DoD's $15M receiver-transmitter subassembly contract awarded to ASRC Federal Facilities Logistics LLC

Contract Overview

Contract Amount: $15,027,810 ($15.0M)

Contractor: Asrc Federal Facilities Logistics LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-20

End Date: 2025-12-01

Contract Duration: 712 days

Daily Burn Rate: $21.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSN: 5820-01-694-9702 NOMENCLATURE: RECEIVER-TRANSMITTER SUBASSEMBLY SYSTEM: INC 2 - FALCON LOT BUY

Place of Performance

Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to ASRC FEDERAL FACILITIES LOGISTICS LLC for work described as: NSN: 5820-01-694-9702 NOMENCLATURE: RECEIVER-TRANSMITTER SUBASSEMBLY SYSTEM: INC 2 - FALCON LOT BUY Key points: 1. Contract value appears reasonable given the duration and nature of the components. 2. Full and open competition suggests a healthy market for these specialized subassemblies. 3. The firm-fixed-price structure transfers some risk to the contractor. 4. This contract supports critical communication systems within the Defense Logistics Agency. 5. The North American Industry Classification System (NAICS) code 334419 indicates a focus on electronic component manufacturing. 6. The contract's duration of approximately two years allows for phased delivery and integration.

Value Assessment

Rating: good

The contract value of approximately $15 million over roughly two years for receiver-transmitter subassemblies suggests a moderate per-year expenditure. Benchmarking against similar complex electronic component manufacturing contracts is challenging without more specific technical details. However, the firm-fixed-price nature of the award indicates that the contractor has assumed the risk of cost overruns, which can be a positive indicator of value if the price remains competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely solicited and had the opportunity to bid. The presence of three bidders, as suggested by the 'no' field, points to a competitive environment. This level of competition is generally favorable for price discovery and can lead to more cost-effective pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among suppliers.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, ensuring operational readiness of communication systems. The contract delivers essential receiver-transmitter subassemblies, critical components for electronic warfare and communication platforms. The contract is associated with Pennsylvania (PENNSYLVANIA), suggesting potential manufacturing or distribution activities within that state. The contract supports the defense industrial base, potentially impacting a specialized segment of the electronics manufacturing workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for obsolescence of technology in long-lead time defense contracts.
Dependence on a single contractor for critical subassembly components could pose supply chain risks if not managed proactively.

Positive Signals

Firm-fixed-price contract structure mitigates cost escalation risk for the government.
Full and open competition suggests a robust supplier base and potential for competitive pricing.
The contract is a delivery order under a larger lot buy, indicating potential for economies of scale and streamlined procurement.

Sector Analysis

This contract falls within the broader electronics manufacturing sector, specifically focusing on components for defense applications. The market for specialized receiver-transmitter subassemblies is likely niche, driven by defense requirements and technological advancements in areas like electronic warfare and secure communications. Comparable spending benchmarks would depend on the specific technical specifications and volume, but this award represents a significant investment in a critical defense capability.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if ASRC Federal Facilities Logistics LLC engages them. Without specific subcontracting plans, it's difficult to assess the direct impact on the small business ecosystem, though larger prime contracts often create downstream opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), ensuring compliance with contract terms and financial accountability. The Department of Defense's existing procurement regulations and oversight bodies provide a framework for monitoring performance and ensuring transparency. Inspector General investigations could be initiated if any irregularities or fraud are suspected.

Related Government Programs

Defense Communications Systems
Electronic Warfare Systems
Military Radio and Radar Components
Defense Logistics Agency Procurement

Risk Flags

Potential for supply chain vulnerability if key sub-components are sourced from limited suppliers.
Technological obsolescence risk inherent in defense hardware procurement.
Limited number of bidders (3) may indicate a specialized market or potential barriers to entry.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to ASRC FEDERAL FACILITIES LOGISTICS LLC. NSN: 5820-01-694-9702 NOMENCLATURE: RECEIVER-TRANSMITTER SUBASSEMBLY SYSTEM: INC 2 - FALCON LOT BUY

Who is the contractor on this award?

The obligated recipient is ASRC FEDERAL FACILITIES LOGISTICS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2023-12-20. End: 2025-12-01.

What is the specific technical function and criticality of the 'RECEIVER-TRANSMITTER SUBASSEMBLY' being procured?

The 'RECEIVER-TRANSMITTER SUBASSEMBLY' is a fundamental component in electronic communication and sensing systems. It is responsible for both receiving incoming radio frequency (RF) signals and transmitting outgoing signals. In a defense context, these subassemblies are critical for a wide range of applications, including tactical radios, radar systems, electronic warfare (EW) platforms, and secure communication networks. Their criticality stems from their role in enabling situational awareness, command and control, and the execution of military missions. The specific system mentioned, 'INC 2 - FALCON LOT BUY', suggests this is part of a larger program, likely related to upgrading or maintaining existing communication or EW capabilities, possibly for aircraft or ground-based systems, where reliable and high-performance transmission and reception are paramount.

How does the awarded price of approximately $15 million compare to historical spending on similar receiver-transmitter subassemblies by the DoD?

Direct historical price comparisons for this specific 'RECEIVER-TRANSMITTER SUBASSEMBLY' are difficult without knowing the exact NSN's historical procurement data and the specific technical specifications. However, the contract value of $15,027,809.94 awarded to ASRC FEDERAL FACILITIES LOGISTICS LLC over a period of approximately two years (ending December 1, 2025) suggests an average annual spend of roughly $7.5 million. This figure needs to be contextualized by the quantity of units procured, the complexity of the subassembly, and any associated services like testing or integration. The 'LOT BUY' designation implies a potentially larger quantity purchase than a single-unit order, which could lead to economies of scale. Without access to detailed historical contract databases for this specific NSN or comparable items, a precise benchmark is not feasible, but the amount appears within a reasonable range for specialized defense electronics.

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

Primary risks for this contract include potential technological obsolescence, supply chain disruptions for specialized components, and performance issues with the subassemblies. Given the 'FULL AND OPEN COMPETITION' and 'FIRM FIXED PRICE' (FFP) contract type, some risks are inherently managed. The FFP structure shifts the cost overrun risk to the contractor, incentivizing efficient production. The competitive award suggests multiple sources exist, potentially mitigating single-source dependency, although the 'no': 3 bidders indicates a limited pool. Mitigation strategies likely involve robust quality assurance and testing protocols by the Defense Logistics Agency (DLA), clear performance metrics in the contract, and potentially requiring the contractor to identify and manage their own supply chain risks. The contract duration of approximately two years allows for phased delivery, enabling early detection of issues.

What is the expected impact of this contract on the operational readiness of the Defense Logistics Agency (DLA) or other DoD entities?

This contract is expected to have a positive impact on the operational readiness of the DLA and potentially other Department of Defense (DoD) entities by ensuring the availability of critical receiver-transmitter subassemblies. These components are vital for maintaining and upgrading communication and electronic warfare systems, which are essential for command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) capabilities. By securing a supply of these subassemblies through a competitive process, the DLA ensures that its supported forces have the necessary equipment to operate effectively in various environments. The timely delivery of these components directly supports the maintenance schedules and modernization efforts of various defense platforms, thereby bolstering overall military readiness.

How does the contractor, ASRC FEDERAL FACILITIES LOGISTICS LLC, perform on similar defense contracts, and what is their track record?

ASRC Federal Facilities Logistics LLC is a subsidiary of ASRC Federal, a large government contractor. Information on their specific track record for this particular NSN (5820-01-694-9702) is not publicly detailed in the provided data. However, ASRC Federal as a whole has a significant presence in providing logistics, engineering, IT, and professional services to various government agencies, including the DoD. Their performance on other contracts would typically be assessed through past performance evaluations during the bidding process, which are not detailed here. Generally, large contractors like ASRC Federal have established processes for quality control and contract management. Any concerns regarding their performance would likely be reflected in contract award histories, debriefings, or formal performance reviews, which are not accessible from this summary data.

Industry Classification

NAICS: Manufacturing › Semiconductor and Other Electronic Component Manufacturing › Other Electronic Component Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: 7000 MUIRKIRK MEADOWS DR, BELTSVILLE, MD, 20705

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,027,810

Exercised Options: $15,027,810

Current Obligation: $15,027,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPRBL123D0005

IDV Type: IDC

Timeline