FAA's $47.6M Cleveland Airport ATCT Construction Contract Awarded to Hunt Construction Group

Contract Overview

Contract Amount: $47,656,454 ($47.7M)

Contractor: Hunt Construction Group Inc

Awarding Agency: Department of Transportation

Start Date: 2011-08-16

End Date: 2018-05-01

Contract Duration: 2,450 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CLEVELAND/HOPKINS INTERNATIONAL AIRPORT (CLE) NEW ATCT: CONSTRUCTION FUNDS REQUEST TAS::69 8107::TAS

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46241

State: Indiana Government Spending

Plain-Language Summary

Department of Transportation obligated $47.7 million to HUNT CONSTRUCTION GROUP INC for work described as: CLEVELAND/HOPKINS INTERNATIONAL AIRPORT (CLE) NEW ATCT: CONSTRUCTION FUNDS REQUEST TAS::69 8107::TAS Key points: 1. The contract value of $47.6 million for a new Air Traffic Control Tower (ATCT) at Cleveland Hopkins International Airport (CLE) represents a significant investment in aviation infrastructure. 2. Hunt Construction Group Inc. secured this definitive contract through full and open competition, suggesting a competitive bidding process. 3. The project's duration of 2450 days (approximately 6.7 years) indicates a long-term commitment and potential for cost escalation or delays. 4. The sector is 'Other Heavy and Civil Engineering Construction,' a broad category that includes large-scale infrastructure projects.

Value Assessment

Rating: fair

The contract is a firm-fixed-price award, which typically aims to control costs. However, the long duration and the nature of heavy construction can introduce risks that may impact the final price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: The firm-fixed-price structure aims to protect taxpayers from cost overruns, but the long project timeline necessitates careful monitoring to ensure value for money.

Public Impact

Enhances air traffic safety and efficiency at a major metropolitan airport. Supports local employment and economic activity during the construction phase. Modernizes critical aviation infrastructure, aligning with national transportation goals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2450 days) increases risk of cost escalation and schedule delays.
Firm-fixed-price contracts can be less flexible if unforeseen issues arise in complex construction.
Lack of specific data on small business participation.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Addresses critical infrastructure needs for a major airport.
Firm-fixed-price contract provides cost certainty if managed effectively.

Sector Analysis

This contract falls within the 'Other Heavy and Civil Engineering Construction' sector, which encompasses large-scale infrastructure projects. Spending in this sector can vary significantly based on government priorities and economic conditions.

Small Business Impact

The provided data does not specify the extent of small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as prime contractors or subcontractors.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this project. Robust oversight will be crucial given the project's scale and duration to ensure adherence to schedule, budget, and quality standards.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long project duration increases risk of cost escalation and schedule delays.
Potential for unforeseen site conditions in heavy civil engineering projects.
Firm-fixed-price contracts can be inflexible if scope changes are needed.
Lack of detailed information on small business subcontracting.
Dependence on specific materials and labor availability over a long period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $47.7 million to HUNT CONSTRUCTION GROUP INC. CLEVELAND/HOPKINS INTERNATIONAL AIRPORT (CLE) NEW ATCT: CONSTRUCTION FUNDS REQUEST TAS::69 8107::TAS

Who is the contractor on this award?

The obligated recipient is HUNT CONSTRUCTION GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $47.7 million.

What is the period of performance?

Start: 2011-08-16. End: 2018-05-01.

What was the basis for the bid evaluation, and how did it ensure the best value for the government beyond just the lowest price?

While the contract was awarded under full and open competition, the specific evaluation criteria beyond price are not detailed. Typically, agencies consider factors like technical approach, past performance, and management capability alongside price. Understanding these criteria is crucial to assessing if the government secured the best overall value, not just the lowest initial bid, especially for a long-term, complex construction project.

Given the 2450-day duration, what mechanisms are in place to manage potential cost increases due to inflation or unforeseen site conditions?

The firm-fixed-price contract aims to cap costs, but long-duration projects often include contingency clauses or escalation adjustments for specific materials or labor. The FAA's oversight team would need to actively monitor economic indicators and site assessments to manage these risks. Without explicit contract details on these provisions, the risk of cost overruns remains a concern for taxpayers.

How does the completion of this new ATCT align with the FAA's long-term modernization goals for air traffic control systems and infrastructure?

The new ATCT is likely a component of the FAA's broader strategy to modernize air traffic infrastructure, potentially integrating with NextGen initiatives. Its completion should improve operational efficiency and capacity at CLE. Assessing its alignment requires understanding how this physical structure interfaces with evolving technological systems and contributes to the overall national airspace system's modernization roadmap.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 6720 N SCOTTSDALE RD STE 300, SCOTTSDALE, AZ, 85253

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

Financial Breakdown

Contract Ceiling: $54,104,014

Exercised Options: $47,656,454

Current Obligation: $47,656,454

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $26,161,635

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline