DOT Awards $8.3M for FAA ACEPS II Standby Power System Upgrade to Wells Global, LLC

Contract Overview

Contract Amount: $8,334,016 ($8.3M)

Contractor: Wells Global, LLC

Awarding Agency: Department of Transportation

Start Date: 2020-06-18

End Date: 2026-10-29

Contract Duration: 2,324 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ZTL ACEPS II PHASE 2 STANDBY POWER SYSTEM MODIFICATION, DESIGN AND INSTALLATION

Place of Performance

Location: HAMPTON, HENRY County, GEORGIA, 30228

State: Georgia Government Spending

Plain-Language Summary

Department of Transportation obligated $8.3 million to WELLS GLOBAL, LLC for work described as: ZTL ACEPS II PHASE 2 STANDBY POWER SYSTEM MODIFICATION, DESIGN AND INSTALLATION Key points: 1. Contract awarded for critical infrastructure upgrade at FAA facilities. 2. Wells Global, LLC, a new entrant, secured the award. 3. Potential for cost overruns exists given the project's complexity. 4. Spending aligns with electrical contracting sector benchmarks.

Value Assessment

Rating: good

The $8.3M award for a standby power system modification appears reasonable given the scope of design, installation, and a multi-year duration. Benchmarking against similar complex electrical infrastructure projects suggests the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method likely ensured competitive bidding and a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for essential infrastructure upgrades.

Public Impact

Ensures reliable power for critical FAA systems, enhancing aviation safety. Supports infrastructure modernization within the Federal Aviation Administration. Creates jobs in the electrical contracting and installation sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration (2026) could lead to scope creep or price escalation.
Reliance on a single awardee for a critical system modification.

Positive Signals

Awarded via full and open competition.
Addresses essential infrastructure needs for aviation safety.

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector. Spending benchmarks for similar federal projects involving critical infrastructure upgrades and system installations typically range from $5M to $15M, making this award fall within the mid-range.

Small Business Impact

While the awardee is Wells Global, LLC, information regarding its small business status was not provided. Further analysis would be needed to determine the impact on small business participation in this contract.

Oversight & Accountability

The Federal Aviation Administration is responsible for overseeing this contract. Standard oversight mechanisms for design and installation projects should be in place to ensure quality and adherence to specifications.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long contract duration may increase risk of cost escalation.
Potential for performance issues over the extended project timeline.
Dependence on a single contractor for critical system upgrade.
Lack of explicit small business participation data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $8.3 million to WELLS GLOBAL, LLC. ZTL ACEPS II PHASE 2 STANDBY POWER SYSTEM MODIFICATION, DESIGN AND INSTALLATION

Who is the contractor on this award?

The obligated recipient is WELLS GLOBAL, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $8.3 million.

What is the period of performance?

Start: 2020-06-18. End: 2026-10-29.

What is the specific technical scope of the 'ACEPS II Phase 2 Standby Power System Modification' and how does it impact operational reliability?

The ACEPS II Phase 2 modification likely involves upgrading or replacing existing standby power systems at FAA facilities to ensure uninterrupted power supply during outages. This is crucial for maintaining the operational integrity of air traffic control systems, communication networks, and other essential aviation infrastructure, thereby directly enhancing overall flight safety and operational reliability.

What are the key risks associated with the long duration (2026 end date) of this contract, and how are they being mitigated?

The primary risks of a long contract duration include potential scope creep, material price escalation, and contractor performance degradation. Mitigation strategies likely involve robust contract management, clear change order procedures, regular performance reviews, and potentially incorporating economic price adjustment clauses if applicable to manage cost fluctuations.

How does the firm fixed price contract type influence the contractor's incentive to control costs and ensure efficient project delivery?

A firm fixed price (FFP) contract places the primary cost control responsibility on the contractor. This structure incentivizes Wells Global, LLC to manage expenses efficiently and deliver the project within the agreed-upon price to maximize profit. It also provides cost certainty for the government, though it shifts performance risk to the contractor.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4540 PRESLYN DR, RALEIGH, NC, 27616

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

Financial Breakdown

Contract Ceiling: $8,334,016

Exercised Options: $8,334,016

Current Obligation: $8,334,016

Actual Outlays: $1,027,304

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAAC16D00019

IDV Type: IDC

Timeline