Cox Construction Co. awarded $18.1M for Building 1 HVAC Remodel by the Army

Contract Overview

Contract Amount: $18,061,368 ($18.1M)

Contractor: COX Construction CO

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2014-01-31

Contract Duration: 1,950 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLDG 1, HVAC REMODEL

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502, UNITED STATES OF AMERICA

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $18.1 million to COX CONSTRUCTION CO for work described as: BLDG 1, HVAC REMODEL Key points: 1. The contract value of $18.1 million for an HVAC remodel appears substantial, warranting a close look at the scope and duration. 2. Full and open competition suggests a potentially competitive bidding process, which could lead to better pricing for the government. 3. The contract duration of 1950 days (over 5 years) indicates a long-term project, raising questions about potential cost overruns or scope creep. 4. Fixed pricing can offer cost certainty, but may also limit flexibility if unforeseen issues arise during the extensive project timeline. 5. The award was made by the Department of the Army, a major federal agency with significant construction and facilities management needs. 6. The North American Industry Classification System (NAICS) code 238220 points to specialized contractors in plumbing, heating, and air conditioning. 7. The contract was awarded in 2008 and completed in 2014, providing a historical data point for similar projects.

Value Assessment

Rating: fair

The contract value of $18.1 million for an HVAC remodel over nearly six years is a significant investment. Without specific details on the scope of work for Building 1, it's challenging to benchmark against similar projects. However, the duration suggests a comprehensive upgrade or replacement of systems. The firm fixed-price nature of the contract provides cost certainty, but the long timeline could expose the government to risks if market conditions or project requirements change significantly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically fosters a competitive environment, potentially driving down prices and ensuring the government receives fair market value. The number of bidders is not specified, but the open competition is a positive signal for price discovery and efficient resource allocation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can lead to more cost-effective solutions and prevent inflated pricing.

Public Impact

Military personnel and civilian employees working in Building 1 will benefit from improved HVAC systems, leading to better working conditions. The project delivers essential infrastructure upgrades to a federal facility managed by the Department of the Army. The geographic impact is localized to the facility where Building 1 is located, likely a military installation in Nevada. The contract supports jobs within the construction sector, specifically for HVAC contractors and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1950 days) increases the risk of cost escalation due to inflation or unforeseen project complexities.
Firm fixed-price contracts can be disadvantageous if the scope of work expands significantly beyond initial estimates.
Lack of specific details on the HVAC systems being replaced or upgraded makes it difficult to assess the true value and necessity of the expenditure.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The firm fixed-price contract provides budget certainty for the government, assuming the scope is well-defined.
The project addresses critical infrastructure needs for a federal facility, ensuring operational continuity and improved conditions.

Sector Analysis

The construction sector, particularly the specialized area of HVAC contracting, is a significant component of federal spending on facilities management and infrastructure. This contract falls within the broader category of building services and maintenance. Federal agencies like the Department of the Army regularly contract for such services to maintain their vast real estate portfolios. Benchmarking this specific HVAC remodel against other federal projects of similar scale and complexity would provide further insight into its value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, it likely did not directly benefit small business set-aside programs. However, the prime contractor, Cox Construction Co., may have subcontracted portions of the work to small businesses, which is a common practice in larger construction projects. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would have been managed by the Department of the Army's contracting and facilities management divisions. The firm fixed-price nature of the contract implies that the contractor bears most of the risk for cost overruns, but oversight would still be necessary to ensure quality, adherence to specifications, and timely completion. Transparency is generally facilitated through contract award databases, but detailed project performance data may be less accessible.

Related Government Programs

Federal Building Renovations
Military Base Infrastructure
HVAC System Upgrades
Department of Defense Facilities Management
Construction Services Contracts

Risk Flags

Long contract duration
Potential for scope creep
Fixed-price risk on long-term projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.1 million to COX CONSTRUCTION CO. BLDG 1, HVAC REMODEL

Who is the contractor on this award?

The obligated recipient is COX CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $18.1 million.

What is the period of performance?

Start: 2008-09-29. End: 2014-01-31.

What was the specific scope of work for the Building 1 HVAC Remodel, and what were the key performance indicators for success?

The provided data does not detail the specific scope of work for the Building 1 HVAC Remodel beyond it being an HVAC remodel. Key performance indicators (KPIs) for such a project would typically include factors like energy efficiency improvements, system reliability, indoor air quality standards met, and adherence to project timelines and budget. Without the detailed contract statement of work, a precise assessment of the project's objectives and success metrics is not possible. However, given the substantial value and long duration, it likely involved a comprehensive overhaul or replacement of the existing HVAC infrastructure, potentially including upgrades to control systems, ductwork, and energy-saving technologies to meet modern standards and reduce operational costs for the facility.

How does the $18.1 million contract value compare to similar HVAC remodeling projects for federal buildings of comparable size and complexity?

Benchmarking the $18.1 million contract value requires detailed information on the size of Building 1, the specific HVAC systems involved (e.g., central plant, distributed units, ventilation, cooling, heating), and the extent of the remodel (e.g., full replacement, partial upgrade, system modernization). Federal construction projects, especially those involving extensive infrastructure like HVAC systems over a long duration (1950 days), can vary significantly in cost. A value of $18.1 million over nearly six years suggests a large-scale undertaking. To provide a meaningful comparison, one would need to analyze data from similar projects awarded by the Department of Defense or other agencies for buildings of similar square footage and functional use, considering factors like geographic location (which can impact labor and material costs) and the specific technologies implemented.

What were the primary risks identified for this contract, and what mitigation strategies were employed?

For a long-duration, firm fixed-price construction contract like this HVAC remodel, primary risks often include scope creep, unforeseen site conditions, material price fluctuations, labor availability issues, and delays due to weather or other external factors. Given the firm fixed-price nature, the contractor, Cox Construction Co., would bear the brunt of cost overruns stemming from these risks. Mitigation strategies typically involve thorough initial planning and design, detailed site investigations, robust contract clauses addressing change orders and unforeseen conditions, and strong project management and oversight by the contracting agency (Department of the Army). The long duration (1950 days) inherently increases the risk of market volatility impacting material and labor costs, which the fixed price aims to insulate the government from, provided the scope is precisely defined.

What is the track record of Cox Construction Co. in handling large-scale federal HVAC projects?

The provided data indicates Cox Construction Co. was awarded this $18.1 million contract for an HVAC remodel. To assess their track record, one would need to examine their past performance on similar federal contracts. This would involve looking at contract completion history (on-time and within budget), quality of work, any past performance issues or disputes, and their experience with projects of comparable size and complexity. Federal procurement databases and past performance reviews (if publicly available) would be the primary sources for this information. Without access to such detailed historical performance data, it's difficult to definitively assess Cox Construction Co.'s specific track record for large-scale federal HVAC projects beyond this single award.

How did the competition level (full and open) influence the final contract price compared to a sole-source or limited competition scenario?

Full and open competition generally leads to more competitive pricing because it allows a wider range of qualified contractors to bid, increasing the likelihood of receiving multiple proposals with varying price points. This competitive pressure encourages bidders to offer their best possible pricing to secure the contract. In contrast, sole-source or limited competition scenarios often result in higher prices because the contractor faces less pressure to be cost-competitive. While the exact price impact cannot be quantified without knowing what prices might have been under other competition levels, the 'full and open' designation suggests that taxpayers likely benefited from a more market-driven price for this $18.1 million HVAC remodel.

What is the historical spending trend for HVAC remodeling projects by the Department of the Army, and how does this contract fit within that trend?

Analyzing the historical spending trend for HVAC remodeling projects by the Department of the Army would require access to comprehensive historical contract data. This would involve aggregating spending on similar NAICS codes (like 238220) and contract types over several fiscal years. The $18.1 million award to Cox Construction Co. in 2008 represents a significant single investment. Without broader historical data, it's difficult to definitively state how this contract fits into the overall trend. However, it indicates a substantial commitment to infrastructure modernization or maintenance within a specific facility. Trends might show increasing or decreasing investment in such projects based on budget allocations, aging infrastructure needs, and modernization initiatives within the Army.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: W9123808B0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3170 SCOTT ST, VISTA, CA, 92081

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

Financial Breakdown

Contract Ceiling: $18,265,339

Exercised Options: $18,265,339

Current Obligation: $18,061,368

Contract Characteristics

Cost or Pricing Data: NO

Timeline