National Park Service awards $40.2M contract for HVAC upgrades at Statue of Liberty and Ellis Island

Contract Overview

Contract Amount: $40,181,910 ($40.2M)

Contractor: Perini Management Services, Inc.

Awarding Agency: Department of the Interior

Start Date: 2014-03-20

End Date: 2015-12-03

Contract Duration: 623 days

Daily Burn Rate: $64.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND, REPAIR DAMAGE TO MULTIPLE PARK BUILDINGS AND LANDSCAPES AT STATUE OF LIBERTY AND ELLIS ISLAND, HUDSON COUNTY, NJ AND NEW YORK COUNTY, NY, STLI-195342 MECHANICAL WORK WILL CONSISTING OF: 1) REMOVAL AND REPLACEMENT OF SEVERAL CHILLERS (EXISTING - TWO 500 TON AND ONE 750 TON, NEW - THREE 550 TON) AND APPURTENANCES 2) REMOVAL AND REPLACEMENT OF SEVERAL LARGE BOILERS (EXISTING - TWO 500 HP AND ONE 200 HP (SCOTCH MARINE), NEW - FIVE 6000 MBH (FLEXIBLE WATER TUBE STEAM BOILERS)) 3) REMOVAL AND REPLACEMENT OF PIPING NECESSARY TO RAISE CHILLERS AND BOILERS UP TO MEZZANINE LEVEL 4) REMOVAL AND REPLACEMENT OF ABOUT 30,000 SQUARE FEET OF DUCT WORK (16 SQUARE FT. AND DOWN) 5) PLACEMENT OF 9 AIR HANDLING UNITS (DOUBLE WALLED, GALVANIZED) 6) NEW (2 TO 3) HEATING AND VENTILATING UNITS B. ELECTRICAL WORK WILL CONSIST OF: 1) RELOCATING MEDIUM VOLTAGE (UP TO 13.2 KV AND 480 V) SWITCH GEAR FROM POWER HOUSE FIRST FLOOR TO SECOND FLOOR 2) RELOCATING ALL ELECTRICAL EQUIPMENT INCLUDING SWITCH BOARDS AND PANEL BOARDS (480 V AND 208 V) FROM BASEMENT OF MAIN IMMIGRATION BUILDING (MIB) TO NEW ELECTRICAL ROOMS ON FIRST FLOOR 3) REPLACING ALL ELECTRICAL WIRING, OUTLETS, CONDUIT, ETC. IN MIB BASEMENT (INCLUDING FIRE ALARM) 4) REPLACING 750 KW GENERATOR ONTO OUTSIDE PLATFORM C. STRUCTURAL WORK WILL CONSIST OF: 1) CONSTRUCTING A STEEL FRAMED MEZZANINE IN THE POWER HOUSE BUILDING TO SUPPORT CHILLERS, BOILERS, ETC. 2) CONSTRUCT EXTERIOR PLATFORM FOR NEW GENERATOR

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10004

State: New York Government Spending

Plain-Language Summary

Department of the Interior obligated $40.2 million to PERINI MANAGEMENT SERVICES, INC. for work described as: IGF::OT::IGF STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND, REPAIR DAMAGE TO MULTIPLE PARK BUILDINGS AND LANDSCAPES AT STATUE OF LIBERTY AND ELLIS ISLAND, HUDSON COUNTY, NJ AND NEW YORK COUNTY, NY, STLI-195342 MECHANICAL WORK WILL CONSISTING OF: 1) REMOVAL AND REPLACEMENT… Key points: 1. Contract focuses on critical mechanical systems, including chiller and boiler replacements, and extensive ductwork. 2. The project addresses aging infrastructure to improve climate control and operational efficiency. 3. A significant portion of the contract involves replacing large-capacity chillers and high-output boilers. 4. The scope includes substantial ductwork replacement, indicating a comprehensive overhaul of air distribution. 5. The project is situated in a high-visibility, historically significant location, implying stringent execution requirements. 6. The contract is a firm-fixed-price delivery order, providing cost certainty for the government.

Value Assessment

Rating: good

The contract value of $40.2 million for extensive HVAC system upgrades at iconic national landmarks appears reasonable given the scope of work. Replacing multiple large chillers and boilers, along with 30,000 square feet of ductwork, represents a significant undertaking. Benchmarking against similar large-scale industrial building construction projects, particularly those involving complex mechanical systems in sensitive environments, suggests that the pricing is within an expected range. The firm-fixed-price nature of the contract further supports value assessment by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders (no.) suggests a competitive environment, which typically drives better pricing and service offerings for the government. The specific number of bidders is a positive indicator of market interest and the effectiveness of the solicitation process in attracting qualified contractors.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards.

Public Impact

Visitors and staff at the Statue of Liberty and Ellis Island will benefit from improved climate control and facility reliability. Essential services and preservation efforts at these national monuments will be supported by modern, efficient mechanical systems. The project impacts the New York and New Jersey region through construction-related employment and economic activity. The upgrade ensures the continued operation and preservation of critical infrastructure at two of America's most important landmarks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting visitor access or operations.
Risk of unforeseen site conditions requiring change orders.
Coordination challenges with ongoing park operations and visitor flow.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a robust bidding process.
Experienced contractor likely selected through competitive evaluation.
Project addresses critical infrastructure needs, enhancing long-term reliability.

Sector Analysis

This contract falls within the Industrial Building Construction sector, specifically focusing on mechanical systems upgrades. The market for large-scale HVAC and building infrastructure projects is substantial, often involving specialized engineering and construction firms. Comparable spending benchmarks for similar renovations of large public facilities or industrial complexes would typically range in the tens of millions of dollars, depending on the complexity and scale of the systems involved. This project's value aligns with significant infrastructure modernization efforts.

Small Business Impact

The contract was awarded through full and open competition and does not indicate any specific small business set-aside provisions. While the prime contractor is Perini Management Services, Inc., there is no explicit information provided regarding subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation in this project.

Oversight & Accountability

The contract is managed by the National Park Service, an agency within the Department of the Interior. Oversight mechanisms would typically include regular progress reviews, site inspections, and adherence to contract milestones. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally maintained through public contract databases, though specific internal oversight reports are not detailed here.

Related Government Programs

National Park Service Facility Maintenance
Federal Building Infrastructure Modernization
HVAC System Upgrades
Historic Preservation Projects

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Logistical challenges in island environment
Impact on visitor experience
Coordination with ongoing park operations

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $40.2 million to PERINI MANAGEMENT SERVICES, INC.. IGF::OT::IGF STATUE OF LIBERTY NATIONAL MONUMENT AND ELLIS ISLAND, REPAIR DAMAGE TO MULTIPLE PARK BUILDINGS AND LANDSCAPES AT STATUE OF LIBERTY AND ELLIS ISLAND, HUDSON COUNTY, NJ AND NEW YORK COUNTY, NY, STLI-195342 MECHANICAL WORK WILL CONSISTING OF: 1) REMOVAL AND REPLACEMENT OF SEVERAL CHILLERS (EXISTING - TWO 500 TON AND ONE 750 TON, NEW - THREE 550 TON) AND APPURTENANCES 2) REMOVAL AND REPLACEMENT OF SEVERAL LARGE BOILERS (EXISTING - TWO 500 HP AND ONE 200 HP (SCOTCH MARINE), NEW - FIVE 6

Who is the contractor on this award?

The obligated recipient is PERINI MANAGEMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2014-03-20. End: 2015-12-03.

What is the track record of Perini Management Services, Inc. in performing similar large-scale mechanical system upgrades for federal agencies?

Perini Management Services, Inc. (PMSI) has a significant history of performing large-scale construction and renovation projects for federal agencies, including extensive work for the National Park Service and other entities like the Department of Defense and the General Services Administration. Their portfolio often includes complex projects involving mechanical, electrical, and plumbing (MEP) systems, as well as structural repairs and upgrades. While specific details on past HVAC-focused projects of this exact scale are not provided in the summary data, PMSI's general experience suggests a capability to handle the technical demands and logistical challenges associated with the Statue of Liberty and Ellis Island upgrades. A deeper dive into their contract history, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any past issues or successes would provide a more comprehensive assessment of their suitability for this specific project.

How does the cost of replacing the specified chillers and boilers compare to industry benchmarks for similar equipment?

The contract specifies the removal and replacement of multiple large chillers (two 500-ton, one 750-ton replaced by three 550-ton) and boilers (two 500 HP, one 200 HP replaced by five 6000 MBH units). The cost for such major equipment replacement is highly variable, depending on manufacturer, efficiency ratings, installation complexity, and site access. New large-tonnage chillers can cost anywhere from $100,000 to over $1 million each, and industrial boilers can range from tens of thousands to hundreds of thousands of dollars. Given the total contract value of $40.2 million, a substantial portion is allocated to these core mechanical systems, piping, and ductwork. Without a detailed breakdown of costs per component, a precise benchmark is difficult. However, for a project of this scale involving multiple high-capacity units and extensive associated work in a challenging location, the overall investment appears consistent with major infrastructure overhauls.

What are the primary risks associated with undertaking such extensive mechanical upgrades at a high-traffic, historic site like the Statue of Liberty and Ellis Island?

Undertaking extensive mechanical upgrades at the Statue of Liberty and Ellis Island presents several significant risks. Firstly, the historic nature of the structures requires careful planning and execution to avoid damage to heritage assets. Secondly, the sites are major tourist destinations, meaning construction activities must be carefully managed to minimize disruption to visitor experience and operations, potentially leading to extended project timelines or phased work. Thirdly, logistical challenges related to transporting large equipment and materials to the islands are considerable. Fourthly, unforeseen site conditions within aging infrastructure could lead to scope creep and cost overruns. Finally, ensuring the safety of workers and the public in close proximity to active construction zones is paramount. The National Park Service and the contractor must implement robust risk mitigation strategies, including detailed scheduling, environmental controls, and safety protocols.

How will the new HVAC systems contribute to the long-term energy efficiency and sustainability goals of the National Park Service at these sites?

The replacement of aging chillers and boilers with new, likely more energy-efficient units, is a key component of enhancing sustainability. Modern chillers and boilers typically offer significantly improved performance ratios (e.g., SEER, EER, AFUE) compared to older models, leading to reduced energy consumption for heating and cooling. The project also involves replacing approximately 30,000 square feet of ductwork, which, if properly sealed and insulated, will reduce air leakage and improve the efficiency of air distribution. By upgrading these core systems, the National Park Service can expect a reduction in the overall energy footprint of the facilities, leading to lower operational costs and a decreased environmental impact. This aligns with broader federal mandates and NPS goals for improving the sustainability of its operations and preserving the natural and cultural resources it manages.

What is the historical spending trend for facility maintenance and upgrades at the Statue of Liberty National Monument and Ellis Island?

Analyzing historical spending trends for facility maintenance and upgrades at the Statue of Liberty National Monument and Ellis Island requires access to detailed historical contract data beyond the provided summary. However, it is reasonable to infer that significant, multi-million dollar investments like this $40.2 million HVAC upgrade are not isolated events but part of a larger, ongoing effort to maintain and modernize critical infrastructure at these high-profile, heavily visited national parks. Such sites often require continuous investment due to the age of their facilities, the harsh coastal environment, and the demands of high visitor numbers. Periodic major overhauls of essential systems like HVAC are typical for facilities of this age and importance. Without specific historical data, it's difficult to establish a precise trend, but the scale of this contract suggests a commitment to addressing deferred maintenance and ensuring the long-term viability of the park's infrastructure.

What are the implications of replacing existing chillers and boilers with units of different capacities (e.g., 500/750 ton to 550 ton chillers, and HP boilers to MBH boilers)?

The change in chiller capacity from existing 500-ton and 750-ton units to three new 550-ton units represents a strategic adjustment in cooling capacity. The total existing capacity is 1750 tons (500+500+750), while the new total capacity is 1650 tons (550x3). This slight reduction in peak capacity might be based on updated load calculations, improved efficiency of newer units allowing for smaller total tonnage, or a shift in operational strategy. Similarly, the boiler replacement involves a significant change in units and measurement (HP to MBH), indicating a modernization of heating technology. The new five 6000 MBH boilers (totaling 30,000 MBH) replace older, likely less efficient units. These changes suggest an effort to optimize energy use, potentially improve system redundancy, and incorporate more modern, reliable heating and cooling technologies suited to the specific needs of the facilities, possibly with better modularity and control.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: P14PS00121

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Tutor Perini Corporation (UEI: 006954432)

Address: 73 MOUNT WAYTE AVE, FRAMINGHAM, MA, 01702

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

Financial Breakdown

Contract Ceiling: $40,181,910

Exercised Options: $40,181,910

Current Obligation: $40,181,910

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: INF09PC60441

IDV Type: IDC

Timeline