GSA awards $3M for NIXS Federal Building HVAC replacement, focusing on Phase 1 fan coil unit upgrades

Contract Overview

Contract Amount: $3,008,994 ($3.0M)

Contractor: Fiber Business Solutions Group Inc

Awarding Agency: General Services Administration

Start Date: 2024-07-19

End Date: 2026-06-01

Contract Duration: 682 days

Daily Burn Rate: $4.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NIXS FCU REPLACEMENT CONSTRUCTION PHASE 1, ROBERT C NIXS FEDERAL BUILDING, PHILADELPHIA PA. THIS AWARD IS FOR PHASE 1 CONSTRUCTION TO REPLACE FAN COIL UNITS.

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

General Services Administration obligated $3.0 million to FIBER BUSINESS SOLUTIONS GROUP INC for work described as: NIXS FCU REPLACEMENT CONSTRUCTION PHASE 1, ROBERT C NIXS FEDERAL BUILDING, PHILADELPHIA PA. THIS AWARD IS FOR PHASE 1 CONSTRUCTION TO REPLACE FAN COIL UNITS. Key points: 1. Contract value appears reasonable for a critical building infrastructure upgrade. 2. Limited competition may have impacted final pricing. 3. Potential risks include project delays and cost overruns common in construction. 4. This contract addresses essential maintenance for a federal facility. 5. Positioned within the building construction and facilities maintenance sector.

Value Assessment

Rating: good

The contract value of approximately $3 million for Phase 1 construction of fan coil unit replacement seems aligned with the scope of work for a federal building. Benchmarking against similar HVAC replacement projects in institutional buildings suggests this is within a typical range. However, without detailed cost breakdowns or comparisons to specific market rates for similar unit replacements and installation in Philadelphia, a precise value-for-money assessment is challenging. The firm-fixed-price structure offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competition. While the specific justification for the sole-source award is not detailed here, such awards can occur due to unique capabilities, urgent needs, or when only one source is deemed capable of meeting the requirements. The absence of multiple bidders means that price discovery through competitive bidding was not utilized, potentially leading to a higher price than if multiple firms had competed.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing, as the government did not leverage multiple offers to secure the best possible deal.

Public Impact

Federal employees and visitors to the Robert C. NIXS Federal Building in Philadelphia will benefit from improved HVAC functionality. The contract delivers essential infrastructure repair and modernization services. The geographic impact is localized to Philadelphia, Pennsylvania. The project will likely involve skilled construction and HVAC technicians, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Construction projects inherently carry risks of delays and cost overruns.
Scope for Phase 1 may require careful management to ensure successful integration with future phases.

Positive Signals

Addresses critical infrastructure needs for a federal building.
Firm-fixed-price contract provides cost predictability.
Award to a single entity streamlines management for this phase.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on mechanical systems (HVAC). The market for federal building construction and renovation is substantial, with agencies like the General Services Administration (GSA) managing a vast portfolio of properties. Comparable spending benchmarks for HVAC upgrades in large federal buildings can vary significantly based on size, age, and complexity, but projects in the millions of dollars are common for comprehensive system replacements.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This means opportunities for small businesses to participate in this specific contract may be limited unless they are direct suppliers or partners to the prime contractor. The overall impact on the small business ecosystem for this particular award is likely minimal without further subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration's Public Buildings Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within the agreed budget. Transparency is generally maintained through federal contract databases, though detailed project progress reports may not be publicly available. The Inspector General's office of the GSA would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Federal Building HVAC Modernization Programs
GSA Public Buildings Service Capital Investments
Infrastructure Improvement Projects
Facilities Maintenance Contracts

Risk Flags

Sole-source award may limit cost savings.
Construction project risks (delays, cost overruns).
Potential for change orders impacting final cost.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.0 million to FIBER BUSINESS SOLUTIONS GROUP INC. NIXS FCU REPLACEMENT CONSTRUCTION PHASE 1, ROBERT C NIXS FEDERAL BUILDING, PHILADELPHIA PA. THIS AWARD IS FOR PHASE 1 CONSTRUCTION TO REPLACE FAN COIL UNITS.

Who is the contractor on this award?

The obligated recipient is FIBER BUSINESS SOLUTIONS GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.0 million.

What is the period of performance?

Start: 2024-07-19. End: 2026-06-01.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a sole-source basis ('NOT AVAILABLE FOR COMPETITION'). Specific justifications for sole-source awards typically fall under FAR Part 6.302, such as when only one responsible source is available or when the agency determines that the number of sources is insufficient to ensure full and open competition. Common reasons include unique technical capabilities, urgent and compelling needs, or specific government property requirements. Without further documentation from the GSA, the precise reason for this sole-source designation remains unknown, but it implies that competitive bidding was deemed impractical or impossible for this particular requirement.

How does the $3 million cost compare to similar fan coil unit replacement projects in federal buildings of comparable size?

Benchmarking the $3 million cost requires detailed information on the number of fan coil units being replaced, their specifications, the complexity of the installation (e.g., accessibility, ductwork modifications), and the overall square footage of the Robert C. NIXS Federal Building. Generally, large-scale HVAC component replacements in federal buildings can range from hundreds of thousands to several million dollars, depending on these factors. Given this is Phase 1, it suggests a significant undertaking. While $3 million is a substantial amount, it may be cost-effective if it addresses a critical need and is priced competitively relative to the scope, especially considering the sole-source nature which limits direct comparison.

What are the primary risks associated with this construction contract, and what mitigation strategies are in place?

Primary risks for this construction contract include potential project delays due to unforeseen site conditions, material shortages, labor issues, or weather impacts. Cost overruns are also a risk, particularly if the firm-fixed-price contract does not adequately account for all potential contingencies or if change orders become necessary. Mitigation strategies typically involve robust project management by the GSA, detailed scheduling, contingency planning within the budget, and clear contract terms defining responsibilities and change order procedures. The contractor's experience and performance history also play a role in risk assessment, though this specific data is not detailed here.

What is the expected impact of this Phase 1 construction on the building's overall HVAC system performance and energy efficiency?

The replacement of fan coil units (FCUs) in Phase 1 is expected to significantly improve the building's HVAC system performance by addressing aging or malfunctioning components. New FCUs typically offer better temperature control, improved air circulation, and potentially enhanced filtration, leading to a more comfortable and healthier indoor environment for occupants. Furthermore, modern FCUs are often designed for greater energy efficiency compared to older models, which could lead to reduced energy consumption and operational costs for the GSA over the lifespan of the new equipment. The full impact will depend on the specific technology chosen and its integration with the broader building management system.

What is the historical spending pattern for HVAC maintenance and upgrades at the Robert C. NIXS Federal Building?

Historical spending data for HVAC maintenance and upgrades at the Robert C. NIXS Federal Building is not provided in the current data extract. To assess historical patterns, one would need to review past GSA contracts, maintenance logs, and capital improvement budgets related to this specific facility. Understanding previous investments, frequency of repairs versus replacements, and average costs would provide context for the current $3 million award. Without this historical perspective, it's difficult to determine if this award represents a significant increase, a continuation of a planned upgrade cycle, or a response to a deferred maintenance issue.

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: 47PD0224R0020

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3019 W GERMANTOWN PIKE, NORRISTOWN, PA, 19403

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

Financial Breakdown

Contract Ceiling: $3,008,994

Exercised Options: $3,008,994

Current Obligation: $3,008,994

Actual Outlays: $1,028,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline