Interior Department awards $2.6M HVAC contract to Axiom Builders Inc. for Oregon facility upgrades

Contract Overview

Contract Amount: $2,623,452 ($2.6M)

Contractor: Axiom Builders Inc

Awarding Agency: Department of the Interior

Start Date: 2025-07-28

End Date: 2026-06-30

Contract Duration: 337 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HVAC CONTROL SYSTEM, OR

Place of Performance

Location: SALEM, MARION County, OREGON, 97306

State: Oregon Government Spending

Plain-Language Summary

Department of the Interior obligated $2.6 million to AXIOM BUILDERS INC for work described as: HVAC CONTROL SYSTEM, OR Key points: 1. Contract value appears reasonable for a multi-year HVAC system upgrade, but specific performance metrics are needed for a full value assessment. 2. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate decision to broaden the bidder pool. 3. Potential risks include performance delays or cost overruns if unforeseen issues arise during the upgrade, given the system's age. 4. The contract duration of 337 days aligns with typical project timelines for significant facility infrastructure work. 5. This contract falls within the broader construction and facilities maintenance sector, supporting essential government operations. 6. The fixed-price nature of the contract shifts some cost risk to the contractor, which can be beneficial for budget predictability.

Value Assessment

Rating: good

The contract value of $2.62 million for an HVAC control system upgrade appears within a reasonable range for a project of this scope and duration. Benchmarking against similar federal contracts for HVAC modernization in facilities of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has accounted for potential cost fluctuations, which can offer budget certainty to the government. However, without detailed specifications of the system being replaced or upgraded, a definitive comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, specific sources may have been excluded for documented reasons, or the initial solicitation might have been limited before being opened more widely. The number of bidders (3) is relatively low for a federal contract, which could suggest limited market interest or a highly specialized requirement. A low number of bidders can sometimes lead to less competitive pricing.

Taxpayer Impact: A limited number of bidders may result in higher prices for taxpayers compared to a scenario with numerous competitive offers. However, the 'full and open' aspect suggests an attempt to maximize competition within the constraints of the requirement.

Public Impact

The primary beneficiaries are the employees and visitors at the Bureau of Land Management facility in Oregon, who will experience improved environmental controls. The contract delivers essential upgrades to the HVAC control system, ensuring reliable heating, ventilation, and air conditioning. The geographic impact is localized to the specific Bureau of Land Management facility in Oregon where the work will be performed. The contract will likely involve skilled labor in the HVAC and construction trades, potentially creating or sustaining jobs in the local Oregon economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Low number of bidders (3) could indicate insufficient market outreach or a niche requirement, potentially impacting price competitiveness.
The 'after exclusion of sources' clause requires scrutiny to ensure it was justified and did not unduly limit competition.
Performance monitoring will be crucial to ensure the contractor meets all specifications and avoids cost overruns on this fixed-price contract.

Positive Signals

The firm fixed-price contract provides budget certainty and shifts cost-overrun risk to the contractor.
The contract duration is clearly defined, allowing for project planning and management.
The award to Axiom Builders Inc. supports a business operating within the specified geographic region (Oregon).

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on specialized HVAC systems. The market for government facility upgrades is substantial, driven by the need to maintain aging infrastructure and improve energy efficiency. Comparable spending benchmarks for HVAC modernization projects can vary widely based on facility size, system complexity, and geographic location. This contract represents a typical investment in maintaining operational readiness for government buildings.

Small Business Impact

There is no indication that this contract included a small business set-aside. The award to Axiom Builders Inc., a company with a reported presence in Oregon, does not automatically classify it as small or large without further data. Subcontracting opportunities for small businesses may arise, but they are not explicitly mandated by the contract details provided. The impact on the broader small business ecosystem is likely minimal unless Axiom Builders Inc. actively engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Bureau of Land Management contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed budget. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building Maintenance Contracts
Government HVAC Modernization Projects
Bureau of Land Management Facility Operations
Construction Services for Federal Agencies

Risk Flags

Limited Competition Bidders
Justification for Source Exclusion
Performance Monitoring Requirements
Potential for Unforeseen Site Conditions

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.6 million to AXIOM BUILDERS INC. HVAC CONTROL SYSTEM, OR

Who is the contractor on this award?

The obligated recipient is AXIOM BUILDERS 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 $2.6 million.

What is the period of performance?

Start: 2025-07-28. End: 2026-06-30.

What is the track record of Axiom Builders Inc. in performing similar federal HVAC upgrade contracts?

A review of federal contract databases indicates that Axiom Builders Inc. has been awarded multiple contracts, primarily within the construction and facilities maintenance domain. While specific details on past HVAC upgrade performance are not immediately available from the provided data, their history suggests experience with government projects. Further investigation into past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary to assess their reliability and quality of work on similar federal HVAC projects. Understanding their success rate with firm fixed-price contracts and adherence to schedules on previous government engagements is key to evaluating their suitability for this current award.

How does the awarded amount of $2.62 million compare to market rates for similar HVAC control system upgrades?

Benchmarking the $2.62 million award requires detailed comparison with similar projects. Factors such as facility size, system complexity (e.g., integration with existing infrastructure, type of controls), geographic location (labor and material costs vary significantly by region), and the specific scope of work (e.g., replacement vs. upgrade, controls only vs. full system) are critical. Generally, large-scale HVAC modernization in federal facilities can range from hundreds of thousands to several million dollars. The firm fixed-price nature suggests Axiom Builders Inc. has factored in market conditions. A more precise comparison would involve analyzing recent solicitations and awards for comparable projects in Oregon or similar regions, considering the number of bidders and final award prices.

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

Key risks include potential performance issues (delays, subpar quality), unforeseen site conditions requiring additional costs (though mitigated by fixed-price), and contractor default. Mitigation strategies involve the Bureau of Land Management's oversight, including regular progress reviews, adherence to the contract's technical specifications, and potentially performance bonds. The firm fixed-price structure inherently mitigates cost overrun risk for the government, placing that burden on Axiom Builders Inc. However, ensuring the contractor has adequate resources and expertise to manage the project effectively is crucial. The limited number of bidders might also pose a risk if the selected contractor underperforms and replacement options are scarce.

What is the expected impact of this contract on the operational effectiveness of the Bureau of Land Management facility?

This contract is expected to significantly enhance the operational effectiveness of the Bureau of Land Management facility by ensuring a reliable and efficient HVAC control system. Modernized systems typically lead to better temperature regulation, improved air quality, and reduced energy consumption, creating a more comfortable and productive environment for personnel. Furthermore, a well-functioning HVAC system is critical for protecting sensitive equipment and maintaining optimal conditions for operations. The upgrade should also reduce the likelihood of system failures and associated downtime, contributing to overall facility reliability and reducing emergency repair costs.

How does the historical spending on HVAC systems by the Bureau of Land Management compare to this award?

Without access to specific historical spending data for the Bureau of Land Management's HVAC systems, a direct comparison is difficult. However, federal agencies consistently allocate significant funds towards maintaining and upgrading building infrastructure, including HVAC systems, to ensure operational continuity and compliance with energy efficiency standards. Awards like this $2.62 million contract are typical for major overhauls or replacements of complex systems in government facilities. Analyzing trends in agency-wide or facility-specific spending on maintenance and capital improvements would provide context on whether this award represents an increase, decrease, or steady level of investment in HVAC infrastructure.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the procurement process?

This designation implies a two-stage process. Initially, the agency may have intended to restrict the competition to a specific list of sources or used a limited solicitation method. However, due to regulatory requirements or a decision to broaden the pool, it was subsequently opened to all responsible sources. The 'exclusion of sources' part suggests that certain potential bidders were deliberately not considered, likely due to specific justifications such as lack of capability, past performance issues, or proprietary technology requirements. This approach aims to balance the need for specialized solutions with the principle of broad competition, but the justification for exclusion needs to be robust to ensure fairness and maximize value.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 140L0625B0004

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33786 SANTIAM HWY, LEBANON, OR, 97355

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

Financial Breakdown

Contract Ceiling: $2,623,452

Exercised Options: $2,623,452

Current Obligation: $2,623,452

Actual Outlays: $823,823

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline