Interior's $35.4M HVAC Contract Awarded to Chong's Corporation for National Park Service
Contract Overview
Contract Amount: $35,360 ($35.4K)
Contractor: Chong's Corporation
Awarding Agency: Department of the Interior
Start Date: 2024-06-11
End Date: 2026-06-11
Contract Duration: 730 days
Daily Burn Rate: $48/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AMME HVAC PMI
Place of Performance
Location: SAIPAN, SAIPAN County, NORTHERN MARIANA ISLANDS, 96950
Plain-Language Summary
Department of the Interior obligated $35,360 to CHONG'S CORPORATION for work described as: AMME HVAC PMI Key points: 1. Contract value of $35.4 million over two years. 2. Awarded to Chong's Corporation, a single vendor. 3. Potential risk associated with limited competition. 4. Spending is within the Facilities Maintenance sector.
Value Assessment
Rating: fair
The contract value of $35.4 million for a two-year period appears reasonable for HVAC services. However, without specific details on the scope of work and comparable contract data, a precise pricing assessment is difficult. Benchmarking against similar large-scale HVAC maintenance contracts would be beneficial.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting an expectation of lower value or urgency. The award to a single vendor, Chong's Corporation, indicates limited competition, which may impact price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: Limited competition could result in a higher price than if the contract were fully and openly competed, potentially increasing taxpayer cost.
Public Impact
Ensures essential climate control and air quality for National Park Service facilities. Supports operations in the Northern Mariana Islands, potentially impacting tourism and visitor experience. Job creation and economic activity for the awarded vendor and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price inflation due to single-source award
Positive Signals
- Ensures critical infrastructure maintenance
- Supports operations in a remote location
Sector Analysis
This contract falls under the Facilities Maintenance sector, specifically for Plumbing, Heating, and Air-Conditioning Contractors. Spending in this area is crucial for maintaining government infrastructure and ensuring operational continuity across various agencies.
Small Business Impact
The data does not indicate whether small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The award was made via Purchase Order under Simplified Acquisition Procedures. Oversight should focus on ensuring the vendor meets performance requirements and that the pricing remains competitive throughout the contract duration, especially given the limited competition.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of the Interior Contracting
- National Park Service Programs
Risk Flags
- Limited competition
- Potential for cost overruns
- Lack of detailed scope of work
- Unclear performance metrics
Tags
plumbing-heating-and-air-conditioning-co, department-of-the-interior, mp, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $35,360 to CHONG'S CORPORATION. AMME HVAC PMI
Who is the contractor on this award?
The obligated recipient is CHONG'S CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of the Interior (National Park Service).
What is the total obligated amount?
The obligated amount is $35,360.
What is the period of performance?
Start: 2024-06-11. End: 2026-06-11.
What is the specific scope of work covered by this HVAC contract, and how does it compare to industry standards for similar facilities?
The provided data lacks specific details on the scope of work for the AMME HVAC PMI contract. A comprehensive understanding of the services, equipment covered, and maintenance schedules is necessary to accurately assess its value and compare it against industry benchmarks. This information is crucial for determining if the $35.4 million price tag is justified for the services rendered.
What were the justifications for using Simplified Acquisition Procedures (SAP) and awarding to a single vendor, and what steps were taken to mitigate potential price inflation?
The justification for using SAP and awarding to a single vendor is not detailed in the provided data. Typically, SAP is used for procurements under a certain dollar threshold, or for urgent needs. Awarding to a single vendor suggests limited competition. Agencies should have documented the rationale and explored options to ensure fair pricing, possibly through market research or negotiation.
How will the effectiveness of the HVAC services be measured, and what performance metrics will be used to ensure taxpayer value?
Performance metrics for this contract are not specified in the provided data. Effective oversight would involve establishing clear Key Performance Indicators (KPIs) related to system uptime, response times for repairs, energy efficiency, and overall system reliability. Regular performance reviews and user feedback are essential to ensure the National Park Service receives optimal value for the taxpayer dollars invested.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 140P8224Q0004
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6632 CHALAN PALE ARNOLD GUALO RAI, SAIPAN, MP, 96950
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $93,060
Exercised Options: $35,360
Current Obligation: $35,360
Actual Outlays: $28,162
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2024-06-11
Current End Date: 2026-06-11
Potential End Date: 2029-12-11 00:00:00
Last Modified: 2026-04-10
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