DOT awards $2.9M contract for chiller replacement at Michigan air traffic control facility

Contract Overview

Contract Amount: $293,561 ($293.6K)

Contractor: J & J 2000 Inc

Awarding Agency: Department of Transportation

Start Date: 2025-09-24

End Date: 2026-09-30

Contract Duration: 371 days

Daily Burn Rate: $791/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CHILLER REPLACEMENT, MBS ATCT, FREELAND MI.

Place of Performance

Location: FREELAND, SAGINAW County, MICHIGAN, 48623

State: Michigan Government Spending

Plain-Language Summary

Department of Transportation obligated $293,561.35 to J & J 2000 INC for work described as: CHILLER REPLACEMENT, MBS ATCT, FREELAND MI. Key points: 1. Contract awarded to J & J 2000 INC for facility maintenance. 2. Project aims to upgrade critical infrastructure at MBS ATCT. 3. Fixed-price contract structure limits cost overruns. 4. Delivery order awarded under a broader contract vehicle. 5. Project duration of 371 days indicates a focused scope. 6. Location in Freeland, MI, highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $2.94 million for a chiller replacement at an air traffic control facility appears reasonable given the specialized nature of the work and the need for reliable infrastructure. Benchmarking against similar facility upgrade projects within the federal government or large commercial institutions would provide a more precise value assessment. However, the firm fixed-price nature of the contract suggests that the government has negotiated a set price, which can be advantageous in controlling costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is designed to ensure the government receives the best value by encouraging a range of proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars by ensuring the government secures services at a fair market rate.

Public Impact

Ensures continued operational reliability of the MBS Air Traffic Control Tower. Supports the safety and efficiency of air travel in the Freeland, Michigan region. Invests in critical infrastructure maintenance for a federal facility. Provides work for construction and maintenance personnel in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions are encountered during replacement.
Dependence on contractor's ability to source specialized chiller components within the project timeline.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded under full and open competition, suggesting competitive pricing.
Project addresses essential infrastructure maintenance, reducing long-term operational risks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on facility maintenance and upgrades for critical government infrastructure. The market for such specialized construction and maintenance services is competitive, with numerous firms capable of undertaking projects of this nature. The value is modest within the broader federal construction spending landscape, but significant for the specific facility's operational needs.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the provided information. The primary contractor, J & J 2000 INC, is not identified as a small business in this context. Further analysis would be needed to determine if any small business subcontracting plans are in place.

Oversight & Accountability

Oversight for this contract would typically be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. The firm fixed-price nature of the contract provides a degree of financial oversight. Accountability measures would be tied to the delivery order terms, including adherence to the schedule and specifications. Transparency is generally maintained through federal contract databases, though specific oversight reports are not detailed here.

Related Government Programs

FAA Air Traffic Control Facility Maintenance
Federal Building and Infrastructure Upgrades
HVAC System Replacements in Government Facilities

Risk Flags

Potential for supply chain delays impacting project timeline.
Risk of unforeseen site conditions requiring change orders.
Contractor performance and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $293,561.35 to J & J 2000 INC. CHILLER REPLACEMENT, MBS ATCT, FREELAND MI.

Who is the contractor on this award?

The obligated recipient is J & J 2000 INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $293,561.35.

What is the period of performance?

Start: 2025-09-24. End: 2026-09-30.

What is the track record of J & J 2000 INC with the federal government, particularly in similar HVAC or construction projects?

A review of federal procurement data would be necessary to fully assess J & J 2000 INC's track record. This would involve examining past contract awards, performance evaluations, and any history of disputes or contract modifications. Understanding their experience with projects of similar scale, complexity, and within the aviation sector would provide crucial context for evaluating their capability to successfully execute this chiller replacement. Without specific historical data, it's difficult to definitively gauge their reliability and past performance.

How does the awarded price of $2.94 million compare to similar chiller replacement projects at federal facilities?

Benchmarking this $2.94 million contract against similar projects requires access to a database of comparable federal contracts, including factors like facility type (e.g., air traffic control, administrative buildings), size, geographic location, and the scope of work (e.g., chiller capacity, system complexity). Factors such as the age of the existing system, specific site challenges, and prevailing labor costs in Michigan would also influence pricing. A preliminary assessment suggests the price is within a reasonable range for specialized infrastructure upgrades, but a detailed comparison with anonymized data from similar FAA or GSA projects would offer a more definitive value-for-money evaluation.

What are the primary risks associated with this chiller replacement project, and how are they being mitigated?

Key risks include potential project delays due to unforeseen site conditions, supply chain disruptions for specialized chiller components, or contractor performance issues. Mitigation strategies likely involve the firm fixed-price contract, which incentivizes the contractor to manage costs and timelines effectively. The FAA's oversight, adherence to detailed specifications, and the contractor's own project management plan are crucial for mitigating performance risks. The 371-day duration allows for some buffer, but proactive scheduling and risk management by J & J 2000 INC will be essential.

What is the expected impact of this chiller replacement on the operational effectiveness of the MBS ATCT?

Replacing an aging chiller system is critical for maintaining the reliable operation of the MBS Air Traffic Control Tower (ATCT). Modern chillers are generally more energy-efficient and less prone to breakdowns than older units, reducing the risk of HVAC failures that could disrupt operations. Ensuring a stable internal environment is crucial for the sensitive electronic equipment used in air traffic control and for the comfort and productivity of the personnel. This upgrade directly supports the FAA's mission to ensure safe and efficient air traffic management in the region.

What has been the historical spending trend for facility maintenance and upgrades at the MBS ATCT or similar FAA facilities?

Analyzing historical spending for facility maintenance at MBS ATCT and comparable FAA facilities would reveal patterns in investment in infrastructure. This includes tracking the frequency and cost of major equipment replacements, routine maintenance expenditures, and capital improvement projects. Understanding these trends helps in assessing whether current spending levels are adequate, excessive, or indicative of deferred maintenance. It also provides context for the $2.94 million award, allowing comparison to past investments and future projected needs for facility upkeep.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 697DCK-25-R-00467

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1004 LITTLESTOWN PIKE, WESTMINSTER, MD, 21157

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $293,753

Exercised Options: $293,561

Current Obligation: $293,561

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 697DCK23G00040

IDV Type: BOA

Timeline