DoD Awards $22.4M Contract for Air Handler Unit Replacement in Missouri
Contract Overview
Contract Amount: $22,405,703 ($22.4M)
Contractor: Structsure Projects Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-30
End Date: 2028-01-06
Contract Duration: 828 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: REPLACE FOUR (4) OF 13 AIR HANDLERS UNITS (AHUS). THE PROJECT SHALL INCLUDE A REQUIREMENT FOR A TRANSITION SPACE/BUILDING TO SUPPORT THE PHASING OF THE WORK PER AHU/ZONE DESIGN.
Place of Performance
Location: KANSAS CITY, JACKSON County, MISSOURI, 64131
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $22.4 million to STRUCTSURE PROJECTS INC for work described as: REPLACE FOUR (4) OF 13 AIR HANDLERS UNITS (AHUS). THE PROJECT SHALL INCLUDE A REQUIREMENT FOR A TRANSITION SPACE/BUILDING TO SUPPORT THE PHASING OF THE WORK PER AHU/ZONE DESIGN. Key points: 1. Significant investment in facility maintenance for the Department of Defense. 2. Competition method indicates a potentially competitive bidding process. 3. Project duration of over 800 days suggests complex logistical planning. 4. Focus on critical infrastructure upgrades within a military installation.
Value Assessment
Rating: fair
The contract value of $22.4 million for replacing four air handler units appears substantial. Benchmarking against similar HVAC replacement projects in institutional settings is necessary to determine if this pricing is competitive or inflated, especially considering the project's duration.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method is generally expected to drive competitive pricing and ensure fair market value is obtained for the government.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, aiming for long-term operational efficiency and reduced maintenance costs.
Public Impact
Ensures operational readiness by maintaining critical building systems. Potential for improved energy efficiency and environmental controls. Supports local economy through construction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration may lead to cost overruns or delays.
- Potential for unforeseen site conditions impacting scope and cost.
- Reliance on a single contractor for a multi-year project.
Positive Signals
- Full and open competition should yield competitive pricing.
- Investment in aging infrastructure is necessary for long-term sustainability.
- Clear project scope for AHU replacement.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on HVAC system upgrades. Spending in this sector is crucial for maintaining government facilities, with benchmarks varying widely based on project complexity and scale.
Small Business Impact
The data indicates that small businesses were not awarded this contract, as the prime contractor is StructSure Projects Inc. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
Awarded as a delivery order under a larger contract, oversight will depend on the existing contract's management structure. The long duration necessitates diligent monitoring of progress, costs, and adherence to specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost potential
- Long project duration increases risk of cost escalation
- Complexity of phased replacement and transition space
- Potential for unforeseen site conditions
Tags
commercial-and-institutional-building-co, department-of-defense, mo, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.4 million to STRUCTSURE PROJECTS INC. REPLACE FOUR (4) OF 13 AIR HANDLERS UNITS (AHUS). THE PROJECT SHALL INCLUDE A REQUIREMENT FOR A TRANSITION SPACE/BUILDING TO SUPPORT THE PHASING OF THE WORK PER AHU/ZONE DESIGN.
Who is the contractor on this award?
The obligated recipient is STRUCTSURE PROJECTS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.4 million.
What is the period of performance?
Start: 2025-09-30. End: 2028-01-06.
What is the estimated cost per air handler unit, and how does it compare to industry averages for similar replacements?
The total contract value is $22.4 million for four units, averaging $5.6 million per unit. This figure needs to be benchmarked against similar projects considering the complexity of transition spaces and specific design requirements. Without detailed specifications, a direct comparison is difficult, but this average appears high and warrants further investigation into the scope and associated costs.
What are the primary risks associated with a project of this duration and complexity?
Key risks include potential cost escalation due to inflation over the 828-day period, unforeseen site conditions requiring scope changes, and contractor performance issues impacting the phased replacement schedule. Delays in one AHU could cascade, affecting other zones and potentially impacting facility operations. Ensuring robust contract management and contingency planning is crucial.
How will the transition space requirement impact the overall project effectiveness and cost?
The requirement for a transition space/building is critical for maintaining operational continuity while replacing the AHUs. Its effectiveness hinges on proper design and integration to minimize disruption. This adds complexity and cost but is essential for ensuring the facility remains functional. The success of this element directly impacts the project's overall effectiveness and budget adherence.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 903 E 104TH ST, KANSAS CITY, MO, 64131
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation
Financial Breakdown
Contract Ceiling: $22,405,703
Exercised Options: $22,405,703
Current Obligation: $22,405,703
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY25D0032
IDV Type: IDC
Timeline
Start Date: 2025-09-30
Current End Date: 2028-01-06
Potential End Date: 2028-01-06 00:00:00
Last Modified: 2025-10-22
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