Commerce Awards $2M Chiller Maintenance Contract to Capitol United Solutions Inc
Contract Overview
Contract Amount: $1,999,237 ($2.0M)
Contractor: Capitol United Solutions Inc
Awarding Agency: Department of Commerce
Start Date: 2023-02-28
End Date: 2027-02-28
Contract Duration: 1,461 days
Daily Burn Rate: $1.4K/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHILLER MAINTENANCE SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230
Plain-Language Summary
Department of Commerce obligated $2.0 million to CAPITOL UNITED SOLUTIONS INC for work described as: CHILLER MAINTENANCE SUPPORT SERVICES Key points: 1. Contract value of $1.99M for chiller maintenance. 2. Sole-source award to Capitol United Solutions Inc. 3. Risk of limited competition and potentially higher costs. 4. Services fall under the Plumbing, Heating, and Air-Conditioning Contractors sector.
Value Assessment
Rating: questionable
The contract value of $1.99M for 4 years of chiller maintenance appears high without competitive bidding. Benchmarking against similar contracts for comparable services is difficult due to the lack of competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed under Simplified Acquisition Procedures and was awarded as a sole-source definitive contract. This limits price discovery and potentially leads to inflated costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award raises concerns about whether the government received the best possible price for these essential maintenance services.
Public Impact
Taxpayers may be overpaying for chiller maintenance due to lack of competition. Essential building infrastructure maintenance could be at risk if the contractor is not performing optimally. Limited transparency in the procurement process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Definitive contract awarded
- Firm Fixed Price contract type
Sector Analysis
This contract for chiller maintenance falls within the broader Construction and Facilities Maintenance sector. Spending benchmarks for similar services are difficult to establish due to the sole-source nature of this award.
Small Business Impact
The contract was not awarded to a small business, as indicated by 'sb': false. There is no indication of efforts to subcontract to small businesses.
Oversight & Accountability
The sole-source award bypasses standard competitive oversight processes. Further review of the justification for sole-source procurement is recommended to ensure accountability.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Commerce Contracting
- Office of the Secretary Programs
Risk Flags
- Sole-source award limits competition.
- Potential for overpayment due to lack of competitive bidding.
- Lack of transparency in procurement process.
- No small business participation noted.
Tags
plumbing-heating-and-air-conditioning-co, department-of-commerce, dc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $2.0 million to CAPITOL UNITED SOLUTIONS INC. CHILLER MAINTENANCE SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is CAPITOL UNITED SOLUTIONS INC.
Which agency awarded this contract?
Awarding agency: Department of Commerce (Office of the Secretary).
What is the total obligated amount?
The obligated amount is $2.0 million.
What is the period of performance?
Start: 2023-02-28. End: 2027-02-28.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling needs. Without further documentation, it is impossible to determine the specific rationale, but it warrants scrutiny to ensure it was a valid exception to competitive procurement principles.
What are the risks associated with a sole-source contract for essential maintenance services?
Sole-source contracts carry risks of inflated pricing, reduced service quality, and lack of innovation, as the contractor faces no competitive pressure. For essential maintenance like chillers, a lack of competition could lead to higher operational costs for the agency and potentially impact the reliability of critical building systems if the contractor is not incentivized to perform at their best.
How can the effectiveness of this contract be measured given the lack of competitive benchmarks?
Effectiveness can be measured through performance metrics outlined in the contract, such as response times, repair completion rates, and system uptime. Regular performance reviews by the agency, comparing actual service delivery against contract requirements, are crucial. Customer satisfaction surveys and independent technical assessments of the maintained systems can also provide insights into effectiveness.
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: 9007 BUSH CREEK CIR, FREDERICK, MD, 21704
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Minority Owned Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $2,450,518
Exercised Options: $1,999,237
Current Obligation: $1,999,237
Actual Outlays: $44,542
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-02-28
Current End Date: 2027-02-28
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-03-04
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