Transportation awards $9.18M contract for F-35 installation at Chicago's O'Hare Airport

Contract Overview

Contract Amount: $9,185,454 ($9.2M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-15

End Date: 2026-12-30

Contract Duration: 1,202 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: F35 FUNDING FOR INSTALLATION FOR CHICAGO (ORD) ATCT CPDS PHASE II REV 1 JCN# 1401417

Place of Performance

Location: CHICAGO HEIGHTS, COOK County, ILLINOIS, 60411

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $9.2 million to WELLS GLOBAL, LLC for work described as: F35 FUNDING FOR INSTALLATION FOR CHICAGO (ORD) ATCT CPDS PHASE II REV 1 JCN# 1401417 Key points: 1. Contract value appears reasonable for specialized installation services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over 3 years indicates a complex scope of work. 5. Contractor's specific experience in this niche is a key performance indicator. 6. Geographic focus on Illinois highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $9.18 million for the F-35 installation at O'Hare Airport (ORD) CPDS Phase II Rev 1 appears to be within a reasonable range for specialized electrical and wiring installation services. Benchmarking against similar federal contracts for airport infrastructure upgrades or specialized facility installations would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government, as it caps the contractor's potential earnings and shifts cost risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which should lead to more favorable pricing and better value for the government. The FAA's commitment to open competition suggests a robust process for selecting the most qualified and cost-effective contractor.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential bidders, driving down prices through market forces and ensuring the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Air Force, who will utilize the enhanced F-35 installation capabilities at O'Hare. The contract delivers critical electrical and wiring installation services necessary for advanced military aircraft operations. The geographic impact is concentrated in Illinois, specifically at Chicago O'Hare International Airport. Workforce implications include employment opportunities for electricians and specialized installation technicians within the Chicago metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of airport infrastructure projects.
Ensuring the contractor possesses the specific security clearances and expertise required for F-35 related installations.
Monitoring the firm-fixed-price contract for any scope creep or change order requests that could increase costs.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type limits the government's exposure to cost overruns.
Contractor, Wells Global, LLC, is being awarded a significant contract, indicating a level of trust and capability.
Project is tied to critical national defense infrastructure (F-35 program).

Sector Analysis

This contract falls within the construction and installation services sector, specifically focusing on electrical contractors and wiring installation. The market for specialized airport infrastructure and defense-related installations is competitive, with a mix of large and small firms vying for government contracts. The total federal spending on electrical contractors and wiring installation is substantial, supporting various government agencies with critical facility upgrades and maintenance. This particular contract represents a specific investment in modernizing airbase infrastructure to support advanced military assets.

Small Business Impact

The contract was awarded under full and open competition and the data indicates the small business (SB) flag is false, suggesting it was not specifically set aside for small businesses. There is no explicit information on subcontracting plans for small businesses. Without a small business set-aside, the primary contractor, Wells Global, LLC, may or may not engage small businesses for subcontracting. This could limit opportunities for the small business ecosystem unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through federal contract databases like FPDS. Inspector General oversight may be applicable depending on the specific nature of any potential issues or audits initiated by the DOT or FAA.

Related Government Programs

F-35 Program Funding
Airport Infrastructure Improvement Projects
Federal Aviation Administration Contracts
Department of Transportation Procurement
Electrical Contractor Services
Defense Facility Modernization

Risk Flags

Potential for schedule slippage due to airport construction complexities.
Ensuring contractor possesses specialized F-35 installation expertise and security clearances.
Risk of scope creep in a multi-year, fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $9.2 million to WELLS GLOBAL, LLC. F35 FUNDING FOR INSTALLATION FOR CHICAGO (ORD) ATCT CPDS PHASE II REV 1 JCN# 1401417

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 $9.2 million.

What is the period of performance?

Start: 2023-09-15. End: 2026-12-30.

What is the track record of Wells Global, LLC in performing similar federal contracts, particularly those involving defense installations or airport infrastructure?

A review of federal contract databases would be necessary to fully assess Wells Global, LLC's track record. Specifically, searching for past awards to this contractor for projects categorized under 'Electrical Contractors and Other Wiring Installation Contractors' (NAICS 238210) or related construction/installation services, especially for agencies like the Department of Defense or Department of Transportation, would be informative. Examining past performance evaluations, if publicly available, would provide insights into their reliability, quality of work, and adherence to schedules and budgets on previous government contracts. Understanding their experience with large-scale, complex projects similar to the F-35 installation at O'Hare is crucial for evaluating their capability to execute this current contract successfully.

How does the awarded amount of $9.18 million compare to the estimated cost or market rates for similar F-35 installation projects at major airports?

Benchmarking the $9.18 million contract value requires comparing it against similar projects. This would involve identifying other federal contracts awarded for F-35 related infrastructure, specialized electrical installations at large commercial or military airports, or significant facility upgrades. Factors such as the scope of work (e.g., specific systems being installed, complexity of wiring, integration requirements), geographic location (which impacts labor and material costs), and the specific phase of the project (e.g., initial setup vs. upgrade) need to be considered. Without access to detailed cost breakdowns or a database of comparable project costs, a precise comparison is difficult. However, the firm-fixed-price nature suggests the government has negotiated a price deemed acceptable based on anticipated costs and market conditions at the time of award.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential schedule delays due to the complexity of airport operations and construction, unforeseen site conditions, and the specialized nature of F-35 systems requiring highly skilled labor. Another risk is ensuring the contractor, Wells Global, LLC, maintains the necessary security clearances and adheres to stringent F-35 program requirements. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (FFP) type shifts cost overrun risk to the contractor. The FAA's oversight, performance monitoring, and potential for liquidated damages for delays also serve as mitigation. Requiring specific technical expertise and potentially pre-qualification for bidders helps address the risk of inadequate contractor capability.

How effective is the Federal Aviation Administration (FAA) in managing contracts of this nature and ensuring successful project outcomes?

The FAA has extensive experience managing a wide array of complex contracts for airport infrastructure, air traffic control systems, and facility upgrades. Their effectiveness in managing contracts like this one is generally considered good, supported by established procurement regulations, program management offices, and contracting officers. Success is often measured by on-time and on-budget delivery, adherence to technical specifications, and minimal disputes. While specific performance metrics for this particular contract are not yet available, the FAA's consistent role in modernizing national airspace infrastructure suggests a robust capacity for oversight and program execution. Lessons learned from previous projects inform their current contract management practices.

What has been the historical spending trend for electrical and wiring installation contracts at major airports managed by the FAA?

Historical spending on electrical and wiring installation contracts at major airports managed by the FAA has likely shown a steady increase, driven by the need to modernize aging infrastructure, implement new technologies (like advanced air traffic management systems), and enhance security. Spending patterns would fluctuate based on major capital improvement programs, federal funding allocations, and specific project demands, such as upgrades for new aircraft technologies like the F-35. Analyzing FAA's procurement data over the past 5-10 years would reveal trends in contract values, the number of awards, and the types of services most frequently procured within this category. This specific $9.18 million award fits within the broader context of ongoing investments in airport modernization.

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, 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: $9,185,454

Exercised Options: $9,185,454

Current Obligation: $9,185,454

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