DOT awards $4.5M contract for STB Annex renovation, highlighting a firm fixed-price approach

Contract Overview

Contract Amount: $4,536,344 ($4.5M)

Contractor: Firelake Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-06

End Date: 2025-06-19

Contract Duration: 652 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE ALL LABOR AND MATERIALS TO RENOVATE THE STB ANNEX BUILDING 026 STB PER FAA CONSTRUCTION PLANS AND SPECIFICATIONS PROVIDED BY THE FAA. PROJECT CONSISTS OF A BASE BID ONLY AND INCLUDES BASEMENT: MECHANICAL, ELECTRICAL, ELEVATOR (ALL FLOORS);

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $4.5 million to FIRELAKE CONSTRUCTION INC for work described as: PROVIDE ALL LABOR AND MATERIALS TO RENOVATE THE STB ANNEX BUILDING 026 STB PER FAA CONSTRUCTION PLANS AND SPECIFICATIONS PROVIDED BY THE FAA. PROJECT CONSISTS OF A BASE BID ONLY AND INCLUDES BASEMENT: MECHANICAL, ELECTRICAL, ELEVATOR (ALL FLOORS); Key points: 1. The contract's firm fixed-price structure aims to control costs for the STB Annex renovation. 2. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a potentially limited but justified bidding process. 3. The project duration of 652 days indicates a significant renovation scope requiring substantial time for completion. 4. The base bid covers essential systems like mechanical, electrical, and elevator, crucial for building functionality. 5. The contractor, FIRELAKE CONSTRUCTION INC, is undertaking this project in Oklahoma. 6. The award was made as a definitive contract, implying a clear scope and terms. 7. The absence of small business set-aside flags suggests the primary contractor is not a small business, with subcontracting opportunities yet to be detailed.

Value Assessment

Rating: good

The contract value of $4.5 million for a building renovation of this scope appears reasonable, especially given the firm fixed-price nature which shifts risk to the contractor. Benchmarking against similar institutional building renovations would provide a more precise value-for-money assessment. The inclusion of mechanical, electrical, and elevator systems suggests a comprehensive upgrade, justifying the investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates that while the competition was intended to be open, specific sources were excluded, possibly due to pre-qualification or specific requirements. With 6 bidders, this suggests a moderate level of competition, which should contribute to price discovery, though the exclusion of certain sources might limit the full benefit of open competition.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, warrants scrutiny to ensure the government received the best possible price and that the exclusion criteria were justified and transparent to taxpayers.

Public Impact

The Federal Aviation Administration (FAA) and Department of Transportation (DOT) benefit from the renovation of the STB Annex building. The project will deliver essential building infrastructure upgrades, including mechanical, electrical, and elevator systems. The renovation will impact the STB Annex building located in Oklahoma. The project will likely involve a construction workforce, contributing to local employment in the skilled trades sector. Improved building functionality and safety are expected outcomes for the occupants and users of the STB Annex.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation, despite the firm fixed-price contract.
The 'exclusion of sources' in the competition process could limit competitive pricing if not adequately justified.
Dependence on FIRELAKE CONSTRUCTION INC for timely and quality completion over the 652-day duration.
Ensuring compliance with FAA construction plans and specifications throughout the renovation process.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
The project addresses critical building systems (mechanical, electrical, elevator), indicating a focus on essential infrastructure.
A definitive contract with a defined scope and duration offers clarity on project execution.
Multiple bidders (6) suggest a degree of market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for such renovations is driven by the need to maintain and upgrade federal facilities. Comparable spending benchmarks would typically be assessed based on square footage, complexity of systems being upgraded, and regional labor costs. The FAA's investment in its facilities is crucial for operational efficiency and safety.

Small Business Impact

The data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). This suggests that the primary contract was awarded to a non-small business or that the nature of the work did not lend itself to a set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this large renovation project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified renovation within the agreed-upon price and schedule. Transparency is facilitated through contract award data, and any specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations related to the contract's performance.

Related Government Programs

Federal Building Renovations
FAA Facility Upgrades
Department of Transportation Construction Projects
Commercial Building Construction Contracts
Infrastructure Improvement Projects

Risk Flags

Potential for scope creep if unforeseen renovation needs arise.
Risk of delays impacting operational continuity of the STB Annex.
Ensuring the 'exclusion of sources' was fully justified and did not unduly limit competition.
Monitoring contractor performance to ensure adherence to quality standards and specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.5 million to FIRELAKE CONSTRUCTION INC. PROVIDE ALL LABOR AND MATERIALS TO RENOVATE THE STB ANNEX BUILDING 026 STB PER FAA CONSTRUCTION PLANS AND SPECIFICATIONS PROVIDED BY THE FAA. PROJECT CONSISTS OF A BASE BID ONLY AND INCLUDES BASEMENT: MECHANICAL, ELECTRICAL, ELEVATOR (ALL FLOORS);

Who is the contractor on this award?

The obligated recipient is FIRELAKE CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.5 million.

What is the period of performance?

Start: 2023-09-06. End: 2025-06-19.

What is the track record of FIRELAKE CONSTRUCTION INC with federal contracts, particularly within the Department of Transportation or FAA?

A review of FIRELAKE CONSTRUCTION INC's federal contract history would be necessary to assess their performance on similar projects. Key metrics to examine include on-time completion rates, adherence to budget, quality of work, and any past performance issues or disputes. Understanding their experience with renovations involving mechanical, electrical, and elevator systems specifically would provide further insight into their capability to execute this STB Annex project successfully. Without specific historical data on this contractor, it is difficult to definitively assess their track record.

How does the $4.5 million cost compare to similar institutional building renovations of comparable size and complexity?

Benchmarking this $4.5 million contract against similar federal or commercial building renovations is crucial for a value-for-money assessment. Factors such as the square footage of the STB Annex, the extent of the mechanical, electrical, and elevator system upgrades, and the age and condition of the building would be key comparison points. If data from similar projects in Oklahoma or the surrounding region is available, it could provide a more accurate comparison. Generally, firm fixed-price contracts aim to provide cost certainty, but the initial bid price is a primary indicator of value.

What are the specific risks associated with a 652-day renovation project for a federal building, and how are they mitigated?

A 652-day renovation project carries inherent risks, including potential delays due to unforeseen site conditions, material availability issues, or labor shortages. For a federal building, security protocols and operational continuity during renovation also present unique challenges. The firm fixed-price contract mitigates financial risk for the government by capping costs, but the contractor assumes the risk of cost overruns. Mitigation strategies likely include detailed project planning, contingency allowances within the contractor's bid, robust oversight by the FAA, and clear communication channels to address issues promptly.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

This procurement method suggests that while the competition was intended to be open, certain sources were intentionally excluded. This could be due to specific technical requirements, past performance evaluations, or other pre-qualification criteria deemed necessary by the FAA. While it resulted in 6 bidders, the exclusion of potential competitors might limit the breadth of price discovery compared to a truly unrestricted full and open competition. The justification for these exclusions would be critical to understanding if the government secured the best possible value and if the process was fair and transparent.

What are the potential long-term benefits of this STB Annex renovation for the Federal Aviation Administration?

The long-term benefits of this renovation for the FAA are likely to include enhanced operational efficiency, improved safety and security within the STB Annex, and extended the lifespan of the facility. Upgrading critical systems like mechanical, electrical, and elevators can reduce future maintenance costs and minimize disruptions caused by equipment failures. A modernized facility can also contribute to a more productive work environment for FAA personnel, ultimately supporting the agency's mission.

How does the $4.5 million spending compare to the FAA's overall budget for facility maintenance and upgrades?

To assess the significance of this $4.5 million contract within the FAA's overall budget, one would need to examine the agency's annual appropriations for facility maintenance, repair, and construction. This figure represents a specific investment in one facility. Comparing it to the total allocated funds for similar projects across the FAA would indicate whether this is a substantial or a relatively minor expenditure in the context of the agency's broader capital improvement plans and operational needs.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-23-R-00096

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Firelake Construction, Inc.

Address: 1011 E 31ST ST, LAWRENCE, KS, 66046

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,536,344

Exercised Options: $4,536,344

Current Obligation: $4,536,344

Actual Outlays: $4,519,804

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline