State Department awards $147K for chiller maintenance to foreign awardees under a non-competed contract

Contract Overview

Contract Amount: $146,837 ($146.8K)

Contractor: Miscellaneous Foreign Awardees

Awarding Agency: Department of State

Start Date: 2024-03-28

End Date: 2025-03-23

Contract Duration: 360 days

Daily Burn Rate: $408/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHILLERS MAINTENANCE

Plain-Language Summary

Department of State obligated $146,837.15 to MISCELLANEOUS FOREIGN AWARDEES for work described as: CHILLERS MAINTENANCE Key points: 1. Contract awarded to miscellaneous foreign awardees suggests potential limitations in domestic vendor availability or specific expertise requirements. 2. The firm-fixed-price contract type indicates that the price is set and not subject to upward adjustment based on contractor costs. 3. A 360-day duration for chiller maintenance is standard for ensuring continuous operational support. 4. The contract's value is relatively small, suggesting a localized or specific need rather than a large-scale program. 5. Lack of competition raises questions about whether the government secured the best possible price and service. 6. The award to foreign entities may introduce complexities in payment, oversight, and legal recourse compared to domestic contracts.

Value Assessment

Rating: fair

The contract value of approximately $147,000 for chiller maintenance over 360 days appears reasonable for specialized facilities support. However, without specific details on the scope of work, the exact number and type of chillers, or the geographic location of service, a precise value-for-money assessment is challenging. Benchmarking against similar domestic contracts for chiller maintenance is difficult due to the award to foreign entities. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of providing the required service, or in situations where competition is not feasible or practical. The lack of competition means the government did not benefit from a bidding process that could have potentially driven down prices or improved service offerings through comparative proposals.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the most cost-effective solution available, as the potential for competitive pricing was not leveraged.

Public Impact

The primary beneficiaries are likely the facilities managed by the Department of State that rely on functioning chiller systems for climate control. Services delivered include the maintenance and repair of chiller systems, crucial for maintaining habitable and operational environments. The geographic impact is localized to the specific facilities where the chillers are located and serviced. Workforce implications are minimal for the public, but the contract supports specialized technical roles for the maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Awarding to foreign entities can complicate oversight, payment processing, and dispute resolution.
The specific reasons for a sole-source award are not detailed, leaving room for speculation about necessity.
Limited transparency regarding the selection criteria for 'miscellaneous foreign awardees'.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contract duration of 360 days ensures continuous support for essential equipment.
Focus on critical infrastructure maintenance (chillers) supports operational continuity.

Sector Analysis

The facilities support services sector encompasses a wide range of activities necessary for the operation and maintenance of buildings and infrastructure. This contract falls under the maintenance and repair sub-sector, specifically focusing on HVAC (Heating, Ventilation, and Air Conditioning) systems. The market for chiller maintenance can be specialized, often requiring certified technicians and specific equipment knowledge. While the overall market size for facilities support is substantial, individual contracts for specific equipment maintenance can vary significantly in value.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to 'miscellaneous foreign awardees' suggests that small businesses, particularly domestic ones, were likely not considered or were not eligible for this specific procurement. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. Given the award to foreign entities, additional oversight considerations may involve diplomatic channels or specific intergovernmental agreements. Transparency is limited due to the sole-source nature and the broad categorization of the awardee. Inspector General jurisdiction would typically extend to the use of federal funds, regardless of the awardee's location.

Related Government Programs

Facilities Maintenance Services
HVAC System Support
Department of State Operations Support
Government Building Maintenance

Risk Flags

Sole-source award without clear justification
Award to foreign entity may complicate oversight and performance verification
Limited transparency on contractor selection and specific service scope

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $146,837.15 to MISCELLANEOUS FOREIGN AWARDEES. CHILLERS MAINTENANCE

Who is the contractor on this award?

The obligated recipient is MISCELLANEOUS FOREIGN AWARDEES.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $146,837.15.

What is the period of performance?

Start: 2024-03-28. End: 2025-03-23.

What specific services are included under 'CHILLERS MAINTENANCE' for this contract?

The provided data indicates the service category is 'CHILLERS MAINTENANCE' and the North American Industry Classification System (NAICS) code is 561210, which corresponds to Facilities Support Services. This generally includes routine maintenance, inspections, cleaning, and minor repairs necessary to keep chiller systems operational. However, the exact scope, such as the types of chillers (e.g., centrifugal, absorption), the frequency of maintenance visits, and the extent of repair services covered, is not detailed in the summary data. For a comprehensive understanding, the full contract statement of work would be required.

Why was this contract awarded on a sole-source basis instead of being competed?

The data explicitly states the contract type as 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not provided in the summary data. Common reasons for sole-source awards include situations where only one responsible source can provide the required supply or service, the government must procure the supply or service from a particular source for reasons of standardization and interoperability, or in cases of urgent and compelling need. Without further documentation (like a Justification and Approval document), the precise rationale remains unknown, but it implies that competitive bidding was deemed impractical or impossible for this particular requirement.

What does 'MISCELLANEOUS FOREIGN AWARDEES' imply about the contractor?

'Miscellaneous Foreign Awardees' suggests that the contract was awarded to one or more entities located outside the United States, and that these entities do not fall into a more specific, pre-defined category of foreign contractors. This could indicate that the required chiller maintenance services are highly specialized, geographically specific to a particular overseas location where the Department of State operates, or that there was a lack of qualified domestic vendors willing or able to perform the work under the contract's terms. It also implies potential complexities in contract administration, payment, and legal jurisdiction compared to contracts awarded to U.S. domestic firms.

How does the $146,837.15 contract value compare to typical spending on chiller maintenance?

The contract value of approximately $147,000 for 360 days of chiller maintenance is relatively modest for government contracts. Typical spending can vary widely based on the number, size, and type of chillers, the complexity of the facility, and the geographic location. For a single facility or a small group of facilities, this amount could be reasonable for comprehensive maintenance. However, for larger installations or multiple sites, it might represent only a fraction of the total required maintenance budget. Without knowing the specific assets being maintained and their location, direct comparison to broader market benchmarks is difficult, especially given the foreign awardee status.

What are the potential risks associated with awarding maintenance contracts to foreign entities?

Awarding maintenance contracts to foreign entities can introduce several risks. These include challenges in ensuring compliance with U.S. labor and safety standards, difficulties in performing site inspections and quality assurance, potential delays due to logistical or communication barriers, and complexities in payment processing and currency exchange. Furthermore, legal recourse in case of disputes or contract breaches may be more complicated and costly. There can also be risks related to data security if sensitive facility information is handled by foreign personnel. The Department of State likely has established protocols to mitigate these risks, but they remain inherent considerations.

What is the significance of the 'FIRM FIXED PRICE' contract type for this maintenance service?

The 'FIRM FIXED PRICE' (FFP) contract type is significant because it establishes a final negotiated price that will not be adjusted upwards or downwards based on the contractor's actual cost experience in performing the work. For chiller maintenance, this provides the Department of State with cost certainty, meaning the total expenditure for the contracted services is known upfront. This structure shifts the risk of cost overruns from the government to the contractor. While beneficial for budgeting, it also means the government might pay a premium if the contractor's actual costs are lower than anticipated, as the contractor's profit is built into the fixed price.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1800 F ST NW, WASHINGTON, DC, 20405

Business Categories: Category Business, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $146,837

Exercised Options: $146,837

Current Obligation: $146,837

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline