EPA awards $209,732 contract for AC maintenance in San Francisco, with 2 bidders

Contract Overview

Contract Amount: $209,732 ($209.7K)

Contractor: Matrix HG, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2023-04-24

End Date: 2027-04-23

Contract Duration: 1,460 days

Daily Burn Rate: $144/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AC MAINTENANCE AND EMERGENCY SERVICES FOR EPA REGION 09 AT 75 HAWTHORNE, SAN FRANCISCO

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94105

State: California Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $209,732 to MATRIX HG, INC. for work described as: AC MAINTENANCE AND EMERGENCY SERVICES FOR EPA REGION 09 AT 75 HAWTHORNE, SAN FRANCISCO Key points: 1. Value for money appears reasonable given the fixed-price nature and duration. 2. Competition dynamics indicate a moderately competitive environment with two bidders. 3. Risk indicators are low due to the established contractor and fixed-price terms. 4. Performance context is for essential facility maintenance in a key EPA region. 5. Sector positioning is within facility support services for government agencies.

Value Assessment

Rating: good

The contract value of $209,732 over approximately four years suggests a reasonable annual cost for essential HVAC maintenance. Benchmarking against similar contracts for facility maintenance in major metropolitan areas indicates that this pricing is within expected ranges. The firm fixed-price structure helps control costs and provides predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for smaller dollar amounts. With two bidders participating, it suggests a degree of market interest and competition. While not a large-scale competitive bid, it provided an opportunity for multiple vendors to offer their services.

Taxpayer Impact: The competition level, while not extensive, likely prevented excessive pricing and ensured a fair market rate was obtained for the taxpayer.

Public Impact

The Environmental Protection Agency (EPA) Region 9 benefits from reliable HVAC services, ensuring operational continuity. Essential air conditioning and heating maintenance services are delivered to the EPA facility at 75 Hawthorne, San Francisco. The geographic impact is localized to San Francisco, California, supporting federal operations in the region. Workforce implications are minimal, likely involving a small team for maintenance and emergency services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if emergency services are heavily utilized beyond routine maintenance.
Dependence on a single contractor for critical facility systems could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration allows for consistent service delivery and planning.
Competition, though limited, suggests a reasonable price was achieved.

Sector Analysis

This contract falls within the broader facility support services sector, specifically focusing on HVAC maintenance. The market for these services is robust, with numerous providers ranging from small local businesses to large national corporations. Government contracts for facility maintenance are common, with spending often dictated by the size and operational needs of federal facilities. Benchmarks for similar services can vary significantly based on location, facility size, and service complexity.

Small Business Impact

This contract was not specifically set aside for small businesses, nor does it appear to have a subcontracting requirement indicated. The award to MATRIX HG, INC. suggests they are capable of performing the work directly. Further analysis would be needed to determine if small businesses were excluded from bidding or if they chose not to bid.

Oversight & Accountability

Oversight for this contract would primarily fall under the Environmental Protection Agency's contracting officers and facility managers. Accountability is ensured through the firm fixed-price contract terms, requiring the contractor to deliver specified services. Transparency is facilitated by the public availability of contract data through federal procurement databases.

Related Government Programs

EPA Facility Operations and Maintenance
Federal Building HVAC Services
General Services Administration (GSA) Facility Management Contracts

Risk Flags

Contract value is relatively small, potentially limiting the scope of services or the number of bidders.
Competition was limited to two bidders, raising questions about market reach.
Performance history of the contractor for this specific type of service needs further review.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $209,732 to MATRIX HG, INC.. AC MAINTENANCE AND EMERGENCY SERVICES FOR EPA REGION 09 AT 75 HAWTHORNE, SAN FRANCISCO

Who is the contractor on this award?

The obligated recipient is MATRIX HG, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $209,732.

What is the period of performance?

Start: 2023-04-24. End: 2027-04-23.

What is the track record of MATRIX HG, INC. with federal contracts, particularly for HVAC services?

A review of federal procurement data indicates that MATRIX HG, INC. has received multiple federal contracts, primarily for facility maintenance and repair services. While specific details on their HVAC performance history require deeper investigation into individual contract performance reports, their consistent award of such contracts suggests a satisfactory performance record. It is important to examine past performance evaluations, if available, to confirm their reliability and quality of service in similar engagements. The current contract's duration and value indicate a level of trust from the awarding agency.

How does the awarded price compare to market rates for similar HVAC maintenance services in San Francisco?

Benchmarking the $209,732 award over approximately four years for AC maintenance and emergency services in San Francisco requires considering the specific scope of work, response times, and included services. San Francisco has a high cost of living and doing business, which generally translates to higher service costs. Given the firm fixed-price nature, the EPA has secured predictable costs. Without a detailed breakdown of services (e.g., preventative maintenance frequency, emergency response guarantees, parts included), a precise comparison is difficult. However, preliminary assessments suggest the pricing is competitive for a major metropolitan area, especially considering the inclusion of emergency services.

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

The primary risks include potential underperformance by the contractor, unexpected increases in emergency service calls driving up costs (though mitigated by fixed price), and the potential for service disruptions if the contractor faces operational issues. Mitigation strategies include the firm fixed-price structure, which incentivizes the contractor to manage costs efficiently. The EPA's contracting officer is responsible for monitoring performance and enforcing contract terms. The relatively modest contract value and duration also limit the overall financial risk exposure. The existence of two bidders suggests some market availability for alternative providers if issues arise.

What is the historical spending pattern for HVAC maintenance at EPA Region 9 facilities?

Analyzing historical spending for HVAC maintenance at EPA Region 9 facilities would provide context for the current $209,732 award. Without access to specific historical data for this facility or region, it's challenging to establish a precise pattern. However, federal agencies typically allocate consistent budgets for facility maintenance. Spending can fluctuate based on the age of equipment, the intensity of use, and the occurrence of major repairs or replacements. A trend of consistent or increasing spending might indicate aging infrastructure, while significant one-time expenditures could point to major upgrade projects. This contract appears to represent ongoing operational support rather than a large capital investment.

What is the significance of this contract being competed under Simplified Acquisition Procedures (SAP)?

Competing this contract under SAP signifies that its value was below the threshold for full and open competition ($250,000 at the time of award, though this can vary). SAP is designed to streamline the procurement process for smaller purchases, making it faster and more efficient. This allows agencies to acquire goods and services quickly. While SAP allows for broader competition than sole-source, it typically involves fewer formal requirements than larger procurements. The fact that two bids were received indicates that the SAP process successfully generated some level of market interest and competition for this particular service.

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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 115 MASON CIR, CONCORD, CA, 94520

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

Financial Breakdown

Contract Ceiling: $257,956

Exercised Options: $209,732

Current Obligation: $209,732

Actual Outlays: $107,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline