DOT's FAA awards $6.6M mechanical refurbishment contract to Valcorp Enterprises LLC for automation wing upgrades

Contract Overview

Contract Amount: $6,609,822 ($6.6M)

Contractor: Valcorp Enterprises LLC

Awarding Agency: Department of Transportation

Start Date: 2025-07-14

End Date: 2026-11-20

Contract Duration: 494 days

Daily Burn Rate: $13.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO COMPLETE THE MECHANICAL REFURBISH PROJECT INCLUDING, BUT NOT LIMITED TO, AIR HANDLING UNIT - 211 (AHU) REPLACEMENT IN THE AUTOMATION WING, HWS AIR SEPARAT

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76101

State: Texas Government Spending

Plain-Language Summary

Department of Transportation obligated $6.6 million to VALCORP ENTERPRISES LLC for work described as: CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO COMPLETE THE MECHANICAL REFURBISH PROJECT INCLUDING, BUT NOT LIMITED TO, AIR HANDLING UNIT - 211 (AHU) REPLACEMENT IN THE AUTOMATION WING, HWS AIR SEPARAT Key points: 1. Contract focuses on critical infrastructure upgrades, including AHU-211 replacement. 2. Project duration spans over 1.5 years, indicating a substantial scope of work. 3. The contract is a firm-fixed-price type, shifting cost risk to the contractor. 4. Valcorp Enterprises LLC is the sole awardee, raising questions about competition. 5. The project is located in Texas, potentially impacting local construction workforce. 6. This award falls under commercial and institutional building construction NAICS code.

Value Assessment

Rating: fair

The contract value of $6.6 million for mechanical refurbishment, including an air handling unit replacement, appears to be within a reasonable range for a project of this scope and duration. However, without specific benchmarks for similar FAA automation wing projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides cost certainty but necessitates thorough initial scope definition to avoid change orders.

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 can be justified if there's a unique capability or necessity, but it limits price discovery and potentially leads to higher costs compared to a competitive process. The absence of competition means taxpayers do not benefit from potential cost savings that could arise from multiple bids.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the best possible price due to the lack of competitive pressure.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and its personnel, who will operate in a facility with upgraded mechanical systems. The contract delivers essential infrastructure improvements, ensuring the continued operational efficiency and reliability of the automation wing. The geographic impact is localized to the specific FAA facility in Texas where the work will be performed. The project will likely create or sustain jobs within the construction sector in Texas, benefiting local skilled trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of competition may indicate a lack of available qualified contractors or a poorly defined procurement strategy.
Firm-fixed-price contracts can be costly if the initial scope is not precisely defined, leading to change orders.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government once the scope is finalized.
Contract duration of over 1.5 years suggests a comprehensive approach to the refurbishment.
Focus on critical infrastructure like air handling units ensures operational continuity.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of facilities maintenance and upgrade projects, which are essential for government operations. Benchmarking this specific project against similar mechanical refurbishment efforts within federal agencies would provide further context on its cost-effectiveness.

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 business participation in this specific project are likely limited, potentially impacting the small business ecosystem within the construction sector in the region.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency could be enhanced through public reporting of project milestones and any significant modifications.

Related Government Programs

Federal Aviation Administration Facilities Modernization Projects
Department of Transportation Building Maintenance Contracts
General Services Administration (GSA) Public Buildings Service Contracts
Department of Defense Facilities Renovation Programs

Risk Flags

Sole-source award
Potential for cost overruns if scope is not well-defined
Limited transparency on contractor's past performance

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.6 million to VALCORP ENTERPRISES LLC. CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS, TOOLS, TRANSPORTATION, EQUIPMENT AND SUPERVISION TO COMPLETE THE MECHANICAL REFURBISH PROJECT INCLUDING, BUT NOT LIMITED TO, AIR HANDLING UNIT - 211 (AHU) REPLACEMENT IN THE AUTOMATION WING, HWS AIR SEPARAT

Who is the contractor on this award?

The obligated recipient is VALCORP ENTERPRISES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $6.6 million.

What is the period of performance?

Start: 2025-07-14. End: 2026-11-20.

What is Valcorp Enterprises LLC's track record with the Federal Aviation Administration and other federal agencies?

Information regarding Valcorp Enterprises LLC's specific track record with the Federal Aviation Administration (FAA) and other federal agencies is not detailed in the provided data. A thorough review would involve examining past performance evaluations, contract history, and any reported issues or successes on previous government projects. Understanding their experience with similar mechanical refurbishment projects, particularly those involving critical infrastructure like air handling units, would be crucial for assessing their capability to successfully execute this contract. Without this historical data, it's difficult to gauge their reliability and past performance against expectations.

How does the $6.6 million cost compare to similar mechanical refurbishment projects at FAA facilities?

A direct comparison of the $6.6 million cost to similar mechanical refurbishment projects at FAA facilities is challenging without access to a comprehensive database of comparable contracts. Factors such as the specific scope of work (e.g., complexity of AHU-211 replacement, extent of other mechanical systems involved), geographic location (which impacts labor and material costs), and the age and condition of the existing infrastructure all influence project pricing. Generally, firm-fixed-price contracts aim to establish a clear cost, but benchmarking against projects with identical specifications and in similar economic environments is necessary for a robust value assessment. The duration of the contract (494 days) suggests a significant undertaking, which would naturally correlate with a higher overall cost.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without multiple vendors vying for the contract, there is less downward pressure on costs, potentially leading to the government paying more than it would in a competitive scenario. Another risk is contractor performance; while the firm-fixed-price structure shifts some risk to the contractor, a sole-source award might be given to a contractor who may not have been the most competitive or experienced if the procurement process had been open. Ensuring the contractor has the necessary expertise and capacity to deliver high-quality work within the specified timeframe and budget is paramount.

How effective are firm-fixed-price contracts in managing costs for construction projects of this nature?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs in construction projects when the scope of work is well-defined and unlikely to change significantly. This contract type places the primary responsibility for cost overruns on the contractor, providing cost certainty for the government. However, the effectiveness hinges on the accuracy and completeness of the initial project scope. If unforeseen issues arise or the scope expands, change orders can increase the total contract cost, potentially negating some of the FFP benefits. For a mechanical refurbishment project, thorough site assessments and detailed specifications are crucial to maximize the cost-management benefits of an FFP contract.

What is the historical spending pattern for mechanical refurbishment at FAA facilities?

Historical spending patterns for mechanical refurbishment at FAA facilities are not detailed in the provided data. To analyze this, one would need to examine past contract awards for similar projects across various FAA regions and facilities. Key metrics to track would include the average contract value, duration, type of refurbishment (e.g., HVAC, plumbing, electrical), and the procurement method used (competitive vs. sole-source). Understanding trends in spending, such as increases or decreases in contract values over time, or a shift towards or away from sole-source awards, could provide valuable context for evaluating current spending levels and procurement strategies.

What are the implications of awarding this contract to Valcorp Enterprises LLC without competition for future FAA procurements?

Awarding this contract to Valcorp Enterprises LLC without competition could have several implications for future FAA procurements. Firstly, it might signal to other potential contractors that the FAA is willing to use sole-source justifications, potentially reducing their efforts to compete for similar future contracts if they perceive the process as predetermined. Secondly, it limits the FAA's ability to gather market intelligence on pricing and capabilities from a broader range of vendors, which could hinder effective competition in the future. If Valcorp performs exceptionally well, it could establish them as a preferred vendor, but if performance is subpar, the lack of competition means the FAA may have fewer immediate alternatives for corrective action or future contract awards.

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 COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 697DCK-25-R-00229

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4101 MURRAY AVE, HALTOM CITY, TX, 76117

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Manufacturer of Goods, 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: $6,609,822

Exercised Options: $6,609,822

Current Obligation: $6,609,822

Actual Outlays: $1,376,523

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline