Interior's $15.5M HVAC contract awarded to Sage Valley Supply for facilities support in New Mexico

Contract Overview

Contract Amount: $15,503 ($15.5K)

Contractor: Sage Valley Supply L.L.C

Awarding Agency: Department of the Interior

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $43/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HVAC PM SERVICE - BECLABITO

Place of Performance

Location: KIRTLAND, SAN JUAN County, NEW MEXICO, 87417

State: New Mexico Government Spending

Plain-Language Summary

Department of the Interior obligated $15,503.28 to SAGE VALLEY SUPPLY L.L.C for work described as: HVAC PM SERVICE - BECLABITO Key points: 1. Value for money appears fair given the fixed-price nature and duration, but detailed cost breakdowns are absent. 2. Competition dynamics are limited as this was a sole-source award, potentially impacting price discovery. 3. Risk indicators are moderate, with a sole-source award and a single contractor responsible for critical infrastructure. 4. Performance context is essential for this contract, as HVAC maintenance directly impacts facility usability and occupant comfort. 5. Sector positioning is within facilities support services, a critical but often overlooked component of government operations.

Value Assessment

Rating: fair

The contract's total value of $15.5 million over 364 days suggests a significant investment in HVAC maintenance. Without comparable contract data or a detailed cost breakdown, it's challenging to definitively benchmark the value. However, the firm fixed-price structure provides cost certainty for the government. The absence of competition in the award process means that market-driven price discovery was not fully leveraged, which could imply a less optimal price compared to a competitive scenario.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Sage Valley Supply L.L.C., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified under specific circumstances (e.g., urgency, unique capabilities), they limit the government's ability to explore a wider range of pricing and service options. The lack of multiple bidders means there was no direct price competition to drive down costs or encourage innovation.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution, as the government did not benefit from competitive pressures that typically lead to lower prices.

Public Impact

The primary beneficiaries are the facilities managed by the Bureau of Indian Affairs and Bureau of Indian Education in New Mexico. Essential services include the maintenance and repair of HVAC systems, ensuring functional and comfortable environments. The geographic impact is concentrated within New Mexico, where the facilities are located. Workforce implications are direct for Sage Valley Supply L.L.C., which will be responsible for delivering these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing benefits for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Potential for cost overruns if pricing was not rigorously negotiated.
Dependence on a single contractor for critical infrastructure maintenance.
Limited visibility into the contractor's operational efficiency and cost structure.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration allows for consistent service delivery.
Focus on essential HVAC maintenance supports facility operations.
Award to a single, presumably qualified, vendor.

Sector Analysis

The facilities support services sector is crucial for the operational efficiency of government agencies. This contract falls under the broader category of building maintenance and repair, specifically focusing on HVAC systems. The market for such services is typically characterized by a mix of large, established providers and smaller, specialized firms. Government contracts in this area often represent significant value due to the scale and criticality of federal facilities. Benchmarking would typically involve comparing pricing and service levels against similar contracts for federal buildings or large commercial properties.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information indicating subcontracting opportunities for small businesses. The award to Sage Valley Supply L.L.C. (a limited liability company) does not automatically classify it as a small business without further verification of its size standards. The lack of set-aside provisions means that small businesses were not specifically targeted for this procurement, potentially limiting their access to this contract value.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver services as specified. Transparency could be enhanced by making the sole-source justification publicly available and detailing the performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Maintenance Contracts
Department of the Interior Facilities Management
Bureau of Indian Affairs Operations
Bureau of Indian Education Facilities
HVAC Services for Government Facilities

Risk Flags

Sole-source award raises concerns about competition and potential overpricing.
Lack of detailed performance metrics makes oversight challenging.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $15,503.28 to SAGE VALLEY SUPPLY L.L.C. HVAC PM SERVICE - BECLABITO

Who is the contractor on this award?

The obligated recipient is SAGE VALLEY SUPPLY L.L.C.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).

What is the total obligated amount?

The obligated amount is $15,503.28.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the justification for awarding this HVAC maintenance contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'PURCHASE ORDER' on a 'sole-source' basis. Typically, sole-source awards are justified when only one responsible source is available or capable of meeting the government's needs. This could be due to unique technical requirements, urgent and compelling circumstances, or a lack of competition among qualified vendors. Without the specific justification documentation, it's impossible to determine the precise reason. However, the absence of competition means the government did not explore options from multiple vendors, which could impact the final price and service terms compared to a competitively bid contract.

How does the $15.5 million contract value compare to similar HVAC maintenance contracts for federal facilities?

Benchmarking the $15.5 million contract value requires access to a broader dataset of comparable federal HVAC maintenance contracts, considering factors like facility size, geographic location, scope of services (preventive vs. corrective maintenance, types of HVAC systems), and contract duration. Given this contract is for 364 days and awarded to Sage Valley Supply L.L.C. for facilities in New Mexico, its value is substantial. However, without specific details on the number and size of facilities covered, or the complexity of the HVAC systems, a direct comparison is difficult. Generally, large-scale HVAC maintenance contracts for federal agencies can range from hundreds of thousands to millions of dollars annually, depending on the scope. The sole-source nature of this award also complicates direct value comparison, as competitive pressures are absent.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this HVAC maintenance contract. Typically, such contracts would include detailed requirements for response times to service calls, system uptime percentages, preventive maintenance schedules, and quality standards for repairs. The firm fixed-price nature suggests that the contractor is obligated to perform the defined services within the agreed-upon price. Effective oversight would rely on clearly defined and measurable KPIs and SLAs to ensure the government receives the expected level of service and that the contractor meets its obligations throughout the contract period.

What is Sage Valley Supply L.L.C.'s track record with federal contracts, particularly for HVAC services?

Information regarding Sage Valley Supply L.L.C.'s specific track record with federal contracts, especially for HVAC services, is not detailed in the provided data. To assess their performance history, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. As this is a sole-source award, it might imply that the agency has prior positive experience with this contractor or that they possess unique qualifications. A thorough review would involve searching federal procurement databases and performance records to understand their reliability, quality of service, and adherence to contract terms in previous engagements.

What is the historical spending pattern for HVAC maintenance services by the Department of the Interior in New Mexico?

The provided data focuses on a single contract and does not offer historical spending patterns for HVAC maintenance by the Department of the Interior in New Mexico. To analyze historical spending, one would need to examine procurement data over several fiscal years, identifying all contracts related to HVAC maintenance within that agency and geographic region. This would involve looking at the total amount spent annually, the number of contracts awarded, the types of services procured (preventive, corrective, emergency), and the contractors who received these awards. Such an analysis could reveal trends in spending, identify key service providers, and highlight any significant increases or decreases in investment in HVAC maintenance.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 0044039474

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 29 ROAD 6411, KIRTLAND, NM, 87417

Business Categories: American Indian Owned Business, Category Business, Government, Native American Tribal Government, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,503

Exercised Options: $15,503

Current Obligation: $15,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline