DoD awards $4.95M contract for aircraft parts to Frontier Electronic Systems Corp

Contract Overview

Contract Amount: $4,951,937 ($5.0M)

Contractor: Frontier Electronic Systems Corp

Awarding Agency: Department of Defense

Start Date: 2026-01-08

End Date: 2030-01-15

Contract Duration: 1,468 days

Daily Burn Rate: $3.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DISPLAY UNIT

Place of Performance

Location: STILLWATER, PAYNE County, OKLAHOMA, 74074

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $5.0 million to FRONTIER ELECTRONIC SYSTEMS CORP for work described as: DISPLAY UNIT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. Long contract duration of nearly 5 years may indicate a need for sustained support. 3. Fixed-price contract type suggests cost certainty for the government. 4. The award is for aircraft parts, a critical component for military readiness. 5. Contractor has a history of receiving government awards, suggesting established performance. 6. Geographic location of awardee in Oklahoma may have local economic implications.

Value Assessment

Rating: fair

The contract value of $4.95 million for aircraft parts over nearly five years appears moderate. Without specific details on the parts or quantities, a direct comparison to similar contracts is challenging. However, the sole-source nature of the award means that competitive pricing benchmarks are unavailable, potentially leading to a less favorable price than if the contract had been competed. Further analysis would require understanding the specific components and their market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Frontier Electronic Systems Corp., was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of multiple bidders limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may not be receiving the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is reduced when only one option is considered.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential aircraft parts. This contract supports the operational readiness of military aircraft. The geographic impact is primarily in Oklahoma, where Frontier Electronic Systems Corp. is located. The contract supports jobs within the aerospace manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Long contract duration could lead to price increases if market conditions change unfavorably.
Lack of transparency in the sole-source justification requires scrutiny.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to an established contractor may indicate reliability and quality.
Contract supports critical defense logistics and aircraft maintenance.

Sector Analysis

This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. The North American Industry Classification System (NAICS) code 336413, 'Other Aircraft Parts and Auxiliary Equipment Manufacturing,' indicates a specialized segment of the industry. The total federal spending in this sector is substantial, with numerous contracts awarded annually for various aircraft components and support services. This award represents a small portion of that overall spending, but is crucial for the specific needs of the Defense Logistics Agency.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. Frontier Electronic Systems Corp. is not explicitly identified as a small business in the provided data. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA), which is responsible for procuring and managing supplies for the U.S. Armed Forces. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency regarding the sole-source justification would be crucial for assessing the procurement process. Inspector General oversight may be involved if any performance or financial irregularities are suspected.

Related Government Programs

Defense Logistics Agency Procurement
Aircraft Parts Manufacturing
Military Aircraft Support Equipment
Sole-Source Defense Contracts

Risk Flags

Sole-source award
Lack of competitive bidding
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.0 million to FRONTIER ELECTRONIC SYSTEMS CORP. DISPLAY UNIT

Who is the contractor on this award?

The obligated recipient is FRONTIER ELECTRONIC SYSTEMS CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.0 million.

What is the period of performance?

Start: 2026-01-08. End: 2030-01-15.

What specific aircraft parts are being procured under this contract, and what is their criticality to military operations?

The provided data does not specify the exact aircraft parts being procured under this contract, only that they fall under NAICS code 336413 (Other Aircraft Parts and Auxiliary Equipment Manufacturing). The criticality to military operations is implied by the awarding agency, the Defense Logistics Agency (DLA), which supports the U.S. Armed Forces. DLA's mission is to provide logistical support, suggesting these parts are essential for maintaining the operational readiness and functionality of military aircraft. Without further details, it's impossible to ascertain the specific impact on particular aircraft platforms or mission sets. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to identify the precise components and their strategic importance.

What is the justification for awarding this contract on a sole-source basis, and were alternative sources considered?

The provided data indicates the contract was awarded as 'NOT COMPETED,' which typically signifies a sole-source or limited competition scenario. The specific justification for this sole-source award is not detailed in the abbreviated data. Common reasons for sole-source awards include the unavailability of other responsible sources, the need for compatibility with existing systems, urgent and compelling requirements, or specific government property requirements. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to determine if alternative sources were considered or why they were deemed unsuitable. This lack of competitive bidding raises concerns about potential overpricing and reduced value for taxpayer money.

How does the pricing of this contract compare to similar aircraft parts procured by the government or in the commercial market?

Directly comparing the pricing of this $4.95 million contract to similar aircraft parts is challenging without knowing the specific items, quantities, and quality standards. The contract is awarded on a firm fixed-price basis, which aims to provide cost certainty. However, because it was a sole-source award, there is no competitive benchmark to assess if the price is optimal. To conduct a thorough comparison, one would need to identify comparable parts procured through competitive means by the DLA or other defense agencies, or analyze commercial market prices for equivalent components. The absence of competition inherently limits the ability to validate the value-for-money proposition of this specific contract.

What is Frontier Electronic Systems Corp.'s track record with government contracts, particularly with the Defense Logistics Agency?

The provided data indicates that Frontier Electronic Systems Corp. is the contractor for this award. While the data doesn't offer a comprehensive history, the fact that they are receiving a contract from the Defense Logistics Agency suggests they have some established relationship or capability recognized by the agency. To assess their track record thoroughly, one would need to examine their past performance ratings, any history of contract disputes or terminations, and the volume and type of contracts they have previously held, especially with DLA and other defense entities. A positive track record would imply reliability and competence, while a negative one could signal potential risks.

What are the potential risks associated with a sole-source contract of this duration for critical aircraft parts?

A sole-source contract, especially one spanning nearly five years (1468 days), carries several potential risks. Firstly, the lack of competition can lead to inflated prices as the contractor faces no pressure to offer the most cost-effective solution. Secondly, the government's leverage in negotiating terms or addressing issues may be diminished. Thirdly, if the contractor's performance falters or if they face financial difficulties, finding a replacement mid-contract could be extremely challenging and costly, potentially disrupting supply chains for critical aircraft parts. Finally, the long duration increases exposure to market fluctuations or technological obsolescence without the opportunity to re-evaluate pricing or specifications.

Industry Classification

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

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: SPRPA125QEN48

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 W 6TH AVE, STILLWATER, OK, 74074

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,951,937

Exercised Options: $4,951,937

Current Obligation: $4,951,937

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0038322GTD01

IDV Type: BOA

Timeline