Memphis Utility Project Awarded $13.7M to PuyEnPa Construction, Funded by BIL, for Air Route Traffic Control Center Upgrades

Contract Overview

Contract Amount: $13,691,317 ($13.7M)

Contractor: Puyenpa Construction, LLC

Awarding Agency: Department of Transportation

Start Date: 2024-03-12

End Date: 2026-06-30

Contract Duration: 840 days

Daily Burn Rate: $16.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BIL FUNDED MEMPHIS UNDERGROUND UTILITY PROJECT, MEMPHIS AIR ROUTE TRAFFIC CONTROL CENTER, MEMPHIS, TN

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 37501

State: Tennessee Government Spending

Plain-Language Summary

Department of Transportation obligated $13.7 million to PUYENPA CONSTRUCTION, LLC for work described as: BIL FUNDED MEMPHIS UNDERGROUND UTILITY PROJECT, MEMPHIS AIR ROUTE TRAFFIC CONTROL CENTER, MEMPHIS, TN Key points: 1. The $13.7M contract for underground utility work at the Memphis Air Route Traffic Control Center is funded by the Bipartisan Infrastructure Law (BIL). 2. PuyEnPa Construction, LLC, a single awardee, will perform the work, with the contract type being a definitive contract. 3. The project aims to improve water and sewer lines and related structures, contributing to infrastructure modernization. 4. The contract is firm fixed price, indicating a defined cost for the scope of work.

Value Assessment

Rating: fair

The contract value of $13.7M for water and sewer line construction appears within a reasonable range for a project of this scope and location. However, without specific benchmarks for similar FAA utility upgrades, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection process. This approach may limit price discovery and potentially lead to higher costs compared to a fully competitive environment.

Taxpayer Impact: Taxpayer funds are being utilized for infrastructure improvements, with the BIL providing the funding source. The lack of competition raises questions about the optimal use of these funds.

Public Impact

Enhances critical infrastructure at a key air traffic control facility. Supports local employment and economic activity in Memphis, Tennessee. Addresses necessary utility upgrades, potentially improving operational reliability. Demonstrates federal investment in infrastructure through the Bipartisan Infrastructure Law.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns due to limited price discovery

Positive Signals

BIL funding ensures infrastructure investment
Firm fixed price contract provides cost certainty
Project addresses essential utility needs

Sector Analysis

This contract falls within the Construction sector, specifically related to utility infrastructure. Spending benchmarks for similar FAA facility utility upgrades are not readily available, but the $13.7M value suggests a significant project.

Small Business Impact

The contract was awarded to PuyEnPa Construction, LLC. Information regarding the small business status of the awardee or subcontracting plans is not provided in the data, making it difficult to assess small business participation.

Oversight & Accountability

The Federal Aviation Administration (FAA) is the awarding agency. Oversight will be crucial to ensure the project is completed on time, within budget, and meets all quality standards, especially given the limited competition.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Limited competition may result in higher costs.
Lack of transparency regarding the justification for limited competition.
Potential for scope creep if not managed tightly.
Dependence on a single contractor for critical infrastructure work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $13.7 million to PUYENPA CONSTRUCTION, LLC. BIL FUNDED MEMPHIS UNDERGROUND UTILITY PROJECT, MEMPHIS AIR ROUTE TRAFFIC CONTROL CENTER, MEMPHIS, TN

Who is the contractor on this award?

The obligated recipient is PUYENPA CONSTRUCTION, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2024-03-12. End: 2026-06-30.

What specific factors led to the 'not available for competition' determination for this significant infrastructure project?

The determination of 'not available for competition' suggests that the contracting agency identified unique circumstances or requirements that precluded a broad solicitation. This could include specialized expertise, urgent needs tied to existing operations, or specific site conditions at the Memphis Air Route Traffic Control Center that only a particular contractor could address effectively. Further details from the agency would be needed to fully understand the rationale.

How does the $13.7M cost compare to similar underground utility projects at FAA facilities, and what is the risk of cost escalation?

Without specific cost data for comparable FAA underground utility projects, a direct benchmark is challenging. The risk of cost escalation in a limited competition scenario is generally higher than in a fully open one, as there is less pressure from competing bids. However, the firm fixed price contract structure aims to mitigate this risk by capping the total cost to the government, provided the scope of work remains unchanged.

What is the expected impact of this project on the operational effectiveness and resilience of the Memphis Air Route Traffic Control Center?

Upgrading underground utility systems, including water and sewer lines, is crucial for the reliable and safe operation of any critical facility. This project is expected to enhance the operational effectiveness and resilience of the Memphis Air Route Traffic Control Center by ensuring the integrity of essential services, reducing the risk of service disruptions due to aging infrastructure, and supporting the long-term functionality of air traffic management.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-24-R-00093

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Puyenpa Services, LLC

Address: 511 DUCKWATER FALLS RD, DUCKWATER, NV, 89314

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Limited Liability Corporation, Minority Owned Business, Other Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,849,971

Exercised Options: $13,691,317

Current Obligation: $13,691,317

Actual Outlays: $10,978,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline