DoD Awards $41.9M for Pentagon HVAC Operations, QCM Inc. Secures Contract
Contract Overview
Contract Amount: $41,921,349 ($41.9M)
Contractor: QCM, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-30
End Date: 2026-03-30
Contract Duration: 2,007 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PENTAGON HEATING&REFRIGERATION PLANT OPERATIONS AND MAINTENANCE
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $41.9 million to QCM, INC. for work described as: PENTAGON HEATING&REFRIGERATION PLANT OPERATIONS AND MAINTENANCE Key points: 1. Contract value of $41.9M over 5.5 years for essential facility maintenance. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting potential limitations. 3. Risk of service disruption or cost overruns exists if maintenance is not optimally managed. 4. Sector is facility maintenance, crucial for government operations but not a high-growth area.
Value Assessment
Rating: fair
The contract value of $41.9M over approximately 5.5 years averages around $7.6M annually. Benchmarking against similar large-scale HVAC operations and maintenance contracts for federal facilities is needed to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be open, specific sources were excluded. This could limit the pool of bidders and potentially impact price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential facility operations. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures continuous operation of critical heating and refrigeration systems at the Pentagon. Supports the functionality and comfort of personnel working in a key government facility. Potential for job creation within the HVAC and maintenance sectors. Reliable infrastructure maintenance is vital for national security operations housed within the Pentagon.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Dependence on a single contractor for critical infrastructure.
- Potential for scope creep or unaddressed maintenance issues.
Positive Signals
- Essential service for a high-security facility.
- Long-term contract provides stability.
- Fixed-price contract offers cost predictability.
Sector Analysis
This contract falls within the facility maintenance and operations sector, specifically focusing on HVAC systems for a major government building. Spending benchmarks in this area are typically tied to facility size, age, and complexity of systems.
Small Business Impact
The data indicates the prime contractor is QCM, Inc. Further analysis is needed to determine if small businesses are subcontracting opportunities within this contract.
Oversight & Accountability
Oversight would typically involve contract officers, facility managers, and potentially inspectors general to ensure performance standards are met and funds are used appropriately.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Defense Contracting
- Washington Headquarters Services Programs
Risk Flags
- Potential for cost overruns due to unforeseen maintenance needs.
- Risk of service disruption impacting Pentagon operations.
- Limited competition may not yield the lowest possible price.
- Dependency on contractor's technical expertise and resource availability.
Tags
plumbing-heating-and-air-conditioning-co, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.9 million to QCM, INC.. PENTAGON HEATING&REFRIGERATION PLANT OPERATIONS AND MAINTENANCE
Who is the contractor on this award?
The obligated recipient is QCM, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Washington Headquarters Services).
What is the total obligated amount?
The obligated amount is $41.9 million.
What is the period of performance?
Start: 2020-09-30. End: 2026-03-30.
What is the historical performance of QCM, Inc. on similar government contracts, particularly regarding cost control and service quality?
Assessing QCM, Inc.'s past performance is crucial for understanding their reliability and efficiency in managing large-scale HVAC operations. Reviewing past contract awards, performance reviews, and any documented issues or commendations can provide insight into their capabilities. This historical data helps predict their likelihood of successful execution and adherence to budget on the current Pentagon contract, informing future oversight strategies.
How does the 'exclusion of sources' in the competition method impact the overall cost-effectiveness and potential for innovation?
Excluding specific sources, even in a full and open competition framework, can limit the bidder pool. This reduction in competition might prevent the government from accessing potentially lower bids or more innovative solutions offered by excluded firms. It raises questions about whether the chosen method truly secured the best value or if alternative approaches could have yielded greater savings or superior service delivery for taxpayers.
What are the key performance indicators (KPIs) for this contract, and how are they monitored to ensure operational effectiveness and taxpayer value?
Effective monitoring requires clearly defined KPIs related to system uptime, response times for emergencies, energy efficiency targets, and preventative maintenance completion rates. Regular performance reviews against these KPIs, coupled with transparent reporting mechanisms, are essential. This ensures the contractor is meeting contractual obligations and that taxpayer funds are being utilized efficiently to maintain critical infrastructure.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ003420R0087
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1781 OLIVE STREET, CAPITOL HEIGHTS, MD, 20743
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,921,349
Exercised Options: $41,921,349
Current Obligation: $41,921,349
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ003420D0018
IDV Type: IDC
Timeline
Start Date: 2020-09-30
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 00:00:00
Last Modified: 2025-09-17
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)