DOJ Awards $2.75M Contract for Prison HVAC Controls to NBT Construction
Contract Overview
Contract Amount: $2,750,260 ($2.8M)
Contractor: NBT Construction and Supply, LLC
Awarding Agency: Department of Justice
Start Date: 2026-02-11
End Date: 2026-08-10
Contract Duration: 180 days
Daily Burn Rate: $15.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FCI MILAN - EMERGENCY SURFACE BLOWDOWN HEAT RECOVERY/DA CONTROLS - 24Z4AY5
Place of Performance
Location: MILAN, WASHTENAW County, MICHIGAN, 48160
State: Michigan Government Spending
Plain-Language Summary
Department of Justice obligated $2.8 million to NBT CONSTRUCTION AND SUPPLY, LLC for work described as: FCI MILAN - EMERGENCY SURFACE BLOWDOWN HEAT RECOVERY/DA CONTROLS - 24Z4AY5 Key points: 1. Contract awarded to NBT Construction and Supply, LLC for $2.75M. 2. The contract is for emergency surface blowdown heat recovery and controls. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract duration is 180 days. 5. The award is a Firm Fixed Price definitive contract.
Value Assessment
Rating: fair
The contract value of $2.75M for 180 days of work on HVAC controls appears reasonable given the specialized nature of emergency systems. Benchmarking against similar federal prison system projects would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized 'Full and Open Competition After Exclusion of Sources', suggesting a competitive process was intended. However, the specific exclusion criteria warrant further review to ensure maximum price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a federal facility, aiming to improve efficiency and operational reliability.
Public Impact
Ensures operational continuity and efficiency at a federal correctional facility. Potential for improved energy recovery and reduced operational costs. Supports critical infrastructure maintenance within the Bureau of Prisons.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited contract duration (180 days) may indicate a specific, short-term need or a phased approach.
- The 'Exclusion of Sources' clause requires scrutiny to ensure it did not unduly limit competition.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Award to a specific LLC suggests a focused procurement for specialized services.
Sector Analysis
This contract falls within the construction and facilities maintenance sector, specifically focusing on HVAC systems for federal institutions. Spending in this area is critical for maintaining government infrastructure and operational efficiency.
Small Business Impact
The awardee, NBT CONSTRUCTION AND SUPPLY, LLC, is identified as a company. Further analysis is needed to determine if it qualifies as a small business and if opportunities were provided for subcontracting to small businesses.
Oversight & Accountability
The Department of Justice, through the Federal Prison System/Bureau of Prisons, is responsible for overseeing this contract. Standard oversight procedures for construction and maintenance contracts should apply.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Potential for limited competition due to 'exclusion of sources'.
- Short contract duration may indicate a need for further follow-on work or potential for delays.
- Lack of detailed technical specifications in the provided data.
- Need to verify small business participation and subcontracting opportunities.
Tags
plumbing-heating-and-air-conditioning-co, department-of-justice, mi, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $2.8 million to NBT CONSTRUCTION AND SUPPLY, LLC. FCI MILAN - EMERGENCY SURFACE BLOWDOWN HEAT RECOVERY/DA CONTROLS - 24Z4AY5
Who is the contractor on this award?
The obligated recipient is NBT CONSTRUCTION AND SUPPLY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $2.8 million.
What is the period of performance?
Start: 2026-02-11. End: 2026-08-10.
What specific technologies or systems are involved in the 'emergency surface blowdown heat recovery/DA controls' to justify the $2.75M cost?
The specific technologies likely involve advanced heat exchangers, control systems, and potentially integration with existing building management systems. The 'DA' likely refers to 'Direct Air' or a similar ventilation component. The cost is justified by the need for specialized, potentially custom-engineered solutions to ensure reliable operation and energy efficiency in a critical federal facility, mitigating risks of system failure and associated operational disruptions.
How did the 'exclusion of sources' impact the competitive landscape and final pricing for this contract?
The 'exclusion of sources' clause implies that certain potential bidders were not considered, potentially narrowing the competitive field. While the contract was still 'Full and Open' among the remaining eligible sources, this exclusion could have limited price discovery. A thorough review of the justification for exclusion is necessary to ensure it was based on legitimate technical or logistical requirements and did not artificially inflate the price.
What is the expected long-term impact of these heat recovery controls on the operational efficiency and energy consumption of the FCI Milan facility?
The installation of emergency surface blowdown heat recovery and DA controls is expected to significantly improve the facility's energy efficiency by capturing waste heat from blowdown systems and reusing it for heating purposes. This should lead to reduced energy consumption, lower utility costs, and a smaller environmental footprint. The 'emergency' aspect suggests these controls are critical for maintaining operational integrity even under demanding conditions.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SEALED BID
Solicitation ID: 15BBNF26B00000001
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6313 E HIGHWAY 92, MONTICELLO, KY, 42633
Business Categories: Category Business, HUBZone Firm, Limited Liability Corporation, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,750,260
Exercised Options: $2,750,260
Current Obligation: $2,750,260
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2026-02-11
Current End Date: 2026-08-10
Potential End Date: 2026-09-10 00:00:00
Last Modified: 2026-01-15
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