DOT awards $4.6M for power modernization at DTW ATCT, benefiting air traffic control infrastructure

Contract Overview

Contract Amount: $4,595,268 ($4.6M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2022-08-31

End Date: 2025-11-30

Contract Duration: 1,187 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: {BIL} FUNDED INSTALLATION TO MODERNIZE ESSENTIAL POWER SOURCE AT DTW ATCT CPDS. JCN 1603915

Place of Performance

Location: CHICAGO HEIGHTS, COOK County, ILLINOIS, 60411

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to WELLS GLOBAL, LLC for work described as: {BIL} FUNDED INSTALLATION TO MODERNIZE ESSENTIAL POWER SOURCE AT DTW ATCT CPDS. JCN 1603915 Key points: 1. Contract value appears reasonable for a complex electrical modernization project. 2. Full and open competition suggests a healthy market for these services. 3. Project duration of nearly 4 years indicates a significant scope of work. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This contract supports critical aviation infrastructure modernization. 6. The award is for a delivery order under an existing contract.

Value Assessment

Rating: good

The contract value of $4.6 million for power modernization at an Air Traffic Control Tower (ATCT) seems aligned with the scope of such critical infrastructure upgrades. Benchmarking against similar projects for ATCT power systems is challenging without more specific project details, but the price appears competitive given the specialized nature of the work and the need for reliable, uninterrupted power. The firm-fixed-price structure incentivizes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders suggests a reasonable level of competition for this specialized service. This competitive environment is generally favorable for price discovery and ensuring the government receives a fair market price for the required work.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Benefits air traffic control operations at Detroit Metropolitan Wayne County Airport (DTW) by ensuring a reliable power source. Enhances the safety and efficiency of air travel through infrastructure modernization. Supports the Federal Aviation Administration's mission to maintain national airspace safety. The project is located in Illinois, indicating potential regional economic impact for the contractor and its suppliers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Project duration of 1187 days (over 3 years) may present challenges in managing scope creep and maintaining cost control over an extended period.
Reliance on a single delivery order under a larger contract structure could limit flexibility if requirements evolve significantly.

Positive Signals

Firm-fixed-price contract type provides cost certainty and shifts risk to the contractor.
Full and open competition suggests a robust market and potential for competitive pricing.
The contractor, Wells Global, LLC, has experience in electrical contracting, which is relevant to the project's needs.

Sector Analysis

This contract falls within the Construction and Engineering services sector, specifically focusing on electrical infrastructure for critical government facilities. The market for specialized electrical contractors capable of performing work in secure, operational environments like air traffic control towers is competitive but requires specific expertise. Comparable spending benchmarks for ATCT modernization projects vary widely based on size and complexity, but a $4.6 million investment suggests a significant upgrade.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation was explicitly tracked or required. This suggests the primary award went to a larger entity, and the potential for small business subcontracting opportunities would depend on the prime contractor's strategy and the nature of the work packages.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a component of the Department of Transportation. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon cost. Transparency is facilitated by the contract award data being publicly available, though detailed project progress reports may be internal.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Aviation Infrastructure Investments
Critical Infrastructure Power Systems Upgrades
Department of Transportation Capital Improvement Projects

Risk Flags

Extended project duration increases risk of cost escalation and scope creep.
Potential for technological obsolescence over the project's multi-year timeline.
Dependence on a single delivery order may limit future flexibility.
Need for rigorous oversight to ensure quality and adherence to schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to WELLS GLOBAL, LLC. {BIL} FUNDED INSTALLATION TO MODERNIZE ESSENTIAL POWER SOURCE AT DTW ATCT CPDS. JCN 1603915

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 $4.6 million.

What is the period of performance?

Start: 2022-08-31. End: 2025-11-30.

What is the track record of Wells Global, LLC in performing similar federal contracts, particularly for critical infrastructure like air traffic control towers?

Wells Global, LLC has a history of performing federal contracts, primarily within the electrical and construction sectors. While specific details on their experience with Air Traffic Control Tower (ATCT) power modernization are not immediately available from the provided data, their classification under 'Electrical Contractors and Other Wiring Installation Contractors' (NAICS 238210) suggests relevant capabilities. A deeper dive into their contract history with agencies like the FAA, GSA, or military branches would reveal the scale and complexity of past projects, their performance ratings (if available), and any history of cost overruns or schedule delays on similar critical infrastructure work. Assessing their past performance on firm-fixed-price contracts would be particularly important to gauge their ability to manage costs and timelines effectively for this $4.6 million project.

How does the $4.6 million cost compare to similar power modernization projects at other FAA air traffic control towers?

Directly comparing the $4.6 million cost to similar projects at other FAA Air Traffic Control Towers (ATCTs) is challenging without detailed project specifications and scope definitions. Factors such as the size of the tower, the age of the existing infrastructure, the specific modernization requirements (e.g., generator capacity, UPS systems, distribution upgrades), and geographic location significantly influence project costs. However, $4.6 million suggests a substantial upgrade, likely encompassing primary power source replacement, backup power systems, and potentially control system integration. To benchmark effectively, one would need to analyze contracts for projects of comparable scope (e.g., replacing main switchgear, installing new redundant power feeds, upgrading emergency generators) at similarly sized ATCTs. The FAA's historical contract data and reports from the Government Accountability Office (GAO) or Inspector General (IG) might offer comparative insights into typical cost ranges for such critical infrastructure work.

What are the primary risks associated with a nearly 4-year (1187 days) duration for this electrical modernization project?

A project duration of nearly four years for electrical modernization presents several key risks. Firstly, **scope creep** is a significant concern; over such an extended period, requirements may evolve, leading to change orders that increase costs and extend timelines further. Secondly, **technological obsolescence** could become a factor, especially if new power management or control technologies emerge during the project lifecycle that could have been incorporated for better long-term value. Thirdly, **inflation and material cost volatility** pose a risk, particularly under a firm-fixed-price contract, as the contractor must absorb unforeseen increases in labor, equipment, and component prices. Fourthly, **contractor performance degradation** can occur over long durations, potentially leading to decreased efficiency or quality if oversight is not consistently rigorous. Finally, **disruptions to ongoing ATCT operations** are a constant risk that must be meticulously managed throughout the phased implementation.

What is the expected impact of this modernization on the operational effectiveness and reliability of the DTW ATCT?

This modernization is expected to significantly enhance the operational effectiveness and reliability of the Detroit Metropolitan Wayne County Airport (DTW) Air Traffic Control Tower (ATCT). By replacing or upgrading the essential power source, the project directly addresses the risk of power outages, which could ground flights and disrupt air traffic flow. Modernized systems, likely including uninterruptible power supplies (UPS) and robust backup generators, will ensure continuous power delivery even during grid failures or maintenance. This reliability is crucial for the 24/7 operations of an ATCT, supporting safety by preventing disruptions to radar, communication, and lighting systems. Ultimately, the investment contributes to the overall efficiency and safety of the National Airspace System by ensuring a critical node like DTW remains fully functional under all conditions.

How does the 'Full and Open Competition' award mechanism for this contract influence taxpayer value compared to other procurement methods?

The 'Full and Open Competition' award mechanism is generally considered the most effective method for maximizing taxpayer value in federal procurement. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as contractors seek to offer the most attractive bid to win the award. Furthermore, it increases the likelihood that the government will receive innovative solutions and high-quality services, as a wider pool of potential contractors brings diverse capabilities and perspectives. For this $4.6 million project, full and open competition suggests that the Federal Aviation Administration (FAA) likely received competitive pricing and a range of qualified offers, ultimately benefiting taxpayers by ensuring the funds are used efficiently and effectively for essential infrastructure modernization.

What are the potential long-term cost implications or benefits associated with this firm-fixed-price contract structure?

The firm-fixed-price (FFP) contract structure offers significant long-term cost certainty for the government. The total price is established at the outset, and the contractor bears the risk of cost overruns. This means the $4.6 million ceiling is largely fixed, protecting taxpayers from unexpected increases in labor, materials, or unforeseen difficulties encountered during the project, unless significant scope changes occur via contract modification. The primary benefit is budget predictability. However, a potential long-term implication is that contractors may build in higher contingency reserves into their initial FFP bids to account for risks, potentially leading to a slightly higher initial price compared to a cost-reimbursable contract. The FFP structure incentivizes the contractor to be highly efficient and manage costs diligently to maximize their profit margin, which can indirectly lead to long-term operational benefits if the modernized systems are installed efficiently.

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: 3

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: $4,595,268

Exercised Options: $4,595,268

Current Obligation: $4,595,268

Actual Outlays: $4,595,268

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