Forest Service awards $1.08M HVAC renovation contract to JBW Group LLC for firm-fixed-price services

Contract Overview

Contract Amount: $1,083,186 ($1.1M)

Contractor: JBW Group LLC

Awarding Agency: Department of Agriculture

Start Date: 2024-09-23

End Date: 2026-11-10

Contract Duration: 778 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IPIF HVAC RENOVATION

Place of Performance

Location: HILO, HAWAII County, HAWAII, 96720

State: Hawaii Government Spending

Plain-Language Summary

Department of Agriculture obligated $1.1 million to JBW GROUP LLC for work described as: IPIF HVAC RENOVATION Key points: 1. The contract's firm-fixed-price structure aims to control costs for the HVAC renovation. 2. Competition for this contract was not available, raising questions about potential price optimization. 3. The duration of the contract (778 days) suggests a significant scope of work for the renovation. 4. The award to JBW Group LLC represents a specific investment in facility maintenance for the Forest Service. 5. The contract falls under the 'Plumbing, Heating, and Air-Conditioning Contractors' NAICS code, indicating specialized services.

Value Assessment

Rating: fair

Benchmarking the value of this $1.08 million HVAC renovation is challenging without comparable contract data. The firm-fixed-price (FFP) award suggests an attempt to lock in costs, but the lack of competition means there's no direct market comparison to assess if the price is optimal. The duration of nearly two years for the renovation implies a substantial project, and the final value will depend on the efficiency of execution and the actual scope delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one vendor, JBW Group LLC, was solicited or considered for this work. Without a competitive bidding process, it is difficult to ascertain the level of price discovery and whether the government received the best possible pricing or value. The rationale for sole-source awards typically involves unique capabilities, urgent needs, or a lack of market availability.

Taxpayer Impact: The absence of competition means taxpayers may not benefit from the cost savings typically achieved through a bidding process. This could potentially lead to a higher price than if multiple contractors had vied for the contract.

Public Impact

The primary beneficiaries are the Forest Service facilities in Hawaii, which will receive updated HVAC systems. The services delivered include essential renovation and maintenance of heating, ventilation, and air conditioning systems. The geographic impact is concentrated in Hawaii, specifically within the areas served by the Forest Service. The contract supports the workforce of JBW Group LLC, providing employment opportunities in specialized contracting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially increases cost to taxpayers.
Sole-source award requires strong justification to ensure necessity and fair pricing.
Firm-fixed-price contracts can sometimes lead to scope creep if not managed tightly.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Specialized nature of HVAC renovation may justify a specific contractor's expertise.
Award to a single entity can streamline project management and execution.

Sector Analysis

The HVAC services sector is a critical component of the broader construction and facilities maintenance industry. This contract falls under the Plumbing, Heating, and Air-Conditioning Contractors (NAICS 238220) category. The market for government HVAC services is substantial, driven by the need to maintain aging infrastructure across federal agencies. While specific benchmarks for sole-source HVAC renovations are scarce, typical government construction and renovation projects often see significant competition, driving down prices.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses. The award to JBW Group LLC, without further information on its size, means the direct impact on the small business ecosystem is unclear. If JBW Group LLC is a large business, there may be missed opportunities for small businesses to participate in this renovation project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Forest Service contracting officers and program managers. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the sole-source justification and performance monitoring will be key. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Department of Agriculture Facility Upgrades
HVAC System Modernization Projects
Sole-Source Government Contracts
Construction Services for Federal Agencies

Risk Flags

Sole-source award lacks competitive pricing validation.
Extended contract duration increases risk of delays and cost overruns.
Limited public information on contractor's specific performance history.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $1.1 million to JBW GROUP LLC. IPIF HVAC RENOVATION

Who is the contractor on this award?

The obligated recipient is JBW GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2024-09-23. End: 2026-11-10.

What is the track record of JBW Group LLC with federal contracts, particularly in HVAC renovations?

Information regarding JBW Group LLC's specific track record with federal contracts, especially in HVAC renovations, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to analyze past performance, contract values, agencies served, and any reported issues or successes. Understanding their history with similar projects, adherence to schedules, and quality of work is crucial for assessing future performance and the appropriateness of this sole-source award.

How does the $1.08 million price compare to similar HVAC renovation projects of comparable size and scope?

Direct comparison of the $1.08 million price is difficult without more specific details on the scope of work, the specific systems being renovated, and the condition of the facilities. However, given the 778-day duration, this represents a significant, long-term renovation. In the absence of competition, it's challenging to benchmark against market rates. Typically, competitive bids for similar-sized projects might offer a clearer indication of value. The firm-fixed-price nature aims for cost certainty, but the lack of competitive bids means potential overpricing cannot be ruled out without further analysis of project specifics and market conditions.

What are the specific risks associated with a sole-source award for this HVAC renovation?

The primary risk associated with this sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not be securing the most cost-effective solution. Other risks include potential complacency from the contractor regarding performance or innovation, as there is no immediate threat of losing future business to competitors on this specific contract. Furthermore, the justification for the sole-source award needs to be robust to ensure it was truly necessary and that alternatives were adequately considered.

How effective is the firm-fixed-price (FFP) contract type likely to be for this HVAC renovation project?

The firm-fixed-price (FFP) contract type is generally effective for projects where the scope of work is well-defined and risks can be reasonably anticipated, such as a standard HVAC renovation. It provides cost certainty for the government, shifting the risk of cost overruns to the contractor. For this project, the FFP structure aims to cap the government's expenditure at $1.08 million. However, its effectiveness hinges on precise scope definition and diligent oversight to prevent scope creep, which could still increase the overall cost or impact project timelines if not managed properly.

What is the historical spending pattern for HVAC renovations by the Forest Service or the Department of Agriculture?

Analyzing historical spending patterns for HVAC renovations by the Forest Service or the Department of Agriculture would require access to historical contract data. This would involve querying databases for similar projects, noting contract values, durations, and procurement methods (competitive vs. sole-source) over several fiscal years. Understanding these patterns can reveal trends in investment, average project costs, and the frequency of sole-source awards for such services. Without this historical context, it's difficult to determine if this $1.08 million award is consistent with past spending or represents an anomaly.

What are the implications of the 778-day contract duration on project management and potential delays?

A contract duration of 778 days (approximately 2.1 years) for an HVAC renovation suggests a project of considerable scale and complexity, or one that may be phased over a long period. This extended timeline increases the potential for project delays due to unforeseen issues, changes in facility usage, or contractor performance challenges. Effective project management, including regular progress reviews, clear communication channels, and proactive risk mitigation, will be critical to ensure the project stays on track and within budget. The long duration also means the contractor must maintain resources and focus for an extended period.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3501 HORACE AVE, FORT WORTH, TX, 76244

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,801,765

Exercised Options: $1,083,186

Current Obligation: $1,083,186

Actual Outlays: $211,912

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline