DoD Awards $2.56M HVAC Repair Contract for Kitty Hawk Chapel to Megen Joint Venture
Contract Overview
Contract Amount: $2,560,061 ($2.6M)
Contractor: PCI - Megen Joint Venture LLC
Awarding Agency: Department of Defense
Start Date: 2023-12-06
End Date: 2025-09-01
Contract Duration: 635 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PROJECT ZHTV210365, REPAIR HVAC SYSTEM KITTYHAWK CHAPEL, F/31220
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $2.6 million to PCI - MEGEN JOINT VENTURE LLC for work described as: PROJECT ZHTV210365, REPAIR HVAC SYSTEM KITTYHAWK CHAPEL, F/31220 Key points: 1. The contract value of $2.56 million for HVAC repair is significant for a single facility project. 2. Competition was 'Full and Open after Exclusion of Sources', suggesting a specific justification was needed. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. Risk appears moderate given the fixed-price contract and defined scope, but potential for unforeseen issues in older systems exists.
Value Assessment
Rating: fair
The contract value of $2.56 million for a single HVAC system repair appears high compared to typical construction projects of this nature. Benchmarking against similar facility repair contracts would be necessary for a precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while open to all, specific criteria or exclusions were applied, potentially limiting the pool of bidders and impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for this repair. The effectiveness of the competition method in securing the best price for the government is a key consideration for taxpayer impact.
Public Impact
Ensures operational readiness of a key facility (Kitty Hawk Chapel). Supports the Department of the Air Force's infrastructure maintenance. Potential for job creation within the construction sector. Funds allocated to a specific contractor, impacting market competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition justification
- Potential for cost overruns if unforeseen issues arise in HVAC system
- Contract duration extends over a year, increasing exposure to market fluctuations
Positive Signals
- Fixed-price contract type helps control costs
- Clear project scope for HVAC repair
- Awarded to a joint venture, potentially bringing diverse expertise
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector, specifically focusing on facility maintenance and repair. Spending benchmarks for similar HVAC repair contracts within the DoD or Air Force would provide context for the $2.56 million award.
Small Business Impact
The award went to 'PCI - MEGEN JOINT VENTURE LLC'. Analysis is needed to determine the small business participation within this joint venture and whether the contract met any small business set-aside goals.
Oversight & Accountability
Oversight will be crucial to ensure the contractor adheres to the fixed-price terms, completes the repairs within the specified timeline, and meets quality standards. The 'Delivery Order' aspect suggests it's part of a larger agreement, requiring monitoring of the overall contract.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition justification
- Potential for cost escalation due to system age
- Long contract duration increases exposure to market volatility
- Lack of clear small business participation details
Tags
commercial-and-institutional-building-co, department-of-defense, oh, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to PCI - MEGEN JOINT VENTURE LLC. PROJECT ZHTV210365, REPAIR HVAC SYSTEM KITTYHAWK CHAPEL, F/31220
Who is the contractor on this award?
The obligated recipient is PCI - MEGEN JOINT VENTURE 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 $2.6 million.
What is the period of performance?
Start: 2023-12-06. End: 2025-09-01.
What was the specific justification for excluding sources in the 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?
The justification for excluding sources is critical. If it was due to specialized capabilities or unique requirements, the price might be justified. However, if the exclusion was arbitrary, it could have limited competition, potentially leading to a higher price than a truly open bid process would have yielded. Understanding this rationale is key to assessing value for money.
What are the potential risks associated with repairing an older HVAC system, and how are these being mitigated by the contract terms?
Older HVAC systems often harbor hidden issues like outdated components, asbestos, or structural weaknesses. The primary risk is that unforeseen problems discovered during repair could escalate costs beyond the fixed-price contract. Mitigation relies on thorough initial inspections, contingency planning by the contractor, and clear contract clauses addressing change orders and scope adjustments.
How effective is the chosen competition method in ensuring the Department of the Air Force receives the best value for taxpayer dollars on this specific HVAC repair project?
The effectiveness hinges on the validity of the 'exclusion of sources'. If the exclusion was necessary and well-documented, it might still yield competitive pricing. However, if it unnecessarily narrowed the field, it could compromise the government's ability to secure the lowest possible price. A post-award analysis comparing the bid prices would reveal the true effectiveness.
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: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4321 WEBSTER ST, DAYTON, OH, 45414
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,560,061
Exercised Options: $2,560,061
Current Obligation: $2,560,061
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA860121D0002
IDV Type: IDC
Timeline
Start Date: 2023-12-06
Current End Date: 2025-09-01
Potential End Date: 2025-09-01 00:00:00
Last Modified: 2026-01-12
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