DOJ's $3.9M boiler replacement contract awarded to Blasco Construction Corp. for FCI Danbury

Contract Overview

Contract Amount: $3,902,697 ($3.9M)

Contractor: Blasco Construction Corp

Awarding Agency: Department of Justice

Start Date: 2024-10-15

End Date: 2027-01-21

Contract Duration: 828 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FCI DANBURY - REPLACE STEAM BOILERS - 22Z2AJ9

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33142

State: Florida Government Spending

Plain-Language Summary

Department of Justice obligated $3.9 million to BLASCO CONSTRUCTION CORP for work described as: FCI DANBURY - REPLACE STEAM BOILERS - 22Z2AJ9 Key points: 1. Contract value appears reasonable for a facility-wide boiler replacement project. 2. Sole-source award limits price discovery and potential for competitive savings. 3. Project duration of 828 days suggests a complex, multi-phase installation. 4. Fixed-price contract shifts performance risk to the contractor. 5. Location in Florida may influence labor and material costs. 6. No small business set-aside indicates a focus on specialized capabilities.

Value Assessment

Rating: fair

The contract value of $3.9 million for replacing steam boilers at FCI Danbury seems within a reasonable range for a federal correctional facility project of this scope. However, without specific details on the number and type of boilers, the extent of associated plumbing and HVAC work, and the facility's size, a precise benchmark is difficult. The fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can sometimes lead to higher initial bids. Comparing this to similar federal prison boiler replacement projects would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one contractor possesses the unique qualifications, capabilities, or proprietary technology required for the project, or in cases of urgent and compelling need. The lack of competition means that the government did not benefit from the price reductions and innovative solutions that often arise from a competitive bidding process. This limits the government's ability to ensure it received the best possible price and terms.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive bidding, potentially leading to a higher overall cost than if multiple firms had vied for the contract. This limits the government's leverage in negotiating favorable pricing.

Public Impact

The primary beneficiaries are the inmates and staff at FCI Danbury, who will receive improved heating and hot water services. The project will deliver essential infrastructure upgrades, ensuring reliable operation of the facility's heating system. The geographic impact is localized to Danbury, Connecticut, where the Federal Correctional Institution is located. The contract will likely create temporary employment opportunities for skilled tradespeople in the construction sector within the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Contractor's track record on similar federal projects needs thorough review to mitigate performance risks.

Positive Signals

Fixed-price contract shifts cost-overrun risk to the contractor.
Project duration is clearly defined, allowing for structured planning and execution.
Awarded to a firm (Blasco Construction Corp.) with experience in construction services.

Sector Analysis

The construction sector, particularly specialized areas like industrial plumbing and HVAC, is a significant area of federal spending. This contract falls under the category of facility maintenance and infrastructure upgrades, which are critical for the operational continuity of government installations. Federal spending in this sector often involves large, complex projects requiring specialized expertise and adherence to stringent regulations. Benchmarks for similar projects can vary widely based on location, facility type, and the specific scope of work, but projects of this magnitude typically range from several hundred thousand to millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, Blasco Construction Corp., is likely a larger entity or that the specialized nature of the work was deemed unsuitable for a small business set-aside. The absence of explicit small business participation goals means there may be limited direct benefit to the small business ecosystem from this specific contract, although the prime contractor might engage small businesses as subcontractors if needed for specific tasks.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Justice's Bureau of Prisons (BOP). The BOP has established procurement regulations and contract management procedures to ensure compliance and performance. The fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. However, the effectiveness of oversight will depend on the BOP's contract administration team's diligence in monitoring progress, quality, and adherence to the contract terms. Inspector General reviews may be triggered if specific concerns or allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Prison System Infrastructure Upgrades
Bureau of Prisons Facility Maintenance Contracts
Department of Justice Construction Projects
Federal Building and Fire Safety Program

Risk Flags

Sole-source award raises concerns about competitive fairness and potential cost efficiency.
Lack of detailed performance metrics in summary data requires further investigation into contract oversight.
Contractor's specific experience with federal correctional facility infrastructure needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.9 million to BLASCO CONSTRUCTION CORP. FCI DANBURY - REPLACE STEAM BOILERS - 22Z2AJ9

Who is the contractor on this award?

The obligated recipient is BLASCO CONSTRUCTION CORP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2024-10-15. End: 2027-01-21.

What is Blasco Construction Corp.'s past performance record with the federal government, particularly on similar infrastructure projects?

Assessing Blasco Construction Corp.'s past performance is crucial for understanding their reliability and capability in executing this contract. A review of their federal contract history, including performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would reveal their track record on similar projects. Key indicators to examine include on-time completion rates, adherence to budget (especially relevant for fixed-price contracts), quality of work, responsiveness to issues, and any history of disputes or contract terminations. Positive performance on comparable federal construction or facility upgrade projects would increase confidence in their ability to successfully deliver the FCI Danbury boiler replacement.

How does the $3.9 million contract value compare to the estimated cost of similar boiler replacement projects in federal correctional facilities?

The $3.9 million contract value for the FCI Danbury steam boiler replacement needs to be benchmarked against similar federal projects to assess value for money. Factors influencing cost include the number and size of boilers, the complexity of the existing infrastructure, the scope of associated plumbing and HVAC work, and the specific geographic location which impacts labor and material costs. Without detailed project specifications and comparative data from the Bureau of Prisons or other agencies for similar facilities, it's challenging to definitively state if this price is high or low. However, sole-source awards often lack the competitive pressure that drives down prices, suggesting this figure might be at the higher end of a potential range.

What are the specific risks associated with a sole-source award for this type of infrastructure project?

A sole-source award for the FCI Danbury boiler replacement presents several risks. Primarily, the lack of competition means the government may not have secured the most cost-effective solution, potentially leading to overpayment. It also limits the opportunity for innovative approaches or technologies that might have been proposed by other qualified contractors. Furthermore, the government has less leverage in negotiating terms and conditions. The justification for a sole-source award must be robust, typically citing unique capabilities or urgent needs. If the justification is weak, it raises concerns about the procurement process and potential missed opportunities for better value.

What is the expected impact of this contract on the operational efficiency and safety of FCI Danbury?

The replacement of aging steam boilers is expected to significantly improve the operational efficiency and safety of FCI Danbury. Modern boilers are typically more energy-efficient, leading to potential cost savings in utility consumption over the long term. Improved reliability reduces the risk of system failures, which can disrupt essential services like heating and hot water, impacting the living and working conditions for inmates and staff. Enhanced safety features in new equipment minimize the risk of malfunctions or accidents associated with older systems. The project's successful completion should ensure a stable and reliable heating infrastructure for the facility.

What is the historical spending trend for boiler replacement and HVAC maintenance within the Federal Prison System?

Analyzing historical spending trends for boiler replacement and HVAC maintenance within the Federal Prison System (FPS) provides context for the $3.9 million FCI Danbury contract. The FPS, managed by the Bureau of Prisons (BOP), operates numerous facilities, each requiring ongoing maintenance and periodic upgrades of critical infrastructure like heating systems. Spending in this category can fluctuate based on the age of the facilities, the deferred maintenance backlog, and the availability of appropriated funds. Consistent investment is necessary to ensure the safe and efficient operation of these institutions. Understanding past spending levels can help identify patterns, potential underfunding, or areas where costs may be increasing due to inflation or complexity.

Are there any specific performance metrics or milestones tied to this contract to ensure timely and quality completion?

While the provided data indicates a fixed-price contract with a defined duration (828 days), specific performance metrics and milestones are not detailed. For a project of this scale and importance, a well-structured contract would typically include phased milestones for design, procurement of materials, installation, testing, and final commissioning. Performance metrics might relate to adherence to these schedules, quality control checks at various stages, and successful system performance tests post-installation. The contract administration team from the Bureau of Prisons would be responsible for monitoring progress against these milestones and ensuring the contractor meets quality standards throughout the project lifecycle.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15BFA023R00000027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4265 NW 37TH AVE, MIAMI, FL, 33142

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,902,697

Exercised Options: $3,902,697

Current Obligation: $3,902,697

Actual Outlays: $3,145,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline