Federal Aviation Administration awards $2.4M contract for LAX restroom renovations, highlighting commercial building construction needs

Contract Overview

Contract Amount: $2,405,201 ($2.4M)

Contractor: E Corp

Awarding Agency: Department of Transportation

Start Date: 2023-09-21

End Date: 2026-01-30

Contract Duration: 862 days

Daily Burn Rate: $2.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE ARCHITECTURAL ENGINEERING DESIGN, CONSTRUCTION DOCUMENTATION, AND SUPPORT DURING PROCUREMENT AS WELL AS ABATEMENT AND CONSTRUCTION SERVICES NECESSARY TO COMPLETELY RENOVATE ENTIRE MENS AND WOMENS MAIN FACILITY RESTROOMS AT ZLA. TO INCLUDE: LE

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to E CORP for work described as: PROVIDE ARCHITECTURAL ENGINEERING DESIGN, CONSTRUCTION DOCUMENTATION, AND SUPPORT DURING PROCUREMENT AS WELL AS ABATEMENT AND CONSTRUCTION SERVICES NECESSARY TO COMPLETELY RENOVATE ENTIRE MENS AND WOMENS MAIN FACILITY RESTROOMS AT ZLA. TO INCLUDE: LE Key points: 1. Contract focuses on essential facility upgrades, ensuring functional and modern restrooms. 2. Project scope includes design, documentation, and construction services for a critical airport area. 3. The fixed-price contract aims to control costs for the renovation project. 4. Competition was robust, suggesting a competitive market for airport infrastructure services. 5. Project duration spans over two years, indicating a significant scope of work. 6. Geographic focus on California aligns with major infrastructure development trends.

Value Assessment

Rating: good

The contract value of $2.4 million for restroom renovations at LAX appears reasonable given the scope, which includes architectural design, construction documentation, and actual abatement and construction services. Benchmarking against similar large-scale airport facility renovation projects suggests that costs can vary widely, but this figure falls within a typical range for comprehensive upgrades. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which is expected to lead to better pricing and value for the government. The FAA's commitment to full and open competition for this project suggests a healthy market for commercial and institutional building construction services.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and ensuring that the government receives the best possible value for its investment.

Public Impact

Travelers using Los Angeles International Airport (LAX) will benefit from improved restroom facilities. The project delivers essential renovation and construction services for a major transportation hub. The geographic impact is concentrated at LAX in California, a critical gateway. The contract supports jobs in the architectural, engineering, and construction sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting airport operations if not managed effectively.
Risk of unforeseen site conditions during abatement and renovation requiring change orders.
Ensuring compliance with all accessibility and building codes for public facilities.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a competitive bidding process.
Project duration allows for thorough planning and execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building and renovation of non-residential structures like airports, hospitals, schools, and office buildings. Spending in this area is often driven by infrastructure needs, modernization efforts, and regulatory compliance. Comparable spending benchmarks for airport renovations can vary significantly based on size, complexity, and location, but projects of this scale are common for major international airports.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small businesses is likely through subcontracting opportunities. The prime contractor, E CORP, will determine the extent to which small businesses are engaged for specialized services or materials, which could provide valuable experience and revenue streams for smaller firms within the construction ecosystem.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Aviation Administration (FAA), likely through contracting officers and project managers responsible for ensuring adherence to the contract terms, scope, and schedule. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is facilitated by the public nature of federal contract awards, and the Inspector General for the Department of Transportation may have jurisdiction for audits and investigations if any irregularities arise.

Related Government Programs

Airport Infrastructure Improvement Program
Federal Aviation Administration Capital Improvement Projects
General Services Administration Public Buildings Service Contracts
Department of Transportation Construction Projects

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of schedule delays impacting airport operations.
Ensuring contractor compliance with all safety and environmental regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to E CORP. PROVIDE ARCHITECTURAL ENGINEERING DESIGN, CONSTRUCTION DOCUMENTATION, AND SUPPORT DURING PROCUREMENT AS WELL AS ABATEMENT AND CONSTRUCTION SERVICES NECESSARY TO COMPLETELY RENOVATE ENTIRE MENS AND WOMENS MAIN FACILITY RESTROOMS AT ZLA. TO INCLUDE: LE

Who is the contractor on this award?

The obligated recipient is E CORP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2023-09-21. End: 2026-01-30.

What is the track record of E CORP in completing similar large-scale airport renovation projects on time and within budget?

Information regarding E CORP's specific track record on similar large-scale airport renovation projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract histories, and any reported disputes or delays on previous FAA or other airport authority contracts. Federal procurement databases and past performance questionnaires are typically used to evaluate a contractor's reliability and capability. Without this specific data, it's difficult to definitively assess their suitability beyond the fact they were selected through a competitive process for this particular project.

How does the $2.4 million cost compare to similar restroom renovation projects at other major US airports?

Benchmarking the $2.4 million cost requires comparing it to similar projects at other major US airports, considering factors like the scope of work (abatement, design, construction), square footage renovated, and the specific amenities included. While exact comparisons are difficult without detailed project specifications, this figure appears within a reasonable range for comprehensive restroom modernizations at large, high-traffic airports. For instance, renovations at airports like JFK or O'Hare for similar facility upgrades have seen costs ranging from hundreds of thousands to several million dollars, depending on the scale and complexity. The firm fixed-price nature of this contract suggests an effort to contain costs, but a detailed cost-benefit analysis would involve comparing unit costs for specific elements (e.g., per fixture, per square foot) if available.

What are the primary risks associated with this renovation project, and what mitigation strategies are in place?

Primary risks include unforeseen site conditions (e.g., asbestos, structural issues) during abatement and renovation, potential disruptions to airport operations, and contractor performance issues. Mitigation strategies typically involve thorough pre-bid site assessments, contingency planning within the budget and schedule, clear communication protocols with airport operations, and robust contract oversight by the FAA. The firm fixed-price contract shifts some financial risk to the contractor, incentivizing them to manage these risks effectively. Additionally, the phased approach to construction, if applicable, can minimize operational impact.

How effective is the full and open competition process in ensuring the FAA receives the best value for taxpayer money on this project?

Full and open competition is generally considered the most effective method for the FAA to ensure it receives the best value for taxpayer money. By allowing all qualified contractors to bid, it fosters a competitive environment that drives down prices and encourages innovation. The FAA benefits from a wider pool of potential solutions and is more likely to secure services at a price reflecting market rates. The success of this method hinges on clear solicitation requirements and a fair evaluation process, ensuring that the lowest price is not the sole determinant but rather a balance of price and technical merit.

What is the historical spending pattern for restroom renovations at LAX or similar FAA-managed facilities?

Historical spending patterns for restroom renovations at LAX or similar FAA-managed facilities are not provided in the current data. To establish such a pattern, one would need to analyze past contracts awarded by the FAA or airport authorities for similar projects over several fiscal years. This analysis would involve tracking contract values, scope, duration, and the number of bidders to identify trends in cost, project complexity, and market competitiveness. Understanding historical spending can help in evaluating the current contract's value and identifying potential cost efficiencies or areas of concern.

What are the specific performance metrics or deliverables the FAA will use to evaluate the success of this contract?

Specific performance metrics and deliverables for this contract are not detailed in the provided summary. However, typical performance evaluations for construction contracts include adherence to the project schedule, completion of work according to approved design documents and specifications, quality of workmanship, compliance with safety regulations, and effective management of site conditions and disruptions. Deliverables would include design documents, construction progress reports, final inspection reports, and as-built drawings. The FAA's contracting officer and technical representatives would monitor these aspects throughout the contract duration.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

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: 1598 N HILL FIELD RD, LAYTON, UT, 84041

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

Financial Breakdown

Contract Ceiling: $2,405,201

Exercised Options: $2,405,201

Current Obligation: $2,405,201

Actual Outlays: $2,402,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 697DCK23G00009

IDV Type: BOA

Timeline