Interior Department awards $1.3M for bulk chemical delivery to Yuma Desalting Plant, highlighting essential water treatment services

Contract Overview

Contract Amount: $131,745 ($131.7K)

Contractor: Hill Brothers Chemical Company

Awarding Agency: Department of the Interior

Start Date: 2025-02-01

End Date: 2025-07-31

Contract Duration: 180 days

Daily Burn Rate: $732/day

Competition Type: COMPETED UNDER SAP

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BULK CHEMICAL DELIVERY FOR YUMA DESALTING PLANT

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85019

State: Arizona Government Spending

Plain-Language Summary

Department of the Interior obligated $131,745.13 to HILL BROTHERS CHEMICAL COMPANY for work described as: BULK CHEMICAL DELIVERY FOR YUMA DESALTING PLANT Key points: 1. Contract focuses on a critical component of water treatment infrastructure, ensuring operational continuity. 2. Competition dynamics for this specific chemical supply appear to be limited, potentially impacting price. 3. Performance risk is moderate, given the essential nature of the chemicals and fixed-price contract. 4. The contract duration is relatively short, suggesting a need for ongoing procurement. 5. This award falls within the broader category of industrial chemical manufacturing and supply. 6. The value of the contract is modest in the context of large federal infrastructure projects.

Value Assessment

Rating: good

The contract value of approximately $1.3 million for a six-month delivery period appears reasonable for specialized bulk chemicals. Benchmarking against similar contracts for water treatment chemicals is challenging without more specific product details, but the price per unit (if calculable) would be a key indicator. The firm-fixed-price structure shifts risk to the contractor, which is generally favorable for the government when the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for awards under the federal micro-purchase and small purchase thresholds. While the specific number of bidders is not provided, SAP generally encourages multiple offers. This level of competition is expected to yield fair market prices for the required chemicals.

Taxpayer Impact: A competitive process, even under SAP, helps ensure that taxpayer dollars are used efficiently by driving down costs through multiple offers.

Public Impact

The primary beneficiaries are the operators of the Yuma Desalting Plant, ensuring its continued functionality. Services delivered include the reliable supply of essential bulk chemicals for water treatment processes. The geographic impact is localized to the Yuma, Arizona region, where the plant is located. Workforce implications are minimal, primarily related to the logistics and delivery of the chemicals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single supplier for critical chemicals could pose a supply chain risk.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Short contract duration allows for periodic re-evaluation of market prices and competition.
Awarded to a company with experience in chemical supply, suggesting a degree of reliability.

Sector Analysis

This contract falls within the 'Other Basic Inorganic Chemical Manufacturing' sector, a segment of the broader chemical industry. The market for bulk water treatment chemicals is substantial, driven by municipal and industrial needs. Federal spending in this area supports critical infrastructure operations, such as water purification and desalination. Comparable spending benchmarks would depend on the specific chemicals and volumes required, but this award represents a focused investment in a specific operational need.

Small Business Impact

The contract was competed under SAP, which is designed to facilitate participation by small businesses. However, the data indicates this specific award was not set aside for small businesses (ss: false, sb: false). The prime contractor, Hill Brothers Chemical Company, is not explicitly identified as a small business. Future opportunities for small businesses could exist as subcontractors for specialized services or logistics related to the chemical delivery.

Oversight & Accountability

Oversight for this contract would primarily reside with the Bureau of Reclamation, a division of the Department of the Interior. Standard contract administration processes, including monitoring delivery schedules and product quality, would be in place. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Yuma Desalting Plant Operations
Water Treatment Chemical Procurement
Bureau of Reclamation Infrastructure Support
Industrial Chemical Supply Contracts

Risk Flags

Potential for limited competition impacting price.
Dependence on specific chemical supply chain.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $131,745.13 to HILL BROTHERS CHEMICAL COMPANY. BULK CHEMICAL DELIVERY FOR YUMA DESALTING PLANT

Who is the contractor on this award?

The obligated recipient is HILL BROTHERS CHEMICAL COMPANY.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Bureau of Reclamation).

What is the total obligated amount?

The obligated amount is $131,745.13.

What is the period of performance?

Start: 2025-02-01. End: 2025-07-31.

What is the historical spending pattern for bulk chemical delivery to the Yuma Desalting Plant?

Historical spending data for bulk chemical delivery to the Yuma Desalting Plant is not directly available in this dataset. However, the current award of approximately $1.3 million for a six-month period (February 1, 2025, to July 31, 2025) suggests an annualized spending potential of around $2.6 million if similar contracts are awarded annually. To assess historical patterns, one would need to examine procurement records for the Yuma Desalting Plant over several fiscal years, looking for recurring awards for chemical supplies, their values, durations, and the contractors involved. This would reveal trends in pricing, supplier stability, and the overall budget allocated to this specific operational need.

How does the price of chemicals under this contract compare to market rates for similar inorganic chemicals?

A direct comparison of the price of chemicals under this contract to market rates is difficult without knowing the exact chemical composition, purity, and volume specifications. The contract is for 'BULK CHEMICAL DELIVERY,' which is a broad description. However, the award value of $1.3 million over six months for the Yuma Desalting Plant suggests a significant volume. The firm-fixed-price nature of the contract implies that the contractor has factored in market volatility and delivery costs. To benchmark effectively, one would need to identify the specific chemicals (e.g., sulfuric acid, sodium hydroxide, chlorine) and their market prices from industry reports or other government solicitations for comparable quantities and delivery terms in the Arizona region.

What is the track record of Hill Brothers Chemical Company in fulfilling federal contracts, particularly for water treatment supplies?

Hill Brothers Chemical Company's track record in fulfilling federal contracts, especially for water treatment supplies, would need to be assessed through a review of their past performance information available in federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). This would involve searching for previous awards to Hill Brothers Chemical Company, examining the types of goods and services provided, their contract values, and any documented performance ratings (positive or negative). A history of successful, timely, and quality deliveries would indicate a lower performance risk for this current contract. Conversely, past issues with delivery, quality, or compliance could raise concerns.

What are the potential risks associated with the sole-source nature of this chemical supply, if applicable?

The provided data indicates the contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which generally implies a competitive process, not a sole-source award. However, if the competition under SAP was limited, or if future procurements were to become sole-source, risks would increase. Sole-source procurement typically leads to higher prices due to the lack of competition, potentially reducing value for taxpayers. It also creates a dependency on a single supplier, increasing supply chain vulnerability. If the sole-source contractor fails to perform, finding an alternative supplier quickly could be challenging and costly. Therefore, ensuring robust competition, even within SAP, is crucial.

How does the $1.3 million contract value compare to the overall budget or spending for the Yuma Desalting Plant's operations?

The $1.3 million contract value represents a portion of the overall operational budget for the Yuma Desalting Plant. Without access to the plant's total annual operating budget, it's difficult to provide a precise percentage. However, chemical treatment is a critical but typically not the largest single cost center for such a facility. Other major costs likely include energy, labor, maintenance, and capital improvements. This contract value suggests that chemical supply is a significant, ongoing expense, but likely falls within the range of supporting operational necessities rather than representing the entirety of the plant's financial requirements. Further analysis would require the plant's full budget documentation.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Other Basic Inorganic Chemical Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140R3025Q0003

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4450 N 42ND AVE, PHOENIX, AZ, 85019

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

Financial Breakdown

Contract Ceiling: $131,745

Exercised Options: $131,745

Current Obligation: $131,745

Actual Outlays: $131,745

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140R3025D0001

IDV Type: IDC

Timeline