FAA Awards $12.16M Contract for Houston ARTCC ACEPS II Phase I Installation Services to Wells Global, LLC

Contract Overview

Contract Amount: $12,164,053 ($12.2M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2019-06-27

End Date: 2026-09-10

Contract Duration: 2,632 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTALLATION SERVICES FOR THE HOUSTON ARTCC ACEPS II PHASE I

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77032

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $12.2 million to WELLS GLOBAL, LLC for work described as: INSTALLATION SERVICES FOR THE HOUSTON ARTCC ACEPS II PHASE I Key points: 1. Contract awarded for critical air traffic control system installation. 2. Wells Global, LLC secured the contract. 3. Potential risks include project delays and cost overruns. 4. Spending falls within the IT infrastructure sector.

Value Assessment

Rating: good

The contract value of $12.16 million for installation services appears reasonable given the scope of Phase I of the ARTCC ACEPS II project. Benchmarking against similar large-scale IT infrastructure installations suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing and better value for taxpayers.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for this essential infrastructure upgrade.

Public Impact

Enhances the reliability and efficiency of air traffic control in the Houston region. Supports the modernization of critical national infrastructure. Ensures continued safe air travel operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule slippage due to complexity.
Reliance on a single contractor for a critical system.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls under the IT sector, specifically related to the installation of complex electronic systems for air traffic control. Spending benchmarks for similar large-scale infrastructure projects indicate this award is within expected ranges.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Robust oversight will be crucial to ensure timely completion and adherence to specifications.

Related Government Programs

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

Risk Flags

Project complexity
Potential for schedule delays
Reliance on contractor performance
Integration with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $12.2 million to WELLS GLOBAL, LLC. INSTALLATION SERVICES FOR THE HOUSTON ARTCC ACEPS II PHASE I

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 $12.2 million.

What is the period of performance?

Start: 2019-06-27. End: 2026-09-10.

What is the projected impact of this installation on air traffic control efficiency in the Houston ARTCC?

The ACEPS II Phase I installation is designed to upgrade critical systems, aiming to enhance the reliability and efficiency of air traffic control operations within the Houston ARTCC. This modernization is expected to improve system performance, reduce potential downtime, and support increased air traffic volume, ultimately contributing to safer and more streamlined air travel.

What are the primary risks associated with the full and open competition award for this installation?

While full and open competition generally promotes competitive pricing, risks can include the potential for a less experienced contractor to win the bid, leading to execution challenges. There's also a risk that the lowest bidder may not have the most robust plan for managing complex project timelines and unforeseen technical issues, potentially impacting project delivery and overall system integration.

How does the firm fixed price contract structure mitigate financial risks for the government?

A firm fixed price (FFP) contract structure significantly mitigates financial risks for the government by establishing a ceiling on the total cost. The contractor assumes most of the risk for cost overruns, ensuring that the government pays the agreed-upon price regardless of the contractor's actual expenses. This provides budget certainty and protects taxpayer funds from unexpected increases in project costs.

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: $12,164,053

Exercised Options: $12,164,053

Current Obligation: $12,164,053

Actual Outlays: $11,178,078

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