FAA Awards $7.45M Contract for ACEPS Type II Phase 1 System to Wells Global, LLC

Contract Overview

Contract Amount: $7,453,430 ($7.5M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-03-30

End Date: 2026-09-30

Contract Duration: 1,645 days

Daily Burn Rate: $4.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB)

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87123

State: New Mexico Government Spending

Plain-Language Summary

Department of Transportation obligated $7.5 million to WELLS GLOBAL, LLC for work described as: INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB) Key points: 1. Contract awarded for critical Air Traffic Control system upgrade. 2. Wells Global, LLC, a new entity, secured the award. 3. Potential for cost overruns given the long duration and fixed-price nature. 4. Spending falls within the broad 'Electrical Contractors' sector.

Value Assessment

Rating: fair

The contract value of $7.45M over approximately 4 years appears reasonable for a complex system installation. However, without specific benchmarks for ACEPS Type II Phase 1, a precise comparison is difficult. The fixed-price nature aims to control costs.

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: Taxpayers benefit from a competitive process that should yield a fair price for essential air traffic control infrastructure.

Public Impact

Enhances air traffic safety and efficiency at Albuquerque ARTCC. Supports modernization of critical national infrastructure. Potential for job creation in New Mexico related to the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Electrical Contractors and Other Wiring Installation Contractors sector, which is vital for infrastructure development. Spending benchmarks for similar large-scale ATC system installations are not readily available, but the value appears significant for a single ARTCC upgrade.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This represents a missed opportunity to support small business participation in federal contracting.

Oversight & Accountability

The Federal Aviation Administration is responsible for overseeing this contract. Standard oversight procedures for large infrastructure projects should be in place to monitor progress and ensure compliance.

Related Government Programs

Risk Flags

Tags

electrical-contractors-and-other-wiring-, department-of-transportation, nm, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.5 million to WELLS GLOBAL, LLC. INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB)

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 $7.5 million.

What is the period of performance?

Start: 2022-03-30. End: 2026-09-30.

What is the specific functionality and expected performance improvement of the ACEPS Type II Phase 1 system?

The ACEPS Type II Phase 1 system is designed to upgrade the Air Traffic Control system at the Albuquerque ARTCC (ZAB). While specific performance metrics are not detailed in the provided data, such upgrades typically aim to enhance system reliability, processing capabilities, and potentially introduce new functionalities for air traffic controllers, leading to improved safety and efficiency in managing airspace.

What are the key risks associated with a 4-year fixed-price contract for a complex system installation?

A 4-year fixed-price contract for a complex system installation carries risks of cost escalation if unforeseen technical challenges arise or if the initial cost estimates were inaccurate. Scope creep is also a concern, as changes or additions to the system's requirements during the long performance period could strain the fixed budget. The vendor might also face financial strain if costs exceed projections, potentially impacting project delivery.

How will the effectiveness of the ACEPS Type II Phase 1 system be measured post-implementation?

The effectiveness of the ACEPS Type II Phase 1 system will likely be measured through a combination of technical performance indicators and operational impact assessments. Key metrics could include system uptime, data processing speed, reduction in air traffic incidents or delays attributed to system limitations, and user feedback from air traffic controllers. Formal testing and validation phases before and after full deployment are crucial for confirming its effectiveness.

Industry Classification

NAICS: ConstructionBuilding Equipment ContractorsElectrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENTINSTALLATION 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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,453,430

Exercised Options: $7,453,430

Current Obligation: $7,453,430

Actual Outlays: $7,453,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH22D00017

IDV Type: IDC

Timeline

Start Date: 2022-03-30

Current End Date: 2026-09-30

Potential End Date: 2026-09-30 00:00:00

Last Modified: 2026-01-05

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