Magee Technologies LLC awarded $5.3M contract for RNP/RNAV Installation #1 Validation by the Department of the Navy

Contract Overview

Contract Amount: $5,346,538 ($5.3M)

Contractor: Magee Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2025-07-07

End Date: 2027-03-31

Contract Duration: 632 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RNP/RNAV INSTALLATION #1 VALIDATION

Place of Performance

Location: WICHITA, SEDGWICK County, KANSAS, 67260

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $5.3 million to MAGEE TECHNOLOGIES LLC for work described as: RNP/RNAV INSTALLATION #1 VALIDATION Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a potentially limited but justified bidding process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The duration of 632 days indicates a significant project requiring substantial effort and oversight. 4. The contract is for validation services, crucial for ensuring the reliability and safety of navigation systems. 5. The award to Magee Technologies LLC represents a specific investment in aviation technology modernization within the Navy. 6. The base award amount is $5.3M, with potential for future modifications or task orders.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure costs remain within reasonable bounds. Benchmarking this specific 'RNP/RNAV INSTALLATION #1 VALIDATION' against similar specialized aviation system validation contracts is challenging without more granular data on the scope of work and required expertise. The fixed fee component provides some cost certainty for the contractor's effort, but the overall cost is variable based on direct costs incurred.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while competition was sought, certain sources were excluded, possibly due to specific technical requirements, prior performance, or other justifications. The exact number of bidders and the rationale for exclusions are not detailed, making a full assessment of competition dynamics difficult. This procurement method suggests a need for specialized capabilities that may not be widely available.

Taxpayer Impact: While competition was not fully open, the exclusion of sources was justified, aiming to secure specialized expertise. Taxpayers benefit from ensuring the validation is performed by a capable contractor, mitigating risks associated with critical navigation systems.

Public Impact

The Department of the Navy benefits through the validation of its RNP/RNAV installation, enhancing flight safety and operational efficiency. Aviation personnel and flight crews will utilize validated systems, contributing to safer and more predictable flight operations. The contract supports the modernization of critical aviation infrastructure within the defense sector. The project may indirectly impact the aerospace manufacturing and maintenance workforce through demand for specialized validation services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost escalation if not rigorously managed.
The 'after exclusion of sources' clause in the competition method requires scrutiny to ensure fairness and necessity.
The project duration of over 20 months necessitates sustained oversight to ensure timely and effective completion.

Positive Signals

Awarded by the Department of the Navy, indicating a critical need within a major defense agency.
The contract focuses on validation, a key step in ensuring the safety and reliability of advanced navigation systems.
The base award amount of $5.3M suggests a project of significant scope and importance.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically related to aviation electronics and navigation systems. The market for RNP/RNAV (Required Navigation Performance/Area Navigation) validation services is specialized, driven by regulatory requirements and the continuous need to upgrade and ensure the integrity of aircraft navigation technology. Spending in this niche is often tied to modernization programs and safety mandates within military and civilian aviation.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, and larger, specialized firms were likely the primary focus of the competition. Subcontracting opportunities for small businesses are not explicitly detailed in this award notice.

Oversight & Accountability

Oversight for this contract will be managed by the Department of the Navy. As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is essential to monitor incurred costs against the fixed fee. Accountability measures will likely involve performance reviews, milestone tracking, and adherence to validation protocols. Transparency will depend on the Navy's reporting practices regarding contract performance and expenditures.

Related Government Programs

Naval Aviation Systems
Air Traffic Control and Landing Systems
Aircraft Navigation Equipment Manufacturing
Defense Aviation Modernization Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Competition method 'after exclusion of sources' warrants review for justification.
Project duration necessitates sustained oversight for timely completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.3 million to MAGEE TECHNOLOGIES LLC. RNP/RNAV INSTALLATION #1 VALIDATION

Who is the contractor on this award?

The obligated recipient is MAGEE TECHNOLOGIES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.3 million.

What is the period of performance?

Start: 2025-07-07. End: 2027-03-31.

What is the specific scope of work for RNP/RNAV Installation #1 Validation?

The specific scope of work for 'RNP/RNAV INSTALLATION #1 VALIDATION' involves verifying and confirming the correct installation, configuration, and operational performance of Required Navigation Performance (RNP) and Area Navigation (RNAV) systems. This typically includes testing system accuracy, integrity, and functionality against established standards and operational requirements. It may involve ground testing, flight testing, data analysis, and documentation to ensure the systems meet all safety and performance specifications mandated by aviation authorities and the Department of the Navy. The validation process is critical for certifying the readiness and reliability of these advanced navigation capabilities for operational use.

How does the Cost Plus Fixed Fee (CPFF) structure impact the total cost to the government?

The Cost Plus Fixed Fee (CPFF) contract structure means the government agrees to pay the contractor for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing the contractor's profit. While the fixed fee provides a predictable profit margin for the contractor, the total cost to the government is variable and depends on the actual costs incurred. This structure can incentivize contractors to control costs to maximize their profit margin (as the fee is fixed), but it also places a significant burden on the government to meticulously audit and approve all claimed costs. Without strong oversight, the total cost can exceed initial estimates if costs are not managed effectively.

What are the implications of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation implies that the government initially intended to conduct a broad competition but subsequently excluded certain potential offerors. This exclusion must be justified, often based on specific technical capabilities, unique qualifications, or prior performance requirements that only a limited number of contractors can meet. While it allows for competition among the remaining eligible sources, it suggests that the pool of qualified bidders was smaller than in a truly open competition. This can potentially impact price discovery and may indicate a reliance on specialized expertise that is not widely available in the market.

What is the track record of Magee Technologies LLC with similar government contracts?

Information regarding Magee Technologies LLC's specific track record with similar government contracts, particularly in RNP/RNAV validation or complex aviation system integration, is not provided in the initial data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., CPARS), contract history, and any reported issues or successes on previous Department of Defense or other federal agency awards. Understanding their experience with CPFF contracts and their ability to manage costs and deliver on schedule would be crucial for evaluating their suitability for this project.

How does this $5.3M award compare to historical spending on RNP/RNAV validation by the Navy?

Comparing this $5.3 million award for RNP/RNAV Installation #1 Validation to historical Navy spending requires access to detailed historical contract data for similar services. Without specific historical figures for RNP/RNAV validation contracts, it's difficult to benchmark this award. However, the amount suggests a significant investment in a critical safety and operational capability. Trends in aviation technology adoption, regulatory changes, and fleet modernization programs would influence the level and frequency of such spending over time. This single award represents a specific project, and broader historical context would reveal patterns of investment in navigation system validation.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns due to the CPFF structure, schedule delays impacting operational readiness, and technical challenges in validating complex navigation systems. Mitigation strategies likely involve robust government oversight of incurred costs, detailed performance metrics and milestones, and stringent quality assurance processes for the validation work. The 'exclusion of sources' competition method also carries a risk of limiting the best possible solution if not properly justified. The contractor's technical expertise and past performance are key factors in mitigating technical risks.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042123R0051

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 44425 PECAN CT, CALIFORNIA, MD, 20619

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,346,538

Exercised Options: $5,346,538

Current Obligation: $5,346,538

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042124D0019

IDV Type: IDC

Timeline