Air Force awards $18.7M contract for air conditioning equipment to HDT EP, Inc
Contract Overview
Contract Amount: $10,425,191 ($10.4M)
Contractor: HDT EP, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-05-17
End Date: 2009-12-31
Contract Duration: 1,324 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!000115!5700!FA8533!WR-ALC-LEKVB !FA853306D0003 !A!N! !N!0003 ! !20060517!20070630!187116348!187116348!187116348!N!NORDIC AIR INC !5455 N RIVER RD W !GENEVA !OH!44041!29610!007!39!GENEVA !ASHTABULA !OHIO !+000009724400!N!N!000000000000!4120!AIR CONDITIONING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !333415!E! !5!A!S! ! !D!20110202!B! ! !A! !A!N!J!2!006!K! !A!N!Z! ! !N!B!N!Y! ! !A! !B!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: GENEVA, ASHTABULA County, OHIO, 44041
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $10.4 million to HDT EP, INC. for work described as: 200608!000115!5700!FA8533!WR-ALC-LEKVB !FA853306D0003 !A!N! !N!0003 ! !20060517!20070630!187116348!187116348!187116348!N!NORDIC AIR INC !5455 N RIVER RD W !GENEVA !OH!44041!29610!007!39!GENEVA !ASHT… Key points: 1. The contract for air conditioning equipment was awarded to HDT EP, Inc. for $18.7 million. 2. The procurement method was Full and Open Competition After Exclusion of Sources, suggesting a competitive process. 3. The contract duration is 1324 days, indicating a long-term need for the equipment. 4. The sector is primarily IT and Defense, given the agency and product type.
Value Assessment
Rating: fair
The contract value of $18.7 million for air conditioning equipment over approximately 3.5 years appears to be within a reasonable range for specialized industrial equipment, though specific benchmarks are not readily available.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while competition was sought, certain sources were excluded. This method can impact price discovery by potentially limiting the number of bidders.
Taxpayer Impact: The competitive nature of the award, despite exclusions, suggests an effort to secure fair pricing for taxpayers, though the exact impact is difficult to quantify without knowing the excluded sources and their potential bids.
Public Impact
Military bases and facilities will receive essential climate control equipment. The contract supports a U.S. manufacturer, contributing to domestic industry. The long-term nature of the contract provides stability for the awarded vendor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for limited competition due to source exclusion.
- Lack of specific unit cost data for benchmarking.
- Long contract duration may not reflect evolving technology needs.
Positive Signals
- Awarded under a competitive process.
- Supports critical operational needs for the Air Force.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The acquisition falls under the 'Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing' sector. Spending in this area for the Department of Defense is often driven by operational readiness and infrastructure maintenance needs, with significant variability based on project scale and technological requirements.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine any small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, indicating oversight by a major military branch. The 'Full and Open Competition After Exclusion of Sources' method suggests a structured procurement process, but the specifics of the exclusion warrant further review for accountability.
Related Government Programs
- Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for limited competition.
- Lack of detailed technical specifications.
- Unclear justification for source exclusion.
- No explicit mention of small business participation.
- Long contract duration may lead to technology obsolescence.
Tags
air-conditioning-and-warm-air-heating-eq, department-of-defense, oh, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $10.4 million to HDT EP, INC.. 200608!000115!5700!FA8533!WR-ALC-LEKVB !FA853306D0003 !A!N! !N!0003 ! !20060517!20070630!187116348!187116348!187116348!N!NORDIC AIR INC !5455 N RIVER RD W !GENEVA !OH!44041!29610!007!39!GENEVA !ASHTABULA !OHIO !+000009724400!N!N!000000000000!4120!AIR CONDITIONING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !NOT DISCERNABLE !333415!E! !5!A!S! ! !D!201
Who is the contractor on this award?
The obligated recipient is HDT EP, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $10.4 million.
What is the period of performance?
Start: 2006-05-17. End: 2009-12-31.
What was the specific rationale for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award, and did this exclusion impact the final price?
The rationale for excluding specific sources is not detailed in the provided data. Such exclusions can occur for various reasons, including national security, specific technical requirements, or past performance issues. Without knowing the excluded parties and the competitive landscape, it's difficult to definitively state the price impact. However, limiting the pool of potential bidders can sometimes lead to higher prices than a truly unrestricted competition.
How does the $18.7 million contract value compare to industry benchmarks for similar air conditioning equipment procured by the Department of Defense over a 1324-day period?
Directly comparing this $18.7 million contract value to industry benchmarks is challenging without more specific details on the equipment's technical specifications, capacity, and intended operating environment. However, for large-scale, potentially ruggedized or specialized climate control systems required by the military, this figure appears plausible for a multi-year procurement. A more precise assessment would require access to historical DoD contract data for similar items.
What are the key performance metrics or service level agreements associated with this contract to ensure the effectiveness and reliability of the air conditioning equipment?
The provided data does not specify the key performance metrics or service level agreements tied to this contract. Typically, such contracts would include clauses related to delivery timelines, warranty periods, maintenance requirements, and operational performance standards (e.g., temperature regulation capabilities). Ensuring these are clearly defined and monitored is crucial for verifying the effectiveness and reliability of the procured equipment.
Industry Classification
NAICS: Manufacturing › Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing › Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: HDT International Holdings Inc. (UEI: 800607454)
Address: 5455 N RIVER RD W, GENEVA, OH, 14
Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA853306D0003
IDV Type: IDC
Timeline
Start Date: 2006-05-17
Current End Date: 2009-12-31
Potential End Date: 2011-02-02 00:00:00
Last Modified: 2009-12-22
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