VA awards $651K for Daikin HVAC preventive maintenance, ensuring facility operations

Contract Overview

Contract Amount: $65,130 ($65.1K)

Contractor: Daikin Applied Americas Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-01

End Date: 2026-07-31

Contract Duration: 364 days

Daily Burn Rate: $179/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTIVE MAINTENANCE DAIKIN AMERI

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55441

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65,130 to DAIKIN APPLIED AMERICAS INC for work described as: PREVENTIVE MAINTENANCE DAIKIN AMERI Key points: 1. Contract focuses on essential preventive maintenance for HVAC systems. 2. Daikin Applied Americas Inc. is the sole awardee. 3. Risk is moderate due to reliance on a single vendor for critical systems. 4. Spending is within typical ranges for specialized facility maintenance.

Value Assessment

Rating: good

The $651,300 award for a 364-day contract appears reasonable for specialized preventive maintenance of Daikin HVAC systems. Benchmarking against similar maintenance contracts for complex environmental control systems would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the awardee is Daikin Applied Americas Inc., indicating they likely possess specialized knowledge or are the original equipment manufacturer, which can influence price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance, ensuring the operational integrity of VA facilities and preventing costly emergency repairs.

Public Impact

Ensures reliable operation of critical HVAC systems within VA facilities. Supports patient comfort and safety by maintaining environmental controls. Prevents potential disruptions and costly emergency repairs through proactive maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required.
Reliance on a single vendor for critical system maintenance.

Positive Signals

Awarded under full and open competition.
Focus on preventive maintenance reduces long-term costs.

Sector Analysis

This contract falls within the facilities maintenance and operations sector, specifically focusing on HVAC systems. Spending benchmarks for similar preventive maintenance contracts can vary widely based on system complexity and facility size.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses could have competed or participated.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely and effective preventive maintenance is performed according to the terms and conditions.

Related Government Programs

Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole awardee for specialized equipment maintenance.
Potential for future sole-source actions if competition is limited.
Contract duration of one year may require re-competition soon.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65,130 to DAIKIN APPLIED AMERICAS INC. PREVENTIVE MAINTENANCE DAIKIN AMERI

Who is the contractor on this award?

The obligated recipient is DAIKIN APPLIED AMERICAS INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $65,130.

What is the period of performance?

Start: 2025-08-01. End: 2026-07-31.

What is the specific scope of work included in this preventive maintenance contract?

The scope of work likely includes routine inspections, cleaning, lubrication, calibration, and minor repairs of Daikin HVAC units. It aims to ensure optimal performance, energy efficiency, and longevity of the equipment, preventing unexpected breakdowns and associated costs.

What are the risks associated with awarding this contract to Daikin Applied Americas Inc. specifically?

The primary risk is potential vendor lock-in, where the agency becomes dependent on Daikin for parts, expertise, and future services, potentially limiting competitive options and increasing costs over time. Ensuring clear contract terms and performance metrics is crucial.

How does this contract contribute to the overall effectiveness of VA facility management?

This contract directly contributes to the effectiveness of VA facility management by ensuring the reliable operation of essential HVAC systems. Proactive maintenance minimizes downtime, maintains a comfortable and safe environment for veterans and staff, and avoids expensive emergency repairs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Daikin Industries, Ltd.

Address: 13600 INDUSTRIAL PARK BLVD, MINNEAPOLIS, MN, 55441

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

Financial Breakdown

Contract Ceiling: $130,530

Exercised Options: $130,530

Current Obligation: $65,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0377V

IDV Type: FSS

Timeline