Commerce Recompetes CRAC Unit Maintenance for $1.77M, Awarded to Joe Powell & Associates Inc
Contract Overview
Contract Amount: $17,690 ($17.7K)
Contractor: JOE Powell & Associates Inc
Awarding Agency: Department of Commerce
Start Date: 2026-04-16
End Date: 2027-04-15
Contract Duration: 364 days
Daily Burn Rate: $49/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: RECOMPETE CONTRACT TO PROVIDE MAINTENANCE FOR 5 COMPUTER ROOM A/C (CRAC) UNITS AT THE NATIONAL WATER CENTER FACILITY IN TUSCALOOSA, ALABAMA.
Place of Performance
Location: TUSCALOOSA, TUSCALOOSA County, ALABAMA, 35401
State: Alabama Government Spending
Plain-Language Summary
Department of Commerce obligated $17,690 to JOE POWELL & ASSOCIATES INC for work described as: RECOMPETE CONTRACT TO PROVIDE MAINTENANCE FOR 5 COMPUTER ROOM A/C (CRAC) UNITS AT THE NATIONAL WATER CENTER FACILITY IN TUSCALOOSA, ALABAMA. Key points: 1. Contract is a recompete for essential facility maintenance. 2. Limited competition noted, raising potential price concerns. 3. Risk of price escalation due to lack of robust competition. 4. Sector: Facilities maintenance and HVAC services.
Value Assessment
Rating: fair
The contract value of $1.77 million for 364 days of service appears reasonable for specialized CRAC unit maintenance. However, without competitive bidding data, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under SAP, indicating a limited competition approach. This method may not have fully explored the market, potentially impacting price discovery and leading to less favorable terms for the government.
Taxpayer Impact: Taxpayers may be paying a premium due to the lack of a fully competitive bidding process, as the full range of market prices may not have been realized.
Public Impact
Ensures continued operation of critical climate control systems at the National Water Center. Supports the National Oceanic and Atmospheric Administration's (NOAA) research and operational capabilities. Maintains infrastructure vital for weather and climate data collection and analysis.
Waste & Efficiency Indicators
Waste Risk Score: 49 / 10
Warning Flags
- Limited competition
- Potential for overpayment
- Reliance on incumbent contractor
Positive Signals
- Recompete ensures continuity of service
- Firm Fixed Price contract type limits cost overruns
Sector Analysis
This contract falls within the facilities maintenance and HVAC sector, specifically focusing on specialized Computer Room Air Conditioning (CRAC) units. Spending in this area is crucial for government facilities housing sensitive equipment, with benchmarks varying based on unit complexity and service scope.
Small Business Impact
The data indicates the awardee is Joe Powell & Associates Inc. There is no specific information provided regarding small business participation or subcontracting goals for this particular contract.
Oversight & Accountability
The contract's limited competition status warrants oversight to ensure fair pricing and prevent potential contractor overreach. Regular performance reviews by NOAA are essential to maintain accountability.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in award justification
- No stated small business goals
Tags
plumbing-heating-and-air-conditioning-co, department-of-commerce, al, definitive-contract, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $17,690 to JOE POWELL & ASSOCIATES INC. RECOMPETE CONTRACT TO PROVIDE MAINTENANCE FOR 5 COMPUTER ROOM A/C (CRAC) UNITS AT THE NATIONAL WATER CENTER FACILITY IN TUSCALOOSA, ALABAMA.
Who is the contractor on this award?
The obligated recipient is JOE POWELL & ASSOCIATES INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).
What is the total obligated amount?
The obligated amount is $17,690.
What is the period of performance?
Start: 2026-04-16. End: 2027-04-15.
What was the justification for not competing this contract under SAP, and what steps were taken to ensure fair pricing?
The justification for not competing under SAP is not explicitly stated in the provided data. Typically, this might involve specific circumstances like urgency, unique capabilities of the incumbent, or a determination that full and open competition would not be cost-effective. To ensure fair pricing, the agency should have conducted market research to establish a reasonable price, potentially using historical data or independent cost estimates, even within a limited competition framework.
What are the potential risks associated with awarding a recompete contract with limited competition for critical infrastructure maintenance?
The primary risk is paying a non-competitive price, potentially exceeding fair market value. Limited competition can also reduce the incentive for the contractor to innovate or improve service quality over time, as they face less pressure from rivals. Furthermore, there's a risk of vendor lock-in, making it difficult and costly to switch providers in the future if performance or pricing becomes unsatisfactory.
How does the firm fixed price contract type mitigate risks for the government in this scenario?
A Firm Fixed Price (FFP) contract type is beneficial as it shifts the risk of cost overruns to the contractor. The government agrees to pay a set price, regardless of the contractor's actual costs. This provides budget certainty and protects the government from unexpected increases in labor or material expenses, which is particularly important for maintenance services where unforeseen issues can arise.
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: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6775 MEADOW LN, ALPHARETTA, GA, 30005
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $82,285
Exercised Options: $17,690
Current Obligation: $17,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2026-04-16
Current End Date: 2027-04-15
Potential End Date: 2031-04-15 00:00:00
Last Modified: 2026-04-08
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