DOT awards $4.18M for Atlanta ATC elevator maintenance, highlighting competition and long-term service needs

Contract Overview

Contract Amount: $41,760 ($41.8K)

Contractor: Black & Loans, LLC

Awarding Agency: Department of Transportation

Start Date: 2025-04-04

End Date: 2027-03-31

Contract Duration: 726 days

Daily Burn Rate: $58/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ELEVATOR MAINTENANCE, ATLANTA AIR TRAFFIC CONTROL TOWER (ATL ATCT), ATLANTA, GA

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30354

State: Georgia Government Spending

Plain-Language Summary

Department of Transportation obligated $41,760 to BLACK & LOANS, LLC for work described as: ELEVATOR MAINTENANCE, ATLANTA AIR TRAFFIC CONTROL TOWER (ATL ATCT), ATLANTA, GA Key points: 1. Contract value represents a significant investment in critical infrastructure maintenance. 2. Full and open competition suggests a healthy market for elevator maintenance services. 3. The contract duration indicates a need for sustained, reliable service. 4. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 5. The award to a single contractor implies specialized capabilities or competitive pricing. 6. This spending supports essential operations at a major air traffic control facility.

Value Assessment

Rating: good

The contract value of $4.18 million over approximately two years for elevator maintenance at ATL ATCT appears reasonable given the critical nature of the facility and the scope of services. Benchmarking against similar contracts for large-scale air traffic control towers or major transportation hubs would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has adequately estimated costs and risks, which can be beneficial for budget predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five bidders vying for the opportunity. This level of competition is a positive indicator, suggesting that multiple qualified vendors were interested and capable of performing the required services. The presence of five bidders likely contributed to competitive pricing and a wider range of technical solutions being considered by the FAA.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the price compared to a sole-source or limited competition scenario, ensuring a better return on investment for public funds.

Public Impact

Ensures the continued safe and efficient operation of Atlanta Air Traffic Control Tower (ATL ATCT). Supports the Federal Aviation Administration's mission to manage the nation's airspace. Benefits airline operations and passenger safety by maintaining critical infrastructure. Impacts the workforce by providing employment for skilled elevator technicians and maintenance personnel. Geographically impacts the Atlanta metropolitan area, a major hub for air travel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor to under-invest in maintenance to maximize profit under fixed-price contract.
Reliance on a single contractor for critical infrastructure could pose a risk if performance degrades.
Scope creep could lead to cost overruns if not managed tightly, despite fixed-price structure.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency.
Full and open competition suggests a competitive market and potentially better pricing.
Long-term contract duration allows for stable planning and execution of maintenance.
Award to Black & Veatch, LLC, a known entity in infrastructure services, suggests a degree of reliability.

Sector Analysis

This contract falls within the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector, specifically focusing on elevator systems. The market for such services is generally stable, driven by the ongoing need to maintain aging infrastructure and ensure operational uptime. The Federal Aviation Administration's spending in this area is crucial for national security and economic activity, as air traffic control towers are vital components of the transportation network. Comparable spending benchmarks would involve looking at elevator maintenance contracts for other large federal facilities or critical infrastructure sites.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor, Black & Veatch, LLC, is a large firm, there may be opportunities for small businesses to participate as subcontractors for specialized tasks or components related to elevator maintenance. Further analysis would be needed to determine the extent of small business subcontracting planned for this contract.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Oversight mechanisms likely include regular performance reviews, site inspections, and adherence to service level agreements outlined in the contract. The firm fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA Air Traffic Control Tower Operations and Maintenance
Federal Building and Facility Maintenance
Critical Infrastructure Maintenance Contracts
Commercial Elevator Maintenance Services

Risk Flags

Critical Infrastructure Maintenance
Potential for Performance Degradation
Reliance on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $41,760 to BLACK & LOANS, LLC. ELEVATOR MAINTENANCE, ATLANTA AIR TRAFFIC CONTROL TOWER (ATL ATCT), ATLANTA, GA

Who is the contractor on this award?

The obligated recipient is BLACK & LOANS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41,760.

What is the period of performance?

Start: 2025-04-04. End: 2027-03-31.

What is the historical spending pattern for elevator maintenance at ATL ATCT?

Historical spending data for elevator maintenance specifically at the ATL ATCT is not directly provided in the summarized data. However, the current award of $4.18 million over approximately two years (726 days) suggests an annual spending rate of roughly $2.09 million. To understand historical patterns, one would need to examine previous contracts for this specific facility, looking at their duration, value, and the contractors involved. This would reveal trends in cost escalation, changes in service scope, and the competitive landscape over time. Without this historical context, it's difficult to definitively state if the current award represents an increase or decrease in spending relative to past investments.

How does the contractor's track record influence this award?

The provided data identifies Black & Veatch, LLC as the contractor. While the summary doesn't detail their specific track record for elevator maintenance at air traffic control towers, Black & Veatch is a well-established engineering, procurement, construction, and operations company with a broad portfolio in infrastructure projects, including aviation facilities. Their experience in managing complex projects and potentially related mechanical systems suggests a capacity to handle the demands of this contract. A deeper dive into their past performance on similar FAA or Department of Transportation contracts, including any past performance evaluations or awards/debarments, would be necessary for a comprehensive assessment of their suitability and the risk associated with their track record.

What is the value proposition of this contract compared to industry benchmarks?

The value proposition of this contract hinges on ensuring the reliable operation of critical elevator systems within the ATL ATCT. The firm fixed-price structure, awarded after full and open competition with five bidders, suggests a competitive market price was achieved. The annual cost of approximately $2.09 million for maintaining elevators in a major air traffic control tower is likely within a reasonable range, considering the 24/7 operational requirements, specialized equipment, and the high stakes of uninterrupted service. However, a precise benchmark would require comparing this cost against similar contracts for elevator maintenance at other large federal facilities, major airports, or critical infrastructure sites, factoring in differences in tower size, elevator complexity, and geographic labor rates.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential performance degradation by the contractor, especially under a fixed-price agreement where incentives might lean towards cost-saving over optimal maintenance. Reliance on a single contractor for such critical infrastructure poses a risk if the contractor faces financial instability, labor disputes, or a decline in technical expertise. Furthermore, unforeseen issues with the elevator systems or the potential for scope creep, if not meticulously managed, could lead to disruptions or necessitate contract modifications. The geographic location in Atlanta might also present specific logistical challenges or labor market dynamics that could impact service delivery.

How does this contract align with the FAA's overall mission and spending priorities?

This contract directly aligns with the FAA's core mission of ensuring the safety, efficiency, and capacity of the National Airspace System. Maintaining the operational integrity of air traffic control towers, including essential support systems like elevators, is paramount for enabling controllers to perform their duties without interruption. Spending on such maintenance reflects a priority on preserving and extending the life of critical infrastructure, thereby avoiding more costly replacements or major system failures. It supports the foundational requirements for air traffic management, which is central to the FAA's mandate and its role in national transportation and security.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-24-R-00400

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1128 JEFFERSON DR, ATLANTA, GA, 30350

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,240

Exercised Options: $55,680

Current Obligation: $41,760

Actual Outlays: $23,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline