DOT's FAA awards $7.8M contract for ZLC underground utilities modernization to E CORP

Contract Overview

Contract Amount: $7,811,408 ($7.8M)

Contractor: E Corp

Awarding Agency: Department of Transportation

Start Date: 2025-08-27

End Date: 2027-08-27

Contract Duration: 730 days

Daily Burn Rate: $10.7K/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: SALT LAKE CITY, UT AIR ROUTE TRAFFIC CONTROL CENTER (ZLC) UNDERGROUND UTILITIES MODERNIZATION. SCOPE: MODERNIZE THE FACILITY TO REPLACE UNDERGROUND UTILITIES, RENOVATE THE PAVED SURFACE PARKING LOTS AND REPAIR CONCRETE AND GRASS AREAS. THE PROJEC

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84116

State: Utah Government Spending

Plain-Language Summary

Department of Transportation obligated $7.8 million to E CORP for work described as: SALT LAKE CITY, UT AIR ROUTE TRAFFIC CONTROL CENTER (ZLC) UNDERGROUND UTILITIES MODERNIZATION. SCOPE: MODERNIZE THE FACILITY TO REPLACE UNDERGROUND UTILITIES, RENOVATE THE PAVED SURFACE PARKING LOTS AND REPAIR CONCRETE AND GRASS AREAS. THE PROJEC Key points: 1. The contract focuses on essential infrastructure upgrades at the Salt Lake City Air Route Traffic Control Center. 2. Modernizing underground utilities and renovating parking/landscaping areas aims to improve facility reliability and safety. 3. The project is a firm-fixed-price delivery order, indicating defined costs and scope for the contractor. 4. The duration of 730 days suggests a comprehensive approach to the modernization effort. 5. This contract falls under commercial and institutional building construction, a common category for facility upgrades.

Value Assessment

Rating: good

The contract value of approximately $7.8 million for underground utility modernization and site renovation appears reasonable given the scope. Benchmarking against similar FAA facility upgrade projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed cost breakdowns makes a granular price assessment challenging. The contract's value is within the expected range for such infrastructure improvements at a critical air traffic control facility.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition scenario. While not a sole-source award, the exclusion of certain sources implies that not all potential bidders were considered. The number of bidders (2) is relatively low, which can sometimes lead to less competitive pricing compared to broader full and open competitions. Further details on the reasons for excluding sources would clarify the extent of competition.

Taxpayer Impact: A limited competition with only two bidders may result in higher costs for taxpayers compared to a scenario with more robust competition. This could mean less downward pressure on pricing and potentially a less optimal use of federal funds.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and its air traffic controllers, who will operate in a modernized and more reliable facility. The services delivered include the replacement of aging underground utilities (water, sewer, electrical, etc.) and improvements to surface areas. The geographic impact is localized to the Salt Lake City Air Route Traffic Control Center (ZLC) in Utah. Workforce implications include employment opportunities for construction workers and specialized trades involved in utility modernization and site development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) raises concerns about potential price inflation and suboptimal value for taxpayer funds.
The 'exclusion of sources' clause warrants further investigation to understand if it restricted competition unnecessarily.
Lack of detailed cost breakdowns makes it difficult to fully assess the value for money.

Positive Signals

The contract addresses critical infrastructure needs, ensuring the continued reliable operation of a key air traffic control facility.
Firm-fixed-price contract type provides cost certainty for the government.
The project duration is clearly defined, allowing for structured project management and execution.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for such projects is driven by government infrastructure needs, particularly for critical facilities like air traffic control centers. Spending on facility modernization and utility upgrades is a consistent requirement for federal agencies managing large physical assets. Comparable benchmarks would involve other government contracts for similar utility replacement and site renovation projects at federal installations.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary focus for this specific contract award. There is no indication of a small business set-aside. This means that larger contractors were eligible and likely competed for the award. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in the provided information. The impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Aviation Administration (FAA) contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring E CORP to deliver the specified work within the agreed-upon cost and schedule. Transparency is facilitated through contract award databases, though detailed project progress reports and Inspector General (IG) involvement would depend on specific FAA policies and any identified issues.

Related Government Programs

FAA Air Traffic Control Facility Modernization
Federal Building and Infrastructure Upgrades
Underground Utility Replacement Projects
Commercial and Institutional Building Construction Contracts

Risk Flags

Limited competition may lead to higher costs.
Potential for operational disruptions during construction.
Need for clear justification for exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.8 million to E CORP. SALT LAKE CITY, UT AIR ROUTE TRAFFIC CONTROL CENTER (ZLC) UNDERGROUND UTILITIES MODERNIZATION. SCOPE: MODERNIZE THE FACILITY TO REPLACE UNDERGROUND UTILITIES, RENOVATE THE PAVED SURFACE PARKING LOTS AND REPAIR CONCRETE AND GRASS AREAS. THE PROJEC

Who is the contractor on this award?

The obligated recipient is E CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.8 million.

What is the period of performance?

Start: 2025-08-27. End: 2027-08-27.

What is the track record of E CORP in performing similar federal construction and utility modernization contracts?

A review of E CORP's past performance on federal contracts is crucial for assessing their capability to successfully execute this project. Information from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would reveal their history with similar projects, including on-time delivery, budget adherence, and quality of work. Understanding their experience with underground utility modernization and facility renovations at critical infrastructure sites like air traffic control centers would provide confidence in their ability to meet the FAA's requirements. Any past performance issues, such as contract disputes, delays, or quality deficiencies, would represent a significant risk factor for this current contract.

How does the awarded price of $7.8 million compare to similar underground utility modernization projects at other FAA facilities or comparable government installations?

Benchmarking the $7.8 million contract value against similar projects is essential for determining value for money. This would involve identifying other FAA or Department of Defense contracts for underground utility replacement, site renovation, and infrastructure upgrades at air traffic control centers or similar operational facilities. Factors such as project scope, complexity, geographic location, and prevailing labor/material costs need to be considered for a fair comparison. If this contract's cost per square foot or per linear foot of utility replaced is significantly higher than comparable projects, it could indicate potential overpricing or inefficiencies. Conversely, if it aligns with or is lower than benchmarks, it suggests a reasonable price.

What specific risks are associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for this contract?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, while not a sole-source award, inherently limits the competitive pool. The primary risk is that by excluding certain potential bidders, the government may not receive the most advantageous offer in terms of price, technical approach, or innovation. The reasons for excluding sources need to be clearly justified to ensure they were based on legitimate factors (e.g., security, specialized capabilities) and not arbitrary. A smaller bidder pool (only 2 bidders in this case) increases the risk of price collusion or simply less aggressive bidding, potentially leading to higher costs for the taxpayer. It also raises questions about whether the exclusion unnecessarily restricted market access for qualified small businesses or other capable firms.

What are the potential impacts on the operational effectiveness and reliability of the Salt Lake City Air Route Traffic Control Center (ZLC) during the modernization period?

Modernizing underground utilities and renovating surface areas at an active Air Route Traffic Control Center (ZLC) presents inherent operational risks. The project duration of 730 days (two years) suggests that disruptions, while managed, are likely. Potential impacts include temporary service interruptions for utilities, noise and dust pollution affecting sensitive equipment and personnel, and restricted access to certain areas. The FAA and E CORP must implement robust mitigation strategies, such as phased construction, off-hours work, and contingency plans for utility outages, to minimize impacts on air traffic control operations. Failure to adequately manage these disruptions could compromise the center's reliability and potentially affect air safety, underscoring the importance of detailed project planning and execution oversight.

How has federal spending on similar FAA facility infrastructure modernization projects trended over the past five fiscal years?

Analyzing historical spending trends for FAA facility infrastructure modernization provides context for the current $7.8 million award. Over the past five fiscal years, federal agencies like the FAA have consistently allocated funds towards maintaining and upgrading critical infrastructure. Spending in this category typically fluctuates based on the lifecycle of facilities, identified needs for upgrades (like aging utilities), and overall budget appropriations. Factors such as increased focus on resilience, cybersecurity for operational systems, and energy efficiency may also influence spending priorities. A trend analysis would reveal if spending on such projects is increasing, decreasing, or remaining stable, helping to assess whether this contract represents a typical investment or an outlier.

What are the key performance indicators (KPIs) that will be used to measure the success of this underground utilities modernization project?

Key Performance Indicators (KPIs) for this contract are likely to revolve around successful completion of the scope of work, adherence to schedule, and cost control within the firm-fixed-price framework. Specific KPIs could include: 1) Percentage of underground utilities successfully replaced and tested according to specifications. 2) Completion of parking lot and grass area renovations meeting quality standards. 3) Minimization of operational disruptions to the ZLC facility, measured by tracking unplanned outages or service degradations. 4) Adherence to safety protocols during construction, indicated by incident rates. 5) Timely submission of project documentation and closeout reports. The FAA's project management team will monitor these KPIs to ensure the contractor, E CORP, meets contractual obligations and delivers a functional, modernized facility.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-25-R-00283

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1598 N HILL FIELD RD, LAYTON, UT, 84041

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

Financial Breakdown

Contract Ceiling: $7,811,408

Exercised Options: $7,811,408

Current Obligation: $7,811,408

Actual Outlays: $179,751

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 697DCK23G00009

IDV Type: BOA

Timeline