DOJ's $7M Boiler Replacement Contract Awarded to Front Range Construction Inc. for Florence Federal Prison

Contract Overview

Contract Amount: $6,981,611 ($7.0M)

Contractor: Front Range Construction Inc

Awarding Agency: Department of Justice

Start Date: 2023-01-24

End Date: 2026-05-04

Contract Duration: 1,196 days

Daily Burn Rate: $5.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BOILER REPLACEMENT AT FCC FLORENCE

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80907

State: Colorado Government Spending

Plain-Language Summary

Department of Justice obligated $7.0 million to FRONT RANGE CONSTRUCTION INC for work described as: BOILER REPLACEMENT AT FCC FLORENCE Key points: 1. Contract value appears reasonable given the scope of replacing critical infrastructure at a federal facility. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. The duration of the contract (1196 days) suggests a complex and lengthy project. 5. The project falls under the Plumbing, Heating, and Air-Conditioning Contractors NAICS code. 6. The contract was awarded by the Department of Justice, Federal Prison System. 7. The project is located in Colorado.

Value Assessment

Rating: good

The contract value of approximately $7 million for a boiler replacement at a federal prison appears to be within a reasonable range for such a significant infrastructure project. Benchmarking against similar federal projects for facility maintenance and upgrades of this scale would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, but the final cost will depend on the contractor's efficiency and any unforeseen site conditions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that the solicitation was broadly advertised, but specific sources may have been excluded based on pre-qualification criteria. The presence of 2 bidders suggests a moderate level of competition. While not a completely unrestricted competition, it likely provided sufficient price discovery and encouraged competitive pricing.

Taxpayer Impact: The use of full and open competition, even with some exclusions, generally benefits taxpayers by promoting a competitive environment that can lead to more favorable pricing and better quality services.

Public Impact

The primary beneficiaries are the inmates and staff of the Federal Prison in Florence, Colorado, who will receive improved heating and environmental systems. The services delivered include the replacement of essential boiler systems, ensuring operational continuity and safety within the facility. The geographic impact is localized to Florence, Colorado, where the federal prison is situated. The contract supports the construction and maintenance workforce, likely through direct employment by Front Range Construction Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive replacement project.
Dependence on the contractor's ability to manage a long-duration project effectively.
Risk of delays impacting the operational readiness of the facility's heating systems.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Use of full and open competition generally leads to better value.
The project addresses critical infrastructure needs, ensuring facility functionality and safety.

Sector Analysis

The federal construction and maintenance sector is a significant area of government spending, encompassing a wide range of projects from minor repairs to large-scale infrastructure development. Contracts for facility upgrades like boiler replacements are common within agencies managing physical assets. The market for specialized contractors in plumbing, heating, and HVAC is competitive, with numerous firms capable of undertaking such work. This contract fits within the broader category of public infrastructure maintenance and modernization.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Front Range Construction Inc. The extent of these opportunities is not detailed in the provided data, but larger federal contracts often involve subcontracting, which can benefit specialized small businesses in the construction and trades sector.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Justice's Federal Prison System. Accountability measures are embedded in the firm fixed-price contract terms, performance standards, and payment schedules. Transparency is generally maintained through federal contract databases like FPDS, where award details are recorded. The Inspector General for the Department of Justice may also have jurisdiction for audits and investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

Federal Bureau of Prisons Facility Maintenance
Department of Justice Capital Construction
Federal Building and Fire Safety Program
Energy Efficiency and Conservation Block Grant Program (related to building systems)

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Long project duration requires sustained oversight.
Contract type is firm fixed-price, which shifts cost risk to contractor but requires careful scope definition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $7.0 million to FRONT RANGE CONSTRUCTION INC. BOILER REPLACEMENT AT FCC FLORENCE

Who is the contractor on this award?

The obligated recipient is FRONT RANGE CONSTRUCTION INC.

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 $7.0 million.

What is the period of performance?

Start: 2023-01-24. End: 2026-05-04.

What is the track record of Front Range Construction Inc. in performing similar federal contracts?

A review of federal contract databases would be necessary to fully assess Front Range Construction Inc.'s track record. Specifically, one would look for past performance on definitive contracts, firm fixed-price awards, and projects of similar scope and value, particularly those involving mechanical systems or facility infrastructure at correctional facilities or similar government installations. Analyzing past performance ratings, any documented disputes or contract terminations, and the timeliness of project completion would provide insight into their reliability and capability. Without specific historical data on this contractor's federal performance, it's difficult to provide a detailed assessment beyond the current award.

How does the awarded price compare to similar boiler replacement projects in federal facilities?

To benchmark the $6,981,611 award, one would need to identify comparable federal contracts for boiler replacement or major HVAC system upgrades at correctional facilities or similar large government buildings. Key comparison factors include the size and type of facility, the scope of work (e.g., full replacement vs. partial upgrade, complexity of existing systems), the geographic location (which influences labor and material costs), and the contract type (firm fixed-price is generally preferred for cost control). Analyzing the price per square foot or price per unit of heating capacity for similar projects would offer a more granular comparison. Given the firm fixed-price nature, the government has a degree of cost certainty, but the ultimate value depends on the contractor's execution.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks for this contract include potential cost overruns due to unforeseen site conditions (e.g., asbestos, structural issues, outdated existing infrastructure not fully documented), project delays impacting the facility's operations, and contractor performance issues. Mitigation strategies typically involve thorough site investigations prior to award, detailed contract specifications, clear performance milestones, robust inspection and quality assurance processes by the government, and contingency planning. The firm fixed-price contract itself acts as a risk mitigation tool by placing the cost burden on the contractor, incentivizing them to manage risks effectively. Liquidated damages clauses for delays can also be included.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with the need for specialized capabilities or to ensure specific requirements are met. While it's less open than unrestricted full and open competition, it still requires agencies to justify the exclusion of sources. When properly executed, it can lead to a competitive environment among qualified bidders, driving down prices and improving service quality. However, the effectiveness hinges on the justification for exclusions; if exclusions are overly broad or not well-founded, it could limit competition and potentially lead to higher costs for taxpayers. The fact that two bids were received suggests a degree of competition was maintained.

What is the historical spending pattern for boiler replacements or similar infrastructure projects within the Federal Prison System?

Analyzing historical spending patterns for boiler replacements and infrastructure upgrades within the Federal Prison System (FPS) would involve examining contract data over several fiscal years. This would reveal the frequency of such projects, the average contract values, the typical duration, and the primary contracting mechanisms used (e.g., full and open, sole source). Understanding these patterns helps establish a baseline for evaluating the current contract's value and identifying any trends in spending, potential cost efficiencies, or areas of concern. For instance, a significant increase in contract values or durations for similar projects might indicate rising costs or increasing complexity within the FPS infrastructure.

What are the implications of the 1196-day contract duration on project management and oversight?

A contract duration of 1196 days (approximately 3.3 years) for a boiler replacement signifies a complex, multi-phase project that likely extends beyond simple equipment installation. This extended timeline necessitates robust, ongoing project management and oversight from the government. Key implications include the need for sustained government personnel involvement to monitor progress, ensure adherence to specifications, manage changes, and maintain quality control throughout the project lifecycle. It also increases the potential for scope creep, budget fluctuations, and the need for adaptive management strategies to address evolving facility needs or technological advancements during the project. Regular progress reviews and performance evaluations become critical.

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: 15BFA022B00000018

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3730 SINTON ROAD, COLORADO SPRINGS, CO, 80907

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

Financial Breakdown

Contract Ceiling: $6,981,611

Exercised Options: $6,981,611

Current Obligation: $6,981,611

Actual Outlays: $6,784,913

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline