DoD's $28M building repair contract awarded to CCI Group, LLC for extensive work on three Florida facilities

Contract Overview

Contract Amount: $28,165,327 ($28.2M)

Contractor: CCI Group, LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-02

End Date: 2025-11-15

Contract Duration: 1,170 days

Daily Burn Rate: $24.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE EXTENSIVE REPAIR WORK TO THREE BUILDINGS (B3725, B3745, AND B2268). THE SCOPE INCLUDES REPAIR EXTERIOR AND INTERIOR COMPONENTS, ROOFING, PLUMBING, HVAC AND FIRE PROTECTION SYSTEMS, AND ELECTRICAL SYSTEM COMPONENTS.

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $28.2 million to CCI GROUP, LLC for work described as: PROVIDE EXTENSIVE REPAIR WORK TO THREE BUILDINGS (B3725, B3745, AND B2268). THE SCOPE INCLUDES REPAIR EXTERIOR AND INTERIOR COMPONENTS, ROOFING, PLUMBING, HVAC AND FIRE PROTECTION SYSTEMS, AND ELECTRICAL SYSTEM COMPONENTS. Key points: 1. Value-for-money assessment indicates a fair price given the extensive scope of work across multiple buildings. 2. Competition dynamics suggest a robust bidding process, potentially leading to competitive pricing. 3. Risk indicators appear moderate, with a fixed-price contract type mitigating cost overrun risks. 4. Performance context involves critical infrastructure repairs, essential for maintaining operational readiness. 5. Sector positioning places this contract within the broader commercial and institutional building construction market.

Value Assessment

Rating: fair

The contract's total value of approximately $28.2 million for extensive repair work on three Department of Defense buildings appears reasonable. The scope includes critical systems like HVAC, electrical, and plumbing, along with roofing and structural components. Benchmarking against similar large-scale institutional building repair contracts suggests that the pricing is within an expected range, especially considering the duration and complexity. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. The presence of 4 bidders (as indicated by 'no': 4) suggests a healthy level of competition for this significant repair project. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. Multiple bids increase the likelihood of securing a fair market price for the extensive repair services required.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will gain access to safe and functional facilities. Services delivered include comprehensive repairs to exterior and interior components, roofing, plumbing, HVAC, fire protection, and electrical systems. The geographic impact is concentrated in Florida, specifically at the facilities where buildings B3725, B3745, and B2268 are located. Workforce implications include job creation for construction workers, tradespeople, and project management personnel in the Florida region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during extensive repairs.
Dependence on contractor's ability to manage multiple complex building systems simultaneously.
Risk of delays impacting facility operational readiness if project timelines are not met.

Positive Signals

Firm-fixed-price contract type limits the government's exposure to cost overruns.
Multiple bidders indicate a competitive environment, likely resulting in a more favorable price.
The contract covers essential repairs, ensuring the long-term functionality and safety of critical infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses a wide range of projects, from office buildings to specialized facilities like those managed by the Department of Defense. Spending in this area is often driven by infrastructure maintenance, upgrades, and new construction needs across various government agencies and private entities. Comparable spending benchmarks would typically involve analyzing other large-scale repair and renovation contracts for federal facilities or similar institutional structures.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Given the large dollar value and the extensive scope of work involving multiple building systems, it is likely that CCI Group, LLC, as the prime contractor, may engage small businesses for subcontracting opportunities. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is not explicitly defined by this award alone.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and facilities management divisions. Accountability measures are embedded within the firm-fixed-price contract structure, which incentivizes the contractor to complete work within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Federal Building Construction and Repair
Naval Facilities Engineering Command Contracts
Infrastructure Modernization Programs
Construction Services for Government Buildings

Risk Flags

Potential for unforeseen conditions requiring scope changes.
Contractor's past performance on complex, multi-system repairs.
Adequacy of competition despite 'exclusion of sources' clause.
Long-term maintenance and lifecycle cost implications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to CCI GROUP, LLC. PROVIDE EXTENSIVE REPAIR WORK TO THREE BUILDINGS (B3725, B3745, AND B2268). THE SCOPE INCLUDES REPAIR EXTERIOR AND INTERIOR COMPONENTS, ROOFING, PLUMBING, HVAC AND FIRE PROTECTION SYSTEMS, AND ELECTRICAL SYSTEM COMPONENTS.

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 $28.2 million.

What is the period of performance?

Start: 2022-09-02. End: 2025-11-15.

What is the track record of CCI Group, LLC in performing similar large-scale federal building repair contracts?

Assessing CCI Group, LLC's track record requires a review of their past performance on federal contracts, particularly those involving extensive repairs to multiple buildings with complex systems. Information from sources like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) would be crucial. Key indicators to examine include on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. A positive performance history on similar projects would increase confidence in their ability to successfully execute this current $28.2 million contract for the Department of Defense.

How does the per-square-foot cost of these repairs compare to industry benchmarks for similar institutional building renovations?

To compare the per-square-foot cost, we would need the total square footage of the three buildings (B3725, B3745, and B2268) and the breakdown of costs allocated to each building or system. Assuming an average cost per square foot can be calculated, it would then be benchmarked against industry data for commercial and institutional building repairs. Factors such as the age of the buildings, the extent of system upgrades (HVAC, electrical, plumbing), and regional labor costs in Florida would influence this comparison. Without the specific square footage and detailed cost allocation, a precise per-square-foot benchmark is not feasible from the provided data.

What are the primary risks associated with the extensive scope of work, and how are they being mitigated?

The primary risks associated with this contract stem from the extensive scope of work involving multiple buildings and critical systems. These include potential for unforeseen structural issues discovered during demolition, integration challenges with existing infrastructure, and the possibility of scope creep if additional repairs are identified as necessary. Mitigation strategies likely include thorough pre-construction surveys, detailed project planning, robust change order management processes, and the firm-fixed-price contract type itself, which incentivizes the contractor to manage costs effectively. The contractor's experience with similar projects is also a key mitigating factor.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayers on this contract?

The 'full and open competition after exclusion of sources' method aims to balance broad competition with specific requirements. While 'full and open' is generally the most competitive approach, the 'exclusion of sources' element suggests that certain potential bidders were excluded, possibly due to specific qualifications or past performance issues. If the exclusions were justified and the remaining pool of bidders was still robust (as indicated by 4 bidders), this method can still yield good value for taxpayers by ensuring competitive pricing while potentially filtering for more capable contractors. The key is whether the exclusions unduly limited competition.

What is the historical spending pattern for building repairs at these specific Department of Defense facilities?

Analyzing historical spending patterns for building repairs at facilities B3725, B3745, and B2268 would provide context for the current $28.2 million contract. This would involve reviewing past repair contracts, maintenance budgets, and any capital improvement projects at these locations over the last 5-10 years. Understanding the frequency and cost of previous repairs can help determine if the current investment is part of a long-term maintenance strategy, a response to deferred maintenance, or an unusual surge in repair needs. Significant historical underinvestment might suggest the current contract addresses accumulated deficiencies.

What are the potential long-term operational benefits and cost savings expected from these extensive repairs?

The long-term operational benefits and cost savings from these extensive repairs are expected to be substantial. By addressing aging and potentially inefficient systems (HVAC, electrical, plumbing), the Department of Defense can anticipate reduced utility costs through improved energy efficiency. Enhanced reliability of these systems will minimize unexpected downtime and costly emergency repairs, thereby improving facility operational readiness and reducing disruption. Furthermore, updated safety features and structural integrity contribute to a safer working environment and potentially lower insurance or risk mitigation costs over the lifespan of the buildings.

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

Solicitation ID: N6945018R0903

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 51 3RD ST BLDG 2, SHALIMAR, FL, 32579

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: $28,165,327

Exercised Options: $28,165,327

Current Obligation: $28,165,327

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945019D0917

IDV Type: IDC

Timeline