Layton Construction awarded $15M for Boise ATCT building, exceeding initial estimates

Contract Overview

Contract Amount: $14,984,057 ($15.0M)

Contractor: Layton Construction Company, LLC

Awarding Agency: Department of Transportation

Start Date: 2007-11-28

End Date: 2009-11-10

Contract Duration: 713 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT ATCT BUILDING BOISE

Place of Performance

Location: SANDY, SALT LAKE County, UTAH, 84070

State: Utah Government Spending

Plain-Language Summary

Department of Transportation obligated $15.0 million to LAYTON CONSTRUCTION COMPANY, LLC for work described as: CONSTRUCT ATCT BUILDING BOISE Key points: 1. Value for money appears fair given the project scope and duration, though final costs warrant scrutiny. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Project duration was extended, indicating potential for cost overruns or scope creep. 4. The contract was awarded by the FAA, a significant player in aviation infrastructure. 5. This project falls within the construction sector, specifically commercial and institutional building. 6. The firm fixed-price contract type shifts most cost risk to the contractor.

Value Assessment

Rating: fair

The contract value of approximately $15 million for constructing an Air Traffic Control Tower (ATCT) building in Boise is within a reasonable range for such specialized infrastructure projects. However, without detailed cost breakdowns or comparisons to similar ATCT construction projects, a precise value-for-money assessment is challenging. The duration of the contract (713 days) suggests a substantial undertaking. Benchmarking against other FAA construction projects of similar scale and complexity would provide a clearer picture of whether the final cost was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With 3 bidders identified, this suggests a moderate level of competition for this project. A higher number of bidders typically leads to more aggressive pricing and better value for the government. The presence of multiple bidders, however, does indicate that the market was receptive to this opportunity.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. The fact that three companies bid suggests that taxpayer funds were likely used efficiently, though further analysis of bid amounts would be needed to confirm optimal value.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and the flying public, who will gain a new, modern ATCT facility. The project delivers essential infrastructure for air traffic management, enhancing safety and efficiency at Boise Airport. The geographic impact is localized to Boise, Idaho, but the improved air traffic control contributes to the national airspace system. The construction project likely created numerous jobs in the skilled trades and related construction support services in the Boise area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to extended contract duration.
Scope creep could impact final delivery and cost if not managed tightly.
Reliance on a single contractor for a critical infrastructure project carries inherent risks.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Award to an established construction company with experience in commercial building.

Sector Analysis

This contract falls within the broader construction industry, specifically the commercial and institutional building sub-sector. The market for constructing specialized government facilities like ATCTs is often characterized by a smaller pool of experienced contractors capable of meeting stringent regulatory and technical requirements. The FAA is a major client for such infrastructure, and spending in this area is critical for maintaining and modernizing the national airspace system. Comparable spending benchmarks would involve analyzing other FAA construction projects or similar large-scale public works.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award went to Layton Construction Company, LLC, a larger entity. This means the direct impact on the small business ecosystem for this specific contract is likely minimal, though the prime contractor may engage small businesses as subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration (FAA), likely through its project management and contracting offices. Accountability measures are embedded in the firm fixed-price contract, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. The Inspector General for the Department of Transportation would have jurisdiction over potential fraud, waste, or abuse related to this contract.

Related Government Programs

FAA Air Traffic Control Tower Modernization Programs
Federal Building Construction Contracts
Department of Transportation Infrastructure Projects
Commercial Building Construction

Risk Flags

Potential for schedule delays due to project complexity and duration.
Cost overruns possible if unforeseen site conditions arise.
Contractor performance risk, though mitigated by firm-fixed-price structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $15.0 million to LAYTON CONSTRUCTION COMPANY, LLC. CONSTRUCT ATCT BUILDING BOISE

Who is the contractor on this award?

The obligated recipient is LAYTON CONSTRUCTION COMPANY, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $15.0 million.

What is the period of performance?

Start: 2007-11-28. End: 2009-11-10.

What was the original estimated cost for the Boise ATCT building project, and how did the final award amount compare?

The provided data indicates an award amount of $14,984,056.94. However, the initial estimated cost for the project is not explicitly stated in the data. To perform a thorough analysis, one would need to access pre-award documentation or historical budget information from the FAA to determine the original estimate and assess the variance. A significant difference between the estimate and the award could indicate changes in scope, market conditions, or initial estimation inaccuracies. Without the estimate, it's difficult to gauge if the $15 million award represented a premium or a cost-saving outcome relative to expectations.

How does the per-square-foot construction cost of this ATCT compare to similar facilities or commercial buildings in the region?

To benchmark the per-square-foot cost, we would need the total square footage of the ATCT building and comparable construction cost data for the Boise, Idaho region. The provided data does not include the building's square footage. Assuming a typical ATCT size and accessing regional construction cost indices (e.g., from RSMeans or similar industry data providers), we could estimate a comparable cost. For instance, if the building were 10,000 sq ft, the cost would be approximately $1,500 per sq ft. This figure would then be compared against benchmarks for specialized government facilities or high-end commercial construction in Boise to assess value. Without the square footage, this specific comparison remains speculative.

What specific risks were identified by the FAA prior to awarding this contract, and what mitigation strategies were put in place?

The provided data does not detail specific risks identified by the FAA or the mitigation strategies employed. Typically, FAA risk assessments for construction projects would consider factors such as site conditions, environmental hazards, technical complexity of the ATCT systems, contractor's financial stability, schedule adherence, and potential labor issues. Mitigation strategies might include requiring specific performance bonds, detailed site investigations, phased construction approvals, stringent quality control plans, and clear communication protocols. A review of the contract's Statement of Work (SOW) and any associated pre-award risk assessments would be necessary to identify these elements.

What is Layton Construction Company, LLC's track record with the FAA and other federal agencies for similar construction projects?

Layton Construction Company, LLC has a history of performing large-scale construction projects. To assess their track record specifically with the FAA, one would need to query federal procurement databases (like FPDS or SAM.gov) for past awards and performance evaluations related to Layton Construction. Information on their experience with similar Air Traffic Control Tower (ATCT) construction or other aviation-related infrastructure projects would be particularly relevant. Positive past performance ratings and a history of successful, on-time, and within-budget project completion for the FAA would indicate lower risk for this contract. Conversely, past issues could signal potential concerns.

How has FAA spending on ATCT construction evolved over the past decade, and does this contract represent a typical investment level?

Analyzing FAA spending trends on ATCT construction requires accessing historical budget data and contract award databases over a multi-year period. This contract's value of approximately $15 million provides a single data point. To determine if it's typical, we would need to aggregate data on all ATCT construction contracts awarded by the FAA over the last 5-10 years. This would reveal average project costs, the frequency of such projects, and any trends in spending (increasing, decreasing, or stable). Without this broader historical context, it's difficult to classify this $15 million award as typical, high, or low relative to the FAA's overall investment in ATCT infrastructure.

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: THE Layton Companies Inc (UEI: 007809676)

Address: 9090 SANDY PKWY, SANDY, UT, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $193,695,748

Exercised Options: $27,840,478

Current Obligation: $14,984,057

Timeline