DOT's $18.7M engineering services contract with WHPACIFIC, INC. awarded via full and open competition

Contract Overview

Contract Amount: $18,707,125 ($18.7M)

Contractor: Whpacific, Inc.

Awarding Agency: Department of Transportation

Start Date: 2008-12-01

End Date: 2023-08-21

Contract Duration: 5,376 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ATCT

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87110

State: New Mexico Government Spending

Plain-Language Summary

Department of Transportation obligated $18.7 million to WHPACIFIC, INC. for work described as: ATCT Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 5376 days (approx. 14.7 years) suggests a long-term requirement. 3. Awarded as a definitive contract, implying a firm commitment for services. 4. The firm fixed price contract type aims to control costs and provide budget certainty. 5. The contract was not set aside for small businesses, suggesting larger prime contractors were anticipated. 6. The North American Industry Classification System (NAICS) code 541330 points to a focus on engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and market rates for engineering services in New Mexico. The duration suggests a significant investment, but the absence of detailed performance metrics or comparisons makes a definitive value assessment difficult. The firm fixed price structure is a positive indicator for cost control, but the overall value depends heavily on the quality and necessity of the engineering services provided over its extended term.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, potentially leading to better pricing and service quality. The presence of 3 bidders suggests a moderate level of competition for this specific engineering services requirement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of selecting the most cost-effective solution.

Public Impact

The Federal Aviation Administration (FAA) benefits from specialized engineering expertise to support its infrastructure and operational needs. Services delivered likely include design, planning, and oversight for aviation-related projects. The geographic impact is centered in New Mexico, where the services are likely to be performed. The contract supports the engineering workforce, potentially creating or sustaining jobs in specialized technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (nearly 15 years) could lead to scope creep or evolving requirements that may not be optimally priced over time.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's ongoing effectiveness and value.
The absence of small business participation data raises questions about opportunities for smaller firms in the subcontracting chain.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed price contract type provides cost certainty for the government.
The contractor, WHPACIFIC, INC., has secured a significant, long-term engagement, indicating a level of trust and capability.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often involves long-term engagements for complex projects. The Federal Aviation Administration's spending in this area is essential for maintaining and modernizing air traffic control systems and related infrastructure. Comparable spending benchmarks would typically involve analyzing other large-scale engineering contracts awarded by government agencies for similar types of services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was likely deemed too large or specialized for small business participation as the prime contractor. It is possible that subcontracting opportunities may exist for small businesses, but this information is not detailed in the provided data. Further analysis would be needed to determine the extent of small business involvement through subcontracting.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are typically embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Air Traffic Control Modernization Programs
Airport Infrastructure Development
Federal Aviation Administration Capital Investments
Engineering and Architectural Services Contracts
Department of Transportation Procurement

Risk Flags

Long contract duration may lead to requirement misalignment over time.
Limited public data on specific deliverables and performance metrics hinders comprehensive value assessment.
Potential for vendor lock-in due to extended contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $18.7 million to WHPACIFIC, INC.. ATCT

Who is the contractor on this award?

The obligated recipient is WHPACIFIC, INC..

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $18.7 million.

What is the period of performance?

Start: 2008-12-01. End: 2023-08-21.

What is the historical spending pattern for engineering services by the Federal Aviation Administration?

Analyzing historical spending patterns for engineering services by the FAA reveals a consistent need for specialized technical support across various programs. Over the past decade, the FAA has allocated significant funds towards modernization efforts, infrastructure upgrades, and operational enhancements, many of which require extensive engineering expertise. This includes investments in air traffic control systems, airport improvements, and research and development. Spending can fluctuate based on major capital investment cycles and the urgency of technological upgrades. For instance, the transition to NextGen air traffic management systems has driven substantial engineering service procurements. While specific dollar amounts vary year-to-year, the trend indicates a sustained reliance on external engineering firms to supplement internal capabilities and address complex technical challenges, often through large, multi-year definitive contracts similar to the one awarded to WHPACIFIC, INC.

How does the pricing of this contract compare to similar engineering services contracts?

Directly comparing the pricing of this specific $18.7 million contract with WHPACIFIC, INC. to similar engineering services contracts is challenging without detailed knowledge of the scope of work, deliverables, and specific labor categories involved. However, the contract's firm fixed price (FFP) structure is a key indicator. FFP contracts are generally preferred by the government when the scope of work is well-defined, as they shift the risk of cost overruns to the contractor, potentially leading to more competitive bids. The duration of nearly 15 years is exceptionally long for an FFP contract, which might suggest a phased approach to service delivery or a master agreement with task orders. Benchmarking would require access to data on contracts with similar NAICS codes (541330), agencies (FAA), and contract values, considering factors like geographic location (New Mexico) and the specific engineering disciplines required. Without such granular data, it's difficult to definitively state if the pricing is competitive, but the full and open competition suggests an effort to achieve market-based rates.

What are the potential risks associated with a contract of this duration?

A contract spanning nearly 15 years, like the one awarded to WHPACIFIC, INC., carries several potential risks. Firstly, requirements can evolve significantly over such a long period due to technological advancements, policy changes, or shifts in operational needs. This could lead to the contract becoming misaligned with current needs, requiring costly modifications or potentially rendering some services obsolete. Secondly, long-term contracts can sometimes foster complacency or reduce the incentive for continuous innovation and efficiency improvements by the contractor, as they have a guaranteed revenue stream. Thirdly, there's a risk of 'vendor lock-in,' where the government becomes overly reliant on a single provider, making it difficult and expensive to switch contractors if performance issues arise or better alternatives emerge. Finally, economic fluctuations and changes in government funding priorities over such an extended timeframe could impact the contract's stability and the contractor's ability to maintain resources.

What is WHPACIFIC, INC.'s track record with federal contracts, particularly with the FAA?

WHPACIFIC, INC. has a history of securing federal contracts, including those with the Department of Transportation and its various agencies like the Federal Aviation Administration (FAA). Their ability to win a definitive contract valued at $18.7 million with a long duration suggests a demonstrated capability and a positive past performance record in the eyes of the contracting officers. While the provided data doesn't detail specific past projects or performance ratings, the award itself implies that WHPACIFIC, INC. met the government's criteria for technical expertise, financial stability, and reliability. Further investigation into contract databases would be necessary to review specific past performance evaluations, identify any past issues or commendations, and understand the breadth of their experience with similar engineering services for aviation-related infrastructure or operations.

How does the competition level (3 bidders) impact price discovery for this contract?

A competition level involving three bidders, as seen in this contract award, generally provides a reasonable basis for price discovery. While more bidders could potentially drive prices lower through increased competition, three offers typically indicate that the market has sufficient interest and capability to respond to the requirement. This number suggests that WHPACIFIC, INC. likely submitted a competitive bid, having been chosen from a pool of at least two other firms vying for the contract. The government can use the range of bids received from these three entities to benchmark the reasonableness of the proposed prices. However, if the scope of work was highly specialized or geographically limited, three bidders might represent the full extent of qualified and interested parties, making it a robust competition within those constraints.

What is the significance of the NAICS code 541330 (Engineering Services) in the context of this contract?

The North American Industry Classification System (NAICS) code 541330, 'Engineering Services,' is highly significant as it precisely defines the primary nature of the services procured under this contract. This code encompasses firms that provide engineering consulting and design services, including civil, mechanical, electrical, industrial, and environmental engineering. For the FAA, this typically translates to services related to the design, planning, analysis, and oversight of aviation infrastructure, air traffic control systems, airport facilities, and related technologies. Awarding the contract under this code ensures that the procurement process targets companies with the requisite technical expertise and professional qualifications. It also allows for industry-wide benchmarking against other contracts classified under the same NAICS code, aiding in value and price analysis.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: NV5 Global, Inc.

Address: 6501 AMERICAS PKWY NE STE 400, ALBUQUERQUE, NM, 87110

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $22,928,058

Exercised Options: $18,707,125

Current Obligation: $18,707,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline