NSWC CRANE B2037 CAL LAB HVAC Upgrade contract awarded to Polk & Associates Construction Inc. for $1.1M

Contract Overview

Contract Amount: $1,105,328 ($1.1M)

Contractor: Polk & Associates Construction Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-05

End Date: 2026-05-04

Contract Duration: 364 days

Daily Burn Rate: $3.0K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NSWC CRANE B2037 CAL LAB HVAC UPGRADE

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of the Interior obligated $1.1 million to POLK & ASSOCIATES CONSTRUCTION INC for work described as: NSWC CRANE B2037 CAL LAB HVAC UPGRADE Key points: 1. The contract value of $1.1 million for an HVAC upgrade appears reasonable for a facility renovation project of this scope. 2. The procurement was not competitively bid, raising questions about potential price discovery and value for money. 3. The single award contract with a firm fixed price suggests a defined scope and risk allocation. 4. The project duration of one year aligns with typical construction timelines for such upgrades. 5. The contractor, Polk & Associates Construction Inc., has a track record that warrants further investigation for similar projects. 6. The project is located in Indiana, potentially impacting local employment and the regional construction market.

Value Assessment

Rating: fair

The contract value of $1.1 million for an HVAC upgrade at a CAL Lab is within a typical range for such projects. However, without a competitive bidding process, it is difficult to definitively benchmark the value against market rates or similar contracts. The firm fixed price structure indicates a clear understanding of costs, but the absence of competition limits the ability to assess if the price represents the best possible value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source procurement. This means that only one contractor, Polk & Associates Construction Inc., was solicited for this work. The lack of competition means that the government did not explore offers from multiple potential vendors, which can limit price negotiation and potentially lead to higher costs than if a competitive process had been used.

Taxpayer Impact: Taxpayers may not have received the most competitive pricing due to the absence of a bidding process. The government's ability to secure the best possible value is diminished when multiple sources are not considered.

Public Impact

The primary beneficiaries are the personnel working within the CAL Lab at NSWC Crane, who will experience improved environmental conditions. The services delivered include the upgrade of the Heating, Ventilation, and Air Conditioning (HVAC) system, crucial for maintaining a controlled laboratory environment. The geographic impact is localized to NSWC Crane in Indiana, supporting the local economy through construction services. Workforce implications include employment opportunities for construction workers and specialists involved in the HVAC upgrade.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than a competitive award.
The sole-source nature of the award requires scrutiny to ensure necessity and justification.
Performance history of Polk & Associates Construction Inc. on similar government contracts needs to be reviewed.
Potential for scope creep or change orders given the fixed-price nature without competitive baseline.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
The project addresses a critical infrastructure need for the CAL Lab.
The contractor is responsible for managing risks associated with performance and cost.
The project duration is clearly defined, allowing for planning and execution.

Sector Analysis

The construction sector, particularly specialized mechanical contracting for government facilities, is characterized by a mix of large and small businesses. Projects like HVAC upgrades are essential for maintaining operational readiness and safety in federal installations. Spending in this area is often driven by infrastructure modernization needs and compliance with environmental and safety regulations. Comparable spending benchmarks would typically involve analyzing other HVAC renovation projects at similar federal facilities.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Polk & Associates Construction Inc., a firm that may or may not be a small business itself, means that opportunities for small business participation in this specific project are likely limited unless they are direct employees or suppliers to the prime contractor. Further analysis would be needed to determine the size status of Polk & Associates Construction Inc. and its subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer at the Department of the Interior and potentially the Naval Sea Systems Command (NAVSEA) given the NSWC Crane location. Accountability measures are embedded in the firm fixed price contract, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is limited due to the sole-source nature of the award; however, contract award data is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

NSWC Crane Facilities Maintenance
Department of the Interior Capital Improvements
Federal Building HVAC Modernization
Naval Facilities Engineering Command Projects

Risk Flags

Sole-source award lacks competitive justification.
Potential for overpayment due to lack of competition.
Contractor performance history requires verification.
Scope definition and potential for change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $1.1 million to POLK & ASSOCIATES CONSTRUCTION INC. NSWC CRANE B2037 CAL LAB HVAC UPGRADE

Who is the contractor on this award?

The obligated recipient is POLK & ASSOCIATES CONSTRUCTION INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2025-05-05. End: 2026-05-04.

What is the track record of Polk & Associates Construction Inc. on federal contracts, particularly for HVAC upgrades?

A review of federal contract databases would be necessary to fully assess Polk & Associates Construction Inc.'s track record. This would involve examining past performance on similar projects, including contract values, completion timeliness, quality of work, and any instances of disputes or contract terminations. Understanding their experience with government procurement regulations and their capacity to handle projects of this scale is crucial for evaluating their suitability and the potential risks associated with this award. Without specific historical data, it's difficult to provide a definitive assessment of their reliability and past success.

How does the $1.1 million contract value compare to similar HVAC upgrade projects at federal facilities?

Benchmarking this $1.1 million contract against similar HVAC upgrade projects at federal facilities requires access to a database of comparable contracts. Factors such as facility size, complexity of the existing system, scope of the upgrade (e.g., replacement vs. modernization), geographic location (which affects labor and material costs), and the specific requirements of the laboratory environment would need to be considered. A preliminary assessment suggests the value is within a reasonable range for a significant facility upgrade, but a detailed comparison with projects of identical scope and complexity would be needed to confirm if it represents optimal value for money.

What are the specific risks associated with a sole-source award for this HVAC upgrade?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bids, the government may not be securing the most cost-effective solution. Other risks include a potential reduction in innovation, as the contractor may have less incentive to propose novel or more efficient approaches. Furthermore, the justification for a sole-source award must be robust; if the justification is weak or flawed, it raises concerns about the procurement process itself and whether the government truly explored all viable options. This can also lead to a perception of unfairness among other potential contractors.

What is the expected impact of this HVAC upgrade on the operational effectiveness of the CAL Lab?

An upgraded HVAC system is critical for the operational effectiveness of a Controlled Atmosphere Laboratory (CAL Lab). These labs often require precise control of temperature, humidity, and air purity to conduct sensitive experiments, maintain delicate equipment, or preserve materials. An outdated or malfunctioning HVAC system can lead to inconsistent environmental conditions, potentially compromising research integrity, damaging equipment, or causing project delays. Therefore, a successful upgrade is expected to enhance the reliability, precision, and safety of the lab's operations, ensuring that research and testing can be conducted under optimal and stable conditions.

What has been the historical spending trend for HVAC upgrades at NSWC Crane or similar naval facilities?

Analyzing historical spending trends for HVAC upgrades at NSWC Crane or similar naval facilities would provide valuable context for this $1.1 million award. This would involve examining past contract awards for similar projects over several fiscal years to identify patterns in contract values, types of contractors utilized, and the frequency of such upgrades. Understanding whether this represents a typical investment or a significant deviation from past spending can help assess the current contract's appropriateness and identify potential areas for cost savings or efficiency improvements in future procurements. A consistent pattern of high spending might indicate escalating costs or a growing need for infrastructure renewal.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 140D0425R0051

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 229 WARD CIR STE C22, BRENTWOOD, TN, 37027

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

Financial Breakdown

Contract Ceiling: $1,105,328

Exercised Options: $1,105,328

Current Obligation: $1,105,328

Actual Outlays: $993,275

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline