DoD awards $13M for Sheppard AFB building repair and HVAC replacement to CCI Energy and Construction Services

Contract Overview

Contract Amount: $12,990,671 ($13.0M)

Contractor: CCI Energy and Construction Services, LLC

Awarding Agency: Department of Defense

Start Date: 2023-05-30

End Date: 2027-06-15

Contract Duration: 1,477 days

Daily Burn Rate: $8.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR BUILDING 1956 AN REPLACE HVAC AT SHEPPARD AIR FORCE BASE, TX

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to CCI ENERGY AND CONSTRUCTION SERVICES, LLC for work described as: REPAIR BUILDING 1956 AN REPLACE HVAC AT SHEPPARD AIR FORCE BASE, TX Key points: 1. Contract awarded to CCI Energy and Construction Services, LLC for building repair and HVAC replacement. 2. The contract has a firm fixed price structure, indicating defined costs for the services. 3. The award was made under full and open competition after exclusion of sources. 4. The contract duration is 1477 days, spanning from May 2023 to June 2027. 5. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction. 6. The contract is a definitive contract, suggesting a clear scope of work and terms. 7. The base contract value is approximately $13 million.

Value Assessment

Rating: good

The contract value of approximately $13 million for building repair and HVAC replacement at Sheppard Air Force Base appears reasonable for a project of this scope and duration. While direct comparisons are difficult without specific project details, similar large-scale construction and renovation projects for federal facilities often fall within this range. The firm fixed-price nature of the contract helps manage cost certainty for the government. Benchmarking against similar projects would require more granular data on the specific scope of repairs and HVAC system complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after the exclusion of sources, indicating that multiple potential bidders were considered. The fact that it was competed suggests a healthy level of market interest. The exclusion of sources might imply specific pre-qualification criteria were met by the bidders. The presence of competition generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source procurement. It ensures that the government is receiving competitive pricing for essential infrastructure upgrades.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Sheppard Air Force Base, Texas, who will utilize the improved facilities. The contract delivers essential repair and modernization services for a critical building and its HVAC system. The geographic impact is localized to Sheppard Air Force Base in Texas. The contract supports the construction and skilled trades workforce involved in commercial and institutional building. Modernized facilities and HVAC systems can improve operational efficiency and living/working conditions for base personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues are discovered during repairs.
Dependence on the contractor's ability to manage complex HVAC system integration and repair.
Risk of schedule delays due to weather, material availability, or unforeseen site conditions.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting market validation of price and capability.
Long contract duration allows for thorough execution and potential for phased work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that supports government and private infrastructure. Federal spending in this area is crucial for maintaining and upgrading military bases and other government facilities. The market for such services is competitive, with numerous firms capable of undertaking large-scale construction and renovation projects. Benchmarks for similar projects would typically consider square footage, scope of work (e.g., structural, electrical, mechanical), and location.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, CCI Energy and Construction Services, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award notice. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office responsible for Sheppard Air Force Base. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases like SAM.gov. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Base Infrastructure Modernization
Federal Building Construction and Repair
HVAC System Upgrades for Government Facilities
Department of Defense Facilities Management

Risk Flags

Potential for scope creep if not managed tightly.
Contractor's past performance on similar projects needs verification.
Dependency on timely government approvals and site access.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to CCI ENERGY AND CONSTRUCTION SERVICES, LLC. REPAIR BUILDING 1956 AN REPLACE HVAC AT SHEPPARD AIR FORCE BASE, TX

Who is the contractor on this award?

The obligated recipient is CCI ENERGY AND CONSTRUCTION SERVICES, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2023-05-30. End: 2027-06-15.

What is the track record of CCI Energy and Construction Services, LLC with federal contracts, particularly in construction and HVAC projects?

A review of federal contract databases indicates that CCI Energy and Construction Services, LLC has a history of performing work for the U.S. government. While specific details on past projects, including their value, scope, and performance ratings, would require deeper analysis of contract award histories, their selection for this $13 million project suggests they possess the necessary qualifications and experience. It is important to examine their past performance on similar-sized construction and HVAC projects, as well as any reported issues or commendations, to fully assess their reliability and capability for this current contract.

How does the awarded price of $13 million compare to similar building repair and HVAC replacement projects at other military installations?

Directly comparing the $13 million award to similar projects is challenging without detailed project specifications, such as square footage, the extent of structural repairs, and the complexity of the HVAC system being replaced. However, for a multi-year project involving significant building envelope work and mechanical system upgrades at a major military installation, this value appears within a reasonable range. Federal construction projects often carry higher costs due to stringent security, environmental, and quality standards. Benchmarking would ideally involve analyzing contracts with similar NAICS codes (236220) and contract types (firm fixed price) for projects of comparable scale and complexity at other Department of Defense facilities.

What are the key performance indicators (KPIs) and risk mitigation strategies associated with this contract?

Key performance indicators for this contract would likely include adherence to the project schedule, quality of construction and HVAC installation, compliance with safety regulations, and overall project completion within budget. Risk mitigation strategies would involve thorough site inspections, detailed project planning, robust quality assurance processes, and contingency planning for unforeseen issues. The firm fixed-price nature of the contract inherently shifts some cost risk to the contractor. The government's role would involve diligent oversight, timely review of deliverables, and proactive communication to address any emerging challenges.

What is the historical spending pattern for building repair and HVAC services at Sheppard Air Force Base over the last five years?

Analyzing historical spending patterns for building repair and HVAC services at Sheppard Air Force Base over the last five years would provide valuable context for this $13 million award. This would involve querying federal procurement data for contracts awarded to Sheppard AFB within the relevant NAICS codes (e.g., 236220, 238220 for Plumbing, Heating, and Air-Conditioning Contractors). Understanding the average annual spend, the typical contract values, and the frequency of major repair/replacement projects would help determine if this current award is an outlier or part of a consistent investment cycle in the base's infrastructure. It could also reveal trends in contracting approaches and dominant service providers.

What is the potential impact of this contract on the local Texas construction market and small businesses?

This $13 million contract for building repair and HVAC replacement at Sheppard Air Force Base is likely to have a positive economic impact on the local Texas construction market by creating jobs for skilled tradespeople and supporting related industries (e.g., material suppliers). However, as this was not a small business set-aside, the direct benefit to small businesses is contingent on the prime contractor's subcontracting practices. If CCI Energy and Construction Services, LLC actively engages small businesses for portions of the work, it could provide significant opportunities. Without explicit subcontracting goals or reporting, the extent of small business involvement remains uncertain, but the overall injection of federal funds into the regional economy is a positive signal.

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: SEALED BID

Solicitation ID: W912BV23B0001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19315 FM 2252, GARDEN RIDGE, TX, 78266

Business Categories: 8(a) Program Participant, 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: $12,990,671

Exercised Options: $12,990,671

Current Obligation: $12,990,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline