Climate Engineering Inc. awarded $1.16M for HVAC maintenance at U.S. Fish and Wildlife Service facilities

Contract Overview

Contract Amount: $115,575 ($115.6K)

Contractor: Climate Engineering, Inc.

Awarding Agency: Department of the Interior

Start Date: 2022-09-21

End Date: 2026-09-29

Contract Duration: 1,469 days

Daily Burn Rate: $79/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CO-RCY MTN ARSNL- HVAC MAINT & REPAIR

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $115,575.03 to CLIMATE ENGINEERING, INC. for work described as: CO-RCY MTN ARSNL- HVAC MAINT & REPAIR Key points: 1. Contract value represents a significant investment in maintaining critical infrastructure for wildlife services. 2. Competition dynamics for this contract are not fully detailed, requiring further analysis of the SAP process. 3. Performance risk appears moderate given the nature of HVAC maintenance, but requires ongoing monitoring. 4. This contract supports essential operational continuity for the U.S. Fish and Wildlife Service. 5. The contractor, Climate Engineering, Inc., operates within the specialized HVAC services sector. 6. Geographic focus is Colorado, impacting local service delivery and potentially local employment.

Value Assessment

Rating: fair

Benchmarking the value of this $1.16 million contract for HVAC maintenance is challenging without more detailed cost breakdowns or comparisons to similar facilities. The firm fixed-price structure suggests a defined scope, but the duration of nearly four years means potential for cost escalation if not managed effectively. The award amount appears reasonable for a multi-year maintenance contract of this nature, but a deeper dive into the specific services and equipment covered would allow for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under the Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and less formal solicitation processes compared to full and open competition. While the data indicates two bids were received, the specific number of solicitations and the outreach efforts made are not detailed. This limited competition may not always yield the most competitive pricing or the widest range of technical solutions.

Taxpayer Impact: For taxpayers, limited competition under SAP can sometimes result in higher prices than would be achieved through broader competition, though it can also lead to faster contract awards for smaller value procurements.

Public Impact

The U.S. Fish and Wildlife Service benefits through the ensured operational continuity of its facilities. Essential services include heating, ventilation, and air conditioning maintenance and repair, crucial for building environments. The geographic impact is concentrated in Colorado, supporting federal operations within the state. Workforce implications may include local technicians and support staff employed by Climate Engineering, Inc. or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if maintenance needs exceed initial estimates within the firm fixed-price structure.
Limited competition may have restricted the range of available technical solutions or pricing options.
Dependence on a single contractor for critical HVAC systems introduces operational risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty for the government, assuming scope is well-defined.
Contract duration allows for consistent maintenance and potential for building long-term contractor expertise.
Award to Climate Engineering, Inc. supports a business providing essential facility maintenance services.

Sector Analysis

The HVAC services sector is a critical component of the broader construction and facilities maintenance industry. This contract falls within the specialized area of commercial and institutional HVAC repair and maintenance. Spending in this sector is driven by the need to maintain operational efficiency, occupant comfort, and regulatory compliance in government and commercial buildings. Comparable spending benchmarks would typically involve analyzing other federal contracts for similar facility sizes and types, as well as private sector maintenance agreements.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and the contractor's size status (st: CO) is not explicitly defined as small or large in this context. Therefore, there are no direct small business set-aside implications. However, the potential for subcontracting opportunities with small businesses exists, depending on Climate Engineering, Inc.'s procurement practices and the specific needs of the HVAC maintenance services.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Fish and Wildlife Service's contracting officer and program managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings Fund
General Services Administration (GSA) Facilities Management
Department of Defense Facilities Maintenance
National Park Service Infrastructure Maintenance

Risk Flags

Limited competition may impact price competitiveness.
Long contract duration increases risk of unforeseen cost escalation.
Performance monitoring is crucial for firm fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $115,575.03 to CLIMATE ENGINEERING, INC.. CO-RCY MTN ARSNL- HVAC MAINT & REPAIR

Who is the contractor on this award?

The obligated recipient is CLIMATE ENGINEERING, INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Fish and Wildlife Service).

What is the total obligated amount?

The obligated amount is $115,575.03.

What is the period of performance?

Start: 2022-09-21. End: 2026-09-29.

What is the historical spending pattern of the U.S. Fish and Wildlife Service on HVAC maintenance in Colorado?

Analyzing historical spending on HVAC maintenance by the U.S. Fish and Wildlife Service, particularly within Colorado, requires access to detailed procurement data over several fiscal years. Without specific historical data for this agency and location, it's difficult to establish a precise pattern. However, federal agencies typically allocate funds for facility maintenance annually. The current $1.16 million contract, spanning nearly four years, suggests a significant, consolidated investment. Previous spending might have been fragmented across smaller contracts or different maintenance providers. Understanding if this represents an increase, decrease, or consolidation of spending would require comparing this award to prior expenditures on similar services in the region to assess if the government is achieving better value or consolidating needs.

How does the awarded price compare to industry benchmarks for similar HVAC maintenance contracts?

Directly comparing the $1.16 million award to industry benchmarks for HVAC maintenance is challenging without a detailed breakdown of the services included (e.g., preventative maintenance, emergency repairs, specific equipment serviced) and the square footage or complexity of the facilities. However, the firm fixed-price nature suggests a defined scope. Industry benchmarks often consider factors like cost per square foot for maintenance, hourly rates for technicians, and the cost of parts. Given the duration of nearly four years, the annual cost would be approximately $290,000. This figure needs to be evaluated against the specific needs of the U.S. Fish and Wildlife Service facilities in Colorado. A comprehensive benchmark would involve analyzing similar contracts awarded by other federal agencies or large commercial entities in the same geographic region.

What is Climate Engineering, Inc.'s track record with federal government contracts, particularly for HVAC services?

To assess Climate Engineering, Inc.'s track record, a review of their past federal contract awards is necessary. This would involve searching databases like the Federal Procurement Data System (FPDS) for previous contracts awarded to this entity. Key metrics to examine would include the number of contracts, their value, the agencies they served, the types of services provided (specifically HVAC), and their performance ratings, if available. A history of successful, on-time, and within-budget performance on similar HVAC maintenance contracts would indicate a lower performance risk. Conversely, a history of disputes, contract terminations, or poor performance ratings would raise concerns about their capability to fulfill the current $1.16 million award effectively.

What are the potential risks associated with a nearly four-year firm fixed-price contract for HVAC maintenance?

A significant risk with a long-term firm fixed-price contract for HVAC maintenance is the potential for the contractor to face unforeseen cost increases due to inflation, parts availability, or unexpected equipment failures that exceed the initially estimated scope. If the fixed price does not adequately account for these variables, the contractor might cut corners on service quality to maintain profitability, or seek change orders, potentially increasing the overall cost. Conversely, if the initial price was set too high, the government might overpay. Effective oversight is crucial to monitor performance, ensure adherence to the scope, and manage any necessary adjustments to maintain value for the taxpayer over the contract's duration.

How does the competition level (limited bids under SAP) potentially impact the value received by the government?

Limited competition, as suggested by the use of Simplified Acquisition Procedures (SAP) and the reported two bids, can have a mixed impact on the value received by the government. On one hand, SAP is designed for efficiency and speed in acquiring goods and services below certain thresholds, which can be beneficial for smaller needs. However, fewer bidders generally mean less pressure on pricing and potentially fewer innovative solutions being offered. This can lead to the government potentially paying a higher price than if the contract had been competed more broadly. The value proposition hinges on whether the efficiency gains of SAP outweigh the potential price disadvantage compared to a full and open competition.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140F0122R0124

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10180 W HAMPDEN AVE, DENVER, CO, 80227

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $135,710

Exercised Options: $115,575

Current Obligation: $115,575

Actual Outlays: $81,772

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline