GSA awards $1.99M contract for FDA air handling unit modification to Cheroehenaka Nottoway Enterprises, LLC

Contract Overview

Contract Amount: $1,988,698 ($2.0M)

Contractor: Cheroenhaka Nottoway Enterprises, LLC

Awarding Agency: General Services Administration

Start Date: 2024-08-19

End Date: 2026-04-30

Contract Duration: 619 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD SERVICES - AIR HANDLING UNIT MODIFICATION AT FDA

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $2.0 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC for work described as: DESIGN BUILD SERVICES - AIR HANDLING UNIT MODIFICATION AT FDA Key points: 1. Contract awarded for essential building infrastructure upgrades at FDA facilities. 2. Focus on HVAC system modernization to improve air quality and operational efficiency. 3. Contractor has limited public track record for similar large-scale federal projects. 4. Fixed-price contract type aims to control costs for the government. 5. Project duration extends over 20 months, indicating a significant scope of work. 6. Geographic focus on Maryland suggests localized impact for facility operations.

Value Assessment

Rating: fair

The contract value of approximately $1.99 million for design-build services for air handling unit modification appears within a reasonable range for specialized construction projects of this nature. However, without specific details on the scope of work, the complexity of the modifications, and the specific FDA facility involved, a precise benchmark is difficult. Comparing this to similar HVAC modernization projects within federal buildings managed by GSA would provide better context. The firm-fixed-price structure suggests an attempt to manage cost certainty, but the ultimate value for money will depend on the quality of execution and adherence to the design specifications.

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 a specific contractor possesses unique qualifications, capabilities, or when circumstances necessitate a direct award. The lack of competition raises questions about whether the government obtained the most competitive pricing and explored all available market options. Further justification for the sole-source award would be needed to fully assess the procurement strategy.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers if the selected contractor does not face competitive pressure to offer the lowest possible price. It also limits opportunities for other qualified businesses to secure federal contracts.

Public Impact

Benefits the Food and Drug Administration (FDA) by ensuring a more reliable and efficient HVAC system, crucial for maintaining laboratory and office environments. Delivers critical infrastructure upgrades that support the FDA's mission of protecting public health. Primarily impacts federal employees and operations within the specific FDA facility located in Maryland. May involve a specialized construction workforce for the design and build aspects of the air handling unit modification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on the contractor's past performance and experience with similar federal projects of this scale.
Sole-source award limits transparency and potential for competitive pricing advantages.
Potential for cost overruns if unforeseen issues arise during the design-build process, despite the fixed-price structure.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Focus on essential infrastructure upgrades addresses critical operational needs.
Contract award supports a specific federal agency's operational requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on specialized mechanical systems (HVAC). The market for such services involves a range of contractors, from small local firms to large national engineering and construction companies. Federal spending in this area is often driven by the need to maintain and modernize aging government facilities, ensuring compliance with environmental regulations and operational efficiency. Benchmarks for similar projects would typically consider factors like building size, system complexity, and geographic location.

Small Business Impact

The contract was not awarded as a small business set-aside, and the contractor, Cheroehenaka Nottoway Enterprises, LLC, is identified as a small business. However, the sole-source nature of the award means that opportunities for other small businesses, either as prime contractors or subcontractors, were not actively pursued through a competitive process. The extent of small business subcontracting will depend on the prime contractor's own strategy and any specific requirements that may have been imposed outside the competitive solicitation.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA), which is responsible for managing federal buildings. The firm-fixed-price contract type provides a degree of cost control, but ongoing monitoring of performance, quality, and adherence to schedule will be crucial. Transparency may be limited due to the sole-source nature of the award, but contract details and performance reports should be accessible through federal procurement databases. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

GSA Federal Buildings Fund
FDA Facilities Management
HVAC System Modernization Projects
Design-Build Construction Contracts

Risk Flags

Sole-source award lacks competitive justification.
Limited public information on contractor's past performance.
Potential for cost inefficiencies due to lack of competition.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $2.0 million to CHEROENHAKA NOTTOWAY ENTERPRISES, LLC. DESIGN BUILD SERVICES - AIR HANDLING UNIT MODIFICATION AT FDA

Who is the contractor on this award?

The obligated recipient is CHEROENHAKA NOTTOWAY ENTERPRISES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2024-08-19. End: 2026-04-30.

What is the specific scope of work for the air handling unit modification, and what are the key performance indicators for this project?

The provided data indicates the contract is for 'DESIGN BUILD SERVICES - AIR HANDLING UNIT MODIFICATION AT FDA'. This suggests the scope includes both the design of necessary modifications to existing air handling units and the subsequent construction or implementation of those changes. Key performance indicators would likely revolve around ensuring improved air quality (e.g., filtration efficiency, air exchange rates), energy efficiency of the HVAC system, system reliability, and timely completion within the specified duration. Specific metrics would be detailed in the contract's statement of work, which is not publicly available in this data snippet. These could include adherence to specific environmental standards, noise level reductions, and system uptime.

What is the track record of Cheroehenaka Nottoway Enterprises, LLC with similar federal construction projects, particularly those involving HVAC systems?

Publicly available information on Cheroehenaka Nottoway Enterprises, LLC's track record with large-scale federal construction projects, especially those specifically involving HVAC system modifications, appears limited based on the provided data. As a sole-source award, the justification for selecting this particular contractor would typically include an assessment of their unique qualifications or past performance. Further investigation into federal contract databases (like SAM.gov or FPDS) might reveal more details about their prior awards, project types, and performance ratings. Without this additional context, it is difficult to definitively assess their experience and suitability for this specific project.

How does the $1.99 million contract value compare to similar HVAC modernization projects undertaken by GSA or other federal agencies?

Benchmarking the $1.99 million contract value requires detailed comparison with similar projects. Factors such as the size and complexity of the FDA facility, the specific scope of the air handling unit modifications (e.g., replacement vs. upgrade, integration with building automation systems), and the geographic location (which influences labor and material costs) are critical. Generally, HVAC modernization in institutional or commercial buildings can range significantly. A project of this value could represent a substantial upgrade for a specific section or a moderate upgrade for an entire facility. Without comparable project data from GSA or other agencies that details these specific factors, a precise value comparison is challenging. However, for specialized design-build services on critical infrastructure, this figure is not inherently excessive but warrants scrutiny.

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

The primary risk associated with a sole-source award is the potential lack of competitive pricing. Without multiple bids, the government may not achieve the most cost-effective solution, potentially leading to higher expenditures for taxpayers. Another risk is reduced transparency in the procurement process, making it harder to verify that the chosen contractor is the best fit in terms of both cost and capability. Furthermore, if the sole-source justification is weak or if the contractor underperforms, there are fewer immediate alternatives for the agency. This contract type can also limit opportunities for other qualified businesses to gain experience and build their federal contracting portfolio.

What is the historical federal spending on HVAC modernization or similar building infrastructure projects by the GSA?

Historical federal spending on HVAC modernization and building infrastructure projects by the General Services Administration (GSA) is substantial, reflecting the vast portfolio of federal buildings they manage. GSA consistently allocates significant funds towards maintaining, repairing, and upgrading these facilities to ensure operational efficiency, safety, and compliance with environmental standards. While specific annual figures for HVAC modernization alone can fluctuate based on agency needs and budget allocations, it represents a consistent category of expenditure within GSA's operations and maintenance budget. Analyzing GSA's historical budget documents and contract award data would reveal trends and the typical scale of such investments across different regions and facility types.

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: 47PM1124R0019

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 27345 AQUIA PATH DR, COURTLAND, VA, 23837

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Tribally Owned Firm, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,988,698

Exercised Options: $1,988,698

Current Obligation: $1,988,698

Actual Outlays: $1,366,570

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline