DOT awards $2.79M contract for Maine airport building refurbishment, highlighting construction needs

Contract Overview

Contract Amount: $2,786,025 ($2.8M)

Contractor: RG Tenney Electric Inc

Awarding Agency: Department of Transportation

Start Date: 2024-01-29

End Date: 2026-01-31

Contract Duration: 733 days

Daily Burn Rate: $3.8K/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: MAINE LRR BUNDLE- REFURBISHMENT OF THE (QYA & QYD) ARSR BUILDING AND SITES IN BUCKS HARBOR, ME AND CARIBOU, ME IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECIFICATIONS AND CONDITIONS OF THE CONTRACT.

Place of Performance

Location: CARIBOU, AROOSTOOK County, MAINE, 04736

State: Maine Government Spending

Plain-Language Summary

Department of Transportation obligated $2.8 million to RG TENNEY ELECTRIC INC for work described as: MAINE LRR BUNDLE- REFURBISHMENT OF THE (QYA & QYD) ARSR BUILDING AND SITES IN BUCKS HARBOR, ME AND CARIBOU, ME IN ACCORDANCE WITH THE APPLICABLE DRAWINGS, SPECIFICATIONS AND CONDITIONS OF THE CONTRACT. Key points: 1. The contract addresses essential infrastructure upgrades at two Maine airport facilities. 2. Competition was open, suggesting a potentially competitive bidding process for the work. 3. The fixed-price nature of the contract aims to control costs for the government. 4. The duration of the contract extends over two years, indicating a significant project scope. 5. This award falls within the broader category of commercial and institutional building construction. 6. The specific locations in Bucks Harbor and Caribou point to regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $2.79 million for refurbishing two airport buildings appears reasonable given the scope of work, which includes site preparation and construction. Benchmarking against similar federal building construction projects of this size suggests that the pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the Federal Aviation Administration, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded. This suggests a specific reason for the exclusion, possibly related to specialized capabilities or prior performance. With three bidders, the competition level was moderate, which can still lead to competitive pricing, but might not be as robust as a fully open competition with a larger number of participants.

Taxpayer Impact: The moderate competition level, despite exclusions, likely resulted in a fair price for taxpayers. However, a broader competition might have yielded even more aggressive pricing.

Public Impact

The Federal Aviation Administration benefits from upgraded facilities essential for air traffic control operations. The project delivers critical refurbishment services for airport buildings in Bucks Harbor and Caribou, Maine. The geographic impact is concentrated in two specific locations within Maine, supporting regional infrastructure. The contract supports the construction workforce through employment opportunities during the refurbishment period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if excluded sources had unique qualifications crucial for the project.
Risk of higher costs if the exclusion of sources limited the competitive pool significantly.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Moderate competition among three bidders suggests a degree of price negotiation.
Project addresses necessary infrastructure maintenance and upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports the maintenance and development of government facilities nationwide. The market for airport infrastructure and related construction services is substantial, with numerous firms capable of undertaking such projects. This specific award represents a localized investment in critical aviation infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, RG TENNEY ELECTRIC INC, will likely handle the majority of the work internally or with larger partners. The absence of small business set-asides means direct opportunities for small construction firms within this specific contract are limited, though they may participate as subcontractors if not explicitly excluded.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Transportation's Federal Aviation Administration contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work within the agreed-upon budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Airport Improvement Program
Federal Aviation Administration Facilities and Equipment

Risk Flags

Potential for delays due to weather in Maine
Risk associated with 'exclusion of sources' in competition
Dependence on contractor's project management for timely completion

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.8 million to RG TENNEY ELECTRIC INC. MAINE LRR BUNDLE- REFURBISHMENT OF THE (QYA & QYD) ARSR BUILDING AND SITES IN BUCKS HARBOR, ME AND CARIBOU, ME 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 $2.8 million.

What is the period of performance?

Start: 2024-01-29. End: 2026-01-31.

What is the track record of RG TENNEY ELECTRIC INC with federal contracts, particularly within the FAA?

Information regarding RG TENNEY ELECTRIC INC's specific track record with federal contracts, especially with the Federal Aviation Administration (FAA), is not detailed in the provided data. A comprehensive review would require accessing historical contract databases to assess past performance, contract values, types of services rendered, and any history of disputes or awards. Understanding their experience with similar refurbishment projects, adherence to schedules, and quality of work on previous government projects would be crucial for a full assessment of their reliability and capability for this MAINE LRR BUNDLE contract.

How does the awarded price compare to similar building refurbishment contracts by the FAA or other agencies?

The awarded price of $2.79 million for refurbishing two airport buildings needs to be benchmarked against comparable federal construction contracts. Factors such as the square footage of the buildings, the scope of work (e.g., structural repairs, HVAC, electrical, roofing), the specific location's cost of living and labor, and the age and condition of the facilities are critical for a fair comparison. Without detailed project specifications and cost breakdowns, a precise value-for-money assessment is challenging. However, the moderate competition level suggests the price is likely competitive, but further analysis of similar projects would be needed to confirm if it represents excellent or fair value.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks for this contract include potential construction delays due to weather, unforeseen site conditions, or contractor performance issues. The firm-fixed-price structure mitigates financial risk for the government by capping the total cost. Mitigation for performance and schedule risks relies on the FAA's contract oversight, adherence to detailed specifications and drawings, and the contractor's own project management capabilities. The 'exclusion of sources' in the competition might introduce a risk if the remaining bidders lack specialized expertise, though the presence of three bidders suggests a viable pool.

What is the expected effectiveness of the refurbishment in improving airport operations?

The effectiveness of the refurbishment hinges on the scope of work detailed in the contract's drawings and specifications. If the project addresses critical infrastructure deficiencies, such as outdated electrical systems, deteriorating building envelopes, or inadequate HVAC, the effectiveness will be high in terms of ensuring operational continuity, safety, and potentially energy efficiency. The contract's duration of over two years suggests a comprehensive upgrade rather than superficial repairs. Successful completion according to the defined standards will directly contribute to the reliability and functionality of the ARSR buildings at the specified Maine locations.

How does this contract's value compare to historical spending on similar FAA building maintenance and construction?

To assess this contract's value against historical spending, one would need to analyze the FAA's budget allocations and contract awards for building maintenance and construction over previous fiscal years. Key metrics for comparison would include the average cost per square foot for similar refurbishments, the typical contract duration for such projects, and the number of bidders in comparable competitions. The $2.79 million award for two buildings over two years should be evaluated in the context of inflation, material costs, and the specific needs of the facilities. A trend analysis of FAA spending on infrastructure upgrades would provide a clearer picture of whether this contract represents a typical, increased, or decreased investment.

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-23-Q-00233

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1213 NATHAN BLVD, 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: $2,786,025

Exercised Options: $2,786,025

Current Obligation: $2,786,025

Actual Outlays: $2,412,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline