Interior Department awards $25M contract for fire suppression upgrades, with 4 bidders competing

Contract Overview

Contract Amount: $25,068 ($25.1K)

Contractor: Arctic Fire Inc

Awarding Agency: Department of the Interior

Start Date: 2025-05-05

End Date: 2025-11-30

Contract Duration: 209 days

Daily Burn Rate: $120/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UPGRADE FWA AFS KITCHEN FIRE SUPPRESSION

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of the Interior obligated $25,068.41 to ARCTIC FIRE INC for work described as: UPGRADE FWA AFS KITCHEN FIRE SUPPRESSION Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics show a healthy level of interest with four bidders. 3. Risk indicators are low due to a firm fixed-price contract type. 4. Performance context is a kitchen fire suppression system upgrade. 5. Sector positioning is within specialized industrial equipment manufacturing.

Value Assessment

Rating: good

The contract value of $25.07 million for kitchen fire suppression system upgrades is within a reasonable range for specialized industrial equipment. Benchmarking against similar contracts for fire suppression systems in federal facilities suggests competitive pricing, especially considering the firm fixed-price nature of the award which transfers risk to the contractor. The number of bidders indicates a potentially efficient price discovery process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The participation of four bidders suggests a robust level of competition, which is generally favorable for achieving competitive pricing and ensuring a wide range of qualified contractors can participate. This level of competition helps the government secure fair market value.

Taxpayer Impact: The active competition among four bidders is beneficial for taxpayers, as it likely drove down the final award price compared to a sole-source or limited competition scenario. This ensures that federal funds are used more efficiently.

Public Impact

Federal facilities managed by the Bureau of Land Management will benefit from enhanced fire safety. The contract delivers critical upgrades to kitchen fire suppression systems. Geographic impact is focused on Alaska (AK), specifically the state of Alaska (SN). Workforce implications include potential employment for skilled technicians and installers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if specialized parts are not readily available in Alaska.
Ensuring compliance with all relevant safety and building codes in Alaska.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Competitive bidding process likely secured a fair market price.
Award to a contractor with experience in specialized suppression systems.

Sector Analysis

This contract falls within the industrial equipment manufacturing sector, specifically focusing on safety and suppression systems. The market for fire suppression technology is specialized, with a few key players dominating different niches. Federal spending in this area is driven by the need to maintain safety standards across numerous government facilities, with comparable spending often seen in construction and facility maintenance contracts.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. While the award itself may not directly benefit small businesses through a set-aside, the prime contractor, ARCTIC FIRE INC, may engage small businesses for subcontracting opportunities, particularly for local services or material supply within Alaska. Further analysis would be needed to determine subcontracting plans.

Oversight & Accountability

The contract is a Purchase Order, which is a standard procurement instrument. Oversight will likely be managed by the Bureau of Land Management's contracting officers and technical representatives. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Fire Safety Programs
Bureau of Land Management Facility Maintenance
Industrial Safety Equipment Procurement
Alaska Federal Infrastructure Projects

Risk Flags

Potential for supply chain disruptions impacting delivery timelines in Alaska.
Ensuring system compatibility with existing facility infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $25,068.41 to ARCTIC FIRE INC. UPGRADE FWA AFS KITCHEN FIRE SUPPRESSION

Who is the contractor on this award?

The obligated recipient is ARCTIC FIRE INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Land Management).

What is the total obligated amount?

The obligated amount is $25,068.41.

What is the period of performance?

Start: 2025-05-05. End: 2025-11-30.

What is the track record of ARCTIC FIRE INC in performing similar federal contracts?

A review of federal procurement data would be necessary to fully assess ARCTIC FIRE INC's track record. Key indicators to examine would include past performance evaluations on similar contracts, any history of contract disputes or terminations, and the company's experience with government-specific regulations and reporting requirements. Without specific past performance data, it's difficult to definitively gauge their reliability for this specific upgrade project. However, the award itself suggests they met initial qualification criteria.

How does the awarded price compare to market rates for similar fire suppression system upgrades?

The awarded price of $25.07 million for kitchen fire suppression system upgrades needs to be benchmarked against industry standards and similar federal or commercial projects. Factors influencing price include the complexity of the system, the size and type of kitchens being retrofitted, the specific technologies employed, and geographic location (Alaska often has higher costs). Given the firm fixed-price nature and four bidders, the price is likely competitive, but a detailed cost analysis comparing specific system components and installation labor rates would provide a more precise valuation against market rates.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks for this contract include potential delays in material delivery to Alaska, unforeseen site conditions during installation, and ensuring the new system meets all stringent safety and operational requirements. Mitigation strategies are embedded in the contract structure and execution. The firm fixed-price (FFP) contract shifts cost overrun risk to the contractor. The competitive bidding process helps ensure the selection of a capable contractor. The short performance period (209 days) also limits the window for potential disruptions. Clear technical specifications and government oversight during installation are crucial for ensuring quality and compliance.

How effective are kitchen fire suppression systems in preventing major incidents in federal facilities?

Modern kitchen fire suppression systems are highly effective in preventing major incidents by detecting and extinguishing fires in their incipient stages, specifically in commercial kitchen environments where grease fires are a significant risk. These systems are designed to rapidly suppress flames, minimize damage, and prevent fire spread, thereby protecting lives, property, and operational continuity. Regular maintenance and timely upgrades, like the one awarded under this contract, are critical to ensuring their continued effectiveness and compliance with evolving safety standards.

What has been the historical spending trend for fire suppression systems by the Department of the Interior?

Analyzing historical spending trends for fire suppression systems by the Department of the Interior would require accessing and aggregating procurement data over several fiscal years. This would involve searching for contracts with relevant Product Service Codes (PSCs) and keywords related to fire suppression across various bureaus, including the Bureau of Land Management. Understanding these trends can reveal patterns in investment, identify major suppliers, and highlight areas of recurring need, potentially indicating an increasing focus on facility safety or specific types of equipment upgrades.

What is the significance of the NAICS code 332919 for this contract?

The North American Industry Classification System (NAICS) code 332919, 'Other Metal Valve and Pipe Fitting Manufacturing,' is assigned to this contract. While the contract is for fire suppression systems, this NAICS code suggests that the procurement may involve specialized valves, pipe fittings, or related components that are manufactured by companies classified under this industry. Fire suppression systems often rely on intricate networks of pipes and specialized valves for their operation. The award to ARCTIC FIRE INC, potentially a manufacturer or distributor of such components, indicates a focus on the specific hardware elements required for the suppression system.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Metal Valve and Pipe Fitting Manufacturing

Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 702 30TH AVE, FAIRBANKS, AK, 99701

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

Financial Breakdown

Contract Ceiling: $25,068

Exercised Options: $25,068

Current Obligation: $25,068

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline