DOT's FAA awards $2.38M contract for HVAC upgrades at Kansas City Air Route Traffic Control Center

Contract Overview

Contract Amount: $2,380,325 ($2.4M)

Contractor: CMP Commercial Construction Inc

Awarding Agency: Department of Transportation

Start Date: 2024-12-04

End Date: 2026-06-12

Contract Duration: 555 days

Daily Burn Rate: $4.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO REPLACE COMPUTER ROOM AIR HANDLING UNITS (AHU) 4 THRU 14 AT THE KANSAS CITY (ZKC) AIR ROUTE TRAFFIC CONTROL CENTER (ARTCC) IN OLATHE, KS

Place of Performance

Location: OLATHE, JOHNSON County, KANSAS, 66051

State: Kansas Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to CMP COMMERCIAL CONSTRUCTION INC for work described as: CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO REPLACE COMPUTER ROOM AIR HANDLING UNITS (AHU) 4 THRU 14 AT THE KANSAS CITY (ZKC) AIR ROUTE TRAFFIC CONTROL CENTER (ARTCC) IN OLATHE, KS Key points: 1. The contract focuses on replacing critical air handling units, essential for maintaining operational environments. 2. This procurement was conducted under the Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for smaller dollar values. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The project duration spans over 1.5 years, indicating a significant but manageable scope. 5. The award to CMP Commercial Construction Inc. represents a specific investment in aging infrastructure at a key air traffic control facility.

Value Assessment

Rating: good

The contract value of $2.38 million for replacing 11 air handling units appears reasonable given the scope of work. While direct comparisons are difficult without detailed specifications, the benchmark for similar HVAC replacement projects in federal facilities often falls within a similar per-unit cost range, especially considering the specialized nature of air traffic control centers. The firm-fixed-price structure helps manage cost overruns.

Cost Per Unit: Approximately $216,393 per AHU, which is within the expected range for specialized HVAC replacement in critical infrastructure.

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the simplified threshold. While the specific number of bidders is not detailed, SAP generally encourages multiple offers, leading to competitive pricing. The use of SAP suggests the agency sought to streamline the acquisition process while still obtaining competitive proposals.

Taxpayer Impact: Utilizing SAP for this contract likely resulted in a more efficient procurement process and potentially better pricing for taxpayers compared to a lengthy, full-scale competitive bid for a smaller dollar amount.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the personnel operating the Kansas City Air Route Traffic Control Center (ARTCC). The contract delivers essential infrastructure upgrades, ensuring the reliable operation of the air traffic control system. The geographic impact is localized to Olathe, Kansas, where the ARTCC is located. The project will likely involve skilled labor in the HVAC and construction trades within the local Kansas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions are encountered during the replacement of older units.
Ensuring the contractor's adherence to strict operational continuity requirements during installation is crucial.

Positive Signals

The firm-fixed-price contract provides cost certainty and incentivizes the contractor to complete the work efficiently.
The project addresses critical infrastructure needs, enhancing the reliability of air traffic control operations.
The use of SAP suggests an efficient acquisition process for this value range.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC systems. The market for specialized HVAC services in critical government facilities is robust, with numerous contractors capable of performing such work. The FAA, as a major government agency, regularly procures services for its extensive network of air traffic control centers, representing significant and consistent spending in this area.

Small Business Impact

The contract was competed under SAP and does not indicate a specific small business set-aside. However, the prime contractor, CMP Commercial Construction Inc., may utilize small businesses for subcontracting opportunities, contributing to the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

The contract is a firm-fixed-price definitive contract, which provides clear cost parameters. Oversight will likely be managed by the FAA contracting officer and technical representatives to ensure work is performed according to specifications and schedule. The contract duration and scope suggest regular progress reporting and site inspections would be part of the oversight process. Transparency is generally maintained through federal procurement databases.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Building HVAC System Upgrades
Critical Infrastructure Maintenance Contracts

Risk Flags

Potential for operational disruption during installation.
Risk of unforeseen site conditions impacting schedule and cost.
Ensuring contractor's adherence to stringent FAA operational standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to CMP COMMERCIAL CONSTRUCTION INC. CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO REPLACE COMPUTER ROOM AIR HANDLING UNITS (AHU) 4 THRU 14 AT THE KANSAS CITY (ZKC) AIR ROUTE TRAFFIC CONTROL CENTER (ARTCC) IN OLATHE, KS

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 $2.4 million.

What is the period of performance?

Start: 2024-12-04. End: 2026-06-12.

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

A review of federal procurement data indicates that CMP Commercial Construction Inc. has been awarded multiple contracts by various federal agencies, including the FAA. While specific performance details for past FAA contracts are not publicly detailed in this summary, the agency's decision to award this contract suggests a satisfactory performance history or a competitive bid that met requirements. Further investigation into past performance evaluations and any reported issues would provide a more comprehensive understanding of their track record with the FAA.

How does the per-unit cost of these AHU replacements compare to similar federal projects?

The approximate per-unit cost of $216,393 for replacing each Air Handling Unit (AHU) appears to be within a reasonable range for specialized HVAC work in critical federal facilities. Benchmarking against similar projects is challenging without precise specifications, but costs for replacing large, industrial-grade AHUs, especially in secure environments like air traffic control centers, can range from $150,000 to over $300,000 per unit depending on complexity, size, and required integration. This contract's value suggests a competitive pricing strategy by the contractor.

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

Key risks include potential project delays due to unforeseen site conditions during the removal of older equipment or integration challenges with existing systems. Another risk is ensuring minimal disruption to the ongoing operations of the ARTCC. Mitigation strategies likely involve detailed site surveys prior to work, phased installation plans to maintain partial operations, and robust communication protocols between the contractor and FAA facility managers. The firm-fixed-price contract also incentivizes the contractor to manage risks effectively to avoid cost overruns.

How effective is the Simplified Acquisition Procedure (SAP) in ensuring value for money for this type of contract?

SAP is designed to streamline the procurement process for acquisitions below the simplified threshold (currently $250,000, though this contract is slightly above, suggesting it may have been processed under specific exceptions or prior thresholds). For contracts of this value, SAP can enhance efficiency and potentially reduce administrative costs. While it may not always yield the same level of competition as full and open procedures for larger contracts, it is intended to provide fair and reasonable prices through competition among a broader base of vendors. The FAA's use of SAP here suggests they determined it was an appropriate method to achieve value.

What is the historical spending trend for HVAC maintenance and replacement at FAA Air Route Traffic Control Centers?

Historical spending on HVAC maintenance and replacement at FAA ARTCCs is substantial and ongoing, reflecting the critical nature of these facilities and the aging infrastructure. Agencies like the FAA consistently allocate significant portions of their facilities and equipment budgets to maintaining environmental controls, as temperature and humidity fluctuations can impact sensitive electronic equipment essential for air traffic control. While specific year-over-year trends for all ARTCCs are not detailed here, such procurements are a regular feature of the FAA's capital improvement and maintenance programs.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-24-R-00468

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1150 MARTIN LUTHER KING FWY, 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: $2,380,325

Exercised Options: $2,380,325

Current Obligation: $2,380,325

Actual Outlays: $68,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline