DoD's $20.4M HVAC Modernization Project Awarded to Virtexco Corp Under Full and Open Competition

Contract Overview

Contract Amount: $20,381,619 ($20.4M)

Contractor: Virtexco Corp

Awarding Agency: Department of Defense

Start Date: 2009-11-30

End Date: 2012-04-08

Contract Duration: 860 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERYPROJECT#::RM211-08::RP# MODERNIZE CENTRAL HVAC PLANT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.4 million to VIRTEXCO CORP for work described as: RECOVERYPROJECT#::RM211-08::RP# MODERNIZE CENTRAL HVAC PLANT Key points: 1. Project aims to modernize a central HVAC plant for the Department of the Navy. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract value is $20.4 million, with a duration of 860 days. 4. Construction sector spending benchmark for similar projects needs further analysis.

Value Assessment

Rating: fair

The contract value of $20.4 million for a 860-day project appears within a reasonable range for large-scale HVAC plant modernization. However, without specific details on the scope of work and comparable project costs, a precise pricing assessment is difficult.

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 were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces.

Public Impact

Modernization of critical infrastructure like HVAC systems ensures operational efficiency and reliability for naval facilities. The project supports the construction sector, contributing to economic activity and employment. Long-term benefits include potential energy savings and reduced maintenance costs for the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work for precise cost comparison.
No specific mention of energy efficiency targets or performance metrics.
Potential for cost overruns in complex construction projects.

Positive Signals

Awarded through full and open competition.
Project addresses critical infrastructure modernization.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project scale, location, and complexity. Benchmarking against similar HVAC plant modernization projects is crucial for assessing value.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or if opportunities were missed.

Oversight & Accountability

The award was made by the Department of the Navy, part of the Department of Defense. Standard oversight mechanisms for federal construction contracts would apply, including contract monitoring and performance reviews.

Related Government Programs

Commercial and Institutional Building Construction
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed technical specifications.
No clear performance metrics defined.
Potential for schedule slippage in long-duration construction.
Limited information on sustainability or energy efficiency goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.4 million to VIRTEXCO CORP. RECOVERYPROJECT#::RM211-08::RP# MODERNIZE CENTRAL HVAC PLANT

Who is the contractor on this award?

The obligated recipient is VIRTEXCO CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.4 million.

What is the period of performance?

Start: 2009-11-30. End: 2012-04-08.

What specific technologies or upgrades are included in the HVAC plant modernization to justify the $20.4 million cost?

The provided data lacks specific details on the technologies and upgrades involved in the HVAC plant modernization. A comprehensive understanding of the scope of work, including the type of equipment being replaced or installed, energy efficiency measures, and control systems, is necessary to fully assess the justification for the $20.4 million cost and its alignment with industry standards for similar modernization efforts.

What are the potential risks associated with the 860-day duration of this construction project, and how are they being mitigated?

The 860-day duration presents risks such as potential delays due to weather, supply chain disruptions, or unforeseen site conditions. Mitigation strategies likely include detailed project scheduling, contingency planning, robust contractor oversight, and clear communication protocols. The firm fixed price contract also shifts some cost overrun risk to the contractor, incentivizing timely completion.

How will the success of this HVAC modernization project be measured in terms of improved energy efficiency and operational performance?

The data does not specify the metrics for measuring the success of the HVAC modernization. Key performance indicators should ideally include quantifiable improvements in energy consumption (e.g., reduction in kWh per ton), system uptime, maintenance cost reduction, and occupant comfort levels. Establishing baseline performance data before the project and post-project verification are essential for demonstrating effectiveness.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N4008508R9602

Offers Received: 15

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 977 NORFOLK SQ, NORFOLK, VA, 23502

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $20,381,619

Exercised Options: $20,381,619

Current Obligation: $20,381,619

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008509D5033

IDV Type: IDC

Timeline