State Department awards $261K for heat exchangers, with 2 bidders competing

Contract Overview

Contract Amount: $26,173 ($26.2K)

Contractor: Jenks Inc

Awarding Agency: Department of State

Start Date: 2026-04-01

End Date: 2026-06-30

Contract Duration: 90 days

Daily Burn Rate: $291/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAC - HEAT EXCHANGER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $26,173 to JENKS INC for work described as: FAC - HEAT EXCHANGER Key points: 1. Value appears reasonable given the short duration and fixed-price nature. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. Risk indicators are low due to the straightforward nature of the product and short performance period. 4. This contract supports essential facility maintenance for the State Department. 5. The procurement falls within the manufacturing sector for power boilers and heat exchangers.

Value Assessment

Rating: good

The award of $261,730 for heat exchangers over a 90-day period seems within a reasonable range for specialized industrial equipment. Benchmarking against similar, albeit potentially larger or longer-term, contracts for heat exchanger units suggests that the price per unit, if calculable, would likely fall within industry norms. The firm fixed-price contract type further mitigates cost overrun risks for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. With only two bidders, the level of competition was limited. While two bidders provide some price comparison, it is less than ideal for ensuring the most competitive pricing possible. The limited competition may have resulted in a price that is not as low as it could have been with more offers.

Taxpayer Impact: The limited competition means taxpayers may not have received the absolute lowest price for these heat exchangers. However, the use of SAP suggests an effort to balance acquisition speed and cost-effectiveness for a relatively small dollar amount.

Public Impact

The primary beneficiaries are the facilities managed by the Department of State, ensuring operational continuity. The service delivered is the provision of critical heat exchanger components. The geographic impact is localized to facilities within the District of Columbia. Workforce implications are minimal, likely involving specialized manufacturing and installation personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher prices than a more robust bidding process.
Reliance on a single supplier for specific components could pose a future supply chain risk if not managed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Short performance period minimizes long-term exposure and risk.
Procurement under SAP suggests efficiency for a lower-value acquisition.

Sector Analysis

This contract falls within the industrial manufacturing sector, specifically NAICS code 332410 (Power Boiler and Heat Exchanger Manufacturing). This sector is characterized by specialized production of critical components for industrial and commercial applications. Spending in this area is often driven by infrastructure maintenance, upgrades, and new construction projects across various government agencies and private industries. Comparable spending benchmarks would typically involve analyzing unit costs for similar equipment across different government contracts or industry price lists.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the nature of heat exchanger manufacturing, it's possible that larger, specialized firms were better positioned to bid. There is no explicit information on subcontracting plans, but for a purchase order of this size and duration, significant small business subcontracting is less likely unless mandated by the prime contractor's overall business strategy.

Oversight & Accountability

Oversight for this purchase order would primarily reside with the Department of State's contracting officers and program managers. Accountability is ensured through the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Schedules
Department of Defense (DoD) Facility Maintenance Contracts
Energy Department (DOE) Infrastructure Upgrades

Risk Flags

Limited Competition
Potential for Price Inflation due to Few Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26,173 to JENKS INC. FAC - HEAT EXCHANGER

Who is the contractor on this award?

The obligated recipient is JENKS INC.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $26,173.

What is the period of performance?

Start: 2026-04-01. End: 2026-06-30.

What is the typical lead time for manufacturing and delivery of heat exchangers of this type?

The typical lead time for manufacturing and delivery of heat exchangers can vary significantly based on complexity, customization, and manufacturer backlogs. For standard industrial heat exchangers, lead times can range from 4 to 12 weeks. However, specialized or custom-designed units can take considerably longer, sometimes 6 months or more. Given the short 90-day performance period for this contract (April 1, 2026, to June 30, 2026), it suggests either the heat exchangers were readily available off-the-shelf, the manufacturer had significant existing capacity, or the contract was awarded well in advance of the performance start date to accommodate production timelines. The limited competition might also indicate that only a few vendors could meet the required delivery schedule.

How does the price of $261,730 compare to similar heat exchanger procurements by the federal government?

Directly comparing the $261,730 award to other federal heat exchanger procurements is challenging without knowing the specific type, size, capacity, and material specifications of the units. However, for a purchase order valued at this amount over a 90-day period, it suggests a procurement of moderately sized or specialized heat exchangers, rather than large industrial systems. Federal procurement data shows a wide range, from a few thousand dollars for small replacement parts to millions for large, custom-engineered systems. The fact that this was competed under SAP with two bidders suggests it falls into a category where simplified procedures are deemed appropriate, implying a value that is not exceptionally large but requires specific industrial components.

What are the primary risks associated with procuring heat exchangers, and how are they mitigated in this contract?

Primary risks in procuring heat exchangers include performance issues (not meeting thermal requirements), material defects, premature failure, and delivery delays. This contract mitigates some of these risks through its structure. The firm fixed-price (FFP) nature shifts the financial risk of cost overruns to the contractor. The short performance period (90 days) limits the government's exposure to long-term performance issues. However, risks related to latent defects or failure to meet specifications after acceptance still exist. The limited competition (2 bidders) could also be a risk if the chosen contractor underperforms, as replacement options might be limited or costly in the short term.

What is the track record of JENKS INC in supplying heat exchangers to the federal government?

Information regarding JENKS INC's specific track record in supplying heat exchangers to the federal government is not detailed in the provided data snippet. To assess their reliability, one would need to examine their past performance on similar federal contracts, including on-time delivery, adherence to specifications, and any history of disputes or contract terminations. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would be necessary to identify previous awards to JENKS INC, the agencies involved, the value of those contracts, and any associated performance feedback or ratings. Without this historical data, it's difficult to definitively gauge their experience and reliability for this specific product category.

How does the use of Simplified Acquisition Procedures (SAP) impact the overall value for taxpayers in this instance?

The use of Simplified Acquisition Procedures (SAP) for this $261,730 contract aims to streamline the procurement process, reducing administrative costs and potentially speeding up delivery compared to full and open competition. For taxpayers, this can translate to better value if the efficiencies gained outweigh any potential increase in price due to limited competition. In this case, with only two bidders, the price discovery mechanism was constrained. While SAP is appropriate for purchases under the current threshold (typically $250,000, though it can be higher in certain circumstances), the limited number of offers means taxpayers might not be realizing the maximum possible savings. However, the cost-effectiveness of SAP for smaller procurements is generally accepted.

Industry Classification

NAICS: Manufacturing › Boiler, Tank, and Shipping Container Manufacturing › Power Boiler and Heat Exchanger Manufacturing

Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 910 BLADENSBURG RD NE, WASHINGTON, DC, 20002

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $26,173

Exercised Options: $26,173

Current Obligation: $26,173

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline