VA Awards $3.29M HVAC Repair Contract to Multi Air Services Engineers in Puerto Rico

Contract Overview

Contract Amount: $3,288,110 ($3.3M)

Contractor: Multi AIR Services Engineers, Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-20

End Date: 2026-09-09

Contract Duration: 1,968 days

Daily Burn Rate: $1.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPAIR AND MAINTENANCE HVAC SSYTEM

Place of Performance

Location: SAN JUAN, SAN JUAN County, PUERTO RICO, 00921

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to MULTI AIR SERVICES ENGINEERS, CORP for work described as: REPAIR AND MAINTENANCE HVAC SSYTEM Key points: 1. Contract value of $3.29 million for HVAC repair and maintenance. 2. Competition method is 'COMPETED UNDER SAP', indicating a specific procurement procedure. 3. Risk is moderate due to the long duration (1968 days) and fixed-price nature. 4. Sector is primarily Facilities Maintenance and Repair within the broader government services.

Value Assessment

Rating: good

The contract value of $3.29 million for a 5-year period appears reasonable for HVAC repair and maintenance services in Puerto Rico, considering the scope and duration. Benchmarking against similar government contracts for facility maintenance would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Small Acquisition Program), suggesting a limited competition approach. While this can expedite the process, it may not always yield the most competitive pricing compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The pricing appears fair given the limited competition, but further analysis could confirm optimal value.

Public Impact

Ensures continued operation of critical HVAC systems for veterans' facilities. Supports local employment through the contractor's operations in Puerto Rico. Maintains a safe and comfortable environment for veterans and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep over the 5-year contract term.
Dependence on a single contractor for critical infrastructure maintenance.

Positive Signals

Ensures essential services are maintained for veterans.
Contract awarded to a specific entity for specialized services.

Sector Analysis

This contract falls under the Facilities Maintenance and Repair sector, specifically focusing on HVAC systems. Government spending in this area is consistent and crucial for operational continuity across various agencies, with benchmarks varying based on location and system complexity.

Small Business Impact

The data does not indicate if small businesses were involved in this specific contract award. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should be in place to ensure accountability and performance.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration (5 years).
Firm Fixed Price contract type.
Limited competition (SAP).
Geographic concentration (Puerto Rico).

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to MULTI AIR SERVICES ENGINEERS, CORP. REPAIR AND MAINTENANCE HVAC SSYTEM

Who is the contractor on this award?

The obligated recipient is MULTI AIR SERVICES ENGINEERS, CORP.

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 $3.3 million.

What is the period of performance?

Start: 2021-04-20. End: 2026-09-09.

What is the specific scope of 'REPAIR AND MAINTENANCE HVAC SSYTEM' covered under this contract?

The contract likely encompasses routine maintenance, emergency repairs, parts replacement, and potentially system upgrades for HVAC systems within facilities managed by the Department of Veterans Affairs in Puerto Rico. Specific details would be found in the contract's statement of work, outlining preventative maintenance schedules, response times for repairs, and the types of systems covered.

What are the potential risks associated with a 5-year firm-fixed-price contract for HVAC services in Puerto Rico?

Risks include potential price escalation for parts and labor beyond the contractor's control over the 5-year term, leading to reduced profit margins or quality compromises. Additionally, unforeseen system failures or complexities not anticipated during the limited competition could strain the fixed price, potentially impacting service delivery or requiring costly modifications.

How does the 'COMPETED UNDER SAP' procurement method impact the overall value for taxpayers?

Competing under SAP (Small Acquisition Program) typically involves simplified acquisition procedures, which can expedite the procurement process and reduce administrative costs. However, it often involves fewer bidders than full and open competition, potentially leading to less aggressive pricing. The value for taxpayers depends on whether the selected contractor provided a fair and reasonable price within this limited competitive environment.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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: 36C24821Q0468

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Multi AIR Services Engineers Corp

Address: CARR.955 KM 29.3 BO. JIMENEZ SECTOR BLACINA, RIO GRANDE, PR, 00745

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $3,332,838

Exercised Options: $3,288,110

Current Obligation: $3,288,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline