DOT awards $6.18M for Pontiac HVAC/Parking Lot project, highlighting construction sector activity

Contract Overview

Contract Amount: $6,179,091 ($6.2M)

Contractor: THE Matthews Group Inc

Awarding Agency: Department of Transportation

Start Date: 2024-03-18

End Date: 2026-03-31

Contract Duration: 743 days

Daily Burn Rate: $8.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: (BIL) DESIGN/BUILD OF THE PTK HVAC/PARKING LOT PROJECT IN PONTIAC, MI

Place of Performance

Location: PONTIAC, OAKLAND County, MICHIGAN, 48340

State: Michigan Government Spending

Plain-Language Summary

Department of Transportation obligated $6.2 million to THE MATTHEWS GROUP INC for work described as: (BIL) DESIGN/BUILD OF THE PTK HVAC/PARKING LOT PROJECT IN PONTIAC, MI Key points: 1. Project focuses on essential infrastructure upgrades for a federal facility. 2. Contract awarded to The Matthews Group Inc. indicates a specific market player. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of 743 days suggests a significant scope of work. 5. Location in Michigan places the project within a specific regional economic context. 6. The project falls under commercial and institutional building construction, a broad industry category.

Value Assessment

Rating: fair

The contract value of $6.18 million for a design/build HVAC and parking lot project is within a typical range for such infrastructure work. Benchmarking against similar federal construction projects of comparable scope and complexity would be necessary for a precise value-for-money assessment. However, without specific details on the scope of work, materials, and labor involved, it is difficult to definitively assess if the pricing is competitive or represents excellent value. The fixed-price nature of the contract provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was likely a full and open competition among eligible vendors. The presence of 2 bidders indicates a moderate level of competition for this project. While not a large number, it suggests that multiple firms were interested and capable of undertaking the work. This level of competition is generally sufficient to promote price discovery and encourage competitive bidding, though a higher number of bidders could potentially lead to even more aggressive pricing.

Taxpayer Impact: For taxpayers, a competed contract under SAP with multiple bidders generally leads to a fair market price, avoiding the potential overspending associated with sole-source awards.

Public Impact

The project will benefit the Department of Transportation by ensuring operational efficiency and safety at the Pontiac facility. Services delivered include design and construction of HVAC systems and parking lot improvements. The geographic impact is localized to Pontiac, Michigan, providing local economic stimulus. Workforce implications include job creation for construction workers and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in design-build projects if initial requirements are not clearly defined.
Dependency on The Matthews Group Inc. for timely and quality delivery.
Risk of unforeseen site conditions impacting schedule and cost.

Positive Signals

Fixed-price contract helps mitigate cost overruns.
Competition, even if limited, suggests a degree of market validation for the price.
Project addresses critical infrastructure needs, ensuring long-term facility functionality.

Sector Analysis

The construction sector is a significant part of the US economy, encompassing a wide range of projects from residential to large-scale infrastructure. Federal spending in this sector often focuses on maintaining and upgrading government facilities, transportation networks, and defense installations. This project, involving building construction and infrastructure improvements, fits within the broader commercial and institutional building construction sub-sector. Comparable spending benchmarks would typically be derived from databases tracking federal construction awards by project type, size, and location.

Small Business Impact

The contract was competed under SAP, which can sometimes include provisions for small business participation. However, the data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). The prime contractor, The Matthews Group Inc., is not specified as a small business. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities, which are not detailed in this award notice. Further analysis would be needed to determine if subcontracting goals were established or met.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Federal Aviation Administration (FAA), a division of the Department of Transportation. Accountability measures are embedded in the firm fixed-price contract terms, which obligate the contractor to deliver the specified work within the agreed-upon price. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Aviation Administration Facility Upgrades
Department of Transportation Infrastructure Projects
Commercial Building Construction Contracts
HVAC System Modernization Projects
Federal Parking Lot Construction

Risk Flags

Potential for SAP threshold misinterpretation
Limited competition data (2 bidders)
Need for detailed scope comparison for value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.2 million to THE MATTHEWS GROUP INC. (BIL) DESIGN/BUILD OF THE PTK HVAC/PARKING LOT PROJECT IN PONTIAC, MI

Who is the contractor on this award?

The obligated recipient is THE MATTHEWS GROUP INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $6.2 million.

What is the period of performance?

Start: 2024-03-18. End: 2026-03-31.

What is the track record of The Matthews Group Inc. with federal contracts, particularly in construction and infrastructure?

A review of The Matthews Group Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including their success in meeting deadlines, staying within budget, and adhering to quality standards. Information from sources like the Federal Procurement Data System (FPDS) or SAM.gov could reveal their experience with government agencies, contract types, and any past performance issues or accolades. Understanding their history with the FAA or DOT specifically would also be valuable context for this current award.

How does the $6.18 million cost compare to similar federal HVAC and parking lot projects in Michigan or the Midwest region?

To benchmark the value, we would compare this $6.18 million award against similar federal projects for HVAC upgrades and parking lot construction in the Midwest region over the past 3-5 years. Key comparison points would include project size (square footage, capacity), scope of work (design-build vs. separate design/construction), materials specified, and contract duration. Analyzing the cost per square foot or cost per parking space for comparable projects would provide a quantitative measure of whether this contract represents good or fair value. Without access to a detailed breakdown of the scope and specifications, a precise comparison is challenging.

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

The primary risks for a design-build contract like this include potential scope creep if initial requirements are not meticulously defined, contractor performance issues (delays, quality defects), and unforeseen site conditions. Mitigation strategies typically involve robust contract language, clear performance metrics, regular progress reviews, and contingency planning. The firm fixed-price structure inherently shifts some cost risk to the contractor. The FAA's oversight and the contractor's own risk management processes are crucial for successful project completion. The relatively short duration for a design-build project might indicate a well-defined scope or a phased approach.

What is the expected impact of this project on the operational efficiency and safety of the FAA facility in Pontiac, MI?

The project's focus on HVAC and parking lot improvements directly addresses critical operational and safety aspects of the FAA facility. An upgraded HVAC system will ensure a stable and healthy working environment for personnel, potentially improving productivity and reducing equipment failures due to environmental stress. Improved parking facilities can enhance safety for employees and visitors by providing adequate, well-maintained parking, potentially reducing accidents and improving traffic flow within the facility grounds. These upgrades are essential for maintaining the facility's functionality and supporting the FAA's mission.

How has federal spending on commercial and institutional building construction, specifically by the FAA, trended in recent years?

Analyzing recent federal spending trends in commercial and institutional building construction by the FAA would provide context for this $6.18 million award. This involves examining historical contract data to identify patterns in award values, project types, and geographic distribution. Understanding whether FAA spending in this category has been increasing, decreasing, or remaining stable can indicate budget priorities and market conditions. For instance, a consistent or increasing trend might suggest ongoing investment in facility modernization across the agency, making this project part of a larger capital improvement strategy.

What is the significance of the 'COMPETED UNDER SAP' designation for this contract's value and competition?

The designation 'COMPETED UNDER SAP' (Simplified Acquisition Procedures) indicates that this contract falls within the threshold for simplified procurement processes, typically for purchases valued between $10,000 and $250,000 (though thresholds can vary). However, the award value of $6.18 million significantly exceeds the standard SAP threshold. This suggests either an error in the provided data or that 'SAP' is being used here in a non-standard way, perhaps referring to a specific agency's internal simplified process for larger awards or a miscategorization. If it truly falls under SAP, it implies a less formal, faster procurement method than full-scale competitive bidding, potentially impacting the depth of competition and price scrutiny.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18915 LINCOLN RD, PURCELLVILLE, VA, 20132

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

Financial Breakdown

Contract Ceiling: $6,185,381

Exercised Options: $6,179,091

Current Obligation: $6,179,091

Actual Outlays: $5,810,753

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 697DCK23G00010

IDV Type: BOA

Timeline