GSA awards $3.4M contract for courthouse chiller modernization in Alabama

Contract Overview

Contract Amount: $3,395,870 ($3.4M)

Contractor: Ocs-Ncs JV II, LLC

Awarding Agency: General Services Administration

Start Date: 2025-07-07

End Date: 2026-10-30

Contract Duration: 480 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD FOR THREE CHILLERS TO MODERNIZE THE CHILLED WATER PLANT AT FRANK M. JOHNSON FEDERAL COURTHOUSE AL0003 ONE CHURCH STREET MONTGOMERY, ALABAMA 36104.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36104

State: Alabama Government Spending

Plain-Language Summary

General Services Administration obligated $3.4 million to OCS-NCS JV II, LLC for work described as: DESIGN BUILD FOR THREE CHILLERS TO MODERNIZE THE CHILLED WATER PLANT AT FRANK M. JOHNSON FEDERAL COURTHOUSE AL0003 ONE CHURCH STREET MONTGOMERY, ALABAMA 36104. Key points: 1. Contract focuses on critical infrastructure upgrade for federal courthouse. 2. Sole-source award raises questions about competition and potential cost savings. 3. Project duration of 480 days suggests a significant scope of work. 4. Fixed-price contract type aims to control costs, but initial price needs benchmarking. 5. Location in Montgomery, AL, indicates a specific regional infrastructure investment.

Value Assessment

Rating: fair

The contract value of $3,395,870 for designing and building three chillers to modernize a federal courthouse's chilled water plant appears to be within a reasonable range for such specialized infrastructure projects. However, without specific details on the scope of work, the age and capacity of the existing system, and the complexity of the modernization, a precise value-for-money assessment is challenging. Benchmarking against similar federal courthouse modernization projects or large-scale HVAC system replacements in institutional settings would provide a clearer picture of whether this price reflects competitive market rates or if it represents a premium due to the sole-source nature of the award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one contractor, OCS-NCS JV II, LLC, was solicited and considered for this project. The justification for a sole-source award typically involves specific circumstances, such as the unique capabilities of the contractor or the urgency of the requirement. The lack of open competition means that potential cost savings that might arise from multiple bidders vying for the contract were not realized. This approach can sometimes lead to higher prices compared to a fully competed contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the price reductions typically driven by competitive bidding processes. This could result in a higher overall expenditure for this modernization project than if multiple firms had competed.

Public Impact

The primary beneficiaries are the users of the Frank M. Johnson Federal Courthouse in Montgomery, Alabama, who will experience improved climate control and operational reliability. The contract will deliver modernized chilled water plant infrastructure, ensuring the continued functionality and efficiency of the courthouse's cooling systems. The geographic impact is localized to Montgomery, Alabama, addressing a specific federal facility's needs. Workforce implications include employment opportunities for construction and specialized HVAC technicians during the project's 480-day duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially increasing costs.
Lack of transparency in the justification for sole-sourcing.
Fixed-price contract may not fully account for unforeseen complexities in modernization.

Positive Signals

Contract awarded to a specific joint venture (OCS-NCS JV II, LLC) which may possess specialized expertise.
Definitive contract award provides a clear path for project execution.
Project aims to modernize critical infrastructure, ensuring long-term facility function.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS code 236220), is a significant area of federal spending. This contract falls within the broader category of facilities maintenance and modernization. The General Services Administration (GSA) is a major player in managing federal buildings, and projects like this are common as agencies work to maintain aging infrastructure. Benchmarks for similar projects vary widely based on building size, complexity, and location, but modernization of critical systems like HVAC often represents a substantial investment.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to OCS-NCS JV II, LLC, a joint venture. Further analysis would be needed to determine the small business participation within the joint venture itself or if any subcontracting opportunities are planned. The lack of a specific small business set-aside or subcontracting plan could limit the direct economic benefit to the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract will likely fall under the purview of the General Services Administration's Public Buildings Service, which is responsible for federal building operations and maintenance. Accountability measures are inherent in the definitive contract structure and the fixed-price terms. Transparency regarding the sole-source justification and the specific technical requirements would be key areas for public scrutiny. The Inspector General's office for the GSA would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Courthouse Modernization Projects
GSA Facilities Management Contracts
HVAC System Upgrades in Federal Buildings
Public Buildings Service Construction Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for cost overruns due to lack of competition.
Limited transparency on contractor's specific qualifications for this project.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.4 million to OCS-NCS JV II, LLC. DESIGN BUILD FOR THREE CHILLERS TO MODERNIZE THE CHILLED WATER PLANT AT FRANK M. JOHNSON FEDERAL COURTHOUSE AL0003 ONE CHURCH STREET MONTGOMERY, ALABAMA 36104.

Who is the contractor on this award?

The obligated recipient is OCS-NCS JV II, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $3.4 million.

What is the period of performance?

Start: 2025-07-07. End: 2026-10-30.

What is the specific justification provided by GSA for awarding this contract on a sole-source basis to OCS-NCS JV II, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without the official justification document, it is impossible to ascertain the precise reasons. However, the lack of competition means that the government did not explore whether other qualified contractors could perform the work, potentially at a lower cost or with comparable quality. This necessitates a review of the justification to ensure it aligns with federal procurement regulations and serves the best interests of the taxpayer.

How does the awarded price of $3,395,870 compare to similar chiller modernization projects for federal courthouses?

Benchmarking this $3.4 million contract against similar federal courthouse chiller modernization projects is challenging without more detailed project specifications. Factors such as the size and age of the existing plant, the required capacity of the new chillers, the complexity of the design-build process, and the specific geographic location (which impacts labor and material costs) can significantly influence pricing. Generally, large-scale HVAC modernization in institutional settings can range from hundreds of thousands to several million dollars. A sole-source award, as in this case, may also lead to a higher price than a fully competed contract. To provide a precise comparison, one would need access to a database of comparable federal contracts with detailed scopes of work and pricing data, allowing for an apples-to-apples analysis.

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

The primary risk associated with a sole-source award for a construction project like this chiller modernization is the potential for inflated costs due to the absence of competitive bidding. Without multiple contractors vying for the contract, there is less downward pressure on pricing. Additionally, a sole-source award might limit the government's access to a wider range of innovative solutions or specialized expertise that could be available in the broader market. There's also a risk that the contractor may have less incentive to control costs or expedite the project, as they are the only option. Transparency in the justification for the sole-source award is crucial to mitigate concerns about fairness and value for money.

What is the expected impact of this modernization on the operational efficiency and reliability of the Frank M. Johnson Federal Courthouse?

Modernizing the chilled water plant with three new chillers is expected to significantly enhance the operational efficiency and reliability of the Frank M. Johnson Federal Courthouse. Older chiller systems often suffer from reduced energy efficiency, increased maintenance requirements, and a higher likelihood of breakdowns. New, state-of-the-art chillers are typically designed for greater energy savings, leading to reduced utility costs for the facility. Furthermore, a modernized system with updated components and controls should offer improved reliability, minimizing the risk of unexpected failures that could disrupt court operations and compromise the comfort of occupants. The project's duration of 480 days suggests a comprehensive upgrade aimed at ensuring long-term, stable climate control.

What is the track record of OCS-NCS JV II, LLC in performing similar federal construction and modernization projects?

Information regarding the specific track record of OCS-NCS JV II, LLC in performing similar federal construction and modernization projects is not provided in the data. As a joint venture, its performance history may be a composite of its individual member companies' experiences. To assess their capabilities and reliability for this $3.4 million courthouse modernization, a review of their past performance on federal contracts, particularly those involving complex HVAC systems or institutional facilities, would be necessary. This would typically involve examining past performance evaluations, contract completion records, and any history of disputes or performance issues. Without this information, it is difficult to gauge their suitability and the associated risks.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 47PE0225Q0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2110 REYNOLDS LN REAR, LOUISVILLE, KY, 40218

Business Categories: Black American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,395,870

Exercised Options: $3,395,870

Current Obligation: $3,395,870

Actual Outlays: $67,352

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline