DoD's $20M HVAC replacement contract for Georgia facility awarded to L.C. Gaskins Construction

Contract Overview

Contract Amount: $19,982,145 ($20.0M)

Contractor: L. C. Gaskins Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2007-07-30

End Date: 2011-09-30

Contract Duration: 1,523 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 20

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE HVAC SYSTEM, LOW BAY, BLDG 640

Place of Performance

Location: WARNER ROBINS, HOUSTON County, GEORGIA, 31098

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to L. C. GASKINS CONSTRUCTION CO., INC. for work described as: REPLACE HVAC SYSTEM, LOW BAY, BLDG 640 Key points: 1. Contract value appears reasonable for a large-scale facility upgrade. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over 4 years indicates a complex, long-term project. 4. Fixed-price contract shifts risk to the contractor. 5. Project is located in Georgia, impacting local construction workforce. 6. No small business set-aside was utilized.

Value Assessment

Rating: good

The contract value of approximately $20 million for replacing an HVAC system in a large industrial building seems within a reasonable range for such a significant infrastructure project. Benchmarking against similar large-scale industrial construction or renovation projects for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the initial pricing was deemed acceptable, with the contractor bearing the cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 20 bids suggests a robust level of competition for this project. A higher number of bidders generally leads to more competitive pricing and better value for the government, as contractors vie to win the contract.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of the Air Force and personnel working within Building 640 at the Georgia facility, who will experience improved environmental conditions. The contract delivers essential services related to industrial building construction, specifically the replacement of a critical HVAC system. The geographic impact is concentrated in Georgia, supporting the local construction industry and workforce. The project implies employment opportunities for skilled tradespeople and construction workers in the region during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive renovation.
Dependence on contractor's ability to manage a multi-year project effectively.
Risk of delays impacting facility operations if project timelines are not met.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition likely secured competitive pricing.
Contractor's successful completion of 20 bids indicates capability and interest.

Sector Analysis

This contract falls within the Industrial Building Construction sector, a segment of the broader construction industry focused on specialized facilities. The Department of Defense, particularly the Air Force, frequently invests in maintaining and upgrading its infrastructure, including industrial buildings that support operations and maintenance. Spending in this sector is driven by the need for operational readiness, modernization of aging facilities, and compliance with environmental and safety standards. Comparable spending benchmarks would involve other large-scale construction or renovation projects at military installations.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no indication of small business subcontracting requirements. This means that large businesses were eligible to bid and potentially win the entire contract. While this ensures broad competition, it may limit direct opportunities for small businesses to participate in this specific federal contract unless they are part of a larger prime contractor's team.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting command. Performance monitoring, quality assurance, and compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Facility Sustainment, Restoration, and Modernization (FSRM)
Industrial Facility Upgrades
HVAC System Replacement Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or performance issues.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to L. C. GASKINS CONSTRUCTION CO., INC.. REPLACE HVAC SYSTEM, LOW BAY, BLDG 640

Who is the contractor on this award?

The obligated recipient is L. C. GASKINS CONSTRUCTION CO., INC..

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 $20.0 million.

What is the period of performance?

Start: 2007-07-30. End: 2011-09-30.

What is the historical spending pattern for HVAC system replacements at Department of the Air Force facilities in Georgia?

Analyzing historical spending for similar HVAC system replacements at Air Force facilities in Georgia requires access to detailed procurement data beyond this single contract. However, the $20 million awarded to L.C. Gaskins Construction Co., Inc. for Building 640 suggests a significant investment. Typically, such projects involve substantial costs due to the scale of industrial buildings, the complexity of integrated systems, and the need for specialized equipment and labor. Factors influencing historical spending include the age of existing infrastructure, technological advancements in HVAC, energy efficiency mandates, and the specific operational requirements of each facility. Without comparative data on other similar projects in the region, it's difficult to establish a precise historical trend, but this award represents a notable expenditure for a single facility upgrade.

How does the number of bids (20) compare to similar large-scale construction contracts awarded by the Department of the Air Force?

A total of 20 bids for a contract valued at approximately $20 million is generally considered a healthy level of competition for large-scale construction projects within the Department of the Air Force. While the 'typical' number of bids can vary significantly based on project complexity, geographic location, and market conditions, receiving 20 offers suggests strong interest from the contracting community. Contracts for major facility renovations or new construction often attract numerous bidders when advertised under full and open competition. A higher number of bids typically correlates with more competitive pricing and a greater likelihood of the government securing best value. Conversely, projects with fewer than 3-5 bids might raise concerns about market saturation or barriers to entry for potential contractors.

What is the track record of L. C. Gaskins Construction Co., Inc. with federal contracts, particularly in construction and facility upgrades?

L. C. Gaskins Construction Co., Inc. has a history of performing federal contracts, as evidenced by this award. To assess their track record thoroughly, one would need to examine their past performance on similar projects, including contract values, scope of work, timeliness of completion, and any history of disputes or performance issues. Federal procurement databases often contain past performance information, which contracting officers use in source selection. A review of their portfolio would reveal their experience with industrial building construction, HVAC systems, and large-scale projects. Positive past performance on comparable federal contracts would increase confidence in their ability to successfully execute this $20 million HVAC replacement project.

What are the potential risks associated with a firm-fixed-price contract for a project of this duration (1523 days)?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a project spanning over 1500 days, the primary risk for the contractor is underestimating costs or encountering unforeseen conditions that significantly increase expenses. This could lead to reduced profit margins or, in extreme cases, financial distress for the contractor. For the government, the risk is that the contractor may cut corners on quality to protect their profit margin if costs escalate unexpectedly. However, FFP contracts provide budget certainty for the government, as the price is fixed. Effective government oversight is crucial to ensure quality is maintained throughout the extended performance period.

How does the scope of 'REPLACE HVAC SYSTEM, LOW BAY, BLDG 640' align with typical modernization needs for Department of Defense industrial facilities?

Replacing an HVAC system in an industrial building like 'Building 640' is a common and critical modernization need for Department of Defense facilities. Industrial buildings often house sensitive equipment, require specific environmental controls for operations or storage, and house personnel who need adequate climate control. Aging HVAC systems can lead to inefficiencies, increased maintenance costs, potential system failures, and non-compliance with modern energy efficiency standards. Modernizing these systems ensures operational readiness, improves energy performance, reduces lifecycle costs, and enhances the working environment. The scope aligns directly with the DoD's ongoing efforts to maintain and upgrade its vast infrastructure portfolio to meet current and future operational demands.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA850106R0007

Offers Received: 20

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7016 DAVIS CREEKRD, JACKSONVILLE, FL, 90

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,982,145

Exercised Options: $19,982,145

Current Obligation: $19,982,145

Contract Characteristics

Cost or Pricing Data: NO

Timeline