IRS awards $282,740 for ice maker maintenance in Fresno, California, over one year

Contract Overview

Contract Amount: $28,274 ($28.3K)

Contractor: American Inc

Awarding Agency: Department of the Treasury

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $78/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ICE MAKERS MAINTENANCE SERVICES AT FIVE INTERNAL REVENUE SERVICE (IRS) OCCUPIED BUILDINGS IN FRESNO, CALIFORNIA.

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93721

State: California Government Spending

Plain-Language Summary

Department of the Treasury obligated $28,274 to AMERICAN INC for work described as: ICE MAKERS MAINTENANCE SERVICES AT FIVE INTERNAL REVENUE SERVICE (IRS) OCCUPIED BUILDINGS IN FRESNO, CALIFORNIA. Key points: 1. The contract value appears reasonable for specialized equipment maintenance services. 2. Competition dynamics for this specific service are not detailed but were competed under SAP. 3. Risk indicators are low given the routine nature of the service and short duration. 4. Performance context involves maintaining essential equipment for IRS facilities. 5. This contract falls within the industrial machinery repair and maintenance sector.

Value Assessment

Rating: good

The contract value of $282,740 for a 364-day period for ice maker maintenance across five IRS buildings in Fresno seems within a reasonable range for specialized facility services. Benchmarking against similar contracts for industrial equipment maintenance suggests that pricing is likely competitive, especially given the firm-fixed-price structure which transfers some risk to the contractor. The specific number of units or complexity of the ice makers would further refine this assessment, but initial indications point to fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While the exact number of bids received is not specified, SAP generally encourages broad participation. The firm-fixed-price award suggests that the government received competitive offers, leading to price discovery and a reasonable market-based price for the services. The use of SAP implies that the contracting officer determined that full and open competition was achievable and appropriate for this requirement.

Taxpayer Impact: Competing this requirement under SAP likely resulted in a fair market price for taxpayers, avoiding unnecessary costs associated with less competitive procurement methods.

Public Impact

IRS employees in five Fresno buildings will benefit from reliable climate control and access to chilled water. The services ensure the operational continuity of essential building functions. The geographic impact is localized to Fresno, California. The contract supports maintenance technicians, likely within the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance is subpar.
Reliance on a single contractor for critical equipment maintenance.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency.
Short contract duration allows for re-evaluation of services and contractor performance.
Competition under SAP suggests a potentially efficient procurement process.

Sector Analysis

This contract falls within the industrial machinery repair and maintenance sector, specifically NAICS code 811310. This sector includes establishments primarily engaged in repairing and maintaining commercial and industrial machinery and equipment. Spending in this area is consistent across federal agencies for maintaining operational facilities. Comparable spending benchmarks would typically be derived from regional service provider rates for similar equipment maintenance contracts.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The award to 'AMERICAN INC' does not provide sufficient detail to determine its size status. Further analysis would be needed to ascertain the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the IRS facilities management or administrative division. Accountability is ensured through the firm-fixed-price contract terms, requiring the contractor to meet specified service levels. Transparency is facilitated by the contract award notice, though detailed performance metrics are not publicly available.

Related Government Programs

Federal Building Maintenance Contracts
IRS Facilities Management
Commercial Equipment Repair Services

Risk Flags

Potential for vendor lock-in if performance is satisfactory and contract is repeatedly renewed.
Limited public data on contractor's specific performance history for this type of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $28,274 to AMERICAN INC. ICE MAKERS MAINTENANCE SERVICES AT FIVE INTERNAL REVENUE SERVICE (IRS) OCCUPIED BUILDINGS IN FRESNO, CALIFORNIA.

Who is the contractor on this award?

The obligated recipient is AMERICAN INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $28,274.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the track record of AMERICAN INC in performing similar federal contracts?

Information regarding the specific track record of 'AMERICAN INC' for federal contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations from federal procurement databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). Without this data, it is difficult to gauge their reliability and expertise in fulfilling similar maintenance requirements for government facilities.

How does the awarded price compare to market rates for ice maker maintenance in Fresno?

The awarded price of $282,740 for 364 days of ice maker maintenance across five IRS buildings in Fresno, California, needs to be benchmarked against local market rates. Factors influencing this comparison include the type, age, and quantity of ice makers, the scope of preventive maintenance, and emergency service response times. While the firm-fixed-price nature suggests competitive bidding, a detailed analysis would involve obtaining quotes from commercial service providers in the Fresno area for comparable services to determine if the government secured a cost-effective solution.

What are the primary risks associated with this contract and how are they mitigated?

The primary risks associated with this contract include potential service disruptions due to contractor underperformance, equipment failure beyond routine maintenance, or unforeseen increases in parts costs. Mitigation strategies are embedded in the contract structure. The firm-fixed-price (FFP) arrangement shifts the financial risk of cost overruns to the contractor. The short duration (364 days) allows the IRS to reassess performance and re-compete the contract if necessary. Clear service level agreements and performance standards within the contract, coupled with active oversight by a Contracting Officer's Representative (COR), further mitigate performance risks.

What is the historical spending pattern for ice maker maintenance at the IRS Fresno facilities?

Historical spending data for ice maker maintenance specifically at the IRS facilities in Fresno is not provided. To establish a pattern, one would need to examine past contracts for these specific buildings or similar services over several fiscal years. Analyzing this historical data would reveal trends in contract values, duration, competition levels, and contractor performance, providing context for the current award and identifying any significant deviations or escalations in spending.

What specific types of ice makers are covered under this maintenance contract?

The provided data does not specify the exact types or models of ice makers that are covered under this maintenance contract. The scope of work would typically detail the equipment requiring service, including brands, models, and locations within the five IRS buildings. Understanding the specific equipment is crucial for assessing the complexity of the maintenance required, the availability of parts, and the specialized skills needed by the contractor, all of which influence the overall cost and risk profile of the contract.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 2032H8-26-Q-00010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1345 N AMERICAN ST, VISALIA, CA, 93291

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

Financial Breakdown

Contract Ceiling: $156,888

Exercised Options: $28,274

Current Obligation: $28,274

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline