DOT Awards $61.6M for Charlotte Airport Tower; Archer Western Construction LLC Wins Contract

Contract Overview

Contract Amount: $61,573,459 ($61.6M)

Contractor: Archer Western Construction LLC

Awarding Agency: Department of Transportation

Start Date: 2016-01-06

End Date: 2019-04-19

Contract Duration: 1,199 days

Daily Burn Rate: $51.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: "CONSTRUCTION OF AIRPORT TRAFFIC CONTROL TOWER FACILITY CHARLOTTE-DOUGLAS INTERNATIONAL AIRPORT CHARLOTTE, NORTH CAROLINA " IGF::OT::IGF

Place of Performance

Location: CHARLOTTE, MECKLENBURG County, NORTH CAROLINA, 28202

State: North Carolina Government Spending

Plain-Language Summary

Department of Transportation obligated $61.6 million to ARCHER WESTERN CONSTRUCTION LLC for work described as: "CONSTRUCTION OF AIRPORT TRAFFIC CONTROL TOWER FACILITY CHARLOTTE-DOUGLAS INTERNATIONAL AIRPORT CHARLOTTE, NORTH CAROLINA " IGF::OT::IGF Key points: 1. The contract value of $61.6 million is substantial for a single airport facility construction project. 2. Archer Western Construction LLC secured the contract through full and open competition. 3. The project carries risks associated with large-scale construction, including potential cost overruns and schedule delays. 4. The sector is Commercial and Institutional Building Construction, a critical component of infrastructure development.

Value Assessment

Rating: good

The contract was awarded at a firm fixed price, indicating a clear understanding of costs upfront. Benchmarking against similar large-scale airport infrastructure projects would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process, allowing multiple qualified contractors to bid. This method generally leads to more competitive pricing.

Taxpayer Impact: The firm fixed price contract aims to protect taxpayers by capping costs, assuming the initial bid was competitive and realistic.

Public Impact

Enhances air traffic control capabilities at a major US airport. Supports economic activity through infrastructure investment and job creation. Improves safety and efficiency of air travel for passengers and cargo.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting airport operations.
Risk of unforeseen site conditions increasing costs.
Reliance on a single prime contractor for a complex project.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Addresses critical infrastructure needs for a major airport.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for similar large-scale airport facilities can vary significantly based on size, complexity, and location.

Small Business Impact

While the prime contractor is Archer Western Construction LLC, the contract details do not specify any subcontracting goals or achievements for small businesses. Further investigation into subcontracting plans would be needed.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Oversight would focus on ensuring adherence to the contract terms, quality of construction, and timely completion.

Related Government Programs

Commercial and Institutional Building Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Large contract value increases potential financial risk.
Construction projects are inherently subject to delays and cost overruns.
Reliance on a single prime contractor.
Potential for unforeseen site conditions.
Lack of explicit small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $61.6 million to ARCHER WESTERN CONSTRUCTION LLC. "CONSTRUCTION OF AIRPORT TRAFFIC CONTROL TOWER FACILITY CHARLOTTE-DOUGLAS INTERNATIONAL AIRPORT CHARLOTTE, NORTH CAROLINA " IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN CONSTRUCTION LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $61.6 million.

What is the period of performance?

Start: 2016-01-06. End: 2019-04-19.

What is the estimated cost per square foot for this control tower compared to industry averages for similar facilities?

Without detailed specifications on the tower's size and features, a precise per-square-foot cost comparison is difficult. However, given the total contract value and the nature of airport infrastructure, the cost per square foot is likely to be within the higher range due to specialized requirements, advanced technology integration, and stringent safety standards.

What are the primary risks associated with the firm fixed price contract for this project?

The primary risk with a firm fixed price contract, especially for a large construction project, lies with the contractor. If unforeseen issues arise (e.g., material cost spikes, labor shortages, site conditions), the contractor bears the financial burden, potentially leading to quality compromises or contractor default if the bid was too aggressive.

How will the new traffic control tower facility impact the overall operational efficiency and safety of Charlotte-Douglas International Airport?

The new facility is expected to significantly enhance operational efficiency and safety by providing modern technology and improved visibility for air traffic controllers. This modernization can lead to better management of air traffic flow, reduced delays, and improved response capabilities during irregular operations or emergencies.

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: 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: Walsh Group Ltd., the (UEI: 121476675)

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $65,853,249

Exercised Options: $61,573,459

Current Obligation: $61,573,459

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $62,560,652

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline