Interior Department awards $54K for chiller service at Warm Springs NFH to Carrier Corporation

Contract Overview

Contract Amount: $54,355 ($54.4K)

Contractor: Carrier Corporation

Awarding Agency: Department of the Interior

Start Date: 2022-06-09

End Date: 2027-04-30

Contract Duration: 1,786 days

Daily Burn Rate: $30/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OR-WARM SPRINGS NFH-CHILLER SERVICE

Place of Performance

Location: WARM SPRINGS, JEFFERSON County, OREGON, 97761

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $54,355 to CARRIER CORPORATION for work described as: OR-WARM SPRINGS NFH-CHILLER SERVICE Key points: 1. The contract value is relatively small, indicating a specific, localized need. 2. Sole-source award to Carrier Corporation suggests potential reliance on original equipment manufacturer or specialized expertise. 3. The long duration (nearly 5 years) for a service contract warrants scrutiny for potential cost escalation. 4. The lack of competition raises questions about price discovery and potential overpayment.

Value Assessment

Rating: questionable

The contract value of $54,355 for chiller service over nearly five years is difficult to benchmark without specific service details. However, the lack of competition for a significant duration raises concerns about whether a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under Simplified Acquisition Procedures (SAP) and was awarded sole-source to Carrier Corporation. This method limits price discovery and may result in higher costs compared to a competitive process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most cost-effective solution, as competitive bidding was bypassed.

Public Impact

Ensures continued operation of essential climate control systems at a National Fish Hatchery. Potential for higher costs due to lack of competitive bidding. Long-term commitment may not reflect evolving technological or service needs. Limited transparency on the specific services included in the $54K award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration for service
Lack of competition

Positive Signals

Essential service for facility operation

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically focusing on HVAC services. Spending benchmarks for such services vary widely based on equipment complexity, location, and service level agreements. The $54K value over nearly five years suggests a moderate-sized, specialized service requirement.

Small Business Impact

The award was made to Carrier Corporation, a large business. There is no indication that small businesses were considered or had an opportunity to compete for this sole-source contract.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the pricing is reasonable and the services provided are necessary and effectively delivered throughout the contract period. Transparency regarding the justification for the sole-source award is crucial.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of the Interior Contracting
U.S. Fish and Wildlife Service Programs

Risk Flags

Sole-source award bypasses competition
Long contract duration may not be cost-effective
Potential for inflated pricing
Lack of small business participation
Limited transparency on service details

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $54,355 to CARRIER CORPORATION. OR-WARM SPRINGS NFH-CHILLER SERVICE

Who is the contractor on this award?

The obligated recipient is CARRIER CORPORATION.

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 $54,355.

What is the period of performance?

Start: 2022-06-09. End: 2027-04-30.

What is the specific justification for awarding this chiller service contract sole-source to Carrier Corporation?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. This could be due to proprietary technology, unique capabilities, or the need to maintain compatibility with existing systems. Without further documentation, it's difficult to ascertain the precise reason, but it implies a lack of readily available alternatives or a specific requirement only Carrier can meet.

How does the pricing compare to similar sole-source chiller service contracts in the region?

Benchmarking sole-source contracts is challenging due to the inherent lack of direct price comparison. However, a review of publicly available data for similar HVAC service contracts, even if competed, could provide a rough estimate. If this contract's per-year cost significantly exceeds the average for comparable services, it suggests potential overpricing due to the absence of competition.

What is the risk of service disruption or performance issues given the long contract duration and sole-source nature?

The risk of service disruption is moderate. While Carrier is a known entity, a long-term sole-source agreement can sometimes lead to complacency or reduced responsiveness. Performance issues could arise if the contract terms do not adequately define service level agreements (SLAs) and remedies for non-performance. Regular performance reviews and clear communication channels are essential to mitigate these risks.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140F0522C0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carrier Global Corporation

Address: 13995 PASTEUR BLVD, PALM BEACH GARDENS, FL, 33418

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,355

Exercised Options: $54,355

Current Obligation: $54,355

Actual Outlays: $43,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline