DOT awards $7M contract for Silver City, NM airport facility upgrades to BP Construction JV LLC

Contract Overview

Contract Amount: $6,969,861 ($7.0M)

Contractor: BP Construction JV LLC

Awarding Agency: Department of Transportation

Start Date: 2023-09-21

End Date: 2026-03-27

Contract Duration: 918 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SVC ARSR INFRASTRUCTURE FULL FACILITY UPGRADES & ESTABLISH LIVING QUARTERS AT SILVER CITY, NM. IN ACCORDANCE WITH THE SOW AND DRAWINGS.

Place of Performance

Location: SILVER CITY, GRANT County, NEW MEXICO, 88061

State: New Mexico Government Spending

Plain-Language Summary

Department of Transportation obligated $7.0 million to BP CONSTRUCTION JV LLC for work described as: SVC ARSR INFRASTRUCTURE FULL FACILITY UPGRADES & ESTABLISH LIVING QUARTERS AT SILVER CITY, NM. IN ACCORDANCE WITH THE SOW AND DRAWINGS. Key points: 1. Contract focuses on essential infrastructure upgrades and living quarters. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Project duration of 918 days suggests a significant scope of work. 5. Geographic focus on New Mexico for critical aviation infrastructure development.

Value Assessment

Rating: good

The contract value of approximately $7 million for facility upgrades and living quarters appears reasonable given the scope and duration. Benchmarking against similar commercial and institutional building construction projects of this scale, the pricing is likely competitive. The firm fixed-price structure provides cost control, though the final value could fluctuate based on unforeseen site conditions or change orders. Further analysis would require detailed cost breakdowns and comparison to specific regional construction cost indices.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that after an initial exclusion period or specific circumstances, the opportunity was opened to all responsible sources. The presence of '1' in the number of offers (no) suggests that while it was competed openly, only one bid was received. This could indicate a lack of broad market interest, potential barriers to entry for other firms, or that the initial exclusion of sources was very narrow. The limited number of bids may have implications for price negotiation.

Taxpayer Impact: While the contract was competed, receiving only one offer might mean taxpayers did not benefit from the full potential of competitive pricing that multiple bids usually generate. However, the fixed-price nature still provides a defined cost ceiling.

Public Impact

The Federal Aviation Administration (FAA) benefits from improved airport infrastructure. The project will deliver upgrades to existing facilities and establish new living quarters. The geographic impact is concentrated in Silver City, New Mexico. Local and regional construction workforce may see employment opportunities during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Only one offer received despite full and open competition, raising questions about market engagement or bid competitiveness.
The 'exclusion of sources' clause warrants further investigation into why certain entities were initially excluded and if this impacted competition.
Potential for cost overruns if unforeseen site conditions arise, despite the firm fixed-price contract.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Project addresses critical infrastructure needs for aviation facilities.
Awarded to a joint venture, potentially leveraging diverse expertise.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The Federal Aviation Administration's spending on airport infrastructure is crucial for maintaining and modernizing air travel facilities nationwide. Comparable spending benchmarks would involve analyzing other FAA construction contracts for similar facility upgrades at regional airports, considering factors like size, complexity, and location.

Small Business Impact

The contract indicates that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests that the primary focus was on securing the best value through open competition, rather than specifically targeting small businesses for this particular award. Subcontracting opportunities for small businesses may arise through BP Construction JV LLC, but this is not guaranteed by the contract's initial terms. The impact on the small business ecosystem depends on the JV's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration (FAA) contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery according to specifications. Transparency is facilitated through federal contract databases where award details are published. The Inspector General for the Department of Transportation may have jurisdiction for audits and investigations if fraud, waste, or abuse is suspected.

Related Government Programs

Airport Improvement Program (AIP)
FAA Facilities and Equipment (F&E) Funding
General Services Administration (GSA) Public Buildings Service Contracts

Risk Flags

Limited competition (one offer) despite full and open process.
Potential for scope creep or change orders impacting final cost.
Dependence on contractor's performance for timely and quality completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $7.0 million to BP CONSTRUCTION JV LLC. SVC ARSR INFRASTRUCTURE FULL FACILITY UPGRADES & ESTABLISH LIVING QUARTERS AT SILVER CITY, NM. IN ACCORDANCE WITH THE SOW AND DRAWINGS.

Who is the contractor on this award?

The obligated recipient is BP CONSTRUCTION JV LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.0 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-03-27.

What is the track record of BP Construction JV LLC in completing federal contracts of similar size and scope?

Information regarding the specific track record of BP Construction JV LLC for federal contracts of this magnitude is not detailed in the provided data. As a joint venture, its performance history may be a composite of its member companies. A thorough assessment would require examining past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for BP Construction JV LLC or its constituent firms on similar infrastructure or construction projects. Key indicators would include on-time completion, adherence to budget, quality of work, and any history of disputes or contract modifications. Without this specific data, evaluating their reliability is speculative.

How does the awarded amount of $6,969,860.93 compare to the government's estimate or benchmark for this project?

The provided data does not include the government's estimate or a pre-negotiated benchmark for this specific project. The contract was awarded at a firm fixed price, suggesting that the price was negotiated and agreed upon prior to the award. The 'br' value of 7592 might represent a bid range or a benchmark indicator, but its exact meaning is unclear without further context. To assess value for money, this award amount should be compared against independent cost estimates, historical data for similar FAA construction projects in New Mexico, and regional construction cost indices. The fact that it was competed, even with one offer, suggests some level of market validation for the price.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns due to unforeseen site conditions, delays in project completion impacting airport operations, and quality control issues. Mitigation strategies include the firm fixed-price contract type, which shifts some cost risk to the contractor. The contract's detailed scope of work and drawings aim to define quality expectations. The project duration of 918 days allows for phased execution, potentially minimizing disruption. However, the limited competition (one offer) could be a risk indicator if it suggests the contractor has significant leverage or that the scope was poorly defined, leading to change orders. Robust oversight and inspection protocols are crucial for mitigation.

What is the expected effectiveness of the completed facility upgrades and living quarters in meeting the FAA's operational needs?

The effectiveness hinges on the precise specifications outlined in the Statement of Work (SOW) and drawings, which are not fully detailed here. Assuming the SOW accurately captures the FAA's requirements for 'SVC ARSR INFRASTRUCTURE FULL FACILITY UPGRADES & ESTABLISH LIVING QUARTERS,' the project is expected to enhance operational capabilities and provide necessary accommodations. The upgrades should improve the functionality, safety, and efficiency of the Air Route Traffic Control (ARSR) facility. The establishment of living quarters suggests a need for on-site personnel support, potentially improving response times and operational continuity. Success will be measured by the facility's performance post-completion against defined operational metrics.

How does this contract's value and scope compare to historical federal spending on similar airport infrastructure projects?

The contract value of approximately $7 million for facility upgrades and living quarters at a regional airport is a moderate-sized award within the context of federal infrastructure spending. The FAA annually obligates billions towards airport improvements through programs like the Airport Improvement Program (AIP). This specific contract represents a localized investment. Comparing it requires identifying similar projects in terms of scope (e.g., upgrades to control towers, maintenance facilities, administrative buildings) and location (regional airports). Without specific comparable project data, it's difficult to definitively state if this represents high or low spending relative to historical norms, but it aligns with typical investments in maintaining and upgrading essential aviation infrastructure.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-23-Q-00161

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3878 BILLBERRY DR, FAIRFAX, VA, 22033

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,969,861

Exercised Options: $6,969,861

Current Obligation: $6,969,861

Actual Outlays: $6,622,420

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline