CDC awards $5.5M contract for piping replacement, highlighting infrastructure needs in Georgia

Contract Overview

Contract Amount: $5,509,326 ($5.5M)

Contractor: Peachtree Mechanical, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-09

End Date: 2026-05-24

Contract Duration: 622 days

Daily Burn Rate: $8.9K/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: CHAMBLEE B110 PIPING REPLACEMENT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.5 million to PEACHTREE MECHANICAL, INC. for work described as: CHAMBLEE B110 PIPING REPLACEMENT Key points: 1. Contract addresses critical infrastructure maintenance for public health facilities. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of over 600 days indicates a significant scope of work. 5. Geographic focus on Georgia aligns with regional infrastructure investment priorities.

Value Assessment

Rating: good

The contract value of $5.5 million for piping replacement appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects within federal facilities is challenging without more specific details on the work involved. However, the firm fixed-price nature of the contract provides cost certainty. The number of bids received (5) suggests a competitive environment that likely drove pricing towards market rates.

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, indicating that multiple vendors were solicited and allowed to bid. The receipt of five bids suggests a healthy level of competition for this type of specialized contracting work. This competitive process is designed to ensure that the government receives the best value by allowing various qualified contractors to present their proposals.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently, leading to a fair price for the necessary infrastructure work.

Public Impact

The Centers for Disease Control and Prevention (CDC) will benefit from improved facility infrastructure. Essential services related to plumbing, heating, and air conditioning will be maintained. The project's geographic impact is concentrated in Georgia. Local workforce in Georgia may see employment opportunities during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions impacting project timeline or cost, despite fixed-price.
Ensuring contractor compliance with all federal safety and environmental regulations.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition likely resulted in a competitive price.
Clear scope of work for piping replacement minimizes ambiguity.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on mechanical contracting for federal facilities. The market for specialized plumbing, heating, and air conditioning services for government buildings is substantial, with numerous contractors capable of undertaking such projects. This award represents a typical investment in maintaining the operational integrity of critical public health infrastructure.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While Peachtree Mechanical, Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors for this project.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price contract type provides a degree of financial oversight by limiting potential cost increases. Accountability will be managed through contract performance monitoring by the Centers for Disease Control and Prevention. Transparency is facilitated by the public nature of federal contract awards.

Related Government Programs

Federal Building Maintenance Contracts
Public Health Infrastructure Investment
CDC Facility Upgrades
Georgia Construction Projects

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract.
Ensuring compliance with federal safety and environmental regulations.
Adequacy of contractor's past performance data (requires further review).

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.5 million to PEACHTREE MECHANICAL, INC.. CHAMBLEE B110 PIPING REPLACEMENT

Who is the contractor on this award?

The obligated recipient is PEACHTREE MECHANICAL, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $5.5 million.

What is the period of performance?

Start: 2024-09-09. End: 2026-05-24.

What is the track record of Peachtree Mechanical, Inc. with federal contracts, particularly with the CDC or similar agencies?

A review of federal contract databases would be necessary to fully assess Peachtree Mechanical, Inc.'s track record. Information such as past performance ratings, previous contract values, and any history of disputes or contract terminations would provide insight into their reliability and capability. Specifically examining their history with the Centers for Disease Control and Prevention (CDC) or other agencies within the Department of Health and Human Services (HHS) would offer the most relevant context for this current award. Without this specific data, it's difficult to definitively assess their past performance on federal projects.

How does the awarded amount compare to similar piping replacement projects in federal buildings of comparable size and complexity?

Benchmarking this $5.5 million contract against similar federal piping replacement projects requires access to a database of comparable contracts, including their scope, duration, and final cost. Factors such as the age and condition of the existing infrastructure, the specific materials used, and the geographic location (which can influence labor and material costs) are critical for a fair comparison. The firm fixed-price nature of this contract suggests a well-defined scope, which aids in comparison. However, without a detailed breakdown of the work and access to a comprehensive contract database, a precise value-for-money comparison is challenging.

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

Key risks for this contract include potential unforeseen site conditions (e.g., discovering asbestos, unexpected structural issues) that could lead to delays or cost increases, despite the firm fixed-price structure. Another risk is ensuring the contractor's adherence to stringent federal safety and environmental regulations during the execution of the work. Mitigation strategies likely involve thorough pre-award assessments of the site, detailed contract specifications, robust oversight by the CDC contracting officer's representative, and potentially performance bonds. The fixed-price nature itself is a risk mitigation tool against cost overruns if the scope is well-defined.

What is the expected impact of this contract on the operational effectiveness of the CDC facilities in Georgia?

This contract is expected to significantly enhance the operational effectiveness of the CDC facilities by addressing critical infrastructure needs related to plumbing, heating, and air conditioning. Reliable and efficient building systems are fundamental to maintaining a safe and functional working environment, supporting research, and ensuring the continuity of public health operations. By replacing aging or failing piping, the contract aims to prevent disruptions caused by system failures, improve energy efficiency, and ensure compliance with health and safety standards, thereby bolstering the overall mission readiness of the facilities.

How has federal spending on infrastructure maintenance and upgrades, particularly for health agencies, trended in recent years?

Federal spending on infrastructure maintenance and upgrades, especially for health agencies like the CDC, has generally seen increasing attention and investment in recent years. This trend is driven by an aging federal building stock, a growing recognition of the importance of modern, resilient facilities for mission success, and specific needs highlighted by events such as the COVID-19 pandemic. Budgets for agencies like HHS often include allocations for capital improvements and maintenance, reflecting a commitment to ensuring that critical infrastructure supports public health missions effectively. Specific figures would require analysis of historical agency budgets and appropriations data.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75D301-24-R-73077

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 535 MARKSMEN CT, FAYETTEVILLE, GA, 30214

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

Financial Breakdown

Contract Ceiling: $5,509,326

Exercised Options: $5,509,326

Current Obligation: $5,509,326

Actual Outlays: $5,028,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline