DoD's $27.7M HVAC Contract with Cape Fox Facilities Services Raises Questions on Competition and Value
Contract Overview
Contract Amount: $27,666,648 ($27.7M)
Contractor: Cape FOX Facilities Services, LLC
Awarding Agency: Department of Defense
Start Date: 2020-04-16
End Date: 2021-08-30
Contract Duration: 501 days
Daily Burn Rate: $55.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HVAC REPAIR REPLACE
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to CAPE FOX FACILITIES SERVICES, LLC for work described as: HVAC REPAIR REPLACE Key points: 1. Significant spending on HVAC services highlights critical infrastructure needs. 2. Limited competition raises concerns about potential overpricing and reduced value. 3. The contract's duration and firm fixed-price nature may impact adaptability. 4. Sector benchmarks for industrial building construction are needed for better comparison.
Value Assessment
Rating: questionable
The contract value of $27.7 million for HVAC repair and replacement is substantial. Without specific per-unit cost data or comparison to similar projects, it's difficult to definitively assess value. The lack of competitive bidding suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a sole-source or limited source award. This significantly restricts price discovery and negotiation leverage, potentially leading to higher costs for taxpayers.
Taxpayer Impact: The lack of competitive bidding may result in taxpayers paying more than necessary for these essential HVAC services.
Public Impact
Ensures operational readiness of Air Force facilities through essential HVAC maintenance. Potential for higher costs due to limited competition impacts overall budget efficiency. The long contract duration could lead to outdated technology or service if not managed proactively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed cost breakdown
- Potential for price inflation
Positive Signals
- Essential service provision
- Long-term contract stability
Sector Analysis
The Department of Defense frequently invests in facility maintenance and repair, including HVAC systems, to ensure operational readiness. Benchmarks for industrial building construction and maintenance services vary widely based on scope and location.
Small Business Impact
Information on whether small businesses were involved as subcontractors or partners is not provided. The contract was awarded to Cape Fox Facilities Services, LLC, and further analysis is needed to determine its size and small business participation.
Oversight & Accountability
The contract's limited competition status warrants closer oversight to ensure fair pricing and effective service delivery. Accountability for performance and cost management should be rigorously enforced by the Department of the Air Force.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of full and open competition
- Potential for inflated pricing
- Absence of detailed cost breakdown
- Limited transparency on performance metrics
Tags
industrial-building-construction, department-of-defense, ok, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to CAPE FOX FACILITIES SERVICES, LLC. HVAC REPAIR REPLACE
Who is the contractor on this award?
The obligated recipient is CAPE FOX FACILITIES SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $27.7 million.
What is the period of performance?
Start: 2020-04-16. End: 2021-08-30.
What was the justification for awarding this contract on a limited competition basis, and what steps were taken to ensure fair and reasonable pricing?
The justification for limited competition is not detailed in the provided data. Typically, such awards occur when only one source can meet the requirement, or after a failed full and open competition. To ensure fair pricing, agencies often rely on historical pricing, independent government cost estimates, or market research, though the effectiveness of these measures is reduced without competitive bids.
How does the per-unit cost of HVAC repairs and replacements under this contract compare to industry benchmarks or similar government contracts?
Without specific per-unit cost data for the services rendered under this $27.7 million contract, a direct comparison to industry benchmarks or similar government contracts is not possible. The provided data lacks the granularity needed to assess the cost-effectiveness of individual repair or replacement tasks.
What performance metrics are in place to ensure the effectiveness of HVAC services provided by Cape Fox Facilities Services, and how is contractor performance being monitored?
The provided data does not specify the performance metrics or monitoring mechanisms for this contract. Effective oversight would typically involve regular performance reviews, adherence to service level agreements, and tracking of key performance indicators related to system uptime, repair times, and customer satisfaction.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 7050 INFANTRY RDG RD, MANASSAS, VA, 20109
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $27,666,648
Exercised Options: $27,666,648
Current Obligation: $27,666,648
Actual Outlays: $4,290,944
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2020-04-16
Current End Date: 2021-08-30
Potential End Date: 2021-08-30 00:00:00
Last Modified: 2021-08-27
More Contracts from Cape FOX Facilities Services, LLC
- Hctm Human Resources Transactional Services (hrts) ISC Contract — $34.6M (Agency for International Development)
- U.S. Army Traffic Safety Training Program — $25.2M (Department of Defense)
- THE Purpose of This Contract IS to Provide FY 2018 Technical and Administrative Services Contract — $25.0M (Agency for International Development)
- Funding for Guard Services AT RML — $18.1M (Department of Health and Human Services)
- Rocky Mountain Laboratories (RML) Security Guard Services — $3.3M (Department of Health and Human Services)
View all Cape FOX Facilities Services, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)