NASA awards $8.4M contract for HVAC replacement, raising questions on competition and value
Contract Overview
Contract Amount: $8,431,631 ($8.4M)
Contractor: General Mechanical Corporation
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2023-09-25
End Date: 2026-04-17
Contract Duration: 935 days
Daily Burn Rate: $9.0K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPLACEMENT OF THE HEATING VENTILATION AND AIR CONDITIONING IN THE LOGISTICS FACILITY.
Place of Performance
Location: ORLANDO, BREVARD County, FLORIDA, 32899
State: Florida Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $8.4 million to GENERAL MECHANICAL CORPORATION for work described as: REPLACEMENT OF THE HEATING VENTILATION AND AIR CONDITIONING IN THE LOGISTICS FACILITY. Key points: 1. Contract awarded without full and open competition, potentially limiting price discovery. 2. Fixed-price contract structure shifts risk to the contractor. 3. Long performance period of 935 days suggests a complex or extensive project. 4. Sole contractor has a significant role in a critical facility upgrade. 5. Geographic concentration in Florida for this essential infrastructure project.
Value Assessment
Rating: fair
The contract value of $8.4 million for HVAC replacement appears within a reasonable range for a logistics facility of significant size, though a direct comparison is difficult without more specific details on the facility's square footage and the scope of work. The firm-fixed-price structure is standard for this type of project, aiming to control costs. However, the lack of competitive bidding prevents a robust assessment of whether the price represents the best value achievable in a more open market.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed under the Simplified Acquisition Procedures (SAP), and the data indicates it was 'NOT COMPETED UNDER SAP'. While not explicitly stated as sole-source, the absence of competitive bidding suggests a limited competition scenario. The number of bidders is not provided, making it impossible to assess the level of market interest or the effectiveness of any outreach efforts. This limited competition raises concerns about whether NASA secured the most advantageous terms.
Taxpayer Impact: The lack of robust competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process, potentially leading to a higher overall expenditure for this essential facility upgrade.
Public Impact
The primary beneficiary is NASA, ensuring the operational integrity of its logistics facility. The contract delivers essential services for heating, ventilation, and air conditioning systems. The project's geographic impact is localized to Florida, where the logistics facility is located. The contract supports the construction and maintenance workforce through General Mechanical Corporation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have resulted in a higher price than a fully competed contract.
- Lack of transparency in the procurement process hinders a full value-for-money assessment.
- The long duration of the contract could introduce unforeseen cost escalations if not managed tightly.
Positive Signals
- Firm-fixed-price contract shifts cost overrun risk to the contractor.
- The contract addresses a critical infrastructure need for NASA's logistics operations.
- The contractor, General Mechanical Corporation, is responsible for delivering the full scope of work.
Sector Analysis
The HVAC services sector is a critical component of the construction and facilities maintenance industry. This contract falls under the broader category of non-residential construction and maintenance services. Spending in this area is driven by the need to maintain operational efficiency and safety in government facilities. Benchmarking this specific contract is challenging without detailed project specifications, but HVAC upgrades for large facilities can range from hundreds of thousands to millions of dollars, depending on scale and complexity.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement (ss: false, sb: false). There is no information provided regarding small business set-asides or subcontracting plans. This suggests that the primary contractor, General Mechanical Corporation, may not be obligated to engage small businesses for this project, potentially limiting opportunities within the small business ecosystem for this specific contract.
Oversight & Accountability
Oversight for this contract would typically fall under NASA's internal procurement and project management offices. As a definitive contract, it is subject to standard federal acquisition regulations. Transparency is limited due to the non-competitive nature of the award. The Inspector General's office at NASA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- NASA Facilities Maintenance Contracts
- Federal HVAC Services
- Logistics Facility Upgrades
- Non-Competitive Federal Contracts
Risk Flags
- Limited Competition
- Potential Value Concerns
- Lack of Small Business Inclusion
Tags
nasa, construction, hvac, florida, definitive-contract, firm-fixed-price, limited-competition, facility-maintenance, logistics-facility, non-competed-under-sap
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $8.4 million to GENERAL MECHANICAL CORPORATION. REPLACEMENT OF THE HEATING VENTILATION AND AIR CONDITIONING IN THE LOGISTICS FACILITY.
Who is the contractor on this award?
The obligated recipient is GENERAL MECHANICAL CORPORATION.
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 $8.4 million.
What is the period of performance?
Start: 2023-09-25. End: 2026-04-17.
What is the track record of General Mechanical Corporation with NASA or similar government agencies?
Information regarding General Mechanical Corporation's specific track record with NASA or other government agencies is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous government projects. Without this data, it's difficult to gauge their reliability and expertise for a project of this magnitude. Further investigation into federal contract databases and performance rating systems would be necessary to establish a baseline of their performance history and suitability for this HVAC replacement project.
How does the awarded price compare to similar HVAC replacement projects in government facilities?
Direct comparison of the $8.4 million award for this HVAC replacement is challenging without detailed project specifications, such as the square footage of the logistics facility, the complexity of the existing systems, and the specific scope of work (e.g., full system replacement vs. partial upgrade). However, for large-scale HVAC overhauls in federal buildings, costs can vary significantly. The firm-fixed-price nature of this contract suggests an attempt to cap costs, but the lack of competition means there's no benchmark against other bids to confirm if this price represents optimal value. A thorough benchmark analysis would require access to data on comparable projects, including their scope, duration, and final awarded prices.
What are the primary risks associated with a non-competed contract of this size and scope?
The primary risks associated with a non-competed contract of this size ($8.4 million) and scope (HVAC replacement) include potential overpayment due to lack of price competition, reduced innovation from a limited vendor pool, and a perception of unfairness in the procurement process. Without competitive pressure, the contractor may have less incentive to offer the most cost-effective solutions or to perform beyond the minimum contractual requirements. Furthermore, it raises questions about whether the government fully explored all available options and secured the best possible value for taxpayer dollars. Robust oversight and clear performance metrics become even more critical in such scenarios to mitigate these risks.
What is the expected impact of this HVAC upgrade on the operational effectiveness of the NASA logistics facility?
The expected impact of this HVAC upgrade on the NASA logistics facility's operational effectiveness is significant and positive. Modern, efficient HVAC systems are crucial for maintaining optimal environmental conditions, which is vital for the preservation of sensitive materials, equipment, and potentially stored goods within a logistics hub. Improved climate control can prevent damage from temperature fluctuations or humidity, thereby reducing spoilage or degradation. Furthermore, reliable HVAC systems contribute to a safer and more comfortable working environment for personnel, potentially boosting productivity and reducing downtime caused by system failures. This upgrade is an investment in the facility's long-term functionality and reliability.
What has been NASA's historical spending on HVAC services and facility maintenance over the past five years?
Historical spending data for NASA on HVAC services and facility maintenance over the past five years is not provided within this specific contract's data. To assess this, one would need to analyze NASA's broader contract databases, focusing on relevant procurement categories such as facility maintenance, construction, and specialized HVAC services. Such an analysis would reveal trends in spending, identify major contractors, and potentially highlight any significant increases or decreases in investment in facility infrastructure. Understanding this historical context is crucial for evaluating whether the current $8.4 million award aligns with past spending patterns or represents a notable shift in investment.
Are there any specific performance metrics or milestones tied to the $8.4 million contract for General Mechanical Corporation?
The provided data for the $8.4 million HVAC replacement contract does not detail specific performance metrics or milestones for General Mechanical Corporation. However, as a firm-fixed-price contract with a defined end date (April 17, 2026), it is standard practice for such agreements to include deliverables, completion phases, and quality standards that the contractor must meet. NASA's project managers would typically oversee adherence to these requirements. A thorough review of the contract's statement of work and associated clauses would be necessary to identify the precise performance expectations, payment schedules tied to progress, and any penalties for non-compliance.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 80KSC023R0016
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 418 N SEGRAVE ST, DAYTONA BEACH, FL, 32114
Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Tribally Owned Firm, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,431,631
Exercised Options: $8,431,631
Current Obligation: $8,431,631
Actual Outlays: $7,321,739
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-25
Current End Date: 2026-04-17
Potential End Date: 2026-04-17 00:00:00
Last Modified: 2026-03-26
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