FAA Awards $7.45M Contract for ACEPS Type II Phase 1 System to Wells Global, LLC
Contract Overview
Contract Amount: $7,453,430 ($7.5M)
Contractor: Wells Global, LLC
Awarding Agency: Department of Transportation
Start Date: 2022-03-30
End Date: 2026-09-30
Contract Duration: 1,645 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB)
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87123
Plain-Language Summary
Department of Transportation obligated $7.5 million to WELLS GLOBAL, LLC for work described as: INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB) Key points: 1. Contract awarded for critical Air Traffic Control system upgrade. 2. Wells Global, LLC, a new entity, secured the award. 3. Potential for cost overruns given the long duration and fixed-price nature. 4. Spending falls within the broad 'Electrical Contractors' sector.
Value Assessment
Rating: fair
The contract value of $7.45M over approximately 4 years appears reasonable for a complex system installation. However, without specific benchmarks for ACEPS Type II Phase 1, a precise comparison is difficult. The fixed-price nature aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and aims for the best value for the government.
Taxpayer Impact: Taxpayers benefit from a competitive process that should yield a fair price for essential air traffic control infrastructure.
Public Impact
Enhances air traffic safety and efficiency at Albuquerque ARTCC. Supports modernization of critical national infrastructure. Potential for job creation in New Mexico related to the project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (4 years) increases risk of scope creep or unforeseen costs.
- Fixed-price contract with a new vendor for a complex system could lead to disputes.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Addresses a critical need for air traffic control modernization.
Sector Analysis
This contract falls under the Electrical Contractors and Other Wiring Installation Contractors sector, which is vital for infrastructure development. Spending benchmarks for similar large-scale ATC system installations are not readily available, but the value appears significant for a single ARTCC upgrade.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of small business subcontracting goals. This represents a missed opportunity to support small business participation in federal contracting.
Oversight & Accountability
The Federal Aviation Administration is responsible for overseeing this contract. Standard oversight procedures for large infrastructure projects should be in place to monitor progress and ensure compliance.
Related Government Programs
- Electrical Contractors and Other Wiring Installation Contractors
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Long contract duration.
- Fixed-price contract for complex system.
- No small business participation.
- New vendor for critical system.
Tags
electrical-contractors-and-other-wiring-, department-of-transportation, nm, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $7.5 million to WELLS GLOBAL, LLC. INSTALL ACEPS TYPE II PHASE 1 SYSTEM AT THE ALBUQUERQUE ARTCC (ZAB)
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 $7.5 million.
What is the period of performance?
Start: 2022-03-30. End: 2026-09-30.
What is the specific functionality and expected performance improvement of the ACEPS Type II Phase 1 system?
The ACEPS Type II Phase 1 system is designed to upgrade the Air Traffic Control system at the Albuquerque ARTCC (ZAB). While specific performance metrics are not detailed in the provided data, such upgrades typically aim to enhance system reliability, processing capabilities, and potentially introduce new functionalities for air traffic controllers, leading to improved safety and efficiency in managing airspace.
What are the key risks associated with a 4-year fixed-price contract for a complex system installation?
A 4-year fixed-price contract for a complex system installation carries risks of cost escalation if unforeseen technical challenges arise or if the initial cost estimates were inaccurate. Scope creep is also a concern, as changes or additions to the system's requirements during the long performance period could strain the fixed budget. The vendor might also face financial strain if costs exceed projections, potentially impacting project delivery.
How will the effectiveness of the ACEPS Type II Phase 1 system be measured post-implementation?
The effectiveness of the ACEPS Type II Phase 1 system will likely be measured through a combination of technical performance indicators and operational impact assessments. Key metrics could include system uptime, data processing speed, reduction in air traffic incidents or delays attributed to system limitations, and user feedback from air traffic controllers. Formal testing and validation phases before and after full deployment are crucial for confirming its effectiveness.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4540 PRESLYN DR, RALEIGH, NC, 27616
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $7,453,430
Exercised Options: $7,453,430
Current Obligation: $7,453,430
Actual Outlays: $7,453,430
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 6973GH22D00017
IDV Type: IDC
Timeline
Start Date: 2022-03-30
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-01-05
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