DOT awards $4.6M for building repairs, highlighting need for infrastructure maintenance

Contract Overview

Contract Amount: $4,599,958 ($4.6M)

Contractor: DJ'S Mechanical, Inc.

Awarding Agency: Department of Transportation

Start Date: 2024-08-14

End Date: 2026-10-30

Contract Duration: 807 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 27 MEP AND ARCHITECTURAL REPAIRS

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08401

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $4.6 million to DJ'S MECHANICAL, INC. for work described as: BUILDING 27 MEP AND ARCHITECTURAL REPAIRS Key points: 1. Contract addresses critical repairs for aging federal facilities. 2. Competition was robust, suggesting fair pricing was achieved. 3. Performance period extends over two years, indicating a significant scope. 4. Focus on mechanical and architectural systems points to essential building upkeep. 5. Geographic concentration in New Jersey impacts regional construction sector.

Value Assessment

Rating: good

The contract value of $4.6 million for building repairs appears reasonable given the scope of MEP and architectural work. Benchmarking against similar commercial and institutional building construction contracts of this size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, but the final cost will depend on the execution and any unforeseen issues encountered during the repair process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be open, specific sources were excluded. This suggests a potential limitation in the bidder pool. With 7 bidders, the competition level was moderate, which typically allows for some price discovery but may not achieve the most aggressive pricing possible compared to truly full and open competition without exclusions.

Taxpayer Impact: The moderate competition level suggests that taxpayers likely received a fair price, but there may have been opportunities for even greater savings if the competition had been entirely unrestricted.

Public Impact

Federal Aviation Administration facilities in New Jersey will benefit from improved infrastructure. Essential repairs to Building 27 will ensure continued operational capacity. The project supports the regional construction workforce in New Jersey. Improved building systems enhance safety and functionality for federal employees and visitors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in repair projects if unforeseen issues arise.
Dependence on a single contractor for critical building systems.
Geographic concentration may limit broader economic impact.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Multiple bidders indicate market interest and potential for quality.
Longer performance period allows for thorough execution of repairs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Spending in this sector supports the maintenance and upgrade of essential public and private infrastructure. Comparable spending benchmarks for federal building repairs vary widely based on facility size, age, and complexity, but projects in the $1-5 million range are common for significant renovations or repairs.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. This means opportunities for small businesses may be limited unless the prime contractor voluntarily includes them in their subcontracting plan. Further review of the contract details would be needed to confirm subcontracting goals and performance.

Oversight & Accountability

The Federal Aviation Administration (FAA) is responsible for overseeing this contract. Oversight mechanisms would typically include regular progress reviews, site inspections, and adherence to contract milestones. Accountability is ensured through the firm-fixed-price structure and performance clauses. Transparency is generally maintained through federal contract databases, though specific oversight reports are not detailed here.

Related Government Programs

Federal Building Maintenance Contracts
Infrastructure Repair and Modernization
FAA Facility Management
Commercial Building Construction Services

Risk Flags

Potential for unforeseen conditions in older building infrastructure.
Risk of scope creep impacting budget and timeline.
Dependence on contractor's ability to manage complex MEP systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $4.6 million to DJ'S MECHANICAL, INC.. BUILDING 27 MEP AND ARCHITECTURAL REPAIRS

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 $4.6 million.

What is the period of performance?

Start: 2024-08-14. End: 2026-10-30.

What is the historical spending pattern for Building 27 repairs at this FAA facility?

Analyzing historical spending for Building 27 repairs at this specific FAA facility would provide crucial context for the current $4.6 million award. Without prior data, it's difficult to ascertain if this represents a significant increase or decrease in investment. Examining past repair contracts, their scope, duration, and cost, would help determine if this award is consistent with previous maintenance cycles or indicative of a new, more substantial upgrade initiative. It would also reveal trends in repair needs and potential recurring issues that might influence the current contract's scope and pricing.

How does the number of bidders (7) compare to similar FAA building repair contracts?

A moderate number of bidders, such as the 7 received for this contract, suggests a healthy level of interest within the relevant construction market for FAA facilities. To assess this further, a comparison to similar FAA building repair contracts, particularly those of comparable value ($1-5 million) and scope (MEP and architectural repairs), would be beneficial. If similar contracts typically attract significantly more bidders, it might indicate a less competitive market for this specific type of work or location. Conversely, if 7 bidders is standard or high, it reinforces the notion of adequate competition and potentially favorable pricing for the government.

What are the specific risks associated with MEP and architectural repairs in older federal buildings?

MEP (Mechanical, Electrical, and Plumbing) and architectural repairs in older federal buildings carry inherent risks. These often include the discovery of unforeseen conditions, such as outdated or hazardous materials (e.g., asbestos, lead paint), structural deficiencies not apparent during initial inspection, or incompatible existing systems that require extensive rework. The age of the building can also mean that original blueprints are inaccurate or incomplete. These discoveries can lead to scope creep, increased costs, and extended project timelines, impacting the overall value and successful completion of the contract. Mitigation strategies often involve thorough pre-bid site assessments and contingency planning within the contract.

What is the track record of DJ's Mechanical, Inc. on federal contracts, particularly with the FAA?

Evaluating the track record of DJ's Mechanical, Inc. is essential for assessing the risk and potential success of this contract. Information on their past performance, including contract completion timeliness, adherence to budget, quality of work, and any history of disputes or claims on federal contracts, particularly with the FAA or similar agencies, would be valuable. A review of their past federal contract awards and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide insights into their capabilities and reliability in executing similar projects. A strong history suggests a lower risk profile for this $4.6 million award.

How does the $4.6 million award compare to the average cost of similar FAA infrastructure repair projects?

The $4.6 million award for Building 27 MEP and architectural repairs needs to be benchmarked against similar FAA infrastructure projects to assess its value. Factors such as the size and complexity of Building 27, the specific types of repairs needed, and the prevailing market rates in New Jersey will influence this comparison. If data on average costs for similar FAA facility repairs (e.g., per square foot, or per system upgrade) is available, it can indicate whether this contract represents a cost-effective investment or potentially an overpayment. Without specific benchmarks, the 'good' rating reflects a reasonable assumption based on the contract type and scope.

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: 7

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: $4,599,958

Exercised Options: $4,599,958

Current Obligation: $4,599,958

Actual Outlays: $3,668,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 692M1519G00001

IDV Type: BOA

Timeline