GSA awards $2.8M contract for Moorhead Federal Building cooling tower replacement to TLI Construction

Contract Overview

Contract Amount: $2,810,756 ($2.8M)

Contractor: TLI Construction, Inc.

Awarding Agency: General Services Administration

Start Date: 2024-02-05

End Date: 2025-04-14

Contract Duration: 434 days

Daily Burn Rate: $6.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOORHEAD COOLING TOWERS REPLACEMENT, WILLIAM MOORHEAD FEDERAL BUILDING, PITTSBURGH PA. GENERAL CONSTRUCTION SERVICES IN SUPPORT OF REPLACEMENT OF THE COOLING TOWERS.

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15222

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $2.8 million to TLI CONSTRUCTION, INC. for work described as: MOORHEAD COOLING TOWERS REPLACEMENT, WILLIAM MOORHEAD FEDERAL BUILDING, PITTSBURGH PA. GENERAL CONSTRUCTION SERVICES IN SUPPORT OF REPLACEMENT OF THE COOLING TOWERS. Key points: 1. Contract focuses on essential infrastructure replacement for a federal building. 2. Sole-source award indicates limited market availability or specific contractor qualifications. 3. Firm-fixed-price contract shifts risk to the contractor for cost overruns. 4. Project duration of 434 days suggests a complex and potentially lengthy construction process. 5. No small business set-aside was applied, potentially limiting opportunities for smaller firms. 6. The contract falls under commercial and institutional building construction NAICS code.

Value Assessment

Rating: fair

The contract value of $2.81 million for cooling tower replacement appears within a reasonable range for a federal building project of this nature. However, without specific details on the scope of work, the age and condition of the existing towers, and the complexity of the installation, a precise value-for-money assessment is challenging. Benchmarking against similar projects in the Pittsburgh area or for the General Services Administration (GSA) would provide a clearer picture of whether this price represents competitive value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The lack of competition means that the government did not benefit from potential price reductions or innovative solutions that might have emerged from a broader bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is diminished in a sole-source scenario.

Public Impact

The primary beneficiaries are federal employees and visitors to the William Moorhead Federal Building in Pittsburgh, PA, who will experience improved climate control and operational reliability. The contract delivers essential general construction services specifically for the replacement of the building's cooling towers. The geographic impact is localized to Pittsburgh, Pennsylvania, ensuring the continued functionality of a key federal facility in the region. Workforce implications include employment opportunities for construction labor and specialized trades managed by TLI Construction, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential innovation.
Firm-fixed-price contract could lead to cost overruns if unforeseen issues arise.
Lack of small business participation may exclude smaller, specialized contractors.

Positive Signals

Addresses critical infrastructure replacement, ensuring building operational continuity.
Firm-fixed-price contract provides cost certainty for the government.
Long-term contract duration allows for thorough project execution.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the construction industry. Federal agencies, particularly the GSA, are major clients for such services, undertaking numerous projects to maintain and upgrade government-owned facilities. The market for cooling tower replacement is specialized, often involving a limited number of qualified contractors capable of handling large-scale federal projects.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, TLI Construction, Inc., is not explicitly identified as a small business in the provided data. This means that opportunities for small business participation, either as prime contractors or subcontractors, were not mandated by this specific award. Further investigation into TLI Construction's size status and subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), specifically its Public Buildings Service. As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency regarding project milestones, expenditures, and any potential issues would typically be available through GSA's contract management systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Maintenance Contracts
HVAC System Upgrades
GSA Capital Investments
Infrastructure Modernization Projects

Risk Flags

Sole-source award
Potential for cost overruns in FFP contracts
Limited transparency on contractor past performance

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.8 million to TLI CONSTRUCTION, INC.. MOORHEAD COOLING TOWERS REPLACEMENT, WILLIAM MOORHEAD FEDERAL BUILDING, PITTSBURGH PA. GENERAL CONSTRUCTION SERVICES IN SUPPORT OF REPLACEMENT OF THE COOLING TOWERS.

Who is the contractor on this award?

The obligated recipient is TLI CONSTRUCTION, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $2.8 million.

What is the period of performance?

Start: 2024-02-05. End: 2025-04-14.

What is the track record of TLI Construction, Inc. with federal contracts, particularly with the GSA?

Information regarding TLI Construction, Inc.'s specific track record with federal contracts, especially with the General Services Administration (GSA), is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to examine past performance, contract values, types of services rendered, and any reported performance issues or awards. Understanding their history with similar infrastructure projects, such as cooling tower replacements or general construction for federal buildings, would be crucial for assessing their capability and reliability for this current contract.

How does the $2.81 million contract value compare to similar cooling tower replacement projects for federal buildings?

Benchmarking the $2.81 million contract value against similar cooling tower replacement projects for federal buildings is challenging without more specific data points. Factors influencing cost include the size and complexity of the cooling towers, the age and condition of the existing infrastructure, the specific requirements of the William Moorhead Federal Building, and prevailing market rates in Pittsburgh, PA. Generally, large-scale HVAC infrastructure replacements in federal facilities can range from hundreds of thousands to several million dollars. A detailed comparison would necessitate analyzing project scope, square footage of the building, and the specific technical specifications of the cooling systems being replaced in comparable GSA or other federal agency projects.

What are the primary risks associated with this sole-source contract for cooling tower replacement?

The primary risks associated with this sole-source contract stem from the lack of competition. This can lead to a higher price than might be achieved through a competitive bidding process, as the government has limited leverage to negotiate. There's also a risk that the chosen contractor, TLI Construction, Inc., may not be the most innovative or efficient provider available, as alternatives were not explored. Furthermore, sole-source awards can sometimes indicate a lack of market research or planning, potentially suggesting that the need was not identified early enough to allow for a competitive solicitation. The firm-fixed-price nature of the contract shifts cost overrun risk to the contractor, but unforeseen site conditions or scope creep could still lead to disputes or change orders.

How effective is the firm-fixed-price contract type in managing costs for this type of infrastructure project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in projects where the scope of work is well-defined and risks are understood, such as infrastructure replacements like cooling towers. It provides the government with cost certainty, as the contractor is obligated to complete the work for the agreed-upon price, absorbing any cost overruns. This shifts the risk of unexpected cost increases to the contractor. However, for complex projects with potential for unforeseen site conditions or technical challenges, an FFP contract can incentivize the contractor to cut corners on quality or to aggressively pursue change orders if issues arise, which could negate some of the cost certainty benefits. Careful contract administration and clear scope definition are crucial for FFP success.

What are the historical spending patterns for cooling tower replacements or similar HVAC projects by the GSA?

Historical spending patterns for cooling tower replacements or similar HVAC projects by the GSA are not provided in the current data. To analyze this, one would need to examine GSA's historical contract awards database, looking for contracts with similar NAICS codes (e.g., 236220 - Commercial and Institutional Building Construction) and keywords related to HVAC, cooling towers, and building systems. Analyzing the frequency, value, and duration of such contracts over several fiscal years would reveal trends in GSA's investment in building infrastructure maintenance and upgrades, potentially highlighting average costs, common contractors, and the typical scale of these projects.

What are the implications of the 434-day duration for this cooling tower replacement project?

The 434-day duration (approximately 14 months) for the cooling tower replacement project at the William Moorhead Federal Building suggests a significant undertaking. This extended timeline likely accounts for factors such as detailed design, procurement of specialized equipment, phased demolition and installation to minimize disruption to building operations, potential weather delays, and rigorous testing and commissioning phases. While a longer duration can sometimes indicate complexity or a need for careful execution, it also means the building's operations will be impacted for an extended period. It is important to ensure that the project plan is efficient and that the duration is justified by the scope and complexity, rather than indicative of potential delays or inefficiencies.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: 47PD0224R0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7900 EAST UNION AVENUE, DENVER, CO, 80237

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

Financial Breakdown

Contract Ceiling: $2,810,756

Exercised Options: $2,810,756

Current Obligation: $2,810,756

Actual Outlays: $2,708,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline