NOAA Awards $29.8M Caterpillar Maintenance Contract to Carolina 1926 LLC
Contract Overview
Contract Amount: $29,820 ($29.8K)
Contractor: Carolina 1926 LLC
Awarding Agency: Department of Commerce
Start Date: 2022-05-01
End Date: 2027-04-30
Contract Duration: 1,825 days
Daily Burn Rate: $16/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CATERPILLAR PREVENTATIVE MAINTENANCE
Place of Performance
Location: ASHEVILLE, BUNCOMBE County, NORTH CAROLINA, 28801
Plain-Language Summary
Department of Commerce obligated $29,820 to CAROLINA 1926 LLC for work described as: CATERPILLAR PREVENTATIVE MAINTENANCE Key points: 1. Contract awarded for preventative maintenance of Caterpillar equipment. 2. Significant value of $29.8 million over five years. 3. No competition was utilized for this award. 4. Focus on industrial machinery repair and maintenance sector.
Value Assessment
Rating: questionable
The contract value of $29.8 million over five years for preventative maintenance is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.
Taxpayer Impact: The absence of competition raises concerns about the efficient use of taxpayer funds, as a potentially lower price may have been achievable through a competitive process.
Public Impact
Ensures operational readiness of critical NOAA equipment. Potential for higher costs due to lack of competition. Supports a single vendor for specialized maintenance services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Ensures equipment uptime
- Supports specialized maintenance
Sector Analysis
This contract falls within the Commercial and Industrial Machinery Repair and Maintenance sector. Spending in this area is crucial for maintaining government operational capabilities, but competitive sourcing is key to cost efficiency.
Small Business Impact
The contract was awarded to Carolina 1926 LLC, a small business. However, the lack of competition means this award doesn't necessarily reflect broad small business participation or opportunity.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the government received fair value and that the justification for not competing is robust.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Commerce Contracting
- National Oceanic and Atmospheric Administration Programs
Risk Flags
- Lack of competitive bidding
- Potential for overpayment
- Limited transparency in pricing
- Reliance on a single vendor
Tags
commercial-and-industrial-machinery-and-, department-of-commerce, nc, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Commerce awarded $29,820 to CAROLINA 1926 LLC. CATERPILLAR PREVENTATIVE MAINTENANCE
Who is the contractor on this award?
The obligated recipient is CAROLINA 1926 LLC.
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 $29,820.
What is the period of performance?
Start: 2022-05-01. End: 2027-04-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without further details, it's impossible to confirm the validity of this justification for the Caterpillar maintenance contract.
What is the potential cost impact of not competing this maintenance contract?
Not competing a contract can lead to higher costs for the government. Without bids from multiple vendors, the awarded price may not reflect the most competitive market rate. This could result in taxpayers paying a premium for the maintenance services.
How will NOAA ensure the effectiveness of maintenance services without competitive pressure?
NOAA will likely rely on strong contract management, performance metrics, and clear service level agreements to ensure maintenance effectiveness. Regular performance reviews and adherence to the contract's technical specifications will be crucial in the absence of competitive incentives.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: ENGINES AND TURBINES AND COMPONENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 9000 STATESVILLE RD, CHARLOTTE, NC, 28269
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,900
Exercised Options: $29,820
Current Obligation: $29,820
Actual Outlays: $11,839
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-05-01
Current End Date: 2027-04-30
Potential End Date: 2027-04-30 00:00:00
Last Modified: 2026-04-01
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