FAA Awards $10.6M Contract for New Air Traffic Control Tower Construction
Contract Overview
Contract Amount: $10,557,795 ($10.6M)
Contractor: Shook L.L.C.
Awarding Agency: Department of Transportation
Start Date: 2009-06-27
End Date: 2006-05-19
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: AWARD FOR CONSTRUCTION OF NEW FWA ATCT
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46256
State: Indiana Government Spending
Plain-Language Summary
Department of Transportation obligated $10.6 million to SHOOK L.L.C. for work described as: AWARD FOR CONSTRUCTION OF NEW FWA ATCT Key points: 1. The contract awarded to SHOOK L.L.C. for $10.6 million represents a significant investment in aviation infrastructure. 2. Full and open competition was utilized, suggesting a robust price discovery process. 3. The project's success hinges on timely completion and adherence to construction quality standards. 4. This award falls within the broader 'Construction' sector, impacting regional economic development.
Value Assessment
Rating: fair
The contract value of $10.6 million for a new Air Traffic Control Tower (ATCT) needs comparison against similar projects. Without specific details on the tower's size, complexity, and location, a precise pricing assessment is difficult. However, the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades to enhance air traffic safety and efficiency. The competitive award process aims to ensure these funds are used effectively.
Public Impact
Enhances air traffic control capabilities and safety at the specified location. Supports the aviation industry's operational efficiency and future growth. Creates construction jobs and stimulates local economic activity in Indiana.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of cost overruns if unforeseen site conditions arise.
- Ensuring long-term durability and maintenance of the new facility.
Positive Signals
- Investment in critical national infrastructure.
- Competitive bidding process likely secured a reasonable price.
- Firm-fixed-price contract provides cost certainty.
Sector Analysis
This contract falls under the construction sector, specifically for institutional buildings. Spending benchmarks for similar projects would typically consider factors like square footage, complexity of systems (e.g., radar integration), and geographic location. The FAA's investment aligns with national priorities for modernizing air traffic infrastructure.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as SHOOK L.L.C. is not listed as a small business. Further analysis would be needed to determine if small businesses are participating as subcontractors on this project.
Oversight & Accountability
Oversight will be crucial to ensure the construction adheres to specifications, stays within budget, and meets the projected completion date. The Federal Aviation Administration (FAA) is responsible for monitoring the contractor's performance and ensuring accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Construction project complexity
- Potential for schedule slippage
- Reliance on contractor's expertise
- Ensuring compliance with FAA standards
Tags
commercial-and-institutional-building-co, department-of-transportation, in, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $10.6 million to SHOOK L.L.C.. AWARD FOR CONSTRUCTION OF NEW FWA ATCT
Who is the contractor on this award?
The obligated recipient is SHOOK L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $10.6 million.
What is the period of performance?
Start: 2009-06-27. End: 2006-05-19.
What is the projected operational impact of the new ATCT once completed?
The new ATCT is expected to significantly enhance air traffic control capabilities, leading to improved safety, reduced delays, and increased airspace efficiency. It will likely support higher volumes of air traffic and incorporate modern technological advancements, ensuring the facility remains state-of-the-art for years to come and supports the growing demands of aviation.
What are the primary risks associated with the construction phase of this project?
Key risks include potential construction delays due to weather, labor shortages, or supply chain disruptions. Unforeseen site conditions, such as difficult soil or underground utilities, could lead to scope changes and cost overruns. Ensuring compliance with stringent FAA safety and building codes throughout the construction process is also a critical risk area.
How does the firm-fixed-price contract structure benefit the government in this scenario?
The firm-fixed-price (FFP) contract structure benefits the government by providing cost certainty. The contractor assumes most of the risk for cost overruns, meaning the government pays a predetermined price regardless of the contractor's actual costs. This is particularly advantageous for projects with well-defined scopes, like building construction, helping to prevent budget blowouts.
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
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Shook National Corporation (UEI: 122547532)
Address: 7330 EAST 90TH ST STE 2, INDIANAPOLIS, IN, 07
Business Categories: Category Business, Not Designated a Small Business, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $10,557,795
Exercised Options: $10,557,795
Current Obligation: $10,557,795
Timeline
Start Date: 2009-06-27
Current End Date: 2006-05-19
Potential End Date: 2006-05-19 00:00:00
Last Modified: 2011-10-31
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