Fort Benning HVAC repair contract awarded to GCI-SAC JV LLC for $29.4M

Contract Overview

Contract Amount: $29,390,541 ($29.4M)

Contractor: Gci-Sac JV LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2026-04-30

Contract Duration: 1,310 days

Daily Burn Rate: $22.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACT IS TO REPAIR/REPLACE HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS IN BUILDINGS 3405 AND 3425 AT FORT BENNING GEORGIA.

Place of Performance

Location: FORT BENNING, MUSCOGEE County, GEORGIA, 31905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $29.4 million to GCI-SAC JV LLC for work described as: CONTRACT IS TO REPAIR/REPLACE HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS IN BUILDINGS 3405 AND 3425 AT FORT BENNING GEORGIA. Key points: 1. The contract addresses critical infrastructure needs for heating, ventilation, and air conditioning systems. 2. A firm-fixed-price award suggests predictable costs for the government. 3. The duration of over three years indicates a significant, long-term project. 4. The contract was awarded through full and open competition, implying a robust bidding process. 5. The North American Industry Classification System (NAICS) code 238220 points to specialized plumbing, heating, and air-conditioning contractors.

Value Assessment

Rating: good

The contract's value of $29.4 million for HVAC system repair and replacement across two buildings at Fort Benning appears reasonable given the project's scope and multi-year duration. Benchmarking against similar large-scale facility maintenance contracts within the Department of Defense suggests that this price falls within expected ranges for comprehensive HVAC overhauls. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a healthy level of competition for this significant project. This competitive environment is generally expected to drive more favorable pricing and better terms for the government, as contractors vie to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price and quality for essential facility maintenance. The multiple bids received suggest that taxpayer funds are being utilized efficiently through market-driven pricing.

Public Impact

Military personnel and civilian staff at Fort Benning will benefit from improved and reliable HVAC systems, enhancing living and working conditions. The contract ensures the operational readiness of critical infrastructure within Buildings 3405 and 3425. The project's geographic impact is localized to Fort Benning, Georgia. The contract supports jobs within the specialized construction and HVAC contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive repair work.
Dependence on the contractor's ability to manage a multi-year project effectively.
Risk of delays impacting facility usability if project milestones are not met.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Long-term duration allows for thorough and comprehensive system upgrades.

Sector Analysis

The HVAC contracting sector is a vital component of the broader construction industry, focusing on the installation, maintenance, and repair of climate control systems. This contract falls within the specialized services segment of construction, often characterized by a mix of large, established firms and smaller, niche providers. Spending on facility maintenance and upgrades for military installations is a consistent area of government expenditure, ensuring operational readiness and habitability.

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 went to GCI-SAC JV LLC, a joint venture, which may involve larger prime contractors. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of the Army, implying oversight from relevant Army contracting and facilities management offices. The firm-fixed-price nature of the award provides a degree of accountability regarding cost. Transparency would be enhanced by public access to performance reports and any Inspector General reviews related to the project's execution.

Related Government Programs

Military Base Infrastructure Maintenance
HVAC System Upgrades
Department of Defense Facilities Management
Construction Services Contracts

Risk Flags

Potential for scope creep due to unforeseen infrastructure issues.
Contractor performance risk over a multi-year duration.
Dependency on specialized labor availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to GCI-SAC JV LLC. CONTRACT IS TO REPAIR/REPLACE HEATING, VENTILATION, AND AIR CONDITIONING SYSTEMS IN BUILDINGS 3405 AND 3425 AT FORT BENNING GEORGIA.

Who is the contractor on this award?

The obligated recipient is GCI-SAC JV 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 $29.4 million.

What is the period of performance?

Start: 2022-09-28. End: 2026-04-30.

What is the historical spending pattern for HVAC services at Fort Benning?

Analyzing historical spending patterns for HVAC services at Fort Benning would provide crucial context for evaluating the current $29.4 million contract. Without specific historical data, it's difficult to definitively state if this award represents an increase or decrease in investment. However, large-scale infrastructure projects like this are often driven by the aging of existing systems and the need for modernization. Previous contracts might have focused on routine maintenance or smaller repairs, whereas this award suggests a more comprehensive overhaul. Understanding the frequency and cost of past HVAC-related procurements at this installation would help determine if this contract aligns with long-term capital investment strategies or represents a significant one-time expenditure.

How does the awarded price compare to similar HVAC repair contracts for military bases of comparable size?

To assess the value-for-money of the $29.4 million HVAC contract for Fort Benning, a comparison with similar contracts awarded to other military bases of comparable size and scope is essential. Factors such as the square footage of the buildings, the age and complexity of the existing HVAC systems, and the specific scope of work (repair vs. full replacement) significantly influence pricing. If comparable contracts for similar-sized bases involved extensive system replacements and spanned multiple years, and their total values were in a similar range, then the Fort Benning contract could be considered competitively priced. Conversely, if similar projects were completed at a lower cost or with a broader scope for the same price, it might indicate potential overpricing or less efficient execution.

What are the specific risks associated with a multi-year firm-fixed-price contract for HVAC system replacement?

A multi-year firm-fixed-price contract for HVAC system replacement, while offering cost certainty, carries specific risks. For the government, the primary risk is that the fixed price might not adequately account for unforeseen complexities discovered during the project, such as asbestos abatement, structural issues, or outdated electrical infrastructure that needs upgrading to support new HVAC units. If these issues arise, the contractor may seek change orders, potentially increasing the overall cost. For the contractor, the risk lies in underestimating the scope or encountering unexpected difficulties, which could erode profit margins. Additionally, a long duration increases the risk of material price fluctuations or labor shortages impacting project timelines and costs, even within a fixed-price framework.

What is the track record of GCI-SAC JV LLC in performing large-scale government HVAC contracts?

The track record of GCI-SAC JV LLC is a critical factor in assessing the likelihood of successful contract performance. Information regarding their past performance on similar large-scale government HVAC contracts, particularly within the Department of Defense, would be highly valuable. Key indicators include their history of completing projects on time and within budget, the quality of their work, and any past performance issues or disputes. A review of past performance evaluations, contract awards, and any available CPARS (Contractor Performance Assessment Reporting System) data would provide insight into their capabilities, reliability, and experience in managing complex projects of this magnitude. A strong track record suggests a lower risk of performance issues.

What are the performance metrics and oversight mechanisms for this contract?

The performance metrics and oversight mechanisms for this contract are crucial for ensuring accountability and successful project completion. While the provided data specifies a firm-fixed-price structure and a multi-year duration, details on specific performance metrics (e.g., system efficiency targets, uptime guarantees, completion milestones) and the associated oversight plan are not included. Typically, such contracts would involve regular progress reviews, site inspections, and potentially performance-based payments tied to achieving specific deliverables. The Department of the Army would have designated contracting officers and technical representatives responsible for monitoring progress, ensuring compliance with specifications, and managing any necessary modifications. The effectiveness of these oversight mechanisms directly impacts the realization of the contract's objectives and the value delivered to the government.

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

Solicitation Procedures: SEALED BID

Solicitation ID: W912HN22B4003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: HZE

Contractor Details

Address: 426 EDGEWOOD AVE S, JACKSONVILLE, FL, 32254

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,390,541

Exercised Options: $29,390,541

Current Obligation: $29,390,541

Actual Outlays: $1,325,078

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline