GSA awards $3.26M HVAC renovation contract to South Dade Air Conditioning & Refrigeration Inc

Contract Overview

Contract Amount: $3,259,875 ($3.3M)

Contractor: South Dade AIR Conditioning & Refrigeration Inc

Awarding Agency: General Services Administration

Start Date: 2024-03-28

End Date: 2027-01-26

Contract Duration: 1,034 days

Daily Burn Rate: $3.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ALEXANDER PIRNIE CARES ACT HVAC RENOVATIONS

Place of Performance

Location: ROCHESTER, MONROE County, NEW YORK, 14614

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $3.3 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC for work described as: ALEXANDER PIRNIE CARES ACT HVAC RENOVATIONS Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost efficiencies. 2. The contract duration of 1034 days suggests a significant, long-term project. 3. Fixed-price contract type aims to control costs, but initial pricing needs benchmarking. 4. The specific NAICS code (236220) indicates a focus on commercial building construction. 5. Awarded by the General Services Administration (GSA), a key federal real estate manager. 6. No small business set-aside was applied, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $3.26 million for HVAC renovations appears substantial. Without comparable contract data for similar GSA projects in New York, a precise value-for-money assessment is difficult. The firm-fixed-price structure provides cost certainty, but the absence of competition means there's no direct market benchmark to evaluate the pricing's competitiveness. Further analysis would require benchmarking against industry standards for commercial building construction and HVAC services of this scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can meet the specific requirements, or in urgent situations. The lack of competition limits price discovery and may result in higher costs for taxpayers compared to a fully competed contract. It is important to understand the justification for the sole-source award to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This contract's value could potentially be higher than if multiple bids were solicited and evaluated.

Public Impact

Federal employees and visitors in the New York facility will benefit from improved climate control and building systems. The contract ensures the continued operation and maintenance of critical building infrastructure. The geographic impact is localized to New York, where the facility is located. The contract supports jobs in the construction and HVAC trades within the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings.
Lack of transparency in the justification for sole-source award.
Long contract duration may not be optimal for evolving HVAC technologies.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established entity in the HVAC sector.
Contract addresses essential building infrastructure maintenance.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically addressing HVAC systems. This sector is vital for maintaining federal facilities and ensuring operational efficiency. The value of this contract, at $3.26 million, is moderate for a federal construction project of this nature. Comparable spending benchmarks would typically involve analyzing other GSA contracts for similar renovations in the Northeast region.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this project are limited. The absence of a small business focus in this sole-source award could represent a missed opportunity to support the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified work within the agreed price. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Renovations
HVAC System Upgrades
GSA Facilities Management
Public Buildings Service Contracts

Risk Flags

Sole-source award requires strong justification.
Potential for cost overruns due to long duration.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.3 million to SOUTH DADE AIR CONDITIONING & REFRIGERATION INC. ALEXANDER PIRNIE CARES ACT HVAC RENOVATIONS

Who is the contractor on this award?

The obligated recipient is SOUTH DADE AIR CONDITIONING & REFRIGERATION INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $3.3 million.

What is the period of performance?

Start: 2024-03-28. End: 2027-01-26.

What is the specific justification for awarding this HVAC renovation contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available to provide the required supplies or services, or when a compelling urgency dictates that the government cannot obtain a competitive proposal in the time available. For this contract, the General Services Administration (GSA) would have had to document why competition was not feasible. This could be due to unique technical requirements, proprietary technology, or a specific, urgent need that only South Dade Air Conditioning & Refrigeration Inc. could meet within the required timeframe. Without access to the official justification documentation, it is impossible to definitively state the reason.

How does the $3.26 million contract value compare to similar HVAC renovation projects managed by GSA?

Benchmarking the $3.26 million contract value against similar GSA HVAC renovation projects requires access to a broader dataset of federal contracts. However, for a significant renovation project spanning over 1000 days, this value is within a plausible range for commercial and institutional buildings. Factors influencing cost include the size of the facility, the complexity of the existing systems, the scope of work (e.g., full replacement vs. upgrade), and regional labor and material costs in New York. A detailed comparison would involve analyzing contracts with similar NAICS codes (236220), contract types (firm-fixed-price), and geographic locations, while accounting for inflation and project scope differences.

What are the potential risks associated with a sole-source award for this construction project?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, the government may not achieve the best possible price. Additionally, there's a risk that the chosen contractor may not be the most innovative or efficient provider available in the market. Transparency can also be a concern, as the justification for not competing the award needs to be robust. Furthermore, if the contractor underperforms, the government has limited leverage compared to a situation where multiple bidders were vying for the contract, potentially leading to delays or cost overruns if not managed carefully.

What is the expected impact of this contract on the federal government's facilities management in New York?

This contract is expected to significantly improve the HVAC infrastructure at a federal facility managed by the GSA in New York. By ensuring the renovation and modernization of climate control systems, the contract will contribute to a more comfortable and productive environment for federal employees and visitors. It also plays a role in maintaining the operational integrity and energy efficiency of the building, potentially leading to long-term cost savings in energy consumption and reduced maintenance issues. The successful completion of this project will uphold the GSA's mission to provide cost-effective, efficient, and sustainable workspace solutions.

What is the track record of South Dade Air Conditioning & Refrigeration Inc. with federal contracts?

The provided data indicates that South Dade Air Conditioning & Refrigeration Inc. has been awarded this specific contract. To assess their track record with federal contracts, a broader search of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal past awards, contract performance history, and any reported issues or commendations. Without this additional information, it's difficult to comment on their overall experience and performance in fulfilling federal obligations beyond this single award.

How does the duration of 1034 days (approx. 2.8 years) influence the assessment of this contract?

The duration of 1034 days for this HVAC renovation project suggests a substantial scope of work, likely involving a comprehensive overhaul or significant upgrades rather than a minor repair. A longer duration can increase the risk of cost escalation due to market fluctuations in labor and materials over time, although the firm-fixed-price contract aims to mitigate this. It also implies a need for careful project management and oversight to ensure timely completion and adherence to specifications. From a taxpayer perspective, a longer project duration means funds are committed over an extended period, necessitating sustained budget allocation and monitoring of progress.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PC0224R0022

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14510 SW 284TH ST, HOMESTEAD, FL, 33033

Business Categories: Black 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, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,259,875

Exercised Options: $3,259,875

Current Obligation: $3,259,875

Actual Outlays: $112,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline