Treasury's IRS awards $36.3M contract for environmental controls to CAM-DEX CORPORATION

Contract Overview

Contract Amount: $36,306 ($36.3K)

Contractor: Cam-Dex Corporation

Awarding Agency: Department of the Treasury

Start Date: 2025-09-01

End Date: 2025-09-30

Contract Duration: 29 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VSS SERVICES

Place of Performance

Location: REDDING, SHASTA County, CALIFORNIA, 96002

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $36,306.47 to CAM-DEX CORPORATION for work described as: VSS SERVICES Key points: 1. Contract value represents a significant investment in facility maintenance and operational efficiency. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Short duration of the delivery order indicates a specific, time-bound need. 5. The contract falls under the 'Automatic Environmental Control Manufacturing' NAICS code, highlighting a specialized technical requirement. 6. Geographic focus on California for this delivery order.

Value Assessment

Rating: fair

The contract value of $36.3 million for a 29-day delivery order appears high for environmental control manufacturing, especially considering the short duration. Without specific details on the scope of work, it's difficult to benchmark against similar contracts. However, the fixed-price nature suggests an attempt to control costs, but the overall value warrants scrutiny for potential inefficiencies or scope creep if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests some level of competition, but the limited number of participants could still allow for less aggressive pricing than a more robustly competed contract. Further analysis would be needed to determine if the competition effectively drove down costs.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers. However, with only two bidders, the potential for cost savings may have been constrained compared to scenarios with more numerous and diverse participants.

Public Impact

The Internal Revenue Service (IRS) will benefit from improved environmental control systems, potentially leading to more stable operating conditions and reduced energy costs. Services delivered include automatic environmental control manufacturing, crucial for maintaining optimal conditions within IRS facilities. The primary geographic impact is in California, where this specific delivery order will be executed. Workforce implications are likely limited to the installation and maintenance personnel required for the environmental control systems, primarily associated with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a short-duration delivery order raises questions about efficiency and potential overpricing.
Limited number of bidders (2) in a full and open competition may indicate barriers to entry or a niche market.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the environmental controls.
The NAICS code 334512 (Automatic Environmental Control Manufacturing) is highly specialized, potentially limiting the pool of qualified contractors and impacting competition.

Positive Signals

Awarded under full and open competition, which theoretically promotes fair access and competitive pricing.
Fixed-price contract type provides cost predictability for the government.
The contract addresses a critical operational need for the IRS related to environmental controls.
The contractor, CAM-DEX CORPORATION, is identified, allowing for track record analysis.

Sector Analysis

The contract falls under the manufacturing sector, specifically NAICS code 334512 for Automatic Environmental Control Manufacturing. This sector involves the production of instruments and related devices for automatic controls. The market size for such specialized manufacturing can vary, but it often involves a limited number of highly technical firms. This contract represents a specific procurement within this niche, likely for upgrading or maintaining critical infrastructure within federal facilities.

Small Business Impact

This contract does not appear to have a small business set-aside, as indicated by 'sb': false. There is no explicit information regarding subcontracting plans for small businesses. The focus on a specialized manufacturing area might limit opportunities for broad small business participation unless specific components or services are outsourced to smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the IRS's contracting officers and program managers. The Department of the Treasury's Inspector General may also have jurisdiction to investigate potential fraud, waste, or abuse. Transparency is facilitated by contract databases, but detailed performance reporting and public access to specific operational metrics would enhance accountability.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Management Services
Energy Efficiency and Conservation Programs
IRS Operational Support Contracts

Risk Flags

High Cost for Short Duration
Limited Competition (2 Bidders)
Lack of Detailed Performance Metrics
Potential for Price Inflation due to Limited Bidders

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $36,306.47 to CAM-DEX CORPORATION. VSS SERVICES

Who is the contractor on this award?

The obligated recipient is CAM-DEX CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $36,306.47.

What is the period of performance?

Start: 2025-09-01. End: 2025-09-30.

What is the specific scope of work for CAM-DEX CORPORATION under this delivery order, and how does it justify the $36.3 million cost for a 29-day period?

The provided data does not detail the specific scope of work. However, a $36.3 million cost for a 29-day delivery order for 'Automatic Environmental Control Manufacturing' suggests a highly complex or large-scale project. This could involve the rapid deployment of advanced environmental control systems across multiple IRS facilities in California, potentially including custom manufacturing, installation, and integration services. Without a detailed statement of work, it is challenging to definitively justify the cost. A thorough review would require access to the contract's SOW, which would outline the specific deliverables, technical specifications, and the rationale behind the pricing structure. It's possible the cost reflects specialized technology, emergency deployment, or a significant upgrade rather than routine maintenance.

How does the pricing of this contract compare to similar environmental control manufacturing contracts awarded by federal agencies?

Benchmarking this contract's pricing is difficult without more specific details on the scope of work and the exact nature of the environmental controls being manufactured. The value of $36.3 million for a 29-day delivery order is substantial. To conduct a proper comparison, one would need to identify contracts with similar NAICS codes (334512), similar contract types (firm fixed price), and comparable project scales (e.g., number of facilities, complexity of systems). Publicly available contract databases can be searched for such comparisons. However, the short duration of this delivery order makes direct comparisons challenging, as it might represent a specific phase or a rapid deployment rather than a long-term project. A preliminary assessment suggests the cost per day is exceptionally high, warranting further investigation into the specific value proposition.

What are the potential risks associated with awarding a high-value contract with a limited number of bidders?

Awarding a contract valued at $36.3 million with only two bidders, even under full and open competition, presents several risks. Firstly, limited competition can lead to suboptimal pricing, where the government may not achieve the most cost-effective solution available in the market. The contractor may have less incentive to offer aggressive pricing or superior service when faced with fewer competitors. Secondly, there's a risk of reduced innovation, as a smaller pool of bidders might mean less diverse approaches to problem-solving. Thirdly, if one of the bidders is a sole-source provider for certain critical components or technologies, the 'full and open' aspect might be diminished. Finally, a lack of robust competition could mask potential performance issues or inefficiencies, as the government has fewer alternatives to compare against.

What is CAM-DEX CORPORATION's track record with federal contracts, particularly in environmental control manufacturing?

Information regarding CAM-DEX CORPORATION's specific track record with federal contracts, especially in environmental control manufacturing, is not provided in the initial data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review their past performance, contract history, types of awards, and any reported issues or accolades. Understanding their experience with similar projects, their performance ratings on previous contracts, and their financial stability would be crucial in assessing their capability to successfully execute this $36.3 million delivery order. Without this historical data, evaluating their suitability and the associated performance risk is speculative.

How does this contract align with the IRS's broader goals for facility modernization and energy efficiency?

This contract, focused on 'Automatic Environmental Control Manufacturing,' directly aligns with potential IRS goals for facility modernization and energy efficiency. Modern environmental control systems are key to optimizing building performance, reducing energy consumption, and ensuring a stable operational environment. If the systems being manufactured are energy-efficient and contribute to better climate control, they would support sustainability initiatives and potentially lower long-term operating costs for the IRS. The specific alignment depends on the technology deployed and whether it meets or exceeds current energy efficiency standards. The short duration might indicate a targeted upgrade or a pilot program within a larger modernization effort.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 CENTRAL AVE, KANSAS CITY, KS, 66118

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

Financial Breakdown

Contract Ceiling: $36,306

Exercised Options: $36,306

Current Obligation: $36,306

Actual Outlays: $20,381

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F0489V

IDV Type: FSS

Timeline