District of Columbia Courts awards $10.9M for mechanical room heating upgrade, completed under SAP

Contract Overview

Contract Amount: $10,946,546 ($10.9M)

Contractor: Gaghan Mechanical, Inc.

Awarding Agency: District of Columbia Courts

Start Date: 2025-09-21

End Date: 2029-04-20

Contract Duration: 1,307 days

Daily Burn Rate: $8.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DCSC-25-RFP-102 HCMC MECHAICAL ROOM 1000 HEATING UPGRADE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

District of Columbia Courts obligated $10.9 million to GAGHAN MECHANICAL, INC. for work described as: DCSC-25-RFP-102 HCMC MECHAICAL ROOM 1000 HEATING UPGRADE Key points: 1. The contract value of $10.9 million for a heating upgrade appears substantial for a single facility improvement. 2. Competition dynamics are unclear as it was competed under SAP, which may limit broad market participation. 3. The duration of the contract (over 4 years) suggests a complex or phased upgrade process. 4. The firm-fixed-price contract type shifts risk to the contractor, which can be beneficial for budget certainty. 5. The project's focus on essential building infrastructure highlights a commitment to maintaining operational facilities. 6. The award to Gaghan Mechanical, Inc. represents a significant single contract for the firm.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without specific details on the scope of the mechanical room upgrade. However, $10.9 million for a heating system upgrade in a single court facility is a significant investment. The firm-fixed-price structure provides cost certainty, but the overall value for money depends heavily on the system's efficiency gains and longevity compared to the expenditure. Further analysis would require understanding the existing system's condition and the proposed upgrade's technical specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less extensive solicitation process than full and open competition. While this can expedite procurement, it may limit the number of potential bidders and the extent of price discovery. The fact that it was competed suggests more than one offer was solicited, but the level of competition is not explicitly detailed.

Taxpayer Impact: Using SAP for a contract of this size may result in less competitive pricing than a full and open competition, potentially leading to higher costs for taxpayers.

Public Impact

The primary beneficiaries are the District of Columbia Courts, ensuring a functional and comfortable environment for staff, judges, and the public. The service delivered is the upgrade of a critical mechanical room heating system, essential for building operations. The geographic impact is localized to the specific court facility in the District of Columbia. Workforce implications include employment opportunities for skilled tradespeople involved in the installation and construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the upgrade, despite the fixed-price nature.
Risk of delays impacting court operations if the project timeline is not strictly adhered to.
Dependence on a single contractor for a critical infrastructure upgrade over an extended period.

Positive Signals

Firm-fixed-price contract provides budget certainty for the District of Columbia Courts.
The upgrade addresses essential infrastructure, ensuring long-term operational reliability.
The use of SAP suggests an attempt at efficient procurement for a non-complex item.

Sector Analysis

The construction sector, specifically commercial and institutional building construction, is characterized by a wide range of project sizes and complexities. This contract falls within the scope of facility maintenance and upgrades, a common area of government spending. Comparable spending benchmarks for similar HVAC upgrades in public buildings can vary significantly based on building size, age, and system complexity. The market for such services in the District of Columbia is competitive, with numerous mechanical contractors capable of performing this type of work.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and does not explicitly mention subcontracting requirements for small businesses (sb: false). Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, unless Gaghan Mechanical, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the District of Columbia Courts' internal procurement and facilities management departments. As a local government entity, it is subject to District of Columbia regulations and audit requirements. Transparency is generally maintained through public contract award notices, though the level of detail available for SAP procurements can be less than for larger, full-and-open competitions. There is no indication of Inspector General jurisdiction unless specific District of Columbia IG powers extend to this type of court expenditure.

Related Government Programs

District of Columbia Courts Facilities Management
Public Building HVAC Upgrades
Government Building Maintenance Contracts
Commercial Mechanical Services

Risk Flags

Potential for cost escalation if unforeseen site conditions are encountered.
Risk of project delays impacting court operations.
Limited competition due to SAP procurement method.
Adequacy of contractor's experience for a project of this scale.

Frequently Asked Questions

What is this federal contract paying for?

District of Columbia Courts awarded $10.9 million to GAGHAN MECHANICAL, INC.. DCSC-25-RFP-102 HCMC MECHAICAL ROOM 1000 HEATING UPGRADE

Who is the contractor on this award?

The obligated recipient is GAGHAN MECHANICAL, INC..

Which agency awarded this contract?

Awarding agency: District of Columbia Courts (District of Columbia Courts).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2025-09-21. End: 2029-04-20.

What is the specific scope of work for the DCSC-25-RFP-102 HCMC Mechanical Room 1000 Heating Upgrade?

The provided data indicates the contract is for a 'HCMC MECHANICAL ROOM 1000 HEATING UPGRADE' awarded to GAGHAN MECHANICAL, INC. by the District of Columbia Courts. While the exact scope is not detailed in the provided snippet, it implies a comprehensive overhaul or significant repair of the heating system within the specified mechanical room (Room 1000) of the HCMC facility. This could include replacing boilers, pipes, insulation, control systems, or other components related to the building's heating infrastructure. The duration of the contract (over 4 years) suggests the scope may involve phased implementation, extensive testing, or integration with existing systems.

How does the $10.9 million contract value compare to similar heating upgrade projects in institutional buildings?

Comparing the $10.9 million contract value requires context on the size and complexity of the HCMC facility and the existing heating system. For large institutional buildings, especially those with extensive square footage or historical significance, HVAC upgrades can indeed reach multi-million dollar figures. However, without specific details on the building's size, the scope of the upgrade (e.g., full system replacement vs. component repair), and the specific technologies involved, it's difficult to definitively benchmark. Generally, such projects are significant investments, and value is assessed based on expected energy savings, system reliability, and lifespan extension relative to the cost.

What are the potential risks associated with a firm-fixed-price contract for this type of infrastructure upgrade?

While a firm-fixed-price (FFP) contract offers cost certainty to the buyer, potential risks for this type of infrastructure upgrade include contractor underestimation of costs or unforeseen site conditions. If Gaghan Mechanical, Inc. underestimated the complexity or encountered unexpected issues (e.g., asbestos, structural problems, outdated existing infrastructure not fully visible), they might face financial strain or attempt to cut corners, potentially impacting quality. The District of Columbia Courts would need robust oversight to ensure the contractor is meeting quality standards and addressing issues promptly, even within the FFP framework. Delays, while not directly increasing cost, can still be a significant risk for operational facilities.

What is the track record of Gaghan Mechanical, Inc. with government contracts, particularly for similar projects?

Information on Gaghan Mechanical, Inc.'s specific track record with government contracts, especially for similar heating upgrade projects, is not provided in the data snippet. A thorough analysis would require accessing government contract databases (like SAM.gov or FPDS) to review their past performance, contract values, types of services rendered, and any reported issues or awards. Understanding their experience with large-scale mechanical upgrades in institutional settings would be crucial for assessing their capability and reliability for this $10.9 million project.

How does the Simplified Acquisition Procedure (SAP) impact the transparency and competitiveness of this $10.9 million contract?

Simplified Acquisition Procedures (SAP) are designed for procurements below certain thresholds (currently $250,000, but specific agency rules can apply, and historical thresholds may differ) to streamline the process. Using SAP for a $10.9 million contract, if permissible under current or historical regulations for the District of Columbia Courts, suggests a deviation from standard full and open competition. SAP typically involves fewer documentation requirements and potentially a smaller pool of solicited vendors. This can lead to faster awards but may reduce price competition and transparency compared to larger, more publicized solicitations, potentially impacting the best value achieved for taxpayer funds.

What are the expected long-term benefits and return on investment for this heating system upgrade?

The long-term benefits of this heating system upgrade are expected to include improved energy efficiency, reduced operational and maintenance costs, enhanced reliability of the heating system, and a more comfortable environment for court personnel and visitors. A modern heating system can lead to significant energy savings over its lifespan, contributing to the District of Columbia's sustainability goals. The return on investment (ROI) would be calculated by comparing the total cost of the upgrade against the cumulative savings in energy consumption and reduced repair expenses over the system's expected operational life. Quantifying this ROI requires detailed energy modeling and cost projections.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5649 GENERAL WASHINGTON DR, ALEXANDRIA, VA, 22312

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,946,546

Exercised Options: $10,946,546

Current Obligation: $10,946,546

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline