DOT awards $5.4M contract for VTD Mech-Elec Upgrades to Globe Construction Co

Contract Overview

Contract Amount: $5,411,419 ($5.4M)

Contractor: Globe Construction CO

Awarding Agency: Department of Transportation

Start Date: 2024-11-18

End Date: 2026-10-02

Contract Duration: 683 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 19-035903 VTD MECH-ELEC UPGRADES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $5.4 million to GLOBE CONSTRUCTION CO for work described as: 19-035903 VTD MECH-ELEC UPGRADES Key points: 1. Contract value appears reasonable for a multi-year upgrade project. 2. Full and open competition suggests a competitive bidding process. 3. Project duration of 683 days indicates a significant scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. Location in Oklahoma may offer cost advantages compared to high-cost areas. 6. No small business set-aside noted, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of $5.4 million for mechanical and electrical upgrades over approximately two years seems within a reasonable range for a federal project of this nature. Benchmarking against similar FAA facility upgrade contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is standard for projects where scope is well-defined, indicating the government has secured a predictable cost.

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 while initial solicitations might have had limitations, the final award was made after a broad competitive process. With 7 bidders, the level of competition appears healthy, which typically drives better pricing and quality for the government.

Taxpayer Impact: A robust competition among seven bidders suggests that taxpayers are likely to benefit from competitive pricing and a wider range of technical solutions, maximizing the value of the awarded funds.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving upgraded mechanical and electrical systems. The project will deliver essential infrastructure improvements at a VTD facility. The geographic impact is localized to Oklahoma, where the work will be performed. The contract supports construction and skilled trades workforce in the Oklahoma region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the upgrade.
Dependence on contractor's ability to manage complex mechanical and electrical systems integration.
Risk of schedule delays impacting facility operations if not managed effectively.

Positive Signals

Firm fixed-price contract mitigates budget risk for the government.
Multiple bidders indicate a competitive market for these services.
Project duration allows for thorough execution and quality control.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on mechanical and electrical systems upgrades. This sector is vital for maintaining and modernizing federal infrastructure. Comparable spending benchmarks for similar FAA facility upgrades would be necessary for a precise comparison, but the $5.4 million value suggests a significant project scope.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. This means that larger firms were the primary focus of the competition, and opportunities for small businesses to participate in this specific contract may be limited unless they are part of a larger bid or subcontracting network.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration contracting officers and project managers. The firm fixed-price nature provides a degree of accountability on the contractor for cost control. Transparency is generally maintained through federal contract databases, and any specific Inspector General involvement would depend on audit triggers or reported issues.

Related Government Programs

Federal Aviation Administration Facility Upgrades
Department of Transportation Construction Contracts
Mechanical and Electrical Systems Modernization
Commercial Building Construction Projects

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Integration complexity of new systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $5.4 million to GLOBE CONSTRUCTION CO. 19-035903 VTD MECH-ELEC UPGRADES

Who is the contractor on this award?

The obligated recipient is GLOBE CONSTRUCTION CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.4 million.

What is the period of performance?

Start: 2024-11-18. End: 2026-10-02.

What is the track record of Globe Construction Co. with federal contracts, particularly with the FAA?

A review of Globe Construction Co.'s federal contract history would be necessary to assess their performance on similar projects. Specifically, examining past contracts with the FAA or other agencies for mechanical and electrical upgrades would reveal their experience, on-time delivery rates, and any history of disputes or contract modifications. Without this specific data, it's difficult to definitively assess their track record. However, winning a competitive bid suggests they met the qualifications set forth by the FAA for this project.

How does the $5.4 million contract value compare to similar FAA mechanical and electrical upgrade projects?

To benchmark the $5.4 million value, one would need to compare it against recently awarded FAA contracts for similar scope and scale, considering factors like facility size, complexity of systems, and geographic location. Projects involving comprehensive mechanical and electrical overhauls in institutional buildings can range significantly. If similar projects in comparable regions have been awarded in the $4-7 million range, this contract appears to be priced competitively. A detailed cost breakdown and scope comparison would be required for a definitive value assessment.

What are the primary risks associated with this specific contract, beyond standard construction risks?

Beyond typical construction risks like material cost fluctuations or labor shortages, specific risks for this contract include the integration of new mechanical and electrical systems with existing infrastructure, potential for unforeseen conditions within older building systems requiring remediation, and ensuring minimal disruption to ongoing VTD operations. The 683-day duration also presents a risk of technology obsolescence if the project timeline extends significantly beyond the planned completion date.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayer money?

This procurement method aims to balance the need for broad competition with specific requirements that might initially exclude some sources. By ultimately opening the competition broadly, it allows for a wide range of potential contractors to bid, fostering price discovery and innovation. The presence of seven bidders suggests this method was effective in attracting sufficient interest. However, the 'after exclusion of sources' part warrants scrutiny to ensure it wasn't unduly restrictive initially, potentially limiting the pool of qualified bidders.

What is the historical spending trend for mechanical and electrical upgrades at FAA VTD facilities?

Analyzing historical spending on similar upgrades at FAA VTD facilities would provide context for the $5.4 million award. If spending has been consistently lower or higher for comparable projects, it could indicate whether this contract represents an increase or decrease in investment. Trends might also reveal patterns in project complexity, duration, and the types of contractors typically engaged. Without historical data, it's challenging to determine if this award aligns with past investment strategies or represents a new level of expenditure.

Are there specific performance metrics or KPIs tied to this contract to measure success?

While not explicitly detailed in the provided data, federal contracts of this magnitude typically include performance standards and key performance indicators (KPIs). These often relate to schedule adherence, quality of workmanship, safety compliance, and successful system testing and commissioning. The FAA contracting officer would be responsible for monitoring these metrics. The firm fixed-price nature implies that meeting these performance standards is crucial for the contractor to achieve full payment and avoid penalties.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 6973GH-24-R-00121

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2211 E I 44 SERVICE RD, OKLAHOMA CITY, OK, 73111

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

Financial Breakdown

Contract Ceiling: $5,411,419

Exercised Options: $5,411,419

Current Obligation: $5,411,419

Actual Outlays: $4,946,017

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline