FAA Awards $4.86M Design/Build Contract for ATC Facility Refurbishments

Contract Overview

Contract Amount: $4,863,717 ($4.9M)

Contractor: RG Tenney Electric Inc

Awarding Agency: Department of Transportation

Start Date: 2023-09-22

End Date: 2026-06-30

Contract Duration: 1,012 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN/BUILD FOR THE REFURBISHING OF THE FAA FACILITIES AT THE EGV ATCBI IN EAGLE RIVER, WI & THE QJM ATCBI FACILITY IN ROCKVILLE, NE IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECIFICATIONS AND CONDITIONS OF THE CONTRACT.

Place of Performance

Location: EAGLE RIVER, ONEIDA County, WISCONSIN, 54521

State: Wisconsin Government Spending

Plain-Language Summary

Department of Transportation obligated $4.9 million to RG TENNEY ELECTRIC INC for work described as: DESIGN/BUILD FOR THE REFURBISHING OF THE FAA FACILITIES AT THE EGV ATCBI IN EAGLE RIVER, WI & THE QJM ATCBI FACILITY IN ROCKVILLE, NE IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECIFICATIONS AND CONDITIONS OF THE CONTRACT. Key points: 1. Contract focuses on critical air traffic control facility upgrades in Wisconsin and Nebraska. 2. Competition method suggests potential for competitive pricing, but details are limited. 3. Risk of project delays or cost overruns exists given the multi-year duration. 4. Spending falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The $4.86 million award for design/build services appears reasonable for refurbishing two significant FAA facilities. Benchmarking against similar construction projects of this scale and complexity would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and aims for the best value.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades to maintain air traffic control operations, ensuring public safety and efficiency in the national airspace system.

Public Impact

Enhances operational reliability of critical air traffic control infrastructure. Supports modernization efforts within the Federal Aviation Administration. Potential for improved working conditions at the Eagle River and Rockville facilities. Ensures continued safe and efficient air travel for the public.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (over 3 years) increases risk of scope creep and cost escalation.
Reliance on a single contractor for both design and build could limit flexibility.
Exclusion of sources in the 'full and open' process warrants further investigation.

Positive Signals

Focus on essential infrastructure upgrades.
Competitive award process is generally positive for value.
Clear contract type (Firm Fixed Price) helps control costs.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar FAA facility upgrades would provide further context on the value received.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.

Oversight & Accountability

The award is managed by the Department of Transportation's Federal Aviation Administration. Oversight will be crucial to ensure the project stays on schedule, within budget, and meets all technical specifications.

Related Government Programs

Commercial and Institutional Building Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long project duration increases risk.
Potential for cost overruns due to market volatility.
Limited transparency on source exclusion criteria.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.9 million to RG TENNEY ELECTRIC INC. DESIGN/BUILD FOR THE REFURBISHING OF THE FAA FACILITIES AT THE EGV ATCBI IN EAGLE RIVER, WI & THE QJM ATCBI FACILITY IN ROCKVILLE, NE IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECIFICATIONS AND CONDITIONS OF THE CONTRACT.

Who is the contractor on this award?

The obligated recipient is RG TENNEY ELECTRIC INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $4.9 million.

What is the period of performance?

Start: 2023-09-22. End: 2026-06-30.

What specific criteria were used to exclude sources during the 'full and open competition after exclusion of sources' process, and how did this impact the final price?

The exclusion of sources in a 'full and open' competition typically occurs when specific capabilities or certifications are required that only a limited number of vendors possess. Understanding these criteria is vital to assess if the exclusion was justified and if it potentially limited competitive pricing. Without this information, it's difficult to definitively state the impact on price discovery, though it could theoretically reduce the number of competitive bids.

Given the 3-year duration, what risk mitigation strategies are in place to manage potential cost increases due to inflation or material price volatility?

A Firm Fixed Price contract offers some protection against cost increases, but long-term projects can still be vulnerable. The FAA should have contingency plans and robust contract management to monitor market trends. Regular reviews of material costs and potential escalation clauses, if any, are essential. Proactive communication with the contractor regarding supply chain issues and potential cost drivers will be key to mitigating risks.

How will the success of this refurbishment project be measured in terms of improved operational efficiency and reliability of the ATC facilities?

Success metrics should include quantifiable improvements in system uptime, reduced maintenance calls, and enhanced processing capabilities of the ATC equipment housed within the refurbished facilities. Post-completion performance monitoring against baseline data collected before the refurbishment will be crucial. User feedback from FAA personnel operating the facilities will also provide valuable qualitative insights into the project's effectiveness.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-20-R-00040

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 413 MARYS PATH, LOGANVILLE, GA, 30052

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,863,717

Exercised Options: $4,863,717

Current Obligation: $4,863,717

Actual Outlays: $2,811,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline