar large-scale O&M contracts for defense infrastructure would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust process for soliciting bids and achieving competitive pricing. This method allows for the widest possible pool of contractors, driving efficiency and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this procurement is expected to yield fair market value, ensuring taxpayer funds are used efficiently for essential defense infrastructure.

Public Impact

Ensures continued operational readiness of critical fleet surveillance and air traffic control systems. Supports national security by maintaining vital defense infrastructure. Potential for technological upgrades and system modernization through replacement services. Impacts personnel at 14 current and potentially additional locations.

Waste & Efficiency Indicators

Waste Risk Score: 77 / 10

Warning Flags

Contract duration is long (2281 days).
Contract type is Cost Plus Fixed Fee, which can incentivize cost overruns.
Small business participation is not indicated (ss: false, sb: false).

Positive Signals

Full and open competition was utilized.
Services are critical for defense operations.
Contract covers multiple locations, indicating consolidation of services.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and supports critical defense infrastructure related to fleet surveillance and air traffic control. Spending in this sector is often driven by national security requirements and technological advancements.

Small Business Impact

The data indicates that small business participation was not a stated goal or requirement for this contract (ss: false, sb: false). This suggests that the prime contractor, Trandes Corp, is likely a large business, and there may be missed opportunities for small business subcontracting.

Oversight & Accountability

The contract was awarded by the Department of the Navy, a component of the Department of Defense, indicating established oversight mechanisms. However, the Cost Plus Fixed Fee structure warrants close monitoring to ensure cost control and prevent inefficiencies.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Long contract duration.
No indication of small business participation.
Potential for cost overruns.
Reliance on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to TRANDES CORP. COMPETITIVE PROCUREMENT OF OPERATIONS AND MAINTENANCE SERVICES SUPPORTING FLEET AREA CONTROL AND SURVEILLANCE FACILITY (FACSFAC) AND AIR TRAFFIC CONTROL (ATC) SYSTEMS AND THEIR REPLACEMENTS. SERVICES IN 14 CURRENT LOCATIONS AND ADDITIONAL LOCATIONS.

Who is the contractor on this award?

The obligated recipient is TRANDES CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2011-01-01. End: 2017-03-31.

What is the specific breakdown of costs within the Cost Plus Fixed Fee structure, and how is the fixed fee determined?

The Cost Plus Fixed Fee (CPFF) structure means the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Understanding the fee's percentage relative to estimated costs and the specific cost categories allowable is crucial for assessing value. Without this detail, it's difficult to fully evaluate the contractor's incentive for cost efficiency beyond the initial estimate.

What are the risks associated with the long contract duration and the CPFF contract type for system maintenance and replacement?

A long duration (2281 days) combined with CPFF increases the risk of cost escalation due to inflation, unforeseen technical challenges, and potential scope creep. The CPFF structure can reduce the contractor's incentive to control costs, as profit is fixed. This necessitates robust government oversight, clear performance metrics, and potentially regular reviews to manage risks effectively.

How effectively does this procurement strategy ensure the long-term modernization and cost-effectiveness of FACSFAC and ATC systems?

While full and open competition aims for cost-effectiveness, the CPFF structure and long duration may not inherently drive aggressive modernization or long-term cost savings. The focus on operations and maintenance is essential, but the contract's structure should be evaluated against specific modernization goals and lifecycle cost considerations to ensure future-proofing and optimal value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3201

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 4601 PRESIDENTS DR STE 360, LANHAM, MD, 20706

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,957,999

Exercised Options: $19,672,800

Current Obligation: $17,565,257

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4145

IDV Type: IDC

Timeline