DOJ awards $3.8M contract for prison cooling system upgrades, highlighting infrastructure needs

Contract Overview

Contract Amount: $3,820,262 ($3.8M)

Contractor: Utility Systems Solutions, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-07-01

End Date: 2026-06-30

Contract Duration: 364 days

Daily Burn Rate: $10.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FCC TUCSON_ REPLACE CHILLERS AND COOLING SYSTEM (PROJECT 25Z6AC9)

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85756

State: Arizona Government Spending

Plain-Language Summary

Department of Justice obligated $3.8 million to UTILITY SYSTEMS SOLUTIONS, INC. for work described as: FCC TUCSON_ REPLACE CHILLERS AND COOLING SYSTEM (PROJECT 25Z6AC9) Key points: 1. Contract addresses critical infrastructure maintenance for the Federal Prison System. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and provide budget certainty. 4. The project duration of one year aligns with the scope of replacing chiller and cooling systems. 5. The contractor, Utility Systems Solutions, Inc., will be responsible for delivering essential facility upgrades.

Value Assessment

Rating: good

The contract value of $3.82 million for replacing chillers and cooling systems appears reasonable for a federal facility of this nature. Benchmarking against similar projects for HVAC system overhauls in correctional institutions would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has a clear understanding of the project scope and associated costs, which can lead to better cost control compared to cost-reimbursement contracts.

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 while the initial solicitation might have had some exclusions, the final award was made through a broad competitive process. Seven bids were received, demonstrating a healthy level of interest and competition among qualified contractors for this type of specialized work.

Taxpayer Impact: A competitive bidding process like this generally benefits taxpayers by driving down prices and encouraging contractors to offer their best value to secure the award.

Public Impact

The primary beneficiaries are the inmates and staff at the FCC Tucson facility, who will experience improved environmental conditions. The contract will deliver essential upgrades to the facility's cooling and chiller systems, ensuring operational reliability. The geographic impact is localized to FCC Tucson in Arizona. The contract will likely involve skilled labor in the HVAC and plumbing trades, potentially creating short-term employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during installation that are not adequately covered by the fixed-price contract.
Dependence on the contractor's ability to procure necessary parts and equipment within the project timeline.
Risk of disruption to facility operations if the replacement process is not managed efficiently.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The competitive bidding process suggests a fair market price was likely achieved.
The project addresses critical infrastructure, reducing the risk of system failure.
The one-year duration is appropriate for the scope of work, allowing for focused execution.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC systems. The market for such services is robust, driven by the continuous need for upgrades and maintenance in government and commercial buildings. Federal spending in this area is significant, supporting the modernization of aging infrastructure across various agencies. Comparable spending benchmarks would involve analyzing other federal contracts for similar HVAC replacements in correctional facilities or large government buildings.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary award went to Utility Systems Solutions, Inc., there may be opportunities for small businesses to participate as subcontractors, particularly in specialized trades or material supply, depending on the prime contractor's subcontracting plan.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Prison System's contracting officers and facility management personnel. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services by the deadline. Transparency is generally maintained through federal contract databases, though specific project progress reports may not be publicly available. The Inspector General's office for the Department of Justice may conduct audits or investigations if concerns arise regarding performance or financial integrity.

Related Government Programs

Federal Prison System Infrastructure Modernization
Bureau of Prisons Facility Maintenance
Department of Justice Capital Improvements
Government Building HVAC Upgrades

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.8 million to UTILITY SYSTEMS SOLUTIONS, INC.. FCC TUCSON_ REPLACE CHILLERS AND COOLING SYSTEM (PROJECT 25Z6AC9)

Who is the contractor on this award?

The obligated recipient is UTILITY SYSTEMS SOLUTIONS, 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 $3.8 million.

What is the period of performance?

Start: 2025-07-01. End: 2026-06-30.

What is the track record of Utility Systems Solutions, Inc. with federal contracts, particularly for similar HVAC projects?

A review of federal contract databases indicates that Utility Systems Solutions, Inc. has a history of performing work for various government agencies. While specific details on past HVAC projects of this scale would require deeper analysis, their presence in the federal contracting space suggests experience. Further investigation into past performance reviews, any past performance issues, and the types of contracts they have held (e.g., firm fixed-price, cost-plus) would provide a clearer picture of their reliability and capability for this specific project. Examining their award history for projects within the Department of Justice or Bureau of Prisons would be particularly relevant.

How does the awarded price of $3.82 million compare to similar HVAC replacement projects in federal correctional facilities?

Benchmarking this $3.82 million contract against similar HVAC replacement projects in federal correctional facilities is crucial for assessing value for money. Without access to a comprehensive database of comparable projects, a precise comparison is difficult. However, factors such as facility size, complexity of the existing system, specific equipment being replaced (e.g., chiller capacity, number of cooling units), and geographic location all influence cost. Generally, large-scale infrastructure upgrades in secure environments like prisons can incur higher costs due to security requirements and operational constraints. A detailed analysis would involve comparing square footage, system age, and scope of work for other awarded contracts.

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

The primary risks associated with this contract include potential delays in material procurement, unforeseen site conditions during installation, and the possibility of disruptions to the facility's ongoing operations. Mitigation strategies are likely embedded within the contract terms. The firm fixed-price nature of the contract shifts much of the cost risk to the contractor, incentivizing them to manage budgets effectively. The one-year duration provides a defined timeline, and the competitive bidding process should have vetted the contractor's capability to manage such projects. Clear communication protocols and contingency plans for operational disruptions would also be critical mitigation measures.

What is the expected impact of these cooling system upgrades on the operational effectiveness and living conditions at FCC Tucson?

The replacement of chillers and the cooling system is expected to significantly improve the operational effectiveness and living conditions at FCC Tucson. Reliable and efficient cooling is essential for maintaining a safe and habitable environment for both inmates and staff, impacting morale, health, and security. Modernized systems are typically more energy-efficient, potentially leading to long-term operational cost savings for the Bureau of Prisons. Furthermore, reducing the risk of system failure prevents potential disruptions to essential services and ensures compliance with environmental standards, thereby enhancing the overall operational integrity of the facility.

How has federal spending on prison infrastructure maintenance and upgrades trended over the past five years?

Federal spending on prison infrastructure maintenance and upgrades has generally been a consistent, albeit often underfunded, priority for agencies like the Bureau of Prisons. Over the past five years, there has been a recognized need for significant investment in modernizing aging federal correctional facilities, addressing deferred maintenance, and improving energy efficiency. While specific aggregate spending figures fluctuate annually based on appropriations and project needs, reports from the Government Accountability Office (GAO) and the Department of Justice's own strategic plans often highlight the substantial backlog of maintenance and repair requirements. This contract for FCC Tucson aligns with a broader, ongoing effort to address these infrastructure deficits.

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: 15BFA025B00000021

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14330 MIDWAY ROAD STE 200, DALLAS, TX, 75244

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,820,262

Exercised Options: $3,820,262

Current Obligation: $3,820,262

Actual Outlays: $2,687,988

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline