Interior Department Spends $29,216 on Water Heater Replacement by Ferguson Enterprises LLC
Contract Overview
Contract Amount: $29,216 ($29.2K)
Contractor: Ferguson Enterprises LLC
Awarding Agency: Department of the Interior
Start Date: 2026-04-02
End Date: 2026-05-30
Contract Duration: 58 days
Daily Burn Rate: $504/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REPLACE WATER HEATER
Place of Performance
Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23606
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $29,216.21 to FERGUSON ENTERPRISES LLC for work described as: REPLACE WATER HEATER Key points: 1. Spending on a single water heater replacement is relatively low. 2. Ferguson Enterprises LLC is a large supplier, indicating potential competition in the broader market. 3. The contract's short duration and specific item suggest low risk. 4. This purchase falls under the 'Other' sector due to its specific nature.
Value Assessment
Rating: fair
The $29,216.21 price for a single water heater appears high when compared to typical residential or commercial unit costs. However, without specifics on the type, capacity, installation complexity, and warranty, a definitive assessment is difficult. It may reflect specialized requirements or bundled services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have led to a higher price than could have been achieved through a competitive bidding process.
Taxpayer Impact: The taxpayer impact is likely negative due to the potential for overpayment resulting from the lack of competition.
Public Impact
Government agencies rely on functional facilities, including water heating systems, for operational continuity. The procurement process for essential equipment like water heaters impacts agency budgets and resource allocation. Transparency in sole-source procurements is crucial for public trust and accountability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potentially high unit cost
Positive Signals
- Specific, essential equipment purchase
- Short contract duration
Sector Analysis
This purchase falls under general services or facilities maintenance rather than a distinct sector like IT or Defense. Benchmarks for such specific equipment are highly variable based on type and installation needs.
Small Business Impact
Ferguson Enterprises LLC is a large national supplier, not typically considered a small business. This procurement does not appear to have specifically targeted small business participation.
Oversight & Accountability
The 'NOT COMPETED' status warrants oversight to ensure justification for the lack of competition and to verify fair pricing. The award as a Purchase Order suggests a streamlined process, but accountability for the price remains.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Lack of competition raises price concerns.
- High unit cost appears questionable without further detail.
- Potential for non-compliance with full and open competition rules.
- Limited transparency on justification for sole-source award.
Tags
plumbing-heating-and-air-conditioning-co, department-of-the-interior, va, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $29,216.21 to FERGUSON ENTERPRISES LLC. REPLACE WATER HEATER
Who is the contractor on this award?
The obligated recipient is FERGUSON ENTERPRISES LLC.
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 $29,216.21.
What is the period of performance?
Start: 2026-04-02. End: 2026-05-30.
What specific type and model of water heater was purchased, and what are the installation requirements that justify the $29,216.21 price tag?
The data does not specify the exact model or installation complexity. A price of $29,216.21 for a single water heater is exceptionally high. It suggests either a highly specialized, industrial-grade unit, or significant associated costs for installation, integration, or unique environmental requirements. Further details are needed to validate this expenditure.
What is the justification for awarding this contract on a sole-source basis, and were any market research efforts conducted to ensure fair and reasonable pricing?
The provided data indicates the contract was 'NOT COMPETED,' implying a sole-source award. Without further documentation, the justification is unclear. Standard procurement regulations require justification for sole-source awards, often citing unique capabilities or urgent needs. Market research should have been performed to establish a fair and reasonable price, even in a sole-source scenario.
How does the $29,216.21 expenditure for a water heater align with the Bureau of Indian Affairs and Bureau of Indian Education's budget for facilities maintenance and replacement?
Assessing the alignment requires comparing this expenditure against the agency's allocated budget for similar capital equipment or facilities maintenance. Given the high unit cost, it's crucial to understand if this represents a one-off necessity for a critical facility or if it indicates a broader trend of inflated pricing for essential services within the agency's operational areas.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: PLUMBING, HEATING, WASTE DISPOSAL
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 0044039960
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 751 LAKEFRONT CMNS, NEWPORT NEWS, VA, 23606
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,216
Exercised Options: $29,216
Current Obligation: $29,216
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-04-02
Current End Date: 2026-05-30
Potential End Date: 2026-05-30 00:00:00
Last Modified: 2026-04-02
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