Shekar Engineering awarded $153K for chiller maintenance at USDA's York facility

Contract Overview

Contract Amount: $153,464 ($153.5K)

Contractor: Shekar Engineering, P.L.C

Awarding Agency: Department of Agriculture

Start Date: 2023-09-15

End Date: 2027-09-14

Contract Duration: 1,460 days

Daily Burn Rate: $105/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BLDG 154 YORK CHILLER MAINTENANCE

Place of Performance

Location: AMES, STORY County, IOWA, 50010

State: Iowa Government Spending

Plain-Language Summary

Department of Agriculture obligated $153,463.59 to SHEKAR ENGINEERING, P.L.C for work described as: BLDG 154 YORK CHILLER MAINTENANCE Key points: 1. Contract awarded for essential building infrastructure maintenance. 2. Fixed-price contract type aims to control costs. 3. Performance period spans four years, indicating a need for sustained service. 4. Awarded to a single vendor, raising questions about competitive pressure. 5. Geographic location in Iowa suggests regional service delivery. 6. Small business status of the contractor is not specified, impacting set-aside analysis.

Value Assessment

Rating: fair

The contract value of $153,463.59 for four years of chiller maintenance appears reasonable for specialized HVAC services. However, without specific details on the scope of work, the number and type of chillers, or the service level agreement, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for chiller maintenance in the region or for comparable facilities would provide a clearer picture of whether the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a less extensive competition process than full and open competition. While the data indicates it was 'COMPETED', the number of offers received or the specific method used within SAP is not detailed. This could mean a limited number of bidders were solicited, potentially impacting the level of price discovery and the ultimate value achieved for the government.

Taxpayer Impact: Simplified acquisition procedures may result in less aggressive pricing compared to full and open competition, potentially leading to higher costs for taxpayers if robust competition was not achieved.

Public Impact

Ensures the operational continuity of Building 154 at the York facility. Maintains a stable environment for agricultural research activities. Supports the infrastructure necessary for USDA's Agricultural Research Service. Provides employment for skilled technicians performing the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP may not yield the best possible pricing.
Lack of detailed scope of work makes value assessment difficult.
Potential for vendor lock-in if follow-on work is required.

Positive Signals

Fixed-price contract provides cost certainty.
Long-term performance period ensures consistent service delivery.
Focus on essential infrastructure maintenance supports agency mission.

Sector Analysis

This contract falls within the facilities maintenance and operations sector, specifically focusing on HVAC systems. The market for such services is generally robust, with numerous providers ranging from small local businesses to large national corporations. Government contracts for building maintenance are common across various agencies, supporting the upkeep of federal facilities nationwide. The value of this specific contract is relatively small within the broader context of federal facilities spending.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not provided for this contract. As it was competed under SAP, it's possible that small businesses were specifically targeted or participated. However, without explicit data, the impact on the small business ecosystem remains unclear. Further analysis would be needed to determine if small businesses were primary awardees or had subcontracting opportunities.

Oversight & Accountability

As a purchase order awarded under SAP, oversight would typically be managed by the contracting officer and the program office responsible for the Agricultural Research Service facility in York, Iowa. Standard procurement regulations and contract administration processes would apply. Transparency is limited by the nature of SAP awards, which are not always publicly detailed beyond basic award information.

Related Government Programs

Federal Building Maintenance Contracts
HVAC Services Contracts
Department of Agriculture Facilities Management
Agricultural Research Service Operations

Risk Flags

Limited competition potential under SAP
Lack of detailed performance metrics
Absence of historical spending context

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $153,463.59 to SHEKAR ENGINEERING, P.L.C. BLDG 154 YORK CHILLER MAINTENANCE

Who is the contractor on this award?

The obligated recipient is SHEKAR ENGINEERING, P.L.C.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $153,463.59.

What is the period of performance?

Start: 2023-09-15. End: 2027-09-14.

What is the specific scope of work included in this chiller maintenance contract?

The provided data does not detail the specific scope of work for the "BLDG 154 YORK CHILLER MAINTENANCE" contract. Typically, such contracts would include routine inspections, preventative maintenance, emergency repairs, and potentially parts replacement for the chillers located in Building 154 at the York facility. The exact services, frequency of maintenance, and response times for emergencies would be outlined in the contract's statement of work (SOW) or performance work statement (PWS). Without access to these documents, a precise understanding of the services rendered is limited.

How does the $153,463.59 contract value compare to similar HVAC maintenance contracts for federal facilities?

Benchmarking this $153,463.59 contract requires comparing it to similar HVAC maintenance contracts for federal facilities of comparable size and complexity, ideally within the same geographic region. Contracts for chiller maintenance can vary significantly based on the age and type of equipment, the number of units, the required service level (e.g., 24/7 emergency response vs. standard business hours), and the specific maintenance tasks included. Given the four-year duration, the annual cost averages around $38,365. This figure needs to be evaluated against market rates for specialized HVAC services to determine if it represents good value for the government.

What are the potential risks associated with awarding this contract under Simplified Acquisition Procedures (SAP)?

Awarding contracts under Simplified Acquisition Procedures (SAP), typically for purchases under the simplified acquisition threshold (SAT), carries certain risks. While SAP is designed for efficiency, it often involves less robust competition than full and open procedures. This can lead to a higher risk of paying above-market prices, receiving fewer innovative solutions, or potentially overlooking highly qualified vendors who were not solicited. For this contract, the primary risk is that the government may not have achieved the best possible price or service level due to a potentially limited bidding pool, even though it was marked as 'competed'.

What is the track record of Shekar Engineering, P.L.C. in performing federal contracts, particularly for HVAC services?

The provided data does not include information on the track record of Shekar Engineering, P.L.C. To assess their performance history, one would need to consult federal procurement databases like SAM.gov or FPDS, looking for past awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A strong track record with positive past performance reviews would indicate a lower risk for this current contract, while a history of issues would raise concerns about reliability and quality.

What is the historical spending pattern for chiller maintenance at the USDA's York facility?

The provided data only reflects a single contract award for "BLDG 154 YORK CHILLER MAINTENANCE" to Shekar Engineering, P.L.C. It does not offer historical spending data for this specific service at the York facility. To understand historical spending patterns, one would need to analyze procurement records over several preceding years to identify previous contracts for chiller maintenance, their values, durations, and the contractors involved. This would reveal trends in spending, identify potential cost increases or decreases over time, and highlight any changes in vendor relationships.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12505B23Q0334

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2600 MARTIN LUTHER KING JR PKWY, DES MOINES, IA, 50310

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $215,152

Exercised Options: $153,464

Current Obligation: $153,464

Actual Outlays: $30,967

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline