DOT awards $5.6M for FAA air traffic control modernization, focusing on mechanical systems

Contract Overview

Contract Amount: $5,600,515 ($5.6M)

Contractor: CMP Commercial Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2021-12-08

End Date: 2026-04-10

Contract Duration: 1,584 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EO14042 DFW CONSOLIDATED ATCT MAJOR MECHANICAL MODERNIZATION

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75261

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $5.6 million to CMP COMMERCIAL CONSTRUCTION INC for work described as: EO14042 DFW CONSOLIDATED ATCT MAJOR MECHANICAL MODERNIZATION Key points: 1. Contract value appears reasonable for a multi-year infrastructure project of this nature. 2. Competition was full and open, suggesting a competitive bidding process. 3. Project duration is substantial, indicating a complex scope of work. 4. The contract type is firm-fixed-price, which shifts cost risk to the contractor. 5. This project addresses critical infrastructure upgrades for air traffic control. 6. The contractor has experience in commercial construction, relevant to mechanical systems.

Value Assessment

Rating: good

The contract value of approximately $5.6 million for a major mechanical modernization of an air traffic control tower appears to be within a reasonable range for such specialized infrastructure work. Benchmarking against similar FAA projects for facility upgrades would provide a more precise assessment, but the scope suggests a significant undertaking. The firm-fixed-price structure indicates that the government has secured a defined cost, with the contractor bearing the risk of cost overruns.

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 that while the competition was broad, specific sources may have been excluded based on predefined criteria. The presence of multiple bidders (implied by 'full and open') generally leads to better price discovery and potentially more competitive pricing for the government. Further details on the number of bids received would offer a clearer picture of the competition's intensity.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it maximizes the pool of potential bidders, driving down costs through competitive pressure and ensuring the government receives the best value.

Public Impact

Benefits air traffic control operations by modernizing critical mechanical systems. Enhances the reliability and efficiency of air traffic management at the consolidated ATCT. Supports the safety and security of air travel within the affected region. Likely involves skilled labor in HVAC, plumbing, and related mechanical trades. Geographic impact is specific to the location of the consolidated ATCT in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the multi-year duration and complexity of mechanical modernization.
Ensuring contractor compliance with all federal regulations and safety standards throughout the project lifecycle.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a competitive award process.
Project addresses essential infrastructure modernization, improving long-term operational efficiency.

Sector Analysis

This contract falls within the construction and engineering services sector, specifically focusing on mechanical systems for critical infrastructure. The Federal Aviation Administration (FAA) regularly invests in modernizing its facilities to ensure the safety and efficiency of air traffic control. Spending in this area is driven by the need to upgrade aging infrastructure, incorporate new technologies, and meet evolving regulatory requirements. Comparable spending benchmarks would involve looking at other large-scale HVAC and plumbing upgrade contracts for federal buildings or specialized facilities.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting goals. This suggests that the prime contractor, CMP Commercial Construction Inc., is likely a larger entity, and opportunities for small businesses would primarily arise through subcontracting if mandated or pursued by the prime.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. Mechanisms for oversight would include regular progress reviews, site inspections, and adherence to contract milestones. Accountability is ensured through the firm-fixed-price structure, which incentivizes the contractor to manage costs and timelines effectively. Transparency is typically maintained through contract award databases and reporting requirements, though specific project-level transparency details may vary.

Related Government Programs

FAA Air Traffic Control Facility Modernization Programs
Federal Building and Infrastructure Renovation Projects
Department of Transportation Capital Improvement Projects

Risk Flags

Potential for schedule overruns due to project complexity.
Risk of unforeseen site conditions impacting mechanical systems.
Ensuring long-term maintainability of installed mechanical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.6 million to CMP COMMERCIAL CONSTRUCTION INC. EO14042 DFW CONSOLIDATED ATCT MAJOR MECHANICAL MODERNIZATION

Who is the contractor on this award?

The obligated recipient is CMP COMMERCIAL CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.6 million.

What is the period of performance?

Start: 2021-12-08. End: 2026-04-10.

What is the track record of CMP Commercial Construction Inc. with the Federal Aviation Administration or similar government agencies?

A review of federal procurement data would be necessary to fully assess CMP Commercial Construction Inc.'s track record. However, their selection for this significant mechanical modernization project suggests they possess the necessary qualifications and experience. Further investigation into their past performance on similar government contracts, particularly those involving complex mechanical systems or critical infrastructure, would provide deeper insight into their reliability, past performance ratings, and any history of disputes or contract issues. Understanding their experience with FAA-specific requirements and regulations would also be crucial.

How does the awarded amount compare to similar FAA mechanical modernization projects?

Direct comparison requires access to a database of similar FAA projects, including their scope, duration, and final awarded values. However, a $5.6 million contract for major mechanical upgrades at a consolidated air traffic control tower is substantial. Factors influencing cost include the size and complexity of the facility, the specific systems being modernized (HVAC, plumbing, fire suppression, etc.), the age of the existing infrastructure, and prevailing labor and material costs in the project's geographic region (Texas, in this case). Without specific comparable data, it's difficult to definitively benchmark the value, but the amount suggests a significant scope of work.

What are the primary risks associated with a multi-year mechanical modernization project of this nature?

Key risks include potential schedule delays due to unforeseen site conditions, supply chain disruptions for specialized equipment, labor shortages, and coordination challenges with ongoing facility operations. For the government, risks also involve ensuring the contractor meets quality standards and adheres to the firm-fixed-price budget. Contractor performance risk is mitigated by the contract type, but monitoring progress and quality is essential. Technological obsolescence is less of a risk for mechanical systems compared to IT, but ensuring the chosen systems are maintainable and supportable long-term is important.

How effective are firm-fixed-price contracts in managing costs for complex construction projects like this?

Firm-fixed-price (FFP) contracts are generally effective in managing costs for construction projects when the scope of work is well-defined and risks can be reasonably anticipated. They shift the primary cost-control responsibility to the contractor, who assumes the risk of cost overruns in exchange for the potential for higher profit if they manage the project efficiently. This contract type provides budget certainty for the government. However, if unforeseen issues arise that significantly alter the scope, change orders can increase the total cost, and poorly defined scopes can lead to disputes. For this project, the FFP structure provides a clear ceiling.

What is the historical spending trend for FAA facility modernization and mechanical upgrades?

Historical spending trends for FAA facility modernization and mechanical upgrades are generally characterized by consistent investment driven by the need to maintain and improve aging air traffic control infrastructure. The FAA's budget typically allocates significant funds towards capital improvements, including upgrades to towers, radar facilities, and operational support buildings. Spending levels can fluctuate based on congressional appropriations, the urgency of identified infrastructure needs, and the initiation of major modernization programs. Analyzing multi-year FAA budget data and contract awards for similar projects would reveal specific spending patterns and priorities over time.

What are the implications of 'full and open competition after exclusion of sources' for price and quality?

This specific competition method, 'full and open competition after exclusion of sources,' implies that while the competition was broadly solicited, certain potential offerors were excluded based on specific, pre-defined criteria. This could be due to requirements for specialized capabilities, past performance, or other factors outlined in the solicitation. While it aims for broad participation, the exclusion of some sources might limit the number of truly competitive bids compared to a purely 'full and open' approach. The impact on price and quality depends heavily on the justification for the exclusions and the remaining pool of qualified bidders. If the exclusions were well-justified and a robust set of qualified bidders remained, competitive pricing and high quality can still be achieved.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-20-R-00219

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1150 MLK JR FREEWAY, FORT WORTH, TX, 76104

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

Financial Breakdown

Contract Ceiling: $5,600,515

Exercised Options: $5,600,515

Current Obligation: $5,600,515

Actual Outlays: $5,128,779

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline