Navy's $14.6M Airfield Lighting Repair Contract Awarded to Atlantic Electric LLC Amidst ARRA Funding
Contract Overview
Contract Amount: $14,635,265 ($14.6M)
Contractor: Atlantic Electric LLC
Awarding Agency: Department of Defense
Start Date: 2009-08-28
End Date: 2013-01-30
Contract Duration: 1,251 days
Daily Burn Rate: $11.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: TAS::17 1807::TAS RECOVERYPROJECT#::RM03-08::RP# REPAIR AND REPLACE AIRFIELD LIGHTING AT NAS JRB NEW ORLEANS, LA ARRA::YES::ARRA
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70146
Plain-Language Summary
Department of Defense obligated $14.6 million to ATLANTIC ELECTRIC LLC for work described as: TAS::17 1807::TAS RECOVERYPROJECT#::RM03-08::RP# REPAIR AND REPLACE AIRFIELD LIGHTING AT NAS JRB NEW ORLEANS, LA ARRA::YES::ARRA Key points: 1. Contract awarded under the American Recovery and Reinvestment Act (ARRA) for airfield lighting repairs. 2. Atlantic Electric LLC secured the contract through full and open competition. 3. The contract duration was 1251 days, indicating a significant, long-term project. 4. The project involved repairs to airfield lighting at NAS JRB New Orleans, Louisiana. 5. The fixed-price contract type suggests a defined scope and cost structure. 6. The award was made by the Department of the Navy, a component of the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific cost breakdowns or comparable project data. The firm fixed-price structure implies that the contractor assumed the risk for cost overruns. However, the duration and scope suggest a substantial investment. Further analysis would require detailed cost elements and comparison to similar airfield infrastructure repair projects.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was open, specific sources might have been excluded based on certain criteria. With 8 bidders, this suggests a reasonable level of competition for the project. The presence of multiple bidders generally supports price discovery and potentially more competitive pricing.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final contract price compared to a sole-source or limited competition scenario.
Public Impact
Benefits military operations by ensuring safe and functional airfield lighting at NAS JRB New Orleans. Supports critical infrastructure maintenance for national defense readiness. The project's geographic impact is localized to New Orleans, Louisiana. Likely involved a workforce of construction and electrical specialists for the duration of the project.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the 'exclusion of sources' criteria limited the most competitive bidders.
- ARRA funding could introduce specific reporting and oversight requirements that add administrative burden.
- Long project duration (1251 days) increases the risk of unforeseen site conditions or material price fluctuations impacting the fixed price.
Positive Signals
- Awarded through full and open competition, suggesting a broad outreach to potential contractors.
- Firm fixed-price contract shifts cost risk to the contractor.
- Project addresses critical infrastructure needs for a naval air station.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, specifically related to airfield infrastructure. The market for airfield maintenance and repair is specialized, often involving a limited number of experienced contractors. Spending in this sector is driven by military readiness requirements and infrastructure modernization efforts. Comparable spending benchmarks would typically be found within Department of Defense infrastructure budgets for aviation facilities.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The primary contractor, Atlantic Electric LLC, would determine any subcontracting opportunities.
Oversight & Accountability
Oversight for ARRA-funded projects was a significant focus, with various inspector general offices and dedicated oversight bodies monitoring spending and performance. The Department of the Navy would also have its own contracting officer representatives (CORs) and contracting officer (CO) overseeing contract performance and compliance. Transparency would be expected through ARRA reporting requirements.
Related Government Programs
- American Recovery and Reinvestment Act (ARRA) Projects
- Department of Defense Infrastructure Modernization
- Naval Air Station Maintenance and Repair
- Airfield Lighting Systems
Risk Flags
- ARRA Funding Oversight
- Potential for Cost Overruns (Contractor Risk)
- Long Project Duration Risks
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, infrastructure, airfield-lighting, louisiana, arra, heavy-and-civil-engineering, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.6 million to ATLANTIC ELECTRIC LLC. TAS::17 1807::TAS RECOVERYPROJECT#::RM03-08::RP# REPAIR AND REPLACE AIRFIELD LIGHTING AT NAS JRB NEW ORLEANS, LA ARRA::YES::ARRA
Who is the contractor on this award?
The obligated recipient is ATLANTIC ELECTRIC LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $14.6 million.
What is the period of performance?
Start: 2009-08-28. End: 2013-01-30.
What was the specific reason for excluding certain sources in the 'full and open competition after exclusion of sources' award?
The specific reasons for excluding certain sources in a 'full and open competition after exclusion of sources' award are typically documented in the contract file. Common justifications include pre-qualification requirements, specific technical expertise, past performance issues with certain contractors, or national security concerns. Without access to the detailed contract documentation for this specific award (ID 17 1807), the precise rationale remains unknown. However, the exclusion implies that while the competition was broadly advertised, only a subset of potential bidders met the agency's specific criteria for participation.
How does the $14.6 million cost compare to similar airfield lighting repair projects?
Directly comparing the $14.6 million cost of this contract to similar airfield lighting repair projects is difficult without more specific data on the scope, complexity, and location of comparable projects. Airfield lighting systems can vary significantly in size, type (e.g., LED vs. traditional), and the extent of repairs needed (e.g., partial replacement vs. full overhaul). Factors such as the specific requirements of NAS JRB New Orleans, the duration of the project (1251 days), and the prevailing market rates in Louisiana during 2009-2013 would influence the total cost. Generally, large-scale airfield infrastructure projects can run into millions of dollars, especially when involving extensive civil engineering and electrical work.
What were the primary risks associated with this firm fixed-price contract?
The primary risk associated with this firm fixed-price contract was the potential for cost overruns borne by the contractor, Atlantic Electric LLC. If the actual costs of labor, materials, or unforeseen site conditions exceeded the contract price, the contractor would absorb the loss. Conversely, the government's risk was primarily related to potential quality issues or delays if the contractor struggled to complete the work within the fixed price. The long duration of the contract (1251 days) amplified these risks, increasing the likelihood of market fluctuations or unexpected challenges impacting the contractor's ability to maintain profitability.
What was the overall effectiveness of ARRA funding in stimulating projects like this?
The American Recovery and Reinvestment Act (ARRA) aimed to stimulate the economy through infrastructure investment, tax relief, and aid to states. Projects like this airfield lighting repair were intended to create jobs and improve critical infrastructure. While ARRA did inject significant funds into the economy and supported numerous projects, its overall effectiveness in terms of long-term economic stimulus and job creation has been a subject of ongoing debate among economists. The rapid deployment of funds sometimes led to concerns about efficiency and oversight, but it undeniably accelerated needed infrastructure upgrades.
What is the typical track record of contractors awarded large federal construction contracts?
Contractors awarded large federal construction contracts typically have a demonstrated track record of successfully completing projects of similar scale and complexity. This often includes extensive experience with government contracting regulations, safety protocols, and quality control standards. Agencies like the Department of the Navy usually vet potential contractors through pre-qualification processes, reviewing past performance evaluations, financial stability, and technical capabilities. While Atlantic Electric LLC's specific track record prior to this award isn't detailed here, successful large federal contractors generally possess robust project management, skilled labor forces, and a history of meeting deadlines and budget requirements.
Industry Classification
NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6945009R0762
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7320 CROSS COUNTY RD, NORTH CHARLESTON, SC, 06
Business Categories: Category Business, Emerging Small Business, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $14,635,265
Exercised Options: $14,635,265
Current Obligation: $14,635,265
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-08-28
Current End Date: 2013-01-30
Potential End Date: 2013-01-30 00:00:00
Last Modified: 2014-03-06
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