Commerce Department's $2M chiller repair contract awarded to TOGIAK LOGISTICS SERVICES, LLC for NIST campus

Contract Overview

Contract Amount: $2,044,097 ($2.0M)

Contractor: Togiak Logistics Services, LLC

Awarding Agency: Department of Commerce

Start Date: 2025-09-22

End Date: 2028-02-21

Contract Duration: 882 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OU19-25-NEW-300, CHILLERS 1-4 REPAIR, GAITHERSBURG, MD NIST CAMPUS

Place of Performance

Location: GAITHERSBURG, MONTGOMERY County, MARYLAND, 20899

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $2.0 million to TOGIAK LOGISTICS SERVICES, LLC for work described as: OU19-25-NEW-300, CHILLERS 1-4 REPAIR, GAITHERSBURG, MD NIST CAMPUS Key points: 1. Value for money assessed against market rates for industrial equipment repair. 2. Competition dynamics indicate a sole-source award, potentially impacting price discovery. 3. Risk indicators include the sole-source nature and the duration of the contract. 4. Performance context relies on the successful repair and maintenance of critical campus infrastructure. 5. Sector positioning within industrial machinery repair and maintenance services. 6. The contract's value is moderate for a federal infrastructure repair project.

Value Assessment

Rating: fair

The contract value of approximately $2 million for chiller repair over nearly four years appears within a reasonable range for specialized industrial maintenance. Benchmarking against similar federal contracts for HVAC and industrial equipment repair suggests that pricing is likely competitive, though a definitive assessment is hindered by the lack of publicly available detailed cost breakdowns. The firm-fixed-price structure provides cost certainty for the government, but the absence of competitive bidding limits direct price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one responsible source can provide the required services. The lack of competition means that potential savings from a bidding process were not realized, and the government did not benefit from a range of proposals to choose from. This limits the ability to assess if the best possible price was obtained.

Taxpayer Impact: Taxpayers may not have received the most cost-effective solution due to the absence of a competitive bidding process. The government's ability to negotiate favorable terms is reduced when only one vendor is considered.

Public Impact

The National Institute of Standards and Technology (NIST) campus in Gaithersburg, MD, will benefit from reliable climate control systems. Essential services include the repair and maintenance of critical chiller units, ensuring operational continuity. The geographic impact is localized to the NIST campus in Maryland. Workforce implications are likely limited to the specialized technicians employed by TOGIAK LOGISTICS SERVICES, LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potential taxpayer savings.
Contract duration of nearly four years may not allow for adjustments to market pricing.
Lack of detailed cost breakdown makes granular value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a single vendor can streamline project management for critical infrastructure.
Focus on essential repair and maintenance ensures operational continuity for NIST.

Sector Analysis

The industrial machinery and equipment repair and maintenance sector is crucial for the functioning of government facilities and critical infrastructure. This contract falls within the Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance subsector. Federal spending in this area supports the upkeep of complex systems like HVAC, ensuring operational efficiency and safety. Comparable spending benchmarks are difficult to establish without more specific details on the type and age of the chillers, but federal agencies regularly contract for such services across various facilities.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The primary contractor, TOGIAK LOGISTICS SERVICES, LLC, is likely a small business itself based on typical industry classifications, but its role as a sole-source awardee means the direct impact on the broader small business ecosystem through subcontracting opportunities is not evident from this award alone.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Commerce and the National Institute of Standards and Technology (NIST). As a definitive contract, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is limited due to the sole-source nature and lack of public cost breakdowns. The Inspector General for the Department of Commerce may have jurisdiction for audits and investigations if any concerns regarding performance or financial impropriety arise.

Related Government Programs

Federal Building Maintenance Contracts
HVAC Repair and Maintenance Services
Industrial Equipment Servicing
Government Facility Operations Support

Risk Flags

Sole-source award
Lack of competitive bidding
Limited public cost transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.0 million to TOGIAK LOGISTICS SERVICES, LLC. OU19-25-NEW-300, CHILLERS 1-4 REPAIR, GAITHERSBURG, MD NIST CAMPUS

Who is the contractor on this award?

The obligated recipient is TOGIAK LOGISTICS SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Institute of Standards and Technology).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2025-09-22. End: 2028-02-21.

What is the track record of TOGIAK LOGISTICS SERVICES, LLC in performing similar federal contracts?

Information regarding the specific track record of TOGIAK LOGISTICS SERVICES, LLC in performing similar federal contracts is not readily available in the provided data snippet. As a sole-source award, the justification for selecting this particular contractor would typically include an assessment of their capability and past performance. However, without access to the full contract file or a more comprehensive database, it is difficult to provide a detailed analysis of their performance history, including on-time delivery, quality of work, and adherence to budget on previous federal engagements. Further investigation into federal procurement databases like SAM.gov or FPDS might yield more insights into their contract history and performance ratings.

How does the awarded price compare to market rates for similar chiller repair services?

The provided data indicates a firm-fixed-price contract valued at approximately $2.04 million for chiller repair and maintenance over a period of 882 days (approximately 2.4 years of active service, with an end date in Feb 2028). Without specific details on the scope of work, the age and type of chillers, and the required labor hours, a precise comparison to market rates is challenging. However, the classification of the North American Industry Classification System (NAICS) code 811310 (Commercial and Industrial Machinery and Equipment Repair and Maintenance) suggests a specialized service. Generally, federal agencies aim for competitive pricing, but the sole-source nature of this award limits direct benchmarking against multiple bids. Market research would typically be conducted to establish a fair and reasonable price, but the results are not public.

What are the primary risks associated with this sole-source contract?

The primary risks associated with this sole-source contract stem from the lack of competition. Firstly, there is a risk of paying a non-competitive price, as the government did not benefit from a bidding process that could drive down costs. Secondly, there's a potential risk related to the contractor's performance; without the pressure of competing offers, the incentive to deliver exceptional service might be diminished, although contract terms and oversight aim to mitigate this. Thirdly, dependency on a single provider for critical infrastructure maintenance can pose a risk if the contractor faces financial difficulties or operational issues, potentially disrupting essential services at the NIST campus. Finally, the justification for a sole-source award itself carries a risk if it was not adequately supported, suggesting potential inefficiencies in the procurement process.

What is the expected impact on the operational effectiveness of the NIST campus?

This contract is expected to have a positive impact on the operational effectiveness of the NIST campus by ensuring the reliable functioning of its critical chiller systems. Chillers are essential for maintaining stable temperature and humidity levels required for sensitive scientific research, laboratory operations, and the overall comfort and safety of personnel. By securing repair and maintenance services through this contract, NIST mitigates the risk of equipment failure, which could lead to costly downtime, damage to sensitive equipment, or disruption of ongoing experiments and research projects. The firm-fixed-price nature provides budget certainty for this essential service, supporting predictable operational planning.

How does this contract's value compare to historical spending on similar services at NIST or the Department of Commerce?

The provided data shows a contract value of $2,044,096.69 for chiller repair and maintenance at the NIST campus. To compare this to historical spending, one would need access to NIST's or the Department of Commerce's historical procurement data for similar services (e.g., HVAC maintenance, industrial equipment repair). Without that specific historical data, it's difficult to definitively state whether this contract's value is higher, lower, or in line with past expenditures. Factors such as inflation, the specific scope of work (e.g., major overhauls vs. routine maintenance), the age and complexity of the equipment, and the number of units being serviced would all influence historical spending patterns and make direct comparisons challenging without detailed context.

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: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1333ND25QNB190426

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4141 B STREET, ANCHORAGE, AK, 99503

Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,044,097

Exercised Options: $2,044,097

Current Obligation: $2,044,097

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline