DOT's FAA Awards $11.7M for Kansas City ARTCC Electrical Upgrades to Wells Global, LLC

Contract Overview

Contract Amount: $11,726,972 ($11.7M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2019-02-26

End Date: 2026-09-30

Contract Duration: 2,773 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ACEPS TYPE II PHASE 1 SITE SPECIFIC DESIGN, CPC REDUCTION AND INSTALLATION FOR THE KANSAS CITY ARTCC

Place of Performance

Location: OLATHE, JOHNSON County, KANSAS, 66062

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $11.7 million to WELLS GLOBAL, LLC for work described as: ACEPS TYPE II PHASE 1 SITE SPECIFIC DESIGN, CPC REDUCTION AND INSTALLATION FOR THE KANSAS CITY ARTCC Key points: 1. Contract awarded to Wells Global, LLC for site-specific design and installation. 2. Project aims to reduce CPC and install electrical systems at Kansas City ARTCC. 3. The contract falls under the 'Electrical Contractors and Other Wiring Installation Contractors' NAICS code. 4. Spending benchmark for this sector is not readily available for direct comparison.

Value Assessment

Rating: fair

The contract value of $11.7M for a 2019-2026 period appears reasonable for complex electrical infrastructure upgrades. However, without specific details on the scope of work and comparable project costs, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure modernization, which is a necessary investment for operational efficiency and safety.

Public Impact

Modernization of critical air traffic control infrastructure. Potential for improved reliability and safety in air traffic management. Economic impact through contract award to a private sector company.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2019-2026) may lead to cost overruns if not managed effectively.
Lack of specific performance metrics makes it hard to assess value for money.
Potential for scope creep given the extended timeline.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Addresses necessary infrastructure upgrades for a key air traffic control facility.
Firm Fixed Price contract type helps control costs.

Sector Analysis

This contract falls within the construction and electrical installation sector, specifically for government facilities. Benchmarks for similar large-scale air traffic control system upgrades are not widely published, making direct cost comparisons challenging.

Small Business Impact

The contract was awarded to Wells Global, LLC, and there is no indication that small businesses were involved as subcontractors or prime contractors in this specific award. Further investigation would be needed to determine any small business participation.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration.
Potential for cost overruns.
Lack of detailed performance metrics.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $11.7 million to WELLS GLOBAL, LLC. ACEPS TYPE II PHASE 1 SITE SPECIFIC DESIGN, CPC REDUCTION AND INSTALLATION FOR THE KANSAS CITY ARTCC

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 $11.7 million.

What is the period of performance?

Start: 2019-02-26. End: 2026-09-30.

What specific technological advancements or efficiencies are expected from the CPC reduction and installation, and how will these be measured?

The contract details should specify the expected outcomes of the CPC reduction and installation, such as improved energy efficiency, reduced maintenance needs, or enhanced system reliability. Measurable metrics like energy savings, downtime reduction, or compliance with updated safety standards should be defined to track the effectiveness of these upgrades and ensure the investment yields tangible benefits for the ARTCC's operations.

Given the 2019 start and 2026 end date, what are the primary risks associated with the long duration of this project, and how are they being mitigated?

The extended timeline presents risks such as potential cost escalation due to inflation, technological obsolescence, and contractor performance degradation. Mitigation strategies likely include phased payments, regular performance reviews, clear change order processes, and potentially incorporating economic price adjustment clauses. Proactive project management by the FAA is crucial to monitor progress and address issues promptly.

How does the cost of this project compare to similar electrical infrastructure modernization projects at other major air traffic control facilities, and what justifies any significant differences?

A comprehensive comparison requires access to cost data for comparable projects, which is often not publicly available. Factors influencing cost differences could include the specific site conditions, the complexity of the existing infrastructure, the scope of the upgrades, and regional labor costs. The FAA should have internal benchmarks or have conducted market research to ensure this contract represents fair value.

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: $11,726,972

Exercised Options: $11,726,972

Current Obligation: $11,726,972

Actual Outlays: $10,593,540

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