Fort Leavenworth HVAC repairs awarded to Patriot Construction for $26M, highlighting infrastructure needs

Contract Overview

Contract Amount: $26,035,630 ($26.0M)

Contractor: Patriot Construction, LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-07-03

Contract Duration: 1,737 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 120 AND 127 HVAC REPAIRS AT FORT LEAVENWORTH, KS

Place of Performance

Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027

State: Kansas Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to PATRIOT CONSTRUCTION, LLC for work described as: BUILDING 120 AND 127 HVAC REPAIRS AT FORT LEAVENWORTH, KS Key points: 1. Contract value of $26M for HVAC repairs suggests significant infrastructure investment at Fort Leavenworth. 2. The contract was awarded using full and open competition, indicating a potentially competitive bidding process. 3. A duration of nearly five years (1737 days) suggests a long-term need for sustained facility maintenance. 4. The firm-fixed-price contract type shifts performance risk to the contractor, potentially stabilizing costs. 5. The award to Patriot Construction, LLC, represents a significant single contract for the firm. 6. The North American Industry Classification System (NAICS) code 238220 points to specialized HVAC contracting services.

Value Assessment

Rating: good

The contract value of $26 million for HVAC repairs at Fort Leavenworth appears substantial, reflecting the scale of infrastructure maintenance required. Benchmarking against similar large-scale HVAC repair contracts for military installations would provide a clearer picture of value for money. The firm-fixed-price structure suggests an expectation of predictable costs, but the total value over nearly five years warrants scrutiny for cost-effectiveness compared to potential alternatives or phased approaches.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with three bids received. This level of competition is generally positive for price discovery and ensuring a fair market price. The presence of multiple bidders suggests that the market has capacity for such work and that the government had options to select from. The specific details of the bids and the selection criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition with multiple bidders typically benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive pricing for essential services.

Public Impact

Military personnel and their families stationed at Fort Leavenworth will benefit from improved living and working conditions due to reliable HVAC systems. The contract supports the operational readiness of Fort Leavenworth by ensuring critical infrastructure functions. The project's geographic impact is concentrated at Fort Leavenworth, Kansas, supporting local economic activity through construction and maintenance. The contract implies employment opportunities for skilled tradespeople in the HVAC sector within the Kansas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended contract period.
Dependence on a single contractor for a critical, long-term service could lead to reduced leverage if performance issues emerge.
The firm-fixed-price nature, while beneficial for budget certainty, might disincentivize proactive identification of future maintenance needs beyond immediate repairs.

Positive Signals

The use of full and open competition suggests a robust process for selecting a qualified contractor.
The firm-fixed-price contract type transfers significant risk to the contractor, potentially leading to cost savings if managed efficiently.
The long contract duration indicates a commitment to sustained facility upkeep, crucial for military readiness.

Sector Analysis

The HVAC services sector is a critical component of the broader construction and facilities maintenance industry. This contract falls within the specialized area of plumbing, heating, and air-conditioning contractors. The market for government facility maintenance is substantial, with significant spending allocated annually to ensure the operational integrity of military bases and other federal properties. Comparable spending benchmarks would involve analyzing other large-scale HVAC repair or replacement contracts at similar military installations across the Department of Defense.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Patriot Construction, LLC, suggests it is likely a larger entity capable of handling a contract of this magnitude. Further analysis would be needed to determine if opportunities for small business participation exist through subcontracting or if the prime contractor has a history of engaging small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and facility management personnel at Fort Leavenworth. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver specified services within the agreed-upon price. Transparency would be facilitated through contract databases like FPDS, which provide public access to award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Fort Leavenworth Facility Maintenance
Department of Defense Infrastructure Modernization
Military Base HVAC Upgrades
Army Corps of Engineers Construction Contracts

Risk Flags

Long contract duration increases risk of unforeseen cost increases or performance degradation.
Limited number of bidders (3) could indicate potential market concentration or barriers to entry.
Firm-fixed-price contracts can sometimes lead to less proactive maintenance if not carefully managed.
Dependence on a single contractor for critical infrastructure over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to PATRIOT CONSTRUCTION, LLC. BUILDING 120 AND 127 HVAC REPAIRS AT FORT LEAVENWORTH, KS

Who is the contractor on this award?

The obligated recipient is PATRIOT CONSTRUCTION, 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 $26.0 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-07-03.

What is Patriot Construction, LLC's track record with federal contracts, particularly within the Department of Defense?

Patriot Construction, LLC has a history of federal contracting, primarily with the Department of Defense. Reviewing their contract award history reveals a pattern of work related to construction and facility maintenance. Specific to HVAC, their past performance on similar projects, including contract values, completion timeliness, and any documented performance issues or accolades, would be crucial for assessing their capability to execute this $26 million contract effectively over its nearly five-year duration. Understanding their experience with firm-fixed-price contracts and their ability to manage large-scale projects is key to evaluating their reliability for this specific award.

How does the $26 million contract value compare to similar HVAC repair projects at other military installations?

The $26 million contract value for HVAC repairs at Fort Leavenworth is substantial and suggests a significant scope of work. To benchmark its value, comparisons should be made with similar firm-fixed-price contracts for HVAC system repairs, replacements, or major overhauls at other Army or Department of Defense installations of comparable size and complexity. Factors such as the age and condition of the existing infrastructure, the specific systems being addressed (e.g., central plant, building-specific units), and regional labor and material costs would influence these comparisons. A higher or lower value relative to benchmarks could indicate exceptional value, potential overpricing, or a scope difference.

What are the primary risks associated with a nearly five-year firm-fixed-price contract for HVAC repairs?

The primary risks associated with a nearly five-year firm-fixed-price contract for HVAC repairs include potential cost escalation due to unforeseen material price increases or labor shortages over the extended period, despite the fixed price. Contractor performance risk is also significant; if Patriot Construction, LLC underperforms or faces financial difficulties, the government might face delays or require a costly re-competition. Furthermore, the fixed-price nature might disincentivize the contractor from proactively identifying and addressing emerging issues that fall outside the immediate scope but could lead to larger problems later. The government's ability to manage scope creep and ensure quality over such a long duration is also a key risk factor.

How effective is full and open competition with three bidders in ensuring optimal pricing for this type of specialized construction service?

Full and open competition with three bidders is generally considered a positive indicator for achieving optimal pricing, as it allows market forces to drive the bidding process. However, the effectiveness hinges on the quality and competitiveness of the bids received. If the three bidders were highly qualified and actively competed, it likely resulted in a fair market price. Conversely, if the pool of qualified bidders is inherently limited in this specialized niche, or if the bids submitted were not significantly differentiated, the competition might be less robust than ideal. Analyzing the bid spread and the government's cost estimates would provide further insight into the pricing outcome.

What is the historical spending trend for HVAC maintenance and repair at Fort Leavenworth or similar Army installations?

Analyzing historical spending trends for HVAC maintenance and repair at Fort Leavenworth and comparable Army installations is crucial for context. This involves examining annual expenditures on similar contracts over the past 5-10 years. Trends might reveal whether spending has been increasing, decreasing, or remaining stable, potentially indicating aging infrastructure, new construction projects, or shifts in maintenance strategies. Understanding the historical investment level helps assess whether the current $26 million award represents a significant increase, a continuation of prior investment, or a potential anomaly, providing a basis for evaluating its appropriateness and long-term financial planning.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DQ20R4019

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3240 FERRY LANDING RD, DUNKIRK, MD, 20754

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: $26,035,630

Exercised Options: $26,035,630

Current Obligation: $26,035,630

Actual Outlays: $-147,628

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline