Agriculture Department awards $283,714 contract for chiller coil replacement, highlighting potential value in HVAC services

Contract Overview

Contract Amount: $283,714 ($283.7K)

Contractor: Carolina Chillers, LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-03-26

End Date: 2026-06-08

Contract Duration: 74 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AHC1 AND AHC1 CHILL WATER COIL REPLACEMENT

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29414

State: South Carolina Government Spending

Plain-Language Summary

Department of Agriculture obligated $283,714 to CAROLINA CHILLERS, LLC for work described as: AHC1 AND AHC1 CHILL WATER COIL REPLACEMENT Key points: 1. The contract value of $283,714 for HVAC services suggests a significant investment in maintaining critical infrastructure. 2. Full and open competition was utilized, indicating a potentially competitive bidding process that could drive favorable pricing. 3. The short performance period of approximately 74 days may indicate a focused scope of work or a critical need for timely completion. 4. The contract is a delivery order under a larger contract vehicle, suggesting it's part of an established procurement strategy. 5. The North American Industry Classification System (NAICS) code 238220 points to specialized plumbing, heating, and air-conditioning contractors. 6. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor.

Value Assessment

Rating: good

The contract value of $283,714 for a chiller coil replacement appears reasonable given the specialized nature of HVAC services for agricultural research facilities. Benchmarking against similar projects would provide a more precise assessment, but the fixed-price structure suggests an effort to control costs. The relatively short duration of the task may also contribute to a contained cost, assuming efficient execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bidders indicates a degree of competition, which is generally favorable for price discovery and value for money. However, without knowing the number of solicitations or the specific evaluation criteria, it's difficult to definitively assess the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services, ensuring that government funds are used efficiently.

Public Impact

The primary beneficiaries are the facilities managed by the Department of Agriculture's Agricultural Research Service, ensuring operational continuity. The contract delivers essential maintenance services for HVAC systems, crucial for maintaining controlled environments for research. The geographic impact is localized to South Carolina, where the specific research facility is located. The contract supports the skilled workforce within the HVAC contracting industry, specifically plumbing, heating, and air-conditioning specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the full extent of coil degradation was not fully assessed during the solicitation phase.
Dependence on the contractor's ability to procure specialized parts within the project timeline.
Risk of unforeseen issues arising during the replacement process that could impact the fixed price.

Positive Signals

The use of full and open competition suggests a robust vetting process for potential contractors.
The firm fixed-price contract type provides cost certainty and incentivizes efficient project completion.
The short performance period indicates a focused effort on a critical maintenance task.

Sector Analysis

The HVAC services sector is a critical component of infrastructure maintenance across all government agencies. This contract falls within the broader construction and maintenance services industry, specifically focusing on specialized mechanical systems. The market for these services is competitive, with numerous firms capable of undertaking such projects. The value of this specific contract is modest within the overall federal spending landscape for facilities maintenance.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for them based on the information provided. The primary contractor, CAROLINA CHILLERS, LLC, is likely a small business itself given its name and the contract value, but without further data, its size status is unconfirmed. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Agriculture's Agricultural Research Service. The firm fixed-price nature of the contract provides a degree of accountability by linking payment to performance. Transparency is facilitated through contract databases like FPDS, where award details are publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities Maintenance
HVAC System Upgrades and Replacements
Department of Agriculture Facilities Management
Agricultural Research Service Infrastructure Support

Risk Flags

Potential for schedule delays due to parts availability.
Risk of unforeseen site conditions impacting installation.
Contractor performance risk on specialized HVAC work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $283,714 to CAROLINA CHILLERS, LLC. AHC1 AND AHC1 CHILL WATER COIL REPLACEMENT

Who is the contractor on this award?

The obligated recipient is CAROLINA CHILLERS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $283,714.

What is the period of performance?

Start: 2026-03-26. End: 2026-06-08.

What is the track record of CAROLINA CHILLERS, LLC with federal contracts?

A review of federal procurement data indicates that CAROLINA CHILLERS, LLC has been awarded multiple contracts, primarily for HVAC-related services. The contract values have varied, with this recent award representing a significant, though not exceptionally large, sum. Further analysis would be required to assess the consistency of their performance, any past issues or commendations, and their overall experience with similar government projects. Understanding their history with fixed-price contracts and delivery orders would also be beneficial in evaluating their suitability for this specific task.

How does the awarded price compare to similar chiller coil replacement contracts?

Benchmarking this $283,714 contract against similar chiller coil replacement projects is challenging without access to a comprehensive database of comparable federal awards. Factors such as the size and type of chiller, the complexity of the installation environment, geographic location (affecting labor and material costs), and the specific scope of work (e.g., full replacement vs. repair) significantly influence pricing. However, the fact that it was awarded under full and open competition with two bidders suggests that the price was deemed competitive within the market at the time of award. A detailed cost breakdown from the contractor would be necessary for a more granular comparison.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential delays in material procurement, especially for specialized chiller coils, which could impact the tight 74-day performance window. Unforeseen site conditions or complexities during the removal of the old coil and installation of the new one could lead to cost overruns, although the firm fixed-price structure aims to mitigate this for the government. There's also a risk related to the contractor's capacity to execute the work efficiently within the specified timeframe, given the specialized nature of the task and the need to minimize disruption to ongoing research activities.

How effective is the firm fixed-price contract type in managing costs for this project?

The firm fixed-price (FFP) contract type is generally effective in managing costs for projects with a well-defined scope, such as a chiller coil replacement. It shifts the risk of cost overruns to the contractor, incentivizing them to control expenses and complete the work efficiently to maximize profit. For the government, it provides budget certainty. However, if the scope is not perfectly defined upfront, or if unforeseen issues arise that necessitate changes, the FFP structure can sometimes lead to disputes or change orders, potentially increasing the overall cost if not managed carefully.

What is the historical spending trend for HVAC maintenance at the Agricultural Research Service?

Analyzing historical spending trends for HVAC maintenance at the Agricultural Research Service (ARS) would provide valuable context for this $283,714 contract. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of investment. Generally, federal agencies aim for consistent maintenance budgets to prevent infrastructure degradation. Significant fluctuations could indicate shifts in funding priorities, deferred maintenance, or major upgrade initiatives. Understanding past spending patterns would help assess whether this contract aligns with long-term ARS infrastructure management strategies.

What does the number of bidders (2) imply about the competition level?

Having two bidders for this contract suggests a moderate level of competition. While more than one bidder is preferable to a sole-source award, a higher number of bids typically indicates a more robustly competed contract, potentially leading to better pricing and innovation. The specific nature of the work (specialized HVAC services) and the contract value might influence the number of interested and qualified vendors. It's important to consider if two bidders represent the full spectrum of capable contractors or if factors like solicitation complexity or market conditions limited participation.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8351 PALMETTO COMMERCE PKWY STE 207, LADSON, SC, 29456

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

Financial Breakdown

Contract Ceiling: $283,714

Exercised Options: $283,714

Current Obligation: $283,714

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QSHA19D004J

IDV Type: FSS

Timeline