FAA Awards $3.9M Building Systems Upgrade Contract to DJ's Mechanical, Inc

Contract Overview

Contract Amount: $3,906,741 ($3.9M)

Contractor: DJ'S Mechanical, Inc.

Awarding Agency: Department of Transportation

Start Date: 2023-08-21

End Date: 2026-03-27

Contract Duration: 949 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THIS PROJECT IS TO UPGRADE THE EXISTING ELECTRICAL AND MECHANICAL SYSTEMS IN BUILDING 28 AT THE FEDERAL AVIATION ADMINISTRATION (FAA) WILLIAM J. HUGHES TECHNICAL CENTER (WJHTC)

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08405

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $3.9 million to DJ'S MECHANICAL, INC. for work described as: THIS PROJECT IS TO UPGRADE THE EXISTING ELECTRICAL AND MECHANICAL SYSTEMS IN BUILDING 28 AT THE FEDERAL AVIATION ADMINISTRATION (FAA) WILLIAM J. HUGHES TECHNICAL CENTER (WJHTC) Key points: 1. Contract focuses on critical electrical and mechanical system upgrades for FAA's WJHTC. 2. DJ's Mechanical, Inc. secured the award through full and open competition. 3. The project duration is 949 days, indicating a significant scope of work. 4. This falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $3.9M for building systems upgrades appears reasonable given the 949-day duration and the scope of electrical and mechanical system overhauls. Benchmarking against similar large-scale facility modernization projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, ensuring the continued operational efficiency of a key FAA facility.

Public Impact

Ensures continued operational capacity for the FAA's William J. Hughes Technical Center. Modernized systems can lead to improved energy efficiency and reduced long-term maintenance costs. Supports the construction sector and associated labor in New Jersey.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during system upgrades.
Dependency on contractor performance for timely completion and quality.
Risk of disruption to facility operations during critical upgrade phases.

Positive Signals

Awarded through full and open competition, indicating competitive pricing.
Focus on essential infrastructure upgrades for a critical FAA facility.
Firm fixed price contract helps manage cost certainty.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on facility modernization. Spending in this sector is often driven by the need to maintain and upgrade aging government infrastructure to ensure operational readiness and efficiency.

Small Business Impact

While the award was made to DJ's Mechanical, Inc., the data does not indicate whether this is a small business. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract was awarded by the Federal Aviation Administration, a component of the Department of Transportation. Standard oversight mechanisms for federal contracts, including performance monitoring and financial accountability, are expected to be in place.

Related Government Programs

Commercial and Institutional Building Construction
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Long project duration (949 days) increases exposure to potential delays and cost fluctuations.
Upgrading complex building systems in an operational facility carries inherent risks of disruption.
Contractor's past performance and financial stability should be thoroughly vetted.
Potential for unforeseen conditions requiring change orders, impacting final cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.9 million to DJ'S MECHANICAL, INC.. THIS PROJECT IS TO UPGRADE THE EXISTING ELECTRICAL AND MECHANICAL SYSTEMS IN BUILDING 28 AT THE FEDERAL AVIATION ADMINISTRATION (FAA) WILLIAM J. HUGHES TECHNICAL CENTER (WJHTC)

Who is the contractor on this award?

The obligated recipient is DJ'S MECHANICAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2023-08-21. End: 2026-03-27.

What is the estimated impact of these upgrades on the long-term operational costs and energy efficiency of the WJHTC facility?

The upgrades are expected to significantly improve energy efficiency by replacing outdated electrical and mechanical systems with modern, more efficient technology. This should translate into reduced energy consumption and lower utility bills over the lifespan of the new systems. Furthermore, modern components typically require less frequent maintenance and are less prone to breakdowns, potentially lowering long-term operational and repair costs for the facility.

What specific risks are associated with upgrading electrical and mechanical systems in an operational facility like the WJHTC?

Key risks include potential disruptions to ongoing operations if systems are not phased carefully, unforeseen structural or environmental issues discovered during demolition and installation, and the possibility of scope creep if additional needs are identified. Ensuring robust project management, clear communication channels, and contingency planning for unexpected findings are crucial to mitigate these risks effectively.

How does the firm fixed price contract structure benefit the FAA in managing the budget for this project?

A firm fixed price contract provides the FAA with significant budget certainty. The contractor, DJ's Mechanical, Inc., assumes most of the risk for cost overruns. This structure helps prevent unexpected increases in the contract value, allowing the FAA to manage its allocated funds more predictably and avoid potential budget shortfalls, provided the initial scope is well-defined.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 RIKE DR, MILLSTONE TOWNSHIP, NJ, 08535

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,906,741

Exercised Options: $3,906,741

Current Obligation: $3,906,741

Actual Outlays: $3,876,741

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 692M1519G00001

IDV Type: BOA

Timeline