DOT awards $17.5M for ATCT construction, with 3 bidders competing for the firm-fixed-price contract

Contract Overview

Contract Amount: $17,504,445 ($17.5M)

Contractor: J Kokolakis Contracting Inc

Awarding Agency: Department of Transportation

Start Date: 2007-09-17

End Date: 2009-10-29

Contract Duration: 773 days

Daily Burn Rate: $22.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING (ATCT)

Place of Performance

Location: ROCKY POINT, SUFFOLK County, NEW YORK, 11778

State: New York Government Spending

Plain-Language Summary

Department of Transportation obligated $17.5 million to J KOKOLAKIS CONTRACTING INC for work described as: BUILDING (ATCT) Key points: 1. Contract value appears reasonable given the scope of industrial building construction. 2. Full and open competition suggests a healthy market for these services. 3. Contract duration of 773 days indicates a significant construction project. 4. Firm-fixed-price contract type shifts risk to the contractor. 5. The award was made by the Federal Aviation Administration, a key player in aviation infrastructure. 6. Geographic location in New York may influence labor and material costs.

Value Assessment

Rating: good

The contract value of $17.5 million for Air Traffic Control Tower (ATCT) construction is within a reasonable range for a project of this scale. Benchmarking against similar FAA construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has secured a predictable cost, though it relies on the contractor's accurate estimation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders submitting proposals. This level of competition is generally positive, indicating that multiple firms were interested and capable of performing the work. The presence of three bidders suggests a reasonable degree of price discovery and potential for competitive pricing.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Federal Aviation Administration and the flying public, who will gain improved air traffic control infrastructure. The service delivered is the construction of an Air Traffic Control Tower (ATCT). The geographic impact is localized to New York, where the ATCT will be built. Workforce implications include employment opportunities for construction workers and related trades in the New York area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the fixed-price nature.
Ensuring timely completion within the 773-day duration is critical to avoid operational delays.
Quality control and adherence to construction standards will be paramount for the long-term functionality of the ATCT.

Positive Signals

Firm-fixed-price contract effectively caps the government's financial exposure.
Full and open competition suggests a robust market and potential for competitive pricing.
The award to J Kokolakis Contracting Inc. indicates a selection based on competitive evaluation.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically related to critical infrastructure for the Federal Aviation Administration. The market for specialized aviation construction can be competitive, with a limited number of firms possessing the necessary expertise and security clearances. Comparable spending benchmarks would involve analyzing other ATCT construction projects or similar large-scale federal building projects.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses were involved in the bidding process or if subcontracting opportunities were mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration's contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

FAA Air Traffic Control Modernization Programs
Federal Building and Infrastructure Construction Contracts
Department of Transportation Capital Improvement Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns for contractor
Ensuring quality of construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $17.5 million to J KOKOLAKIS CONTRACTING INC. BUILDING (ATCT)

Who is the contractor on this award?

The obligated recipient is J KOKOLAKIS CONTRACTING INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2007-09-17. End: 2009-10-29.

What is the historical spending pattern for ATCT construction by the FAA?

Analyzing historical FAA spending on Air Traffic Control Tower (ATCT) construction reveals a pattern of significant investment in modernizing and expanding air traffic infrastructure. While specific dollar amounts fluctuate year-to-year based on project pipelines and budget allocations, the FAA consistently dedicates substantial funds to ensure the safety and efficiency of the national airspace system. This includes projects ranging from new tower construction to major renovations and technology upgrades within existing facilities. The $17.5 million awarded to J Kokolakis Contracting Inc. for ATCT construction in New York aligns with the typical scale of such infrastructure projects, which often involve complex engineering, specialized materials, and stringent regulatory compliance. Understanding these historical patterns helps contextualize the current award and assess its alignment with long-term FAA strategic goals for infrastructure development.

How does the number of bidders (3) compare to similar FAA construction contracts?

A competition with three bidders for a federal construction contract, such as the ATCT project awarded to J Kokolakis Contracting Inc., is generally considered a healthy level of competition. For large-scale, specialized infrastructure projects like those undertaken by the Federal Aviation Administration (FAA), it is not uncommon to see fewer than ten bidders due to the specific expertise, bonding capacity, and security clearances required. However, three bidders typically indicates sufficient market interest and provides a reasonable basis for price discovery. In contrast, sole-source or single-bidder awards would raise concerns about limited competition and potentially higher costs. Conversely, contracts attracting a dozen or more bidders might suggest a less specialized scope or a particularly attractive market segment. Therefore, three bidders for this $17.5 million ATCT construction project suggests a competitive environment that likely benefited the government.

What are the key risks associated with a firm-fixed-price contract for construction?

The primary risk associated with a firm-fixed-price (FFP) contract for construction, like the one awarded to J Kokolakis Contracting Inc. for the ATCT project, lies with the contractor. The contractor assumes the risk of cost overruns. If the actual costs of labor, materials, or unforeseen site conditions exceed the contractor's estimates, their profit margin will be reduced, or they could incur a loss. For the government, the main risk is that the contractor may cut corners on quality or safety to maintain profitability if they underestimated costs. However, FFP contracts are favored by agencies like the FAA because they provide cost certainty and predictability for the government's budget. Effective oversight by the FAA is crucial to mitigate the risk of substandard work and ensure the project meets all specifications and safety standards.

What is the track record of J Kokolakis Contracting Inc. with federal contracts?

Information regarding the specific track record of J Kokolakis Contracting Inc. with federal contracts, beyond this $17.5 million award for ATCT construction, would require a deeper dive into federal procurement databases such as FPDS or SAM.gov. Generally, contractors are vetted based on past performance, financial stability, and technical capabilities before being awarded significant contracts. The fact that they were selected under full and open competition for this substantial project suggests they met the FAA's pre-qualification criteria. To fully assess their track record, one would look for the number of previous federal awards, their performance ratings on those contracts, any history of contract disputes or terminations, and their experience with similar types of construction projects. Without this specific data, it's presumed they possess the necessary qualifications based on the competitive award.

How does the contract duration (773 days) compare to typical construction timelines for similar facilities?

A contract duration of 773 days, approximately 25 months, for the construction of an Air Traffic Control Tower (ATCT) is a substantial but not unusual timeframe for a project of this magnitude. Large-scale construction projects, especially those involving specialized infrastructure like ATCTs, require extensive planning, site preparation, foundation work, structural erection, and the integration of complex electronic systems. Factors such as weather, site accessibility, permitting processes, and the availability of specialized labor and materials can influence the overall schedule. Compared to standard commercial building construction, ATCT projects often have longer durations due to their critical operational nature and the stringent safety and performance standards they must meet. The FAA's award to J Kokolakis Contracting Inc. with this duration suggests a realistic assessment of the project's complexity and the time needed for successful completion.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial 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

Address: 585 ROUTE 25A, ROCKY POINT, NY, 01

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

Financial Breakdown

Contract Ceiling: $217,267,952

Exercised Options: $26,959,025

Current Obligation: $17,504,445

Timeline