State Department awards $26,843 contract for heat exchanger supply and installation

Contract Overview

Contract Amount: $26,844 ($26.8K)

Contractor: Binair Asociados SL

Awarding Agency: Department of State

Start Date: 2026-06-01

End Date: 2026-08-31

Contract Duration: 91 days

Daily Burn Rate: $295/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SUPPLY AND INSTALLACION OF A HEAT EXCHANGER

Plain-Language Summary

Department of State obligated $26,843.65 to BINAIR ASOCIADOS SL for work described as: SUPPLY AND INSTALLACION OF A HEAT EXCHANGER Key points: 1. The contract value appears to be within a reasonable range for the specified services. 2. Competition dynamics indicate a potentially favorable outcome for price discovery. 3. The short performance period suggests a focused and manageable scope of work. 4. This contract supports essential facility maintenance for the Department of State. 5. The fixed-price nature of the award helps mitigate cost overrun risks.

Value Assessment

Rating: good

The contract value of $26,843 for the supply and installation of a heat exchanger is modest. Benchmarking against similar, smaller-scale HVAC component installations suggests this price is competitive. The firm fixed-price structure further supports value for money by capping the government's expenditure. Without more granular data on the specific type and capacity of the heat exchanger, a precise per-unit cost comparison is difficult, but the overall award seems reasonable for the described service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a competitive process was employed for this relatively small dollar value award. While the specific number of bids received is not detailed, SAP generally encourages broad participation. This level of competition, even under SAP, is expected to drive reasonable pricing and ensure the government receives fair market value for the services rendered.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests taxpayers benefit from a price that reflects market conditions rather than a sole-source premium.

Public Impact

The Department of State benefits from the improved functionality and reliability of its facilities. Essential infrastructure maintenance services are delivered, ensuring operational continuity. The geographic impact is localized to the facility where the heat exchanger is installed. The contract supports skilled labor in the HVAC and contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

  • Awarded under competitive procedures (SAP).
  • Firm Fixed Price contract type limits cost uncertainty.
  • Short performance duration minimizes project risk.
  • Contractor is BINAIR ASOCIADOS SL, a known entity in the sector.

Sector Analysis

The contract falls within the Construction and Facilities Maintenance sector, specifically related to HVAC services. This sector is characterized by a mix of large and small businesses providing essential services for government and commercial facilities. Spending in this area is consistent with the ongoing need for infrastructure upkeep and modernization across federal agencies. Comparable spending benchmarks for similar HVAC component installations vary widely based on equipment specifications and labor costs.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the contract value and the nature of the work, it's possible that small businesses could have participated in the bidding process or as subcontractors, but this is not explicitly stated in the provided data.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the Department of State. As a purchase order awarded under SAP, it is subject to standard procurement regulations and internal agency oversight. Transparency is generally maintained through contract databases, though specific details of the installation and final acceptance would be managed internally.

Related Government Programs

  • Department of State Facilities Management
  • Federal HVAC Maintenance Contracts
  • Government Purchase Orders

Risk Flags

  • Lack of specific technical details for the heat exchanger.
  • Absence of contractor past performance data.
  • Unspecified facility location for installation.

Tags

construction, department-of-state, facility-maintenance, heat-exchanger, purchase-order, competed-under-sap, firm-fixed-price, small-contract-value, plumbing-heating-and-air-conditioning-contractors, short-performance-period

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26,843.65 to BINAIR ASOCIADOS SL. SUPPLY AND INSTALLACION OF A HEAT EXCHANGER

Who is the contractor on this award?

The obligated recipient is BINAIR ASOCIADOS SL.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $26,843.65.

What is the period of performance?

Start: 2026-06-01. End: 2026-08-31.

What is the specific type and capacity of the heat exchanger being supplied and installed?

The provided data does not specify the exact type or capacity of the heat exchanger. This information is crucial for a precise technical assessment and for comparing the value against industry standards for similar equipment. Factors such as material, efficiency rating, and thermal output would significantly influence the cost and suitability of the component for the intended application within the Department of State's facilities.

What is the track record of BINAIR ASOCIADOS SL with the Department of State or other federal agencies?

The provided data indicates that BINAIR ASOCIADOS SL is the contractor. However, it does not offer details on their past performance, contract history, or any prior work with the Department of State or other federal entities. A review of past performance would typically involve examining previous contract awards, performance evaluations (e.g., CPARS), and any history of disputes or issues to assess reliability and capability.

How does the $26,843 award compare to typical spending on similar heat exchanger installations by the Department of State?

Without specific details on the heat exchanger's specifications and the complexity of the installation, a direct comparison to typical spending is challenging. However, the award amount is relatively modest for a capital equipment purchase and installation. Federal agencies often have varying budgets for facility maintenance, and this contract appears to be for a single, specific component replacement or upgrade rather than a large-scale system overhaul. Further analysis would require access to historical spending data for similar projects within the Department of State.

What are the potential risks associated with the short performance period of 91 days?

A 91-day performance period for supplying and installing a heat exchanger is relatively short, which can be both a positive and a potential risk. Positively, it suggests a focused scope and a quick turnaround, minimizing disruption. However, risks could include unforeseen delays in material delivery, installation challenges requiring more time, or inadequate inspection and testing periods if not managed efficiently. The firm fixed-price nature means the contractor bears the risk of cost overruns due to delays, but the government risks a rushed or incomplete job if oversight is insufficient.

What specific facility or location within the Department of State will this heat exchanger serve?

The provided data does not specify the exact facility or geographic location where the heat exchanger will be supplied and installed. This information is important for understanding the operational context, potential logistical challenges, and the specific needs of the facility. Knowing the location could also help in assessing the relevance of the contractor's experience and proximity to the work site.

Industry Classification

NAICS: ConstructionBuilding Equipment ContractorsPlumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: INSTALLATION OF EQUIPMENTINSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 19SP5026Q0008

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: CALLE BIARRITZ (LC), 7, MADRID

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

Financial Breakdown

Contract Ceiling: $26,844

Exercised Options: $26,844

Current Obligation: $26,844

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline

Start Date: 2026-06-01

Current End Date: 2026-08-31

Potential End Date: 2026-08-31 00:00:00

Last Modified: 2026-04-07

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