DOT awards $109M contract for FAA ATCT modernization, with construction expected to take over 3 years

Contract Overview

Contract Amount: $10,923,247 ($10.9M)

Contractor: Guardian Construction, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-04-12

End Date: 2026-04-30

Contract Duration: 1,114 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DIA ATCT MODERNIZATION

Place of Performance

Location: DENVER, DENVER County, COLORADO, 80249

State: Colorado Government Spending

Plain-Language Summary

Department of Transportation obligated $10.9 million to GUARDIAN CONSTRUCTION, INC. for work described as: DIA ATCT MODERNIZATION Key points: 1. Contract awarded to Guardian Construction, Inc. for a significant infrastructure project. 2. The contract is for definitive contract type with a firm fixed price. 3. Project duration is estimated at 1114 days, indicating a substantial construction timeline. 4. The contract falls under the Commercial and Institutional Building Construction NAICS code. 5. Awarded under full and open competition, suggesting a competitive bidding process. 6. The contract is not set aside for small businesses. 7. The project is located in Colorado, impacting the local construction sector.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more detailed cost breakdowns and comparisons to similar Air Traffic Control (ATCT) modernization projects. The firm fixed price structure aims to control costs, but the total award amount of $109.2 million for a project spanning over three years suggests a significant investment. Without specific details on the scope of modernization, it's difficult to definitively assess value for money against industry standards or comparable projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of two bids suggests a moderate level of competition. While full and open competition is generally preferred for ensuring fair pricing and access for qualified contractors, the specific number of bidders can influence price discovery.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by encouraging lower prices and better quality services as contractors vie for the award.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the traveling public, who will experience modernized air traffic control facilities. The contract will deliver construction services for the modernization of an Air Traffic Control Tower (ATCT). The geographic impact is concentrated in Colorado, where the construction will take place. The project will likely create or sustain jobs within the construction industry in the local Colorado workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm fixed price.
Dependency on Guardian Construction, Inc.'s performance and capacity to manage a project of this scale and duration.
Risk of delays impacting the modernization timeline and operational readiness of the ATCT.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a robust selection process.
The project addresses critical infrastructure needs for air traffic control modernization.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant part of the federal procurement landscape. This contract falls within the broader category of infrastructure development, which often involves large-scale projects with long durations. Comparable spending benchmarks for ATCT modernization projects can vary widely based on the complexity and scale of the facility, but projects in the tens to hundreds of millions of dollars are not uncommon for major upgrades.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless Guardian Construction, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will primarily 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 shifts much of the cost risk to the contractor. Transparency is expected through standard government contracting reporting mechanisms. The specific jurisdiction of any Inspector General would depend on the agency's internal structure and the nature of any potential issues.

Related Government Programs

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

Risk Flags

Potential for schedule delays
Risk of cost overruns (though mitigated by FFP)
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.9 million to GUARDIAN CONSTRUCTION, INC.. DIA ATCT MODERNIZATION

Who is the contractor on this award?

The obligated recipient is GUARDIAN 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 $10.9 million.

What is the period of performance?

Start: 2023-04-12. End: 2026-04-30.

What is the specific scope of modernization for this ATCT, and how does it align with the FAA's broader modernization goals?

The provided data does not detail the specific scope of modernization for this Air Traffic Control Tower (ATCT). However, ATCT modernization projects typically involve upgrading aging infrastructure, incorporating new technologies for air traffic management, improving energy efficiency, and enhancing safety features. These efforts generally align with the FAA's overarching goals of modernizing the National Airspace System (NAS) to increase capacity, improve efficiency, enhance safety, and reduce environmental impact. Further details would likely be found in the contract's statement of work or related FAA modernization strategy documents.

How does the $109.2 million award compare to the average cost of similar ATCT modernization projects?

Directly comparing the $109.2 million award to an 'average cost' for similar ATCT modernization projects is challenging without more specific data on the scope and complexity of this particular project and a robust database of comparable projects. ATCT modernization costs can vary significantly based on factors such as the size of the facility, the extent of technological upgrades, the need for structural repairs or replacements, and the geographic location. However, given the duration of over three years, this award suggests a substantial undertaking. For context, other significant FAA infrastructure projects have ranged from tens to hundreds of millions of dollars, making this award appear within a plausible, albeit high, range for a major modernization effort.

What are the key performance indicators (KPIs) that Guardian Construction, Inc. must meet under this contract?

The provided data does not specify the key performance indicators (KPIs) for Guardian Construction, Inc. under this contract. However, for construction contracts of this nature, typical KPIs often include adherence to project schedules, meeting quality standards for construction and materials, compliance with safety regulations, effective budget management (within the fixed price), and successful completion of defined project milestones. The FAA would likely have detailed performance requirements outlined in the contract's statement of work and performance clauses, with potential for penalties or incentives tied to meeting these KPIs.

What is Guardian Construction, Inc.'s track record with large federal construction projects, particularly for the FAA?

Information regarding Guardian Construction, Inc.'s specific track record with large federal construction projects, particularly for the FAA, is not provided in the abbreviated data. A comprehensive assessment would require reviewing their past performance on similar contracts, including project size, complexity, timeliness, and client satisfaction ratings. Federal procurement databases and contractor performance systems (like the Contractor Performance Assessment Reporting System - CPARS) would typically hold this information. Without access to these resources, it's difficult to evaluate their suitability and past performance for this significant ATCT modernization contract.

Are there any specific environmental or sustainability requirements mandated for this ATCT modernization project?

The provided data does not contain information on specific environmental or sustainability requirements for this ATCT modernization project. Federal construction projects are often subject to various environmental regulations, including those related to environmental impact assessments, waste management, energy efficiency standards, and the use of sustainable materials. The FAA, as the contracting agency, would typically incorporate such requirements into the contract's statement of work, especially for infrastructure projects. Further review of the full contract documentation would be necessary to identify any specific environmental or sustainability mandates.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-22-R-00508

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 360 SOUTH FORT LANE BLDG #1 , STE D, LAYTON, UT, 84041

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,923,247

Exercised Options: $10,923,247

Current Obligation: $10,923,247

Actual Outlays: $9,896,283

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline