Smithsonian Institution awards $8.2M for chiller maintenance, with 3 bidders competing

Contract Overview

Contract Amount: $8,210,874 ($8.2M)

Contractor: Boland Trane Services Inc

Awarding Agency: Smithsonian Institution

Start Date: 2018-07-01

End Date: 2025-12-29

Contract Duration: 2,738 days

Daily Burn Rate: $3.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL,CT::IGF CHILLER PREVENTIVE MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $8.2 million to BOLAND TRANE SERVICES INC for work described as: IGF::CL,CT::IGF CHILLER PREVENTIVE MAINTENANCE Key points: 1. Value for money appears reasonable given the multi-year duration and specialized nature of the service. 2. Competition dynamics show a moderate level of interest with three bidders. 3. Risk indicators are low, as this is a routine preventive maintenance contract. 4. Performance context is established by the multi-year award, suggesting a need for consistent service. 5. Sector positioning is within facilities support services, a critical but often overlooked area for large institutions.

Value Assessment

Rating: good

The contract value of $8.2 million over approximately 5.5 years for preventive maintenance of chillers is within a reasonable range for a large institution like the Smithsonian. While specific benchmark data for chiller maintenance is not readily available, the price appears competitive given the scope and duration. The firm-fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating it was likely advertised broadly to solicit multiple offers. With three bidders participating, there was a reasonable level of competition, which generally helps in achieving fair market prices. The use of SAP suggests the agency sought competitive quotes efficiently for a service valued below certain thresholds.

Taxpayer Impact: The competitive bidding process for this maintenance contract helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Smithsonian Institution benefits from the reliable operation of its HVAC systems, ensuring comfortable and safe environments for visitors and staff. Essential services include preventive maintenance, ensuring the longevity and efficiency of critical chiller equipment. The geographic impact is concentrated in Washington D.C., where the Smithsonian's facilities are located. Workforce implications include support for skilled technicians performing specialized maintenance tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for extended periods could lead to complacency or reduced service quality if not monitored.

Positive Signals

Multi-year award provides service continuity and predictable budgeting for the Smithsonian.
Competitive bidding process suggests a focus on obtaining fair market value.
Firm-fixed-price contract limits the government's exposure to cost overruns.

Sector Analysis

Facilities Support Services, including HVAC maintenance, is a crucial sector for maintaining the operational integrity of large public institutions. The market for specialized maintenance services is competitive, with numerous providers capable of performing such work. The Smithsonian's spending in this area is consistent with the needs of large campus environments requiring regular upkeep of complex systems.

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 nature of specialized HVAC maintenance, larger, established firms are often primary awardees, though small businesses may participate as subcontractors.

Oversight & Accountability

The contract is a Purchase Order, which typically falls under the oversight of the issuing agency's contracting office. The Smithsonian Institution has internal oversight mechanisms for contract performance. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available.

Related Government Programs

General Services Administration (GSA) Facilities Maintenance Contracts
National Park Service (NPS) Building Operations
Architect of the Capitol (AOC) Maintenance Services

Risk Flags

Potential for vendor lock-in due to specialized knowledge.
Risk of service quality degradation over the contract term if not actively managed.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $8.2 million to BOLAND TRANE SERVICES INC. IGF::CL,CT::IGF CHILLER PREVENTIVE MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BOLAND TRANE SERVICES INC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $8.2 million.

What is the period of performance?

Start: 2018-07-01. End: 2025-12-29.

What is the historical spending pattern for chiller maintenance at the Smithsonian Institution?

Historical spending data for chiller maintenance at the Smithsonian Institution prior to this award is not detailed in the provided information. However, the current award of $8.2 million over approximately 5.5 years suggests an average annual expenditure of roughly $1.5 million for this specific service. To understand the full historical pattern, one would need to examine previous contracts for similar services, looking at award amounts, durations, and the number of bidders over time. This would help determine if current spending represents an increase, decrease, or stable trend compared to past investments in maintaining their HVAC infrastructure.

How does the number of bidders (3) compare to similar facilities maintenance contracts awarded by the Smithsonian?

The number of bidders (3) for this chiller preventive maintenance contract, competed under Simplified Acquisition Procedures (SAP), suggests a moderate level of competition. Without specific data on other Smithsonian facilities maintenance contracts, it's difficult to definitively benchmark this number. However, for services procured under SAP, three bidders is often considered a healthy outcome, indicating sufficient market interest. Contracts procured through full and open competition or for larger dollar values might typically see a higher number of bidders, while smaller or highly specialized procurements might see fewer. The Smithsonian likely aims for at least three responsive, responsible bidders to ensure fair pricing and adequate choice.

What are the key performance indicators (KPIs) expected for this chiller maintenance contract?

Key performance indicators (KPIs) for this chiller preventive maintenance contract would typically focus on the reliability and efficiency of the HVAC systems. Expected KPIs likely include adherence to scheduled maintenance tasks, response times for emergency service calls, system uptime percentages, and energy efficiency metrics for the chillers. The contractor is expected to perform routine inspections, cleaning, lubrication, and necessary adjustments to ensure optimal operation and prevent breakdowns. Performance would be monitored by the Smithsonian's facilities management team, with potential penalties or incentives tied to meeting defined service levels outlined in the contract's Performance Work Statement (PWS).

What is the potential impact of this contract on the contractor's overall business?

For Boland Trane Services Inc., this $8.2 million, multi-year contract represents a significant revenue stream and a substantial addition to their backlog. Securing a contract with a prestigious institution like the Smithsonian Institution can also enhance the contractor's reputation and marketability, potentially leading to future opportunities. The duration of the contract allows for stable resource planning, including staffing and equipment allocation. Successful performance on this contract could strengthen their relationship with the Smithsonian and position them favorably for future solicitations related to facilities maintenance or upgrades within the institution or similar large government entities.

Are there any specific risks associated with relying on a single vendor for this type of long-term maintenance?

Relying on a single vendor for long-term maintenance, even with competitive initial bidding, carries inherent risks. One primary risk is potential complacency, where the contractor might reduce service quality over time, assuming the government has limited alternatives. Another risk is price escalation in future contract renewals, especially if the market becomes less competitive or if the contractor develops unique knowledge of the Smithsonian's specific systems that is difficult for others to replicate. There's also a risk of vendor lock-in, where switching providers becomes costly and disruptive due to specialized knowledge or proprietary systems. Mitigation strategies include robust performance monitoring, clear contract terms, and periodic market research to ensure continued competitiveness.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Boland Trane Associates, Inc

Address: 30 W WATKINS MILL RD STE 300, GAITHERSBURG, MD, 20878

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: $8,210,874

Exercised Options: $8,210,874

Current Obligation: $8,210,874

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline