FAA awards $507K for SLC ATCT/TRACON equipment, with 3 bidders competing for this firm-fixed-price delivery order

Contract Overview

Contract Amount: $5,070,554 ($5.1M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-02-10

End Date: 2026-12-31

Contract Duration: 689 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: F11 FUNDING FOR SALT LAKE CITY (SLC) ATCT/TRACON CPDS MODIFICATIONS REV 1- EQUIPMENT AND INSTALLATION FUNDING JCN: 25013989 VENDOR: WELLS GLOBAL LLC

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84101

State: Utah Government Spending

Plain-Language Summary

Department of Transportation obligated $5.1 million to WELLS GLOBAL, LLC for work described as: F11 FUNDING FOR SALT LAKE CITY (SLC) ATCT/TRACON CPDS MODIFICATIONS REV 1- EQUIPMENT AND INSTALLATION FUNDING JCN: 25013989 VENDOR: WELLS GLOBAL LLC Key points: 1. The contract value represents a modest investment in critical air traffic control infrastructure. 2. Competition was robust with three bids received, suggesting a healthy market for these specialized services. 3. The fixed-price nature of the contract shifts performance risk to the contractor. 4. This award is part of ongoing modernization efforts for air traffic control systems. 5. The vendor, Wells Global LLC, is a new awardee for this specific type of work. 6. The contract duration of 689 days aligns with typical project timelines for equipment installation.

Value Assessment

Rating: good

The contract value of $507,055 for equipment and installation appears reasonable given the scope of work for an Air Traffic Control Tower (ATCT) and Terminal Radar Approach Control (TRACON) system modification. Benchmarking against similar, smaller-scale upgrades for communication, navigation, and surveillance (CNS) equipment suggests that pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, assuming the contractor's bid accurately reflects the required labor and materials.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. The presence of multiple bidders indicates that the market is accessible and that the solicitation was likely well-publicized. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. The agency's decision to use full and open competition suggests confidence in the availability of qualified contractors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. This ensures that government funds are used efficiently for essential infrastructure upgrades.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the air traffic controllers at Salt Lake City International Airport (SLC), who will receive updated equipment. The services delivered include the procurement and installation of critical equipment for the ATCT/TRACON system. The geographic impact is localized to Salt Lake City, Utah, enhancing the safety and efficiency of air traffic operations in that region. Workforce implications include employment opportunities for skilled technicians and installers involved in the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen installation challenges arise, though mitigated by the fixed-price contract.
Dependence on a single vendor for specialized equipment and installation could pose supply chain risks.
Performance delays could impact the modernization schedule for SLC's air traffic control systems.

Positive Signals

The use of full and open competition suggests a competitive pricing environment.
The firm-fixed-price contract structure provides cost certainty for the government.
The contract duration appears adequate for the scope of work, allowing for thorough installation and testing.
Awarding to Wells Global LLC introduces a new vendor, potentially fostering future competition.
The project directly supports the FAA's mission to ensure safe and efficient air travel.

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector, specifically focusing on specialized equipment and installation for critical infrastructure. The market for air traffic control systems is relatively concentrated, with a few key players providing advanced technology. Spending in this area is driven by the FAA's continuous need to modernize aging systems, enhance safety, and improve capacity in response to growing air traffic demands. Comparable spending benchmarks would typically involve other FAA procurements for similar CNS equipment upgrades at various airports.

Small Business Impact

This contract was not set aside for small businesses, and the vendor, Wells Global LLC, is not identified as a small business in this context. There is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, although the prime contractor may engage small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Aviation Administration (FAA), likely through contracting officers and technical representatives who will monitor performance, quality, and adherence to the contract terms. The firm-fixed-price nature of the award provides a degree of accountability by placing the responsibility for cost control on the contractor. Transparency is facilitated through public contract databases where award details are recorded. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA Air Traffic Control Modernization Programs
National Airspace System (NAS) Modernization
Airport Improvement Program (AIP) related infrastructure
Communication, Navigation, and Surveillance (CNS) Equipment Procurements

Risk Flags

Potential for performance delays
Supply chain dependencies for specialized equipment

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.1 million to WELLS GLOBAL, LLC. F11 FUNDING FOR SALT LAKE CITY (SLC) ATCT/TRACON CPDS MODIFICATIONS REV 1- EQUIPMENT AND INSTALLATION FUNDING JCN: 25013989 VENDOR: WELLS GLOBAL LLC

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 $5.1 million.

What is the period of performance?

Start: 2025-02-10. End: 2026-12-31.

What is the track record of Wells Global LLC in performing similar FAA contracts for ATCT/TRACON equipment?

Based on the provided data, this appears to be a new award for Wells Global LLC concerning ATCT/TRACON CPDS modifications. Further investigation into the vendor's contract history with the FAA and other government agencies would be necessary to ascertain their experience with similar projects. While the data indicates a delivery order valued at $507,055 with a duration of 689 days, it does not provide details on past performance on comparable projects. A review of contract databases and performance reports would be crucial to assess their capability and reliability in executing this specific type of technical installation and equipment integration.

How does the awarded price compare to similar FAA procurements for ATCT/TRACON system upgrades?

The awarded value of $507,055 for equipment and installation for the SLC ATCT/TRACON CPDS modifications is a key data point. To benchmark this effectively, one would need to compare it against recent FAA contracts for similar scope and scale. Factors such as the specific type of equipment (e.g., radar components, communication systems, display consoles), the complexity of installation, and the geographic location can influence pricing. Without access to a comprehensive database of comparable FAA procurements, a precise value-for-money assessment is challenging. However, the presence of three bidders suggests a competitive market, which typically helps align prices with fair market value.

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

The primary risks associated with this contract include potential performance issues, such as delays in installation or equipment malfunctions, and cost overruns if unforeseen technical challenges arise. However, the contract is firm-fixed-price, which shifts the financial risk of cost overruns to the contractor, Wells Global LLC. Mitigation strategies include the FAA's oversight through contracting officers and technical representatives who will monitor progress and quality. The defined contract duration of 689 days also provides a clear timeline for completion. The competition among three bidders may also incentivize the contractor to perform diligently to secure future work.

How effective is the competition level in ensuring optimal value for taxpayers on this contract?

The contract was awarded under full and open competition with three bids received, which is a positive indicator for value realization. This level of competition generally fosters a more efficient market, encouraging bidders to offer competitive pricing and robust performance to win the contract. For taxpayers, this means the likelihood of achieving a fair market price for the required equipment and installation services is higher compared to sole-source or limited competition scenarios. The FAA's decision to pursue full and open competition suggests they believe sufficient market capacity exists to support this approach, thereby maximizing the potential for cost savings and quality outcomes.

What is the historical spending pattern for ATCT/TRACON system modifications by the FAA?

Historical spending patterns for ATCT/TRACON system modifications by the FAA are characterized by consistent investment in modernization and upgrades. The FAA allocates significant portions of its budget towards maintaining and enhancing the National Airspace System (NAS). Spending in this category typically involves procurements for new equipment, software updates, and infrastructure improvements across numerous air traffic facilities nationwide. While specific figures for ATCT/TRACON modifications fluctuate annually based on strategic priorities and system lifecycles, the overall trend reflects a sustained effort to incorporate advanced technologies, improve reliability, and ensure the safety and efficiency of air traffic control operations.

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: $5,070,554

Exercised Options: $5,070,554

Current Obligation: $5,070,554

Actual Outlays: $156,392

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