NASA awards $4.2M contract for chiller replacement, highlighting construction sector activity
Contract Overview
Contract Amount: $4,229,872 ($4.2M)
Contractor: Lead Builders Inc
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-09-25
End Date: 2026-05-15
Contract Duration: 963 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHILLER REPLACEMENT N269
Place of Performance
Location: MOFFETT FIELD, SANTA CLARA County, CALIFORNIA, 94035
Plain-Language Summary
National Aeronautics and Space Administration obligated $4.2 million to LEAD BUILDERS INC for work described as: CHILLER REPLACEMENT N269 Key points: 1. Contract value appears reasonable for a large-scale building system upgrade. 2. Full and open competition suggests a healthy market for this type of construction service. 3. Fixed-price contract type mitigates cost overrun risks for the agency. 4. Project duration aligns with typical timelines for major facility infrastructure work. 5. Geographic focus on California may indicate regional construction market conditions. 6. The award to a single contractor streamlines project execution and accountability.
Value Assessment
Rating: good
The contract value of $4.2 million for a chiller replacement is within a typical range for commercial and institutional building construction projects of this scale. Benchmarking against similar HVAC system upgrades in federal facilities or large commercial buildings would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the initial bid was competitive and that the agency has secured a defined cost for the work, reducing the risk of unexpected expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were likely considered after an initial exclusion period. This suggests a robust competitive process where various qualified contractors had the opportunity to submit proposals. The presence of multiple bidders generally leads to better price discovery and potentially more innovative solutions, benefiting the agency.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging high-quality service delivery.
Public Impact
The primary beneficiary is NASA, which will receive an updated and more efficient cooling system for its facilities. The services delivered include the design, procurement, and installation of a new chiller system. The geographic impact is localized to the NASA facility in California where the replacement will occur. The project will likely involve skilled labor in the construction and HVAC trades, potentially creating or sustaining jobs in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for delays if unforeseen site conditions are encountered during installation.
- Dependence on Lead Builders Inc. for successful project completion and adherence to schedule.
Positive Signals
- Firm fixed-price contract limits financial risk for NASA.
- Full and open competition suggests a competitive market and potentially good pricing.
- The project addresses critical infrastructure needs, ensuring operational continuity.
- The contract is for a defined period, allowing for clear performance monitoring.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports infrastructure maintenance and upgrades across various agencies. Comparable spending benchmarks for large HVAC system replacements in federal buildings can vary widely based on size, complexity, and location, but a $4.2 million award for a chiller system is substantial and indicative of a major facility upgrade.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Lead Builders Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist and if they are being utilized to engage the small business ecosystem.
Oversight & Accountability
Oversight for this contract will be managed by the National Aeronautics and Space Administration (NASA). As a firm fixed-price contract, the primary oversight will focus on ensuring the contractor meets the specified performance standards, delivery timelines, and quality requirements. Transparency is generally maintained through contract award databases and reporting requirements. NASA's Inspector General may have jurisdiction for audits or investigations if any irregularities arise.
Related Government Programs
- Federal Building and Facilities Construction
- HVAC System Upgrades
- NASA Facility Maintenance
- Infrastructure Modernization Projects
Risk Flags
- Potential for cost increases if scope changes significantly.
- Risk of project delays impacting facility operations.
- Dependence on contractor's technical expertise and resource availability.
Tags
construction, nasa, california, firm-fixed-price, large-contract, full-and-open-competition, infrastructure, hvac, commercial-institutional-building-construction, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $4.2 million to LEAD BUILDERS INC. CHILLER REPLACEMENT N269
Who is the contractor on this award?
The obligated recipient is LEAD BUILDERS INC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $4.2 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-05-15.
What is the track record of Lead Builders Inc. in performing similar federal construction contracts?
Information regarding Lead Builders Inc.'s specific track record on similar federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government projects. Analyzing their experience with NASA or other agencies for large-scale HVAC or building construction projects would be crucial to gauge their capability and reliability for this chiller replacement.
How does the awarded price compare to similar chiller replacement projects at other federal agencies?
Without specific data on comparable projects, it's challenging to definitively benchmark the $4.2 million award. However, the 'full and open competition' aspect suggests that the pricing was likely competitive. Factors influencing cost include the size of the facility, the specific chiller technology chosen, labor costs in California, and any unique installation challenges. A detailed comparison would involve analyzing recent awards for similar scope and scale at agencies like GSA, DoD, or DOE, considering regional economic factors.
What are the primary risks associated with this contract and how are they being mitigated?
The primary risks include potential construction delays due to unforeseen site conditions, contractor performance issues, or supply chain disruptions for specialized equipment. The firm fixed-price contract mitigates financial risk for NASA by capping the total cost. Mitigation strategies also likely involve robust project management by NASA, clear performance milestones, and potentially liquidated damages clauses for significant delays. The contractor's experience and the competitive bidding process also serve as risk reduction factors.
How effective is the competition level in ensuring value for taxpayer money in this specific contract?
The 'full and open competition' suggests a strong level of market engagement, which is generally effective in driving competitive pricing and encouraging contractors to offer their best value. With multiple bidders vying for the contract, NASA likely benefited from a range of proposals, allowing for selection of the most cost-effective and technically sound option. This process helps prevent overpayment and ensures that the agency receives a fair market price for the required services.
What is the historical spending pattern for chiller replacements or similar HVAC upgrades at NASA?
The provided data does not include historical spending patterns for NASA's chiller replacements. To assess this, one would need to analyze past NASA contracts for similar projects over several fiscal years. This analysis would reveal trends in contract values, types of competition used, and the average duration and cost of such upgrades, providing context for the current $4.2 million award and identifying any significant deviations or patterns.
Are there any specific performance metrics or deliverables tied to this contract that indicate program effectiveness?
The provided data does not detail specific performance metrics or deliverables. However, as a construction contract, effectiveness is typically measured by adherence to the project schedule, completion within the fixed price, quality of the installed system meeting technical specifications, and successful commissioning of the new chiller. NASA's contract administration team would monitor these aspects throughout the project lifecycle to ensure successful outcomes.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Lead Builders, Inc.
Address: 2060 D AVE DE LOS ARBOLES U 116, THOUSAND OAKS, CA, 91362
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,229,872
Exercised Options: $4,229,872
Current Obligation: $4,229,872
Actual Outlays: $3,979,372
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 80AFRC19D0009
IDV Type: IDC
Timeline
Start Date: 2023-09-25
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 00:00:00
Last Modified: 2026-03-30
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