DOI Awards $21.1M HVAC Maintenance Contract to MBI Construction Services for 5 Years
Contract Overview
Contract Amount: $21,128 ($21.1K)
Contractor: MBI Construction Services Inc
Awarding Agency: Department of the Interior
Start Date: 2022-09-01
End Date: 2027-08-31
Contract Duration: 1,825 days
Daily Burn Rate: $12/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CCAO HVAC MAINTENANCE BLDG 115
Place of Performance
Location: YAKIMA, YAKIMA County, WASHINGTON, 98902
Plain-Language Summary
Department of the Interior obligated $21,128 to MBI CONSTRUCTION SERVICES INC for work described as: CCAO HVAC MAINTENANCE BLDG 115 Key points: 1. Contract value of $21.1M over 5 years for essential building maintenance. 2. Competition was conducted under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements. 3. Risk appears moderate given the firm-fixed-price structure, but long duration warrants monitoring. 4. Sector is Industrial Machinery Repair and Maintenance, crucial for operational facilities.
Value Assessment
Rating: good
The contract value of $21.1M over five years, averaging $4.22M annually, seems reasonable for comprehensive HVAC maintenance services for a significant facility. Benchmarking against similar large-scale industrial maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of offers. While this can lead to efficient procurement for smaller values, it may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: The use of SAP suggests an effort to streamline procurement, potentially saving administrative costs. However, the overall taxpayer impact depends on whether the pricing achieved through limited competition is truly competitive.
Public Impact
Ensures continued operation of critical building systems, preventing disruptions. Supports facility management and infrastructure integrity for the Bureau of Reclamation. Provides employment opportunities through MBI Construction Services Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) increases exposure to potential price escalations or performance issues.
- Limited competition under SAP may not guarantee the best value.
- Reliance on a single vendor for critical maintenance over an extended period.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Contract awarded to a specific company, indicating a clear vendor relationship.
- Maintenance services are essential for facility functionality.
Sector Analysis
This contract falls within the Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is vital for government agencies to maintain operational infrastructure and facilities, ensuring continuity of services.
Small Business Impact
The data does not indicate if MBI Construction Services Inc. is a small business. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The contract is a Purchase Order, a common instrument for acquiring goods and services. Oversight would typically involve contract officers and technical representatives monitoring performance and adherence to terms.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of the Interior Contracting
- Bureau of Reclamation Programs
Risk Flags
- Long-term dependency on a single contractor.
- Potential for price increases not fully captured in the initial award.
- Limited competition may have resulted in a suboptimal price.
- Performance risks associated with complex HVAC systems over time.
Tags
commercial-and-industrial-machinery-and-, department-of-the-interior, wa, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $21,128 to MBI CONSTRUCTION SERVICES INC. CCAO HVAC MAINTENANCE BLDG 115
Who is the contractor on this award?
The obligated recipient is MBI CONSTRUCTION SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Reclamation).
What is the total obligated amount?
The obligated amount is $21,128.
What is the period of performance?
Start: 2022-09-01. End: 2027-08-31.
What is the specific scope of work covered by this HVAC maintenance contract?
The provided data does not detail the specific scope of work. However, it is for 'CCAO HVAC MAINTENANCE BLDG 115'. This typically includes routine inspections, preventative maintenance, repairs, and potentially emergency services for the heating, ventilation, and air conditioning systems within Building 115.
How does the annual cost of this contract compare to industry benchmarks for similar facilities?
The annual cost averages approximately $4.22 million ($21.1M / 5 years). Without specific details on the size and complexity of Building 115 and its HVAC systems, a direct benchmark is difficult. However, this figure should be compared against industry cost data for large commercial or industrial facility HVAC maintenance.
What mechanisms are in place to ensure performance and accountability over the 5-year term?
As a firm-fixed-price purchase order, the contractor is obligated to perform the specified services. Oversight likely involves regular performance reviews by the Bureau of Reclamation's technical point of contact, adherence to service level agreements, and potential remedies for non-performance outlined in the contract terms.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
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: 140R1722Q0022
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2016 FRUITVALE BLVD, YAKIMA, WA, 98902
Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $21,128
Exercised Options: $21,128
Current Obligation: $21,128
Actual Outlays: $14,514
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2022-09-01
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2026-04-09
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