FAA awards $2.7M for chiller and cooling tower upgrades at Oklahoma facility

Contract Overview

Contract Amount: $2,721,504 ($2.7M)

Contractor: Metropolitan AIR Conditioning Service CO

Awarding Agency: Department of Transportation

Start Date: 2025-01-13

End Date: 2026-12-31

Contract Duration: 717 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WO#25-002568 014-AHQ CHILLER & COOLING TOWER UPGRADES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73106

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $2.7 million to METROPOLITAN AIR CONDITIONING SERVICE CO for work described as: WO#25-002568 014-AHQ CHILLER & COOLING TOWER UPGRADES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 717 days indicates a significant project timeline. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The award is for facility upgrades, implying a focus on infrastructure maintenance and modernization. 5. The contractor, Metropolitan Air Conditioning Service Co., has secured this delivery order. 6. The project is located in Oklahoma, potentially impacting the local construction and maintenance workforce.

Value Assessment

Rating: fair

The contract value of $2.7 million for chiller and cooling tower upgrades appears to be within a reasonable range for a project of this scope and duration. Without specific benchmarks for similar FAA facility upgrades in Oklahoma, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract provides cost certainty. Further analysis would require comparing this award to other government or commercial projects involving similar HVAC system overhauls.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of multiple bidders (indicated by 'no': 3) suggests a healthy level of competition, which is generally favorable for price discovery and achieving a fair market price. The specific exclusion of sources might relate to pre-qualification criteria or specific technical requirements.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging contractors to offer their best value. This approach minimizes the risk of overpayment and promotes a more cost-effective outcome for the government.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and its personnel at the Oklahoma facility, who will operate in an environment with improved climate control systems. The services delivered include the upgrade of essential cooling infrastructure, ensuring operational continuity and potentially reducing future maintenance costs. The geographic impact is localized to the specific FAA facility in Oklahoma where the work is being performed. The project may have implications for the local construction and HVAC maintenance workforce in Oklahoma, providing employment opportunities during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if upgrade requirements are not clearly defined and managed.
Dependence on contractor performance for timely completion and quality of work.
Risk of unforeseen site conditions impacting project schedule and cost, despite fixed-price contract.

Positive Signals

Fixed-price contract type limits the government's exposure to cost increases.
Full and open competition suggests a competitive environment that should yield a fair price.
The project addresses critical infrastructure needs, ensuring long-term operational efficiency.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on mechanical systems upgrades. This sector is characterized by a mix of large and small contractors, with significant demand driven by both public and private infrastructure needs. The market size for HVAC services is substantial, with government contracts forming a notable portion. Benchmarking this award against similar government facility modernization projects would provide further context on its scale and cost-effectiveness.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information about subcontracting plans. Given the nature of HVAC upgrades, it's possible that specialized small businesses could be involved as subcontractors, depending on the prime contractor's strategy. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases, though specific project details and ongoing performance metrics may not be publicly disclosed in real-time. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Facility Maintenance
HVAC System Upgrades
Government Building Construction
Infrastructure Modernization Projects

Risk Flags

Potential for cost increases if scope is not well-defined.
Dependence on contractor's technical expertise and timely execution.
Risk of unforeseen site conditions impacting schedule.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.7 million to METROPOLITAN AIR CONDITIONING SERVICE CO. WO#25-002568 014-AHQ CHILLER & COOLING TOWER UPGRADES

Who is the contractor on this award?

The obligated recipient is METROPOLITAN AIR CONDITIONING SERVICE CO.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $2.7 million.

What is the period of performance?

Start: 2025-01-13. End: 2026-12-31.

What is the track record of Metropolitan Air Conditioning Service Co. with federal contracts, particularly for HVAC upgrades?

Metropolitan Air Conditioning Service Co. has been awarded this delivery order for chiller and cooling tower upgrades. To assess their track record, a review of their past federal contract history would be necessary. This would involve examining previous awards, performance evaluations (if available), and any history of contract disputes or terminations. Understanding their experience with similar-sized projects and government clients would provide insight into their capability and reliability for executing this current contract effectively. Without access to a comprehensive federal procurement database and performance records, a detailed assessment of their track record is limited.

How does the $2.7 million cost compare to similar FAA facility HVAC upgrade projects?

The $2.7 million cost for chiller and cooling tower upgrades at an FAA facility in Oklahoma requires comparison with similar projects to determine its value. Benchmarking against other FAA or Department of Transportation facility modernization efforts, especially those involving HVAC systems of comparable scale and complexity, is crucial. Factors such as geographic location (labor and material costs), age and condition of existing systems, and specific upgrade requirements significantly influence project costs. A preliminary assessment suggests the cost is substantial, reflecting the critical nature of climate control systems in maintaining operational environments. A detailed analysis would involve identifying comparable contracts and analyzing their award values, scope, and duration.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in project completion, unforeseen site conditions requiring additional work, and contractor performance issues. The mitigation strategies include the use of a Firm Fixed Price (FFP) contract, which shifts much of the cost risk to the contractor. The contract duration of 717 days allows for a structured project timeline, and the 'Full and Open Competition' award process aims to select a capable and reliable contractor. However, the government's oversight through a Contracting Officer's Representative (COR) is essential for monitoring progress, managing scope, and ensuring quality. Clear contract specifications and regular progress reviews are also key mitigation tools.

What is the expected impact of these upgrades on the operational effectiveness of the FAA facility?

These chiller and cooling tower upgrades are expected to significantly enhance the operational effectiveness of the FAA facility by ensuring reliable and efficient climate control. Modernized HVAC systems reduce the risk of system failures, which could disrupt critical operations or compromise sensitive equipment. Improved energy efficiency from new chillers and cooling towers can also lead to cost savings in utility expenses over the long term. Furthermore, maintaining a stable and comfortable internal environment is crucial for the well-being and productivity of personnel working at the facility. This investment in infrastructure modernization supports the FAA's mission by ensuring its facilities are well-maintained and capable of supporting ongoing operations.

What has been the historical spending trend for similar HVAC upgrades by the FAA?

Analyzing historical spending trends for similar HVAC upgrades by the FAA is essential for contextualizing the current $2.7 million award. This would involve examining past contract awards for chiller, cooling tower, and broader HVAC system replacements or upgrades across various FAA facilities over several fiscal years. Key metrics to track would include the average contract value, project duration, number of bidders, and the types of contract vehicles used. Understanding these trends can reveal patterns in pricing, contractor competition, and the frequency of such investments, helping to assess whether current spending aligns with historical patterns or represents a significant shift in investment strategy for facility maintenance and modernization.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1601 W MAIN ST, OKLAHOMA CITY, OK, 73106

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

Financial Breakdown

Contract Ceiling: $2,721,504

Exercised Options: $2,721,504

Current Obligation: $2,721,504

Actual Outlays: $1,401,480

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 6973GH23D00023

IDV Type: IDC

Timeline