Agriculture Dept Awards $3.1M for Air Handling Unit Replacement to Firelake Construction

Contract Overview

Contract Amount: $3,109,510 ($3.1M)

Contractor: Firelake Construction Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-07-21

End Date: 2026-07-20

Contract Duration: 364 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AIR HANDLING UNITS (AHU) REPLACEMENT PROJECTS CPAIS REALTY ASSET NUMBER: 545000B001

Place of Performance

Location: GRAND FORKS, GRAND FORKS County, NORTH DAKOTA, 58203

State: North Dakota Government Spending

Plain-Language Summary

Department of Agriculture obligated $3.1 million to FIRELAKE CONSTRUCTION INC for work described as: AIR HANDLING UNITS (AHU) REPLACEMENT PROJECTS CPAIS REALTY ASSET NUMBER: 545000B001 Key points: 1. The contract is for Air Handling Unit (AHU) replacement, a critical component for maintaining facility environments. 2. Firelake Construction Inc. was awarded the contract, indicating they were the successful bidder. 3. The contract value is $3,109,509.63, representing a significant investment in infrastructure. 4. The project duration is 364 days, suggesting a focused and relatively short implementation period.

Value Assessment

Rating: good

The contract value of $3.1M for AHU replacement appears reasonable given the scope of replacing critical building systems. Benchmarking against similar HVAC replacement projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial limited approach that was then opened, potentially impacting price discovery and the range of competitive bids received.

Taxpayer Impact: The use of full and open competition, even after initial exclusions, aims to secure the best value for taxpayers. The final price reflects the outcome of this competitive process.

Public Impact

Ensures operational continuity for the Agricultural Research Service facilities. Modernizes critical infrastructure, potentially leading to energy efficiency improvements. Supports local economy through construction services contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could restrict optimal pricing.
Lack of specific performance metrics in provided data.
Potential for cost overruns if unforeseen issues arise during replacement.

Positive Signals

Clear contract award with defined scope and duration.
Focus on essential infrastructure replacement.
Fixed-price contract mitigates cost uncertainty.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC systems. Spending benchmarks for similar government facility upgrades vary widely based on size and complexity, but $3.1M is a substantial amount for a single AHU replacement project.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the scope inherently favored larger contractors.

Oversight & Accountability

The contract is managed by the Department of Agriculture's Agricultural Research Service. Oversight would involve monitoring project progress, quality of work, and adherence to the fixed-price contract terms to ensure taxpayer funds are used effectively.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Limited competition method.
Potential for scope creep if unforeseen issues arise.
Lack of detailed performance metrics.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $3.1 million to FIRELAKE CONSTRUCTION INC. AIR HANDLING UNITS (AHU) REPLACEMENT PROJECTS CPAIS REALTY ASSET NUMBER: 545000B001

Who is the contractor on this award?

The obligated recipient is FIRELAKE CONSTRUCTION INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $3.1 million.

What is the period of performance?

Start: 2025-07-21. End: 2026-07-20.

What specific performance improvements or energy savings are expected from this AHU replacement, and how will they be measured?

The provided data does not specify expected performance improvements or energy savings. Typically, AHU replacements aim to enhance air quality, improve system reliability, and potentially increase energy efficiency. Measurement would likely involve post-installation performance testing, energy consumption monitoring, and comparison to baseline data, though these details are absent here.

What was the rationale for excluding sources initially before opening the competition, and did this impact the final price?

The rationale for initial source exclusion is not detailed in the provided data. This 'exclusion of sources' followed by 'full and open competition' suggests a potential pre-qualification or specific requirement phase. The impact on the final price is unknown; it could have either narrowed the field to qualified bidders or potentially limited the initial competitive landscape before broader opening.

How does the $3.1M cost compare to the average cost of similar AHU replacement projects of comparable scale within the federal government?

Without specific details on the scale and complexity of the AHUs being replaced (e.g., tonnage, features, building size), a direct cost comparison is difficult. However, $3.1M is a significant investment for AHU replacement. Benchmarking against similar federal projects would require access to a database of comparable contracts, considering factors like geographic location, building age, and specific technical requirements.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 12805B25Q0160

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Firelake Construction, Inc.

Address: 14217 W 95TH ST, LENEXA, KS, 66215

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,109,510

Exercised Options: $3,109,510

Current Obligation: $3,109,510

Actual Outlays: $774,812

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 12805B21D0001

IDV Type: IDC

Timeline