DoD Awards $6.88M Contract for Naval Station Newport Boiler Overhaul to CCI Group, LLC

Contract Overview

Contract Amount: $6,883,853 ($6.9M)

Contractor: CCI Group, LLC

Awarding Agency: Department of Defense

Start Date: 2023-06-26

End Date: 2025-09-13

Contract Duration: 810 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BOILER 2 OVERHAUL -- BUILDING 7CC (NAVAL STATION NEWPORT, RI)

Place of Performance

Location: NEWPORT, NEWPORT County, RHODE ISLAND, 02841

State: Rhode Island Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to CCI GROUP, LLC for work described as: BOILER 2 OVERHAUL -- BUILDING 7CC (NAVAL STATION NEWPORT, RI) Key points: 1. Contract awarded to CCI Group, LLC for essential building infrastructure maintenance. 2. Full and open competition after exclusion of sources indicates a specific procurement approach. 3. The project addresses critical facility needs at Naval Station Newport, Rhode Island. 4. Firm fixed price contract type aims to control costs for the $6.88M project.

Value Assessment

Rating: good

The contract value of $6.88M for a boiler overhaul appears reasonable given the scope and location. Benchmarking against similar large-scale HVAC system overhauls in military installations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery. The final award was made after this competitive process.

Taxpayer Impact: The firm fixed price contract aims to protect taxpayers from cost overruns on this essential infrastructure project.

Public Impact

Ensures operational readiness of critical facilities at Naval Station Newport. Supports the maintenance of essential services like heating and air conditioning for personnel. Invests in the longevity and efficiency of aging military infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition after exclusion of sources may have restricted optimal price discovery.
  • Contract duration of 810 days is substantial, requiring close monitoring.

Positive Signals

  • Firm fixed price contract provides cost certainty.
  • Project addresses critical infrastructure needs, ensuring facility functionality.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC systems. Spending benchmarks for similar overhauls on military bases can vary significantly based on facility size and system complexity.

Small Business Impact

The contract was awarded to CCI Group, LLC, and there is no indication of small business participation or subcontracting in the provided data. Further analysis would be needed to determine if small business goals were considered or met.

Oversight & Accountability

The Department of the Navy, as the contracting agency, is responsible for oversight. The firm fixed price contract and defined period of performance provide a framework for accountability, but ongoing monitoring of progress and quality is crucial.

Related Government Programs

  • Plumbing, Heating, and Air-Conditioning Contractors
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Limited competition after exclusion of sources.
  • Long contract duration.
  • Potential for unforeseen issues impacting fixed price.

Tags

plumbing-heating-and-air-conditioning-co, department-of-defense, ri, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to CCI GROUP, LLC. BOILER 2 OVERHAUL -- BUILDING 7CC (NAVAL STATION NEWPORT, RI)

Who is the contractor on this award?

The obligated recipient is CCI GROUP, 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 $6.9 million.

What is the period of performance?

Start: 2023-06-26. End: 2025-09-13.

What was the rationale for excluding certain sources prior to the full and open competition?

The rationale for excluding sources prior to the full and open competition is not detailed in the provided data. Typically, such exclusions might be based on specific technical capabilities, past performance, security requirements, or unique qualifications necessary for the specialized nature of the boiler overhaul. Understanding this exclusion is key to assessing the full competitive landscape.

How does the awarded price compare to the government's estimate or benchmark for similar boiler overhaul projects?

The provided data does not include the government's estimate or specific benchmarks for comparison. The awarded price of $6.88M is noted, but without a baseline estimate or data on comparable projects (considering size, complexity, and location), it's difficult to definitively assess its value. Further research into historical data for similar military base infrastructure projects is needed.

What are the potential risks associated with the 810-day contract duration and the firm fixed price structure?

The primary risk with a long duration and firm fixed price is the potential for unforeseen issues (e.g., material price fluctuations, discovery of additional repair needs) to impact the contractor's profitability or the government's value if the scope isn't perfectly defined. Conversely, it protects the government from cost overruns if the contractor manages risks effectively. Close monitoring of progress and change order management is essential.

Industry Classification

NAICS: ConstructionBuilding Equipment ContractorsPlumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: N4008523B2508

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Bristol BAY Native Corporation

Address: 111 WEST 16TH AVENUE SUITE 400, ANCHORAGE, AK, 99501

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,883,853

Exercised Options: $6,883,853

Current Obligation: $6,883,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2023-06-26

Current End Date: 2025-09-13

Potential End Date: 2025-09-13 00:00:00

Last Modified: 2025-12-06

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