DoD Awards $5.69M Contract for HVAC Replacement at Three Facilities to North State Mechanical Inc

Contract Overview

Contract Amount: $5,685,412 ($5.7M)

Contractor: North State Mechanical Inc

Awarding Agency: Department of Defense

Start Date: 2025-12-03

End Date: 2026-12-03

Contract Duration: 365 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ATS REPLACMENT AT FC445, FC443, AND FC442

Place of Performance

Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $5.7 million to NORTH STATE MECHANICAL INC for work described as: ATS REPLACMENT AT FC445, FC443, AND FC442 Key points: 1. The contract value of $5.69M is for HVAC replacement across three facilities. 2. Competition was full and open after exclusion of sources, indicating a competitive process. 3. The contract is firm-fixed-price, which shifts cost risk to the contractor. 4. The sector is primarily construction/facilities maintenance, with a NAICS code of 238220.

Value Assessment

Rating: good

The contract value of $5.69M for HVAC replacement appears reasonable given the scope of work across three facilities. Benchmarking against similar large-scale HVAC replacement projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while competition was sought, certain sources may have been excluded, potentially impacting the breadth of price discovery.

Taxpayer Impact: The firm-fixed-price contract structure aims to control costs for taxpayers by fixing the price regardless of contractor expenses.

Public Impact

Ensures operational readiness of critical Department of the Navy facilities by maintaining essential HVAC systems. Supports infrastructure modernization and energy efficiency improvements within the specified Navy bases. Provides employment opportunities within the HVAC contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long-term operational costs of new HVAC systems not detailed.
Dependency on a single contractor for a critical infrastructure upgrade.

Positive Signals

Firm-fixed-price contract mitigates cost overruns for the government.
Full and open competition, even with exclusions, generally promotes competitive pricing.
Clear delivery order structure for defined project scope.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically focusing on HVAC systems. Spending in this area is crucial for maintaining government infrastructure and operational capabilities. Benchmarks for similar HVAC replacement projects vary widely based on facility size and complexity.

Small Business Impact

The data does not indicate whether small businesses were involved as prime contractors or subcontractors in this award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should ensure proper execution and accountability for the delivery order.

Related Government Programs

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

Risk Flags

Potential for reduced competition due to source exclusion.
Lack of detail on energy efficiency and system lifespan.
No explicit mention of post-installation performance monitoring.
Contract duration is relatively short (365 days) for a major infrastructure replacement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.7 million to NORTH STATE MECHANICAL INC. ATS REPLACMENT AT FC445, FC443, AND FC442

Who is the contractor on this award?

The obligated recipient is NORTH STATE MECHANICAL INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $5.7 million.

What is the period of performance?

Start: 2025-12-03. End: 2026-12-03.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how might this have impacted the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security requirements are necessary, and only a limited number of contractors can meet them. While aiming for competition, this exclusion can narrow the field, potentially leading to less aggressive pricing than a truly unrestricted full and open competition. The government likely assessed that the benefits of specialized capabilities outweighed the potential price reduction from broader competition.

What is the projected lifespan and expected energy efficiency improvement of the new HVAC systems, and how do these compare to industry standards?

The provided data does not specify the projected lifespan or expected energy efficiency improvements of the new HVAC systems. This information is crucial for assessing the long-term value and return on investment for the taxpayer. Comparing these metrics to industry standards for modern HVAC installations would reveal whether the chosen systems represent a cost-effective and sustainable upgrade.

How will the performance and reliability of the installed HVAC systems be monitored post-installation to ensure long-term effectiveness and identify any potential issues early?

The contract specifies a delivery order with an end date, implying a period of performance. However, details on post-installation monitoring, performance guarantees, or warranty provisions are not included. Effective oversight would involve establishing clear performance metrics, regular system checks, and a robust process for addressing any defects or failures to ensure the long-term effectiveness and taxpayer value of the investment.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 225 ELLIS BLVD, JACKSONVILLE, NC, 28540

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,685,412

Exercised Options: $5,685,412

Current Obligation: $5,685,412

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008520D0077

IDV Type: IDC

Timeline