GSA Awards $31.4M Contract to Volmar Construction for Federal Plaza Water Chiller Replacement

Contract Overview

Contract Amount: $31,368,013 ($31.4M)

Contractor: Volmar Construction Inc

Awarding Agency: General Services Administration

Start Date: 2025-04-23

End Date: 2026-12-03

Contract Duration: 589 days

Daily Burn Rate: $53.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF WATER CHILLER ON 26 FEDERAL PLAZA PLA

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10278

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $31.4 million to VOLMAR CONSTRUCTION INC for work described as: REPLACEMENT OF WATER CHILLER ON 26 FEDERAL PLAZA PLA Key points: 1. Contract awarded to Volmar Construction Inc. for a significant infrastructure upgrade. 2. The project involves replacing a water chiller at 26 Federal Plaza, a critical facility. 3. Competition was full and open, suggesting a competitive bidding process. 4. The sector is Commercial and Institutional Building Construction, with a North American Industry Classification System (NAICS) code of 236220.

Value Assessment

Rating: fair

The contract value of $31.4 million for a water chiller replacement appears substantial. Benchmarking against similar large-scale HVAC replacement projects in federal buildings would be necessary to definitively assess its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance and upgrades to federal facilities, ensuring operational continuity.

Public Impact

Ensures continued operation of essential cooling systems for federal employees and public access. Supports the modernization of federal infrastructure, potentially improving energy efficiency. The project's duration of nearly two years suggests a significant undertaking with potential for local economic impact through employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on large construction projects.
Delays in project completion impacting facility operations.
Ensuring the long-term reliability and efficiency of the new chiller system.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Project addresses critical infrastructure need.

Sector Analysis

The Commercial and Institutional Building Construction sector involves significant capital investment for infrastructure projects. Federal spending in this area often focuses on maintenance, repair, and upgrades of existing facilities, with costs varying widely based on project scope and location.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing federal building operations and maintenance. Oversight would focus on ensuring the project adheres to timelines, budget, and quality standards.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Potential for schedule delays in large construction projects.
Risk of unforeseen site conditions impacting cost and timeline.
Ensuring the long-term reliability and maintenance plan for the new equipment.
Dependency on a single contractor for a critical facility component.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.4 million to VOLMAR CONSTRUCTION INC. REPLACEMENT OF WATER CHILLER ON 26 FEDERAL PLAZA PLA

Who is the contractor on this award?

The obligated recipient is VOLMAR CONSTRUCTION INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $31.4 million.

What is the period of performance?

Start: 2025-04-23. End: 2026-12-03.

What is the expected energy efficiency improvement from the new water chiller, and how does it compare to industry benchmarks for similar installations?

The provided data does not specify the expected energy efficiency improvements. A thorough analysis would require reviewing the technical specifications of the new chiller and comparing its projected performance against current energy efficiency standards and benchmarks for commercial and institutional building HVAC systems. This would help determine the long-term operational cost savings and environmental benefits.

What are the key performance indicators (KPIs) being used to monitor the project's progress and ensure it stays within budget and schedule?

Specific KPIs are not detailed in the provided data. Typically, federal construction projects of this magnitude would track metrics such as schedule adherence (e.g., percentage of work completed on time), budget variance (actual costs vs. planned costs), quality control inspections, and safety incident rates. The contracting officer's representative (COR) would be responsible for monitoring these KPIs.

How will the performance of the new chiller be validated post-installation to ensure it meets the contract's requirements and delivers the expected cooling capacity?

Post-installation validation typically involves a series of tests, including performance testing, load testing, and functional testing, to ensure the chiller meets the specified cooling capacity and operational parameters. Acceptance testing by the government, often witnessed by the COR, confirms the system's compliance with contract requirements before final payment is made.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47PC0324R0008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4400 2ND AVE, BROOKLYN, NY, 11232

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,943,307

Exercised Options: $31,368,013

Current Obligation: $31,368,013

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline