DoD's $11.7M HVAC and DDC upgrade contract awarded to Spectrum Solutions Inc. for 872 days

Contract Overview

Contract Amount: $11,698,555 ($11.7M)

Contractor: Spectrum Solutions Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2027-02-19

Contract Duration: 872 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: P&I, HEATING, VENTILATION, AIR CONDITIONING (HVAC) AND DIRECT DIGITAL CONTROL (DDC)UPGRADES,

Place of Performance

Location: FORT STEWART, LIBERTY County, GEORGIA, 31315

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $11.7 million to SPECTRUM SOLUTIONS INC for work described as: P&I, HEATING, VENTILATION, AIR CONDITIONING (HVAC) AND DIRECT DIGITAL CONTROL (DDC)UPGRADES, Key points: 1. Contract value of $11.7 million for HVAC and DDC upgrades represents a significant investment in facility modernization. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 872 days indicates a substantial project scope requiring sustained effort. 5. The contract is categorized under Computer Systems Design Services, which may encompass the integration of digital controls. 6. The award to Spectrum Solutions Inc. warrants a review of their past performance in similar projects.

Value Assessment

Rating: fair

The contract value of $11.7 million for HVAC and DDC upgrades appears to be within a reasonable range for a project of this scope and duration, especially considering the complexity of integrating digital controls with existing systems. Benchmarking against similar large-scale facility modernization projects within the Department of Defense would provide a clearer picture of value for money. The firm fixed-price nature of the contract suggests an effort to manage cost overruns, but the ultimate value will depend on the quality of the delivered upgrades and their long-term operational efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the number of bidders is not explicitly stated, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for this type of specialized upgrade.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential bidders, increasing the likelihood of receiving competitive pricing and innovative solutions, thereby optimizing the use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense personnel and operations at the facilities undergoing upgrades, who will experience improved environmental conditions and potentially more reliable building systems. The services delivered include the upgrade of Heating, Ventilation, Air Conditioning (HVAC) systems and Direct Digital Controls (DDC), enhancing building efficiency and comfort. The geographic impact is likely concentrated within the specific military installations managed by the Department of the Army in Georgia. Workforce implications may include the employment of skilled technicians, engineers, and project managers involved in the installation and integration of the upgraded systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the upgrade of complex HVAC and DDC systems.
Risk of performance delays if the contractor, Spectrum Solutions Inc., has a history of project execution challenges.
Dependence on the contractor's expertise for successful integration of new DDC systems with existing infrastructure.
The broad categorization of 'Computer Systems Design Services' might obscure specific technical requirements and potential integration complexities.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
Awarding under full and open competition suggests a robust selection process and potential for competitive pricing.
The project's focus on HVAC and DDC upgrades indicates an investment in energy efficiency and operational reliability.
The contract duration of 872 days allows for thorough planning, execution, and testing of the upgrades.

Sector Analysis

The contract falls within the broader Information Technology and Facilities Management sectors, specifically focusing on building systems and their control mechanisms. The market for HVAC and DDC upgrades is substantial, driven by the need for energy efficiency, regulatory compliance, and modernization of aging infrastructure in both public and private sectors. Comparable spending benchmarks would typically be found in large-scale government or commercial building renovation projects, where costs can vary significantly based on building size, system complexity, and geographic location.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'ss': false and 'sb': false. Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The primary contractor, Spectrum Solutions Inc., will manage the project, and any subcontracting decisions would be at their discretion, potentially including opportunities for small businesses if they possess the necessary specialized skills or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and relevant program managers within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, which hold the contractor responsible for delivering the specified upgrades within the agreed-upon price. Transparency is facilitated through contract award databases, but detailed project progress and performance reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Facilities Modernization Programs
Federal Building Energy Efficiency Initiatives
HVAC System Upgrades for Government Facilities
Direct Digital Control System Implementation

Risk Flags

Potential for cost overruns due to complexity of system integration.
Contractor performance risk requires thorough vetting.
Cybersecurity risks associated with networked DDC systems.
Ensuring long-term operational efficiency and maintenance post-upgrade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.7 million to SPECTRUM SOLUTIONS INC. P&I, HEATING, VENTILATION, AIR CONDITIONING (HVAC) AND DIRECT DIGITAL CONTROL (DDC)UPGRADES,

Who is the contractor on this award?

The obligated recipient is SPECTRUM SOLUTIONS INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $11.7 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-02-19.

What is Spectrum Solutions Inc.'s track record with similar HVAC and DDC upgrade contracts for the Department of Defense or other federal agencies?

A thorough review of Spectrum Solutions Inc.'s past performance is crucial. This would involve examining their contract history for similar projects, including the size, scope, and complexity of HVAC and DDC upgrades. Key metrics to assess would be on-time and on-budget completion rates, any instances of contract modifications or disputes, and client satisfaction feedback. Understanding their experience with government contracting regulations and reporting requirements is also important. Without specific data on their past performance, it is difficult to definitively assess their capability to successfully execute this $11.7 million contract.

How does the awarded price of $11.7 million compare to market rates for similar HVAC and DDC upgrade projects of comparable scale?

Benchmarking the $11.7 million contract value against market rates requires detailed analysis of similar projects. Factors influencing cost include the square footage of the facilities, the age and complexity of existing systems, the specific technologies to be implemented, and regional labor costs. A comprehensive comparison would involve analyzing data from publicly available contract databases (like FPDS or SAM.gov) for similar projects awarded by other federal agencies or even large state and local governments. If this price is significantly higher or lower than comparable projects, it could indicate either an exceptional deal or potential issues with pricing or scope definition.

What are the primary risks associated with upgrading HVAC and DDC systems in a Department of Defense facility, and how are they mitigated in this contract?

Key risks include integration challenges with legacy systems, potential for unforeseen structural or environmental issues discovered during renovation, contractor performance issues (delays, quality), and cybersecurity vulnerabilities in DDC systems. This contract attempts to mitigate some risks through a firm fixed-price structure, which shifts cost overrun risk to the contractor. The full and open competition process aims to select a capable contractor. However, specific risk mitigation strategies related to system integration, cybersecurity, and contingency planning should be detailed in the contract's statement of work and performance standards.

What is the expected impact of these HVAC and DDC upgrades on energy efficiency and operational costs for the Department of the Army?

Upgraded HVAC and DDC systems are typically expected to yield significant improvements in energy efficiency, potentially leading to substantial reductions in utility costs for the Department of the Army. Modern DDC systems allow for more precise control of heating, cooling, and ventilation based on occupancy, weather, and building usage patterns, optimizing energy consumption. The extent of these savings depends on the specific technologies implemented, the baseline energy performance of the existing systems, and the effectiveness of the new system's programming and maintenance. A detailed energy savings analysis should ideally be part of the project's justification and post-completion evaluation.

How has federal spending on HVAC and DDC upgrades evolved over the past five years, and does this contract align with historical trends?

Federal spending on facility upgrades, including HVAC and DDC systems, has generally seen consistent investment, often driven by mandates for energy efficiency and infrastructure modernization. Trends may show an increasing focus on smart building technologies and integrated control systems. To determine if this $11.7 million contract aligns with historical trends, one would need to analyze aggregate spending data for similar contract types across federal agencies over the past five years. This would help ascertain if the current award represents a typical investment level or a significant deviation, potentially indicating a new initiative or a one-off large project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 114 CASTLE DR, MADISON, AL, 35758

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

Financial Breakdown

Contract Ceiling: $27,400,681

Exercised Options: $11,698,555

Current Obligation: $11,698,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0039

IDV Type: IDC

Timeline