DOT awards $16M for ACEPS Type II Phase 2 Installation to Wells Global, LLC

Contract Overview

Contract Amount: $16,019,425 ($16.0M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2018-02-15

End Date: 2026-09-30

Contract Duration: 3,149 days

Daily Burn Rate: $5.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ACEPS TYPE II PHASE 2 INSTALLATION

Place of Performance

Location: JBER, ANCHORAGE County, ALASKA, 99506

State: Alaska Government Spending

Plain-Language Summary

Department of Transportation obligated $16.0 million to WELLS GLOBAL, LLC for work described as: ACEPS TYPE II PHASE 2 INSTALLATION Key points: 1. Contract value of $16.02 million for electrical installation services. 2. Awarded to Wells Global, LLC, a single entity. 3. Contract duration spans over 8 years, indicating a long-term need. 4. Fixed-price contract type suggests cost certainty for the government. 5. Services are being performed in Alaska, a geographically specific region. 6. The contract is for electrical contractors and other wiring installation.

Value Assessment

Rating: fair

The contract value of $16.02 million for ACEPS Type II Phase 2 Installation appears to be a significant investment. Without specific benchmarks for ACEPS Type II Phase 2 installations or comparable projects, it is difficult to definitively assess value for money. The firm fixed-price structure offers some cost control, but the long duration could introduce risks if market conditions change significantly. Further analysis would require detailed cost breakdowns and comparisons to similar projects within the FAA or other agencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but the designation suggests a competitive process was initiated. Full and open competition generally leads to better price discovery and potentially more favorable terms for the government compared to limited or sole-source procurements.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for the services rendered. This approach helps prevent inflated costs that might arise from less competitive scenarios.

Public Impact

The primary beneficiaries are likely the Federal Aviation Administration (FAA) and its operational infrastructure, which will receive upgraded electrical systems. The services delivered include the installation of ACEPS Type II systems, crucial for aviation safety and efficiency. The geographic impact is concentrated in Alaska (AK), suggesting specific regional infrastructure needs. The contract supports the electrical contracting industry and associated workforce, particularly in the region where the work is performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to cost overruns if market prices for labor or materials increase significantly.
Geographic remoteness of Alaska may increase logistical costs and complexity for the contractor.
Dependence on a single contractor (Wells Global, LLC) for a long-term, critical infrastructure project carries inherent performance risks.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm fixed-price contract type provides cost certainty for the government.
The contract addresses a specific, likely critical, infrastructure need for the FAA.

Sector Analysis

The contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210). This sector is vital for maintaining and upgrading critical infrastructure across various government agencies. The market for such services is competitive, with numerous firms capable of performing complex electrical installations. The FAA, as a major government entity, frequently procures such services for airport and air traffic control systems. Benchmarking would involve comparing this contract's value and scope to other large-scale electrical installation projects within the federal government or similar large-scale infrastructure projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside. However, the prime contractor, Wells Global, LLC, may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), the contracting agency. Mechanisms likely include contract performance monitoring, regular progress reports from Wells Global, LLC, and potentially site inspections. Accountability is ensured through the firm fixed-price contract terms, which obligate the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases like FPDS, where contract awards are recorded.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Airport Infrastructure Improvement Projects
Federal Aviation Systems Standards
Critical Infrastructure Electrical Upgrades

Risk Flags

Long contract duration may increase risk of cost escalation or performance degradation.
Geographic location in Alaska could present logistical challenges and higher costs.
Performance history of the contractor for similar large-scale projects needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $16.0 million to WELLS GLOBAL, LLC. ACEPS TYPE II PHASE 2 INSTALLATION

Who is the contractor on this award?

The obligated recipient is WELLS GLOBAL, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $16.0 million.

What is the period of performance?

Start: 2018-02-15. End: 2026-09-30.

What is the track record of Wells Global, LLC in performing similar large-scale electrical installation contracts for the federal government?

Assessing the track record of Wells Global, LLC requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, their value, duration, and performance ratings. Specifically, looking for experience with aviation-related electrical systems, installations in remote or challenging environments like Alaska, and adherence to firm fixed-price agreements would be crucial. A history of successful, on-time, and within-budget completions would indicate a strong capability, while a pattern of delays, cost overruns, or performance issues would raise concerns about their suitability for this significant, long-term project.

How does the awarded amount of $16.02 million compare to the estimated cost or market rates for similar ACEPS Type II Phase 2 installations?

A precise comparison of the $16.02 million award to market rates for ACEPS Type II Phase 2 installations is challenging without access to detailed cost breakdowns, specific project scopes, and a robust database of comparable federal or commercial projects. The Federal Aviation Administration (FAA) likely conducted market research or used historical data to establish a reasonable estimate. However, without that internal data or publicly available benchmarks for this specific system and phase, it's difficult to definitively state if the award represents excellent, fair, or questionable value. The long duration and specific location in Alaska could also influence costs compared to more standard installations.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration (over 8 years)?

The primary risks with a firm fixed-price contract of this magnitude and long duration (over 8 years) revolve around potential cost escalation for the contractor and the government's ability to ensure continued value. For the contractor, unforeseen increases in labor, materials, or regulatory compliance costs over such an extended period could erode profit margins or lead to financial distress. For the government, the risk is that the fixed price, agreed upon years prior, may become uncompetitive if market conditions change dramatically, or if the contractor's efficiency declines over time. Ensuring robust contract management and performance monitoring is crucial to mitigate these risks and ensure the government receives the intended value throughout the contract's life.

What is the expected impact of this contract on aviation safety and efficiency in Alaska?

This contract is expected to significantly enhance aviation safety and efficiency in Alaska by upgrading or installing the ACEPS Type II system. ACEPS (Advanced Concepts Flight Information System) is related to flight information and potentially air traffic management. Phase 2 installation implies a critical stage in a larger modernization effort. Improved systems can lead to more accurate data, better communication, enhanced situational awareness for air traffic controllers and pilots, and potentially more optimized flight paths. In a vast and geographically challenging region like Alaska, where reliable air traffic management is paramount, these upgrades are likely to have a substantial positive impact on the safety and efficiency of air travel.

Are there any historical spending patterns with Wells Global, LLC or for ACEPS Type II installations that provide context for this award?

To understand historical spending patterns, one would need to query federal procurement databases for previous contracts awarded to Wells Global, LLC, and specifically for ACEPS Type II installations or similar systems. If Wells Global has a history of performing such work, analyzing the value, duration, and performance of those past contracts would provide context. Similarly, examining historical spending by the FAA or other agencies on ACEPS Type II or comparable systems would reveal trends in pricing, competition levels, and typical contract durations. A lack of prior significant awards to Wells Global for this type of work, or a history of cost overruns on similar systems, might warrant closer scrutiny of this current award.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4540 PRESLYN DR, RALEIGH, NC, 27616

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $16,019,425

Exercised Options: $16,019,425

Current Obligation: $16,019,425

Actual Outlays: $14,111,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAAC16D00019

IDV Type: IDC

Timeline