ARTCC Modernization Project Awarded to Cobalt Contractors for $12.6M, Lacking Competition
Contract Overview
Contract Amount: $12,627,415 ($12.6M)
Contractor: Cobalt Contractors LLC
Awarding Agency: Department of Transportation
Start Date: 2007-09-21
End Date: 2014-07-11
Contract Duration: 2,485 days
Daily Burn Rate: $5.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARTCC MODERNIZATION OF THE AUTOMATION WING 2ND FLOOR AND ATTIC (AWR2) AND THE CONTROL ROOM 1ST FLOOR M-1 AREA 4 AND ATTIC SPACE COMBINED PROJECTS AT THE LOS ANGELES ARTCC, PALMDALE, CA.
Place of Performance
Location: LAS VEGAS, CLARK County, NEVADA, 89109
State: Nevada Government Spending
Plain-Language Summary
Department of Transportation obligated $12.6 million to COBALT CONTRACTORS LLC for work described as: ARTCC MODERNIZATION OF THE AUTOMATION WING 2ND FLOOR AND ATTIC (AWR2) AND THE CONTROL ROOM 1ST FLOOR M-1 AREA 4 AND ATTIC SPACE COMBINED PROJECTS AT THE LOS ANGELES ARTCC, PALMDALE, CA. Key points: 1. The project involves building construction at the Los Angeles ARTCC, Palmdale, CA. 2. Awarded to Cobalt Contractors LLC for $12.6 million. 3. The contract was not competed, raising concerns about price discovery. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: questionable
The contract value of $12.6 million for building modernization is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have led to a higher price than could have been achieved through a competitive process.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for this modernization project.
Public Impact
Modernization of critical air traffic control facilities ensures operational efficiency. The project's location in Palmdale, CA, impacts local employment and economic activity. Lack of competition raises questions about the government's commitment to maximizing taxpayer value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment due to sole-source award
Positive Signals
- Project aims to modernize critical infrastructure
- Contract awarded to a specific contractor
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a sector that can vary widely in cost based on project scope and location. Benchmarks for similar modernization projects are essential for evaluating value.
Small Business Impact
The contract was not competed and there is no indication of small business participation. Further analysis would be needed to determine if small businesses were excluded or if the nature of the work precluded their involvement.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for avoiding a competitive process. Accountability for ensuring fair pricing and maximizing value is crucial.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification for sole-source award
- No clear indication of small business utilization
Tags
commercial-and-institutional-building-co, department-of-transportation, nv, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $12.6 million to COBALT CONTRACTORS LLC. ARTCC MODERNIZATION OF THE AUTOMATION WING 2ND FLOOR AND ATTIC (AWR2) AND THE CONTROL ROOM 1ST FLOOR M-1 AREA 4 AND ATTIC SPACE COMBINED PROJECTS AT THE LOS ANGELES ARTCC, PALMDALE, CA.
Who is the contractor on this award?
The obligated recipient is COBALT CONTRACTORS LLC.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $12.6 million.
What is the period of performance?
Start: 2007-09-21. End: 2014-07-11.
What was the justification for not competing this significant building modernization contract?
The provided data indicates the contract was 'NOT COMPETED'. A thorough review would require accessing the contract file to understand the specific justification, such as urgency, unique capabilities of the contractor, or other factors that may have led the agency to bypass the standard competitive bidding process.
How does the $12.6 million cost compare to similar ARTCC modernization projects?
Without access to a database of comparable ARTCC modernization projects, it is difficult to provide a precise benchmark. However, the lack of competition makes it challenging to ascertain if this price represents good value. A comparative analysis with projects of similar scope, size, and complexity, ideally those awarded competitively, would be necessary.
What is the potential risk to taxpayers due to the lack of competition?
The primary risk to taxpayers is the potential for paying an inflated price. When a contract is not competed, the government loses the benefit of market forces driving down costs. This can lead to overspending if the sole-source price is not rigorously negotiated and justified.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3044 S HIGHLAND DR, LAS VEGAS, NV, 90
Business Categories: American Indian Owned Business, Category Business, Emerging Small Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $12,698,955
Exercised Options: $12,627,415
Current Obligation: $12,627,415
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2007-09-21
Current End Date: 2014-07-11
Potential End Date: 2014-07-11 00:00:00
Last Modified: 2014-07-30
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