FAA Awards $2.17M Contract for Airport Tower Replacement in Saipan to Greater Southwest Constructors Inc

Contract Overview

Contract Amount: $2,172,866 ($2.2M)

Contractor: Greater Southwest Constructors Inc

Awarding Agency: Department of Transportation

Start Date: 2024-07-11

End Date: 2026-12-31

Contract Duration: 903 days

Daily Burn Rate: $2.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF MALSR STEEL TOWER ALONG WITH ITS ANCILLARY STRUCTURES AT FRANCISCO C. ADA/SAIPAN INTERNATIONAL AIRPORT, SAIPAN, CNMI IN ACCORDANCE WITH THE SPECIFICATIONS, THE SOW AND DRAWINGS.

Place of Performance

Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950

Plain-Language Summary

Department of Transportation obligated $2.2 million to GREATER SOUTHWEST CONSTRUCTORS INC for work described as: REPLACEMENT OF MALSR STEEL TOWER ALONG WITH ITS ANCILLARY STRUCTURES AT FRANCISCO C. ADA/SAIPAN INTERNATIONAL AIRPORT, SAIPAN, CNMI IN ACCORDANCE WITH THE SPECIFICATIONS, THE SOW AND DRAWINGS. Key points: 1. Construction sector spending on airport infrastructure is significant, with this project addressing critical safety and operational needs. 2. The contract value of $2.17M is moderate for a project of this nature, requiring careful cost management. 3. Potential risks include project delays due to weather or supply chain issues in a remote location like Saipan. 4. Competition was full and open after exclusion of sources, suggesting a deliberate effort to ensure fair pricing.

Value Assessment

Rating: good

The contract value of $2.17M appears reasonable for replacing an airport tower and ancillary structures. Benchmarking against similar FAA construction projects would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bids were likely considered. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The $2.17M expenditure represents taxpayer investment in essential airport safety and modernization, aiming to improve air traffic control capabilities and passenger safety.

Public Impact

Enhances aviation safety and efficiency at Francisco C. Ada/Saipan International Airport. Supports critical infrastructure development in the U.S. territories. Ensures compliance with modern aviation standards for air traffic control towers. Contributes to the local economy through construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for weather-related delays in the Northern Mariana Islands.
Logistical challenges for materials and personnel in a remote island location.
Ensuring long-term durability of the new tower against environmental factors.

Positive Signals

Contract awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Project addresses a critical safety and operational need for the airport.

Sector Analysis

This project falls within the Construction sector, specifically related to infrastructure for the Federal Aviation Administration. Airport construction and modernization projects are common, with costs varying widely based on scope and location.

Small Business Impact

The data does not indicate whether small businesses were involved in the bidding process or as subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Federal Aviation Administration is responsible for overseeing this contract. Oversight will be crucial to ensure timely completion, adherence to specifications, and quality of construction, especially given the remote location.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for weather-related delays.
Logistical challenges due to remote location.
Ensuring long-term durability against environmental factors.
Need for specialized construction expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.2 million to GREATER SOUTHWEST CONSTRUCTORS INC. REPLACEMENT OF MALSR STEEL TOWER ALONG WITH ITS ANCILLARY STRUCTURES AT FRANCISCO C. ADA/SAIPAN INTERNATIONAL AIRPORT, SAIPAN, CNMI IN ACCORDANCE WITH THE SPECIFICATIONS, THE SOW AND DRAWINGS.

Who is the contractor on this award?

The obligated recipient is GREATER SOUTHWEST CONSTRUCTORS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.2 million.

What is the period of performance?

Start: 2024-07-11. End: 2026-12-31.

What is the estimated cost per square foot for the new tower construction compared to similar projects?

Without detailed specifications on the size and complexity of the new tower and its ancillary structures, a precise cost per square foot benchmark is difficult to establish. However, given the $2.17M contract value and the nature of airport tower construction, the cost per square foot would likely be higher than standard commercial buildings due to specialized requirements for structural integrity, communication systems, and safety features.

What are the primary risks associated with constructing an airport tower in Saipan, CNMI?

Key risks include the remote island location, which can lead to logistical challenges in sourcing materials and skilled labor, potentially increasing costs and timelines. Additionally, the region is susceptible to typhoons and other severe weather events, posing risks to construction schedules and the structural integrity of ongoing work. Ensuring compliance with FAA standards in a unique environmental setting is also a consideration.

How effectively will the new tower improve air traffic control operations and safety?

The replacement of an aging tower with modern structures is expected to significantly enhance air traffic control operations by incorporating updated technology, improving visibility, and ensuring greater structural resilience. This modernization should lead to increased efficiency, better communication capabilities, and ultimately, improved safety for aircraft operating in and around the Saipan International Airport.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-24-Q-00035

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1756 RANGER HWY, WEATHERFORD, TX, 76088

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,172,866

Exercised Options: $2,172,866

Current Obligation: $2,172,866

Actual Outlays: $884,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline