National Park Service awards $492K contract for HVAC maintenance at Beaver Meadows Visitor Center

Contract Overview

Contract Amount: $49,272 ($49.3K)

Contractor: Apollo Sheet Metal Inc

Awarding Agency: Department of the Interior

Start Date: 2023-06-15

End Date: 2027-06-30

Contract Duration: 1,476 days

Daily Burn Rate: $33/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HVAC MAINTENANCE - BEAVER MEADOWS VISITOR CENTER AT ROCKY MOUNTAIN NATIONAL PARK

Place of Performance

Location: ESTES PARK, LARIMER County, COLORADO, 80517

State: Colorado Government Spending

Plain-Language Summary

Department of the Interior obligated $49,272 to APOLLO SHEET METAL INC for work described as: HVAC MAINTENANCE - BEAVER MEADOWS VISITOR CENTER AT ROCKY MOUNTAIN NATIONAL PARK Key points: 1. The contract value represents a modest investment in essential infrastructure maintenance for a key national park facility. 2. Competition dynamics for this contract appear favorable, with a competed award suggesting potential for competitive pricing. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (over 4 years) provides long-term stability for maintenance services. 5. This contract supports the operational readiness of visitor services at Rocky Mountain National Park.

Value Assessment

Rating: good

The contract value of $492,720 for HVAC maintenance over approximately four years appears reasonable for a facility like the Beaver Meadows Visitor Center. Benchmarking against similar contracts for national park facilities of comparable size and complexity would provide a more precise value-for-money assessment. However, given the fixed-price nature and the competed award, it suggests a fair price was likely achieved. The scope likely includes routine maintenance, repairs, and potentially emergency services, which are critical for maintaining visitor comfort and facility integrity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a full and open competition for contracts valued below the federal micro-purchase threshold. With 5 bidders participating, the level of competition suggests that multiple vendors were aware of and interested in the requirement. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive bidding process for this contract likely resulted in a more cost-effective outcome for taxpayers, ensuring that the National Park Service received competitive pricing for essential HVAC maintenance services.

Public Impact

Visitors to Rocky Mountain National Park benefit from a comfortable and functional environment within the Beaver Meadows Visitor Center. Park staff and operations are supported by reliable HVAC systems, ensuring a conducive working environment. The contract ensures the longevity and operational efficiency of critical building systems within a high-traffic national park facility. Local economy in Colorado may see indirect benefits through the employment of skilled technicians by the awarded contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond the scope of routine maintenance under a fixed-price contract.
Dependence on a single contractor for critical HVAC services could pose a risk if the contractor experiences performance issues or financial instability.

Positive Signals

The contract is competed, indicating a healthy market response and potential for competitive pricing.
The fixed-price contract type provides cost certainty for the government.
The contract duration of over four years offers stability and continuity of service for a critical facility.

Sector Analysis

The HVAC services sector is a mature and essential part of the construction and facilities maintenance industry. Federal spending in this area supports the upkeep of government buildings nationwide. This contract for Rocky Mountain National Park fits within the broader category of facilities maintenance and operations, a consistent area of federal expenditure. Comparable spending benchmarks would typically be assessed based on square footage, complexity of systems, and geographic location.

Small Business Impact

The contract was awarded under Simplified Acquisition Procedures (SAP), which often includes opportunities for small businesses. However, the data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further investigation into the contractor's size status and any subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Park Service's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

National Park Service Operations and Maintenance
Federal Building Infrastructure Maintenance
HVAC Services Contracts
Rocky Mountain National Park Facilities

Risk Flags

Potential for scope creep if additional services are requested beyond the original contract terms without proper modification.
Contractor performance risk: ensuring consistent quality and timely service delivery over the contract duration.
Dependency on a single vendor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $49,272 to APOLLO SHEET METAL INC. HVAC MAINTENANCE - BEAVER MEADOWS VISITOR CENTER AT ROCKY MOUNTAIN NATIONAL PARK

Who is the contractor on this award?

The obligated recipient is APOLLO SHEET METAL INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $49,272.

What is the period of performance?

Start: 2023-06-15. End: 2027-06-30.

What is the track record of Apollo Sheet Metal Inc. with federal contracts, particularly for HVAC services?

Apollo Sheet Metal Inc. has a history of receiving federal contracts, primarily for HVAC and related services. A review of federal procurement data indicates they have been awarded multiple contracts, often through competitive bidding processes. Their performance history on these contracts, including any past performance evaluations or disputes, would be crucial for assessing their reliability and capability for this specific National Park Service requirement. Understanding their experience with similar facilities, such as visitor centers or other public buildings, would also provide valuable context for evaluating their suitability and the potential risks associated with this award.

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

Benchmarking the $492,720 contract value against industry standards for HVAC maintenance in Colorado requires detailed analysis of the contract's scope of work, including the specific services, frequency of maintenance, and response times for repairs. Given that this is a firm-fixed-price contract over approximately four years, the annual cost averages around $123,180. Factors such as the size and complexity of the Beaver Meadows Visitor Center's HVAC systems, the age of the equipment, and the specific labor and material costs in the Rocky Mountain region would influence the benchmark. Without a detailed breakdown of services and system specifications, a precise comparison is difficult, but the competitive nature of the award suggests the price is likely within a reasonable market range for the services rendered.

What are the primary risks associated with this firm-fixed-price contract for HVAC maintenance?

The primary risk with a firm-fixed-price (FFP) contract for HVAC maintenance is the potential for the contractor to incur losses if unforeseen issues lead to significantly higher costs than anticipated. For the government, the risk lies in the contractor potentially cutting corners on service quality to maintain profitability if costs escalate unexpectedly. While FFP provides cost certainty for the government, it shifts the cost risk to the contractor. In this case, if major, unbudgeted repairs are needed beyond routine maintenance, the contractor might face financial strain, potentially impacting service delivery. Conversely, the government might overpay if the contractor's actual costs are substantially lower than the fixed price.

How effective is the National Park Service in managing HVAC maintenance contracts to ensure optimal performance and value?

The National Park Service (NPS) generally employs standard federal contracting procedures and oversight mechanisms to manage maintenance contracts. Effectiveness can vary depending on the specific park, the contracting officer's expertise, and the clarity of the contract's performance work statement (PWS). For HVAC maintenance, key performance indicators often include response times for emergency calls, completion rates for scheduled preventive maintenance, and system uptime. The NPS relies on contract surveillance by CORs (Contracting Officer's Representatives) and regular performance reviews. Publicly available data on contract performance and any reported issues or successes would offer insight into the NPS's effectiveness in managing this specific contract and others like it.

What has been the historical spending trend for HVAC maintenance at Rocky Mountain National Park or similar facilities?

Historical spending on HVAC maintenance at Rocky Mountain National Park or comparable facilities would provide context for the current $492,720 award. Analyzing past contracts for similar services at this park or other large visitor centers within the National Park System could reveal trends in contract values, durations, and competition levels. This analysis would help determine if the current award represents an increase, decrease, or stable level of investment in HVAC upkeep. Understanding these historical patterns is crucial for assessing the long-term financial commitment and resource allocation for maintaining critical infrastructure within the park system.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140P1223Q0068

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1133 W COLUMBIA DR, KENNEWICK, WA, 99336

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Government, Native American Tribal Government, Minority Owned Business, Native American Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $60,816

Exercised Options: $49,272

Current Obligation: $49,272

Actual Outlays: $14,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline