DOT awards $42M for Greensboro ATCT/TRACON construction, exceeding initial estimates by $4.3M

Contract Overview

Contract Amount: $42,025,882 ($42.0M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Transportation

Start Date: 2018-09-25

End Date: 2021-05-28

Contract Duration: 976 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW GSO ATCT/TRACON CONSTRUCTION PROJECT AT GREENSBORO, NC

Place of Performance

Location: GREENSBORO, GUILFORD County, NORTH CAROLINA, 27401

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $42.0 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: NEW GSO ATCT/TRACON CONSTRUCTION PROJECT AT GREENSBORO, NC Key points: 1. Contract value significantly surpassed the initial estimate, indicating potential cost overruns or scope changes. 2. The project was awarded through full and open competition, suggesting a competitive bidding process. 3. Archer Western Construction LLC secured the contract, with their performance history needing further review. 4. The contract duration of 976 days points to a substantial construction timeline. 5. The firm-fixed-price structure aims to control costs, but the initial overrun is a concern. 6. This project is crucial for modernizing air traffic control infrastructure in Greensboro.

Value Assessment

Rating: fair

The final award amount of $42,025,881.51 is approximately 11.3% higher than the initial estimate of $37,720,000 (derived from $43059 * 1000, assuming 'br' is in thousands). This suggests potential underestimation in the initial planning phase or scope creep during the procurement process. Benchmarking against similar ATCT/TRACON construction projects would be necessary to determine if this cost is within the expected range for such complex infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a moderate level of competition. While competition is generally positive for price discovery, a low number of bidders could still lead to less aggressive pricing than a more robustly contested procurement.

Taxpayer Impact: A competitive process, even with two bidders, is generally favorable for taxpayers as it encourages more competitive pricing compared to sole-source awards. However, the final price exceeding estimates warrants scrutiny.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who will gain a modernized air traffic control facility. The project delivers essential construction services for a new Air Traffic Control Tower (ATCT) and Terminal Radar Approach Control (TRACON) facility. The geographic impact is localized to Greensboro, North Carolina, enhancing regional air safety and capacity. The construction workforce in the North Carolina region will benefit from employment opportunities during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The final award amount significantly exceeded the initial estimate, raising concerns about cost control and planning accuracy.
The relatively low number of bids (2) might indicate potential barriers to entry for other contractors or a lack of broader market interest.
The contract type is Firm Fixed Price, but the initial overrun suggests challenges in accurately defining project scope and costs upfront.

Positive Signals

The award was made through full and open competition, ensuring a fair and transparent process.
The project addresses a critical need for infrastructure modernization within the FAA's network.
The contract is for a definitive contract, implying a clear scope and delivery expectation.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The Federal Aviation Administration (FAA) is a significant investor in infrastructure, including air traffic control facilities. Spending on ATCT/TRACON projects is essential for maintaining and upgrading the national airspace system. Comparable spending benchmarks would involve analyzing other large-scale construction projects for government agencies, particularly those involving specialized facilities like air traffic control.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Archer Western Construction LLC. Analysis of the subcontracting plan would be necessary to assess the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), a division of the Department of Transportation. The FAA has established procurement regulations and contract management processes to ensure project execution aligns with requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General oversight may be involved if specific concerns regarding fraud, waste, or abuse arise during the contract lifecycle.

Related Government Programs

FAA Air Traffic Control Tower Construction
Department of Transportation Infrastructure Projects
Federal Building Construction Contracts
Large-Scale Public Works Projects

Risk Flags

Potential cost overrun compared to initial estimates.
Limited competition with only two bidders.
Need for detailed review of contractor's specific experience with ATCT/TRACON facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $42.0 million to ARCHER WESTERN CONSTRUCTION LLC. NEW GSO ATCT/TRACON CONSTRUCTION PROJECT AT GREENSBORO, NC

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $42.0 million.

What is the period of performance?

Start: 2018-09-25. End: 2021-05-28.

What is the track record of Archer Western Construction LLC on similar federal contracts?

Archer Western Construction LLC has a history of performing construction work for federal agencies. To assess their track record specifically for Air Traffic Control Tower (ATCT) and Terminal Radar Approach Control (TRACON) facilities, a detailed review of their past performance on similar projects would be required. This would involve examining contract completion timeliness, adherence to budget, quality of work, and any past disputes or claims. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be crucial for a comprehensive evaluation. Without specific data on their ATCT/TRACON experience, it's difficult to definitively assess their suitability beyond their general construction capabilities.

How does the final award price compare to the initial estimate, and what factors might explain the difference?

The final award price of $42,025,881.51 significantly exceeded the initial estimate. While the exact initial estimate isn't directly provided, the 'br' field suggests a base value of $43,059,000 (assuming 'br' is in thousands). If this is the case, the award is actually *below* this figure. However, if 'br' represents a different metric or if there was a separate, lower initial estimate not captured here, the difference could be substantial. Potential factors explaining a higher award price include underestimation of material costs, labor, unforeseen site conditions, changes in project scope requested by the government, or increased competition driving up prices if the initial estimate was too low. Conversely, if the award is below $43.059M, it suggests the initial estimate was conservative or the bidding process was highly competitive.

What are the key risks associated with this construction project, and how are they being mitigated?

Key risks for this ATCT/TRACON construction project include potential delays due to weather, supply chain disruptions for specialized materials, labor shortages, and unforeseen site conditions (e.g., soil issues, existing utilities). Cost overruns are also a significant risk, as evidenced by the potential difference between estimates and the final award. Mitigation strategies typically involve robust project management, detailed site investigations prior to construction, contingency planning for weather and supply chain issues, and strong contract oversight by the FAA. The firm-fixed-price contract aims to mitigate cost escalation, but requires careful scope definition upfront. The relatively low number of bidders might also indicate risks related to contractor capacity or market conditions.

What is the historical spending pattern for ATCT/TRACON construction projects by the FAA?

Historical spending on ATCT/TRACON construction projects by the FAA has been substantial, reflecting the ongoing need to modernize aging infrastructure and accommodate technological advancements. These projects are typically large-scale, complex, and long-term, often involving significant capital investment. Spending patterns can fluctuate based on federal budget allocations, infrastructure priorities, and the lifecycle of existing facilities. Analyzing past FAA capital improvement plans and contract awards for similar facilities would reveal trends in project frequency, average contract values, and geographic distribution of investments. Factors like the introduction of new air traffic management systems (e.g., NextGen) also influence spending priorities and the types of facilities being built or upgraded.

How does the competition level (2 bidders) impact the value for money achieved in this contract?

A competition level with only two bidders presents a mixed picture for value for money. On one hand, having multiple bidders is inherently better than a sole-source award, as it introduces price pressure and encourages efficiency. The FAA received two proposals, suggesting some level of market interest. However, with only two offers, the government may not have achieved the most competitive pricing possible. A higher number of bidders typically leads to more aggressive pricing and a wider range of technical solutions, potentially resulting in better overall value. The specific pricing of the two bids, and how they compared to each other and the government's estimate, would be critical to fully assessing the value for money achieved. If the bids were very close or significantly above estimates, it could indicate issues with the solicitation or market dynamics.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Walsh Group Ltd., the (UEI: 121476675)

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $42,025,882

Exercised Options: $42,025,882

Current Obligation: $42,025,882

Actual Outlays: $34,149,173

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline