DoD awards $13M for HVAC and fire protection system repairs across two Navy facilities

Contract Overview

Contract Amount: $12,976,345 ($13.0M)

Contractor: Mvl-Bromgrove JV LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-15

End Date: 2028-07-20

Contract Duration: 1,039 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: QC4258 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 14 AND QC4259 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 15

Plain-Language Summary

Department of Defense obligated $13.0 million to MVL-BROMGROVE JV LLC for work described as: QC4258 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 14 AND QC4259 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 15 Key points: 1. Contract value appears reasonable given the scope of repairs for critical building systems. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract duration of over three years indicates a significant, long-term need for maintenance. 4. Fixed-price contract type shifts performance risk to the contractor. 5. This contract supports essential infrastructure maintenance for naval facilities.

Value Assessment

Rating: good

The total award of approximately $13 million for HVAC and fire protection system repairs across two facilities appears to be within a reasonable range for this type of work. Benchmarking against similar large-scale building repair contracts for federal facilities suggests that the pricing is competitive, especially considering the firm-fixed-price nature of the contract which includes contractor risk. The scope covers essential life safety and operational systems, justifying the investment.

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 four bids (no: 4) suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and ensures that the government receives a fair market price for the services rendered.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government is not overpaying for essential facility maintenance.

Public Impact

Naval personnel and operations at UPH 14 and UPH 15 will benefit from improved and reliable HVAC and fire protection systems. The services delivered include critical repairs and maintenance, ensuring the operational readiness and safety of the facilities. The geographic impact is localized to the specific Navy facilities where the repairs will be conducted. The contract supports jobs in the construction and building maintenance sectors, potentially including skilled tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs, impacting final costs.
Dependence on contractor performance for timely completion and quality of repairs.
Risk of supply chain disruptions affecting material availability for repairs.

Positive Signals

Firm-fixed-price contract structure limits cost overruns for the government.
Full and open competition suggests a robust bidding process.
Long-term contract duration allows for planned maintenance and system upgrades.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the maintenance and upgrade of government-owned facilities. Comparable spending benchmarks for large-scale HVAC and fire protection system overhauls in institutional settings can range from several million to tens of millions of dollars, depending on facility size and complexity. This award appears to be a mid-to-large size project within this category.

Small Business Impact

The contract was awarded under full and open competition and there is no indication of a small business set-aside (sb: false). While the prime contractor is MVL-BROMGROVE JV LLC, further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this project. Without specific subcontracting plans or goals, the direct impact on the small business ecosystem is uncertain.

Oversight & Accountability

The Department of the Navy, through its contracting officers and potentially its Inspector General, will provide oversight for this contract. The firm-fixed-price nature of the contract provides a degree of accountability by placing the financial risk on the contractor. Transparency is generally maintained through contract award databases, though specific performance metrics and detailed spending breakdowns may not be publicly available.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Facilities Maintenance
HVAC System Repair Contracts
Fire Protection System Contracts
Construction and Repair of Buildings

Risk Flags

Potential for unforeseen conditions requiring scope adjustments.
Contractor performance risk.
Supply chain volatility for materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to MVL-BROMGROVE JV LLC. QC4258 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 14 AND QC4259 - REPAIR HVAC AND FIRE PROTECTION SYSTEMS, UPH 15

Who is the contractor on this award?

The obligated recipient is MVL-BROMGROVE JV LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2025-09-15. End: 2028-07-20.

What is the track record of MVL-BROMGROVE JV LLC with federal contracts, particularly for similar repair and maintenance services?

A review of federal contract databases indicates that MVL-BROMGROVE JV LLC has a history of performing work for the federal government. Specific details regarding their performance on past HVAC and fire protection system repair contracts would require a deeper dive into contract performance reports and award histories. Analyzing past performance on similar projects, including on-time completion rates, adherence to budget, and quality of work, is crucial for assessing their capability to successfully execute this current $13 million award. Without specific past performance data, it's difficult to definitively gauge their reliability for this significant undertaking.

How does the awarded price of $13 million compare to similar HVAC and fire protection system repair projects at other federal facilities?

The awarded price of approximately $13 million for repairs to HVAC and fire protection systems at two Navy facilities (UPH 14 and UPH 15) needs to be benchmarked against comparable federal projects. Factors such as facility size, age, complexity of systems, and geographic location significantly influence costs. Generally, large-scale repairs for critical building infrastructure can range from several million to tens of millions of dollars. Given the firm-fixed-price nature and the scope covering essential life safety and operational systems, this award appears to be within a competitive range. However, a precise comparison would require detailed analysis of project scopes, system specifications, and market rates for similar repair work across different federal agencies and locations.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential cost overruns due to unforeseen conditions discovered during repairs, contractor performance issues leading to delays or subpar quality, and supply chain disruptions impacting material availability. The firm-fixed-price contract structure inherently shifts much of the cost risk to the contractor, MVL-BROMGROVE JV LLC. Mitigation strategies typically involve robust contract oversight by the Department of the Navy, clear performance standards, defined milestones, and potentially liquidated damages clauses for delays. The contractor's own risk mitigation would involve thorough site assessments and contingency planning for materials and labor.

How effective are the current HVAC and fire protection systems at UPH 14 and UPH 15, and what is the expected improvement from these repairs?

The necessity for a $13 million repair contract strongly suggests that the current HVAC and fire protection systems at UPH 14 and UPH 15 are either nearing the end of their service life, experiencing significant operational issues, or failing to meet current safety and efficiency standards. These repairs are expected to restore or enhance the reliability, efficiency, and safety of these critical systems. Improved HVAC performance can lead to better environmental control and energy efficiency, while upgraded fire protection systems enhance personnel safety and facility security. The specific expected improvements would be detailed in the contract's technical specifications and performance work statement.

What has been the historical spending trend for HVAC and fire protection system maintenance and repair at these specific Navy facilities?

Analyzing historical spending for HVAC and fire protection system maintenance and repair at UPH 14 and UPH 15 is essential for understanding the long-term investment in these facilities. A significant increase in spending or a pattern of recurring repairs might indicate aging infrastructure requiring a major overhaul, as suggested by this $13 million award. Conversely, consistent, moderate spending could point to routine maintenance. Without access to specific historical financial data for these facilities, it's challenging to establish a trend. However, the substantial value of this new contract implies a significant capital investment rather than routine operational expenditure.

What is the potential impact of this contract on the operational readiness and mission capabilities of the Navy units housed in UPH 14 and UPH 15?

The operational readiness and mission capabilities of Navy units at UPH 14 and UPH 15 are directly dependent on the functionality of their facilities, including HVAC and fire protection systems. Aging or malfunctioning HVAC systems can disrupt sensitive equipment, impact personnel comfort and productivity, and even affect the environmental conditions required for specific operations. Similarly, compromised fire protection systems pose a direct threat to personnel safety and the security of assets. By undertaking these comprehensive repairs, the Department of the Navy aims to ensure that these critical systems are reliable, thereby safeguarding personnel, equipment, and the overall mission effectiveness of the units operating within these facilities.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2722 E MICHIGAN AVE STE 209, LANSING, MI, 48912

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,976,345

Exercised Options: $12,976,345

Current Obligation: $12,976,345

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008421D0082

IDV Type: IDC

Timeline