FAA awards $616,656 contract for Lihue Airport instrument landing system to National Air Space Construction Corp

Contract Overview

Contract Amount: $616,656 ($616.7K)

Contractor: National AIR Space Construction Corp

Awarding Agency: Department of Transportation

Start Date: 2026-04-07

End Date: 2026-12-02

Contract Duration: 239 days

Daily Burn Rate: $2.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF AN INSTRUMENT LANDING SYSTEM (ILS 420) AT LIHUE AIRPORT (LIH) , LIHUE, HI

Place of Performance

Location: LIHUE, KAUAI County, HAWAII, 96766

State: Hawaii Government Spending

Plain-Language Summary

Department of Transportation obligated $616,656.43 to NATIONAL AIR SPACE CONSTRUCTION CORP for work described as: CONSTRUCTION OF AN INSTRUMENT LANDING SYSTEM (ILS 420) AT LIHUE AIRPORT (LIH) , LIHUE, HI Key points: 1. Contract awarded for critical airport infrastructure upgrade. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs. 4. Project duration is approximately 8 months. 5. Geographic focus on Hawaii's infrastructure needs. 6. Contractor has a track record in construction services.

Value Assessment

Rating: good

The contract value of $616,656 for an Instrument Landing System (ILS) installation appears reasonable given the scope of work. Benchmarking against similar ILS installations can be challenging due to site-specific factors, but the fixed-price nature of the contract provides cost certainty. The number of bidders (7) suggests a healthy level of interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. With seven bidders participating, the competition level is robust, which typically leads to better price discovery and value for the government. The agency's approach suggests an effort to maximize competition within the applicable procurement rules.

Taxpayer Impact: A competitive bidding process for this infrastructure project helps ensure that taxpayer dollars are used efficiently, securing the best possible price for the ILS installation.

Public Impact

Enhances aviation safety and efficiency at Lihue Airport. Benefits airline operators and general aviation pilots by improving navigation capabilities. Supports the economic activity of Kauai by ensuring reliable air access. Likely to involve skilled construction labor in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays impacting airport operations.
Ensuring compliance with all FAA technical specifications is critical.

Positive Signals

Contract awarded to a company with construction experience.
Fixed-price contract provides cost predictability.
Competition indicates potential for good value.

Sector Analysis

The Federal Aviation Administration (FAA) regularly procures services and equipment for air traffic control and airport infrastructure. This contract for an Instrument Landing System (ILS) falls within the broader 'Commercial and Institutional Building Construction' sector, specifically focusing on specialized aviation infrastructure. Spending on airport modernization and safety systems is a consistent area of federal investment to maintain national airspace integrity.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly detailed in the provided data. However, the competition under SAP often includes opportunities for small businesses to participate, either as prime contractors or subcontractors, depending on their capabilities and the specific solicitation requirements.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing the execution of this contract. Oversight would typically involve contract specialists monitoring performance, adherence to specifications, and financial expenditures. Inspector General reviews may occur if specific concerns or allegations of fraud, waste, or abuse arise.

Related Government Programs

Airport Improvement Program (AIP)
Air Traffic Control Tower Construction
Navigation Aids Modernization

Risk Flags

Potential for construction delays
Ensuring adherence to strict FAA technical specifications
Coordination with ongoing airport operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $616,656.43 to NATIONAL AIR SPACE CONSTRUCTION CORP. CONSTRUCTION OF AN INSTRUMENT LANDING SYSTEM (ILS 420) AT LIHUE AIRPORT (LIH) , LIHUE, HI

Who is the contractor on this award?

The obligated recipient is NATIONAL AIR SPACE CONSTRUCTION CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $616,656.43.

What is the period of performance?

Start: 2026-04-07. End: 2026-12-02.

What is the track record of National Air Space Construction Corp. with the FAA or similar government agencies?

A thorough review of National Air Space Construction Corp.'s past performance would involve examining their contract history with the FAA and other federal agencies. This includes assessing their record on similar construction projects, particularly those involving aviation infrastructure or complex installations. Key metrics to evaluate would be on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract terminations. While the provided data indicates they are a construction company, specific details on their prior government contracts and performance ratings are necessary for a comprehensive assessment of their reliability and expertise for this ILS project.

How does the awarded price compare to similar ILS installation contracts?

Benchmarking the $616,656 award for this ILS installation against similar contracts requires access to a database of comparable federal procurements. Factors such as airport location, specific ILS model (e.g., ILS 420), site preparation complexity, and prevailing labor costs in Hawaii would influence the price. Without specific comparable data points, it's difficult to definitively state if this price is high or low. However, the fact that it was competed under SAP with seven bidders suggests the agency sought competitive pricing, and the fixed-price nature of the award aims to contain costs.

What are the primary risks associated with this specific contract?

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather disruptions in Hawaii, or supply chain issues for specialized ILS components. There's also a risk related to ensuring the installed system meets all stringent FAA technical and safety specifications, requiring rigorous testing and validation. Furthermore, managing the coordination between the construction contractor and ongoing airport operations presents logistical challenges. The contractor's experience and the FAA's oversight will be critical in mitigating these risks.

How effective is the FAA's procurement process in ensuring value for money for airport infrastructure projects?

The FAA's procurement process, particularly when utilizing full and open competition under SAP for projects like this ILS installation, is generally designed to ensure value for money. The requirement for multiple bidders (seven in this case) fosters competition, driving down prices and encouraging contractors to offer competitive terms. The use of firm-fixed-price contracts also shifts cost risk to the contractor, promoting cost control. However, the effectiveness can vary based on the complexity of the requirement, the accuracy of cost estimates, and the thoroughness of technical evaluations. Continuous monitoring and performance management are key to realizing the intended value.

What is the historical spending trend for ILS installations by the FAA?

Historical spending on ILS installations by the FAA represents a consistent investment in maintaining and upgrading the national airspace system's navigation infrastructure. While specific aggregate data for ILS installations isn't provided here, the FAA annually awards numerous contracts for navigation aids, communication systems, and airport improvements. Spending fluctuates based on modernization needs, aging equipment replacement cycles, and infrastructure development priorities across the country. Factors like technological advancements (e.g., transition to GPS-based navigation) can also influence future spending patterns on traditional ILS systems.

What are the potential implications of this contract on Lihue Airport's operational capacity?

The installation of a new ILS 420 at Lihue Airport is intended to enhance, not impede, operational capacity. An ILS provides precision guidance for aircraft during landing, particularly in low-visibility conditions, thereby improving safety and potentially increasing the airport's ability to handle traffic reliably. While there might be temporary disruptions during the construction phase, the long-term effect should be a more robust and safer landing environment, supporting consistent air service to Kauai.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-26-R-00081

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 COOPER POINT RD SW, OLYMPIA, WA, 98502

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

Financial Breakdown

Contract Ceiling: $616,656

Exercised Options: $616,656

Current Obligation: $616,656

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline