FAA awards $10.1M contract for obsolete DDC system replacement, citing unserviceable equipment

Contract Overview

Contract Amount: $10,132,479 ($10.1M)

Contractor: TJ&B AIR Conditioning and Electric, LLC

Awarding Agency: Department of Transportation

Start Date: 2023-12-07

End Date: 2026-08-31

Contract Duration: 998 days

Daily Burn Rate: $10.2K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE DDC SYSTEM IS NOW OBSOLETE AND IS NO LONGER SERVICEABLE. THESE EXISTING SYSTEMS ARE WELL BEYOND THEIR USEFUL LIFE AND CANNOT PROVIDE CONTINUOUS/RELIABLE SERVICE TO THE FACILITY. THIS PROJECT ADDRESSES THE NECESSARY CHILLERS/DDC SYSTEM REPLACE

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Transportation obligated $10.1 million to TJ&B AIR CONDITIONING AND ELECTRIC, LLC for work described as: THE DDC SYSTEM IS NOW OBSOLETE AND IS NO LONGER SERVICEABLE. THESE EXISTING SYSTEMS ARE WELL BEYOND THEIR USEFUL LIFE AND CANNOT PROVIDE CONTINUOUS/RELIABLE SERVICE TO THE FACILITY. THIS PROJECT ADDRESSES THE NECESSARY CHILLERS/DDC SYSTEM REPLACE Key points: 1. Urgent need to replace aging DDC systems beyond useful life and reliability. 2. Contract awarded to TJ&B AIR CONDITIONING AND ELECTRIC, LLC. 3. Project aims to ensure continuous and reliable service for the facility. 4. The existing DDC system is deemed obsolete and unserviceable. 5. This contract addresses critical infrastructure upgrades for the FAA. 6. The firm-fixed-price contract has a duration of 998 days.

Value Assessment

Rating: fair

The contract value of $10.1 million for a DDC system replacement appears to be within a reasonable range for a project of this nature, especially considering the stated obsolescence and unserviceable condition of the existing equipment. However, without specific details on the scope of work, the number and type of chillers/DDC components being replaced, and the facility size, a precise benchmark is difficult. The 'NOT COMPETED UNDER SAP' designation suggests it may not have undergone the most rigorous price competition, which could impact overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a limited competition or a sole-source justification. The data provided states 'NOT COMPETED UNDER SAP', which implies it did not go through the standard competitive bidding process for smaller procurements. The limited competition could lead to less favorable pricing for the government.

Taxpayer Impact: The lack of broad competition means taxpayers may not have benefited from the most competitive pricing that could have been achieved through an open bidding process.

Public Impact

The Federal Aviation Administration (FAA) will benefit from improved operational reliability. Essential facility services will be maintained through the replacement of critical DDC systems. The project is geographically located in Florida (ST: FL, SN: FLORIDA). The contract supports the maintenance and upgrade of federal infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
The 'NOT COMPETED UNDER SAP' status requires further investigation into the justification for limited competition.
The long contract duration (998 days) could introduce risks related to cost escalation or scope creep if not managed effectively.

Positive Signals

Addresses a critical need to replace obsolete and unserviceable equipment, mitigating operational risks.
The firm-fixed-price contract type provides cost certainty for the government.
The contractor, TJ&B AIR CONDITIONING AND ELECTRIC, LLC, is being utilized for this essential upgrade.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC and building automation systems. The market for DDC system replacements and upgrades is driven by the need for energy efficiency, operational reliability, and compliance with modern standards. Given the age of federal infrastructure, such contracts are common across various agencies. Benchmarking would typically involve comparing pricing for similar system replacements in government or large commercial facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large or medium-sized business, and the direct impact on the small business ecosystem for this specific procurement is likely minimal unless TJ&B AIR CONDITIONING AND ELECTRIC, LLC utilizes small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting officer and program managers. The firm-fixed-price nature of the contract provides some cost control. Transparency would be enhanced by making the contract details and justifications for limited competition publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FAA Facility Modernization Projects
DDC System Upgrades
HVAC Infrastructure Contracts
Federal Building Maintenance
Obsolete Equipment Replacement Programs

Risk Flags

Limited Competition
Potential for Overpricing due to Limited Competition
Risk of Integration Issues with Obsolete Systems
Long Contract Duration may increase Oversight Needs

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $10.1 million to TJ&B AIR CONDITIONING AND ELECTRIC, LLC. THE DDC SYSTEM IS NOW OBSOLETE AND IS NO LONGER SERVICEABLE. THESE EXISTING SYSTEMS ARE WELL BEYOND THEIR USEFUL LIFE AND CANNOT PROVIDE CONTINUOUS/RELIABLE SERVICE TO THE FACILITY. THIS PROJECT ADDRESSES THE NECESSARY CHILLERS/DDC SYSTEM REPLACE

Who is the contractor on this award?

The obligated recipient is TJ&B AIR CONDITIONING AND ELECTRIC, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $10.1 million.

What is the period of performance?

Start: 2023-12-07. End: 2026-08-31.

What is the specific justification for awarding this contract on a limited competition basis rather than a full and open competition?

The provided data states the contract was 'NOT COMPETED UNDER SAP'. This designation typically implies that the procurement did not meet the criteria for Simplified Acquisition Procedures, which are often used for smaller dollar value procurements and may involve less stringent competition requirements. However, it does not explicitly state the reason for limited competition. Common justifications for limited competition include urgency, lack of available sources, or specific technical requirements that only one contractor can meet. Without further documentation, such as a Justification and Approval (J&A) document, the precise reason remains unclear. This lack of full and open competition raises concerns about whether the government secured the best possible price and value.

How does the $10.1 million cost compare to similar DDC system replacement projects in the federal sector?

Benchmarking the $10.1 million cost for this DDC system replacement requires detailed information about the scope of work, the size and complexity of the facility, the specific components being replaced (e.g., number of chillers, size of the DDC network), and the labor rates in the Florida region. Given that the contract is for an 'obsolete and unserviceable' system, it suggests a significant upgrade. Contracts for large-scale HVAC and building automation system replacements in federal facilities can range widely, from a few million to tens of millions of dollars, depending on these factors. The limited competition aspect also suggests that a direct price comparison might be less informative than if it were a fully competed contract.

What are the primary risks associated with replacing an obsolete DDC system, and how are they mitigated in this contract?

Key risks in replacing an obsolete DDC system include operational disruption during the transition, integration challenges with existing building systems, potential cost overruns due to unforeseen complexities, and ensuring the new system meets performance requirements. This contract attempts to mitigate some risks through a firm-fixed-price (FFP) award, which shifts the risk of cost overruns to the contractor, TJ&B AIR CONDITIONING AND ELECTRIC, LLC. The long duration (998 days) allows for phased implementation, potentially minimizing disruption. However, the obsolescence itself implies the existing system may be poorly documented, increasing integration risks. Clear performance specifications and rigorous project management by the FAA will be crucial for success.

What is the track record of TJ&B AIR CONDITIONING AND ELECTRIC, LLC in performing similar federal contracts?

Information regarding the specific track record of TJ&B AIR CONDITIONING AND ELECTRIC, LLC in performing similar federal contracts is not provided in the data. To assess their capability and past performance, one would typically review contract databases (like FPDS or SAM.gov) for previous awards, contract values, and performance evaluations. A positive performance history on comparable HVAC or DDC system replacement projects would increase confidence in their ability to execute this $10.1 million contract successfully. Conversely, a history of issues or poor performance would be a significant concern.

What is the historical spending trend for DDC system replacements or similar HVAC upgrades within the Federal Aviation Administration?

Analyzing historical spending trends for DDC system replacements within the FAA would require accessing historical contract data over several fiscal years. This would involve searching for contracts with relevant Product Service Codes (PSCs) and keywords related to DDC, HVAC, and facility upgrades. Such an analysis could reveal patterns in contract values, types of contractors utilized, and the frequency of such procurements. Understanding these trends helps contextualize the current $10.1 million award, indicating whether it is an outlier, a typical investment, or part of an increasing/decreasing spending pattern for critical infrastructure maintenance within the FAA.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 697DCK-23-R-00591

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 932 W PINE ST, AVON PARK, FL, 33825

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $10,132,479

Exercised Options: $10,132,479

Current Obligation: $10,132,479

Actual Outlays: $5,301,706

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline