DHS awards $29.3M contract for refrigeration equipment, highlighting potential value in specialized manufacturing

Contract Overview

Contract Amount: $29,314 ($29.3K)

Contractor: Cospolich Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-03-01

End Date: 2026-03-01

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REACH IN FREEZER

Place of Performance

Location: CURTIS BAY, ANNE ARUNDEL County, MARYLAND, 21226

State: Maryland Government Spending

Plain-Language Summary

Department of Homeland Security obligated $29,313.68 to COSPOLICH INC. for work described as: REACH IN FREEZER Key points: 1. The contract value suggests a significant need for specialized refrigeration equipment within the U.S. Coast Guard. 2. Competition dynamics for this award are noted as 'COMPETED UNDER SAP', indicating a streamlined process potentially impacting price discovery. 3. The firm-fixed-price structure offers cost certainty for the government, shifting performance risk to the contractor. 4. The award to COSPOLICH INC. positions them as a key supplier for this specific equipment need. 5. The duration of the contract (ending March 1, 2026) indicates a medium-term requirement for the equipment. 6. The North American Industry Classification System (NAICS) code points to a focus on manufacturing, not just distribution.

Value Assessment

Rating: good

Benchmarking the $29.3 million award for refrigeration equipment requires specific market data for comparable systems. However, the firm-fixed-price nature of the contract suggests a negotiated price that accounts for contractor risk. Without detailed specifications or market surveys, a precise value-for-money assessment is challenging, but the competitive nature, even under SAP, implies some level of price vetting. The award amount appears substantial, indicating a significant procurement for the U.S. Coast Guard's operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'COMPETED UNDER SAP' (Simplified Acquisition Procedures), which typically involves a smaller pool of bidders than full and open competition. While this can expedite the acquisition process, it may limit the breadth of competition and potentially impact price competitiveness. The number of bidders is not specified, but SAP procedures often involve fewer than three offers. This suggests that while competition existed, it may not have been as robust as in a full and open solicitation.

Taxpayer Impact: Competing under SAP can lead to faster delivery but may result in higher prices compared to broader competition. Taxpayers benefit from a potentially quicker fulfillment of a critical need, but the cost-effectiveness might be slightly reduced due to a more limited bidding environment.

Public Impact

The U.S. Coast Guard is the primary beneficiary, receiving essential refrigeration equipment for its operations. This contract ensures the availability of specialized equipment for maintaining critical temperature-controlled environments. The geographic impact is primarily within the operational areas of the U.S. Coast Guard, potentially nationwide. The award supports manufacturing jobs within the sector related to air-conditioning, refrigeration, and heating equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Lack of detailed information on the specific technical requirements and performance standards.
Dependence on a single contractor for a critical piece of equipment.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established manufacturer (COSPOLICH INC.) suggests reliability.
Streamlined acquisition process under SAP may lead to faster deployment of needed equipment.

Sector Analysis

This contract falls within the manufacturing sector for commercial and industrial refrigeration equipment. The market for such specialized equipment is driven by demand from government agencies, commercial enterprises, and industrial facilities requiring precise temperature control. While specific market size data for government refrigeration contracts is not readily available, the broader industrial refrigeration market is substantial. This award represents a significant procurement within this niche, likely for a specific operational requirement of the U.S. Coast Guard.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). COSPOLICH INC. is likely a large business. There is no information provided regarding subcontracting plans or opportunities for small businesses within this award. Therefore, the direct impact on the small business ecosystem appears minimal based on the available data, unless the prime contractor voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Coast Guard's contracting and program management offices. As a purchase order under SAP, the level of formal oversight might be less intensive than for larger, more complex contracts. Accountability is primarily driven by the firm-fixed-price terms and delivery schedule. Transparency is limited by the SAP process, which often involves less public documentation than full and open solicitations. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Refrigeration Equipment Procurement
Industrial Manufacturing Contracts
Department of Homeland Security Acquisitions
U.S. Coast Guard Operational Support
Federal Purchase Orders

Risk Flags

Potential for reduced competition due to SAP.
Lack of detailed performance specifications in summary data.
Unknown contractor performance history with the agency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29,313.68 to COSPOLICH INC.. REACH IN FREEZER

Who is the contractor on this award?

The obligated recipient is COSPOLICH INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Coast Guard).

What is the total obligated amount?

The obligated amount is $29,313.68.

What is the period of performance?

Start: 2026-03-01. End: 2026-03-01.

What is the specific operational need driving this $29.3 million procurement of refrigeration equipment by the U.S. Coast Guard?

The specific operational need driving this $29.3 million procurement is not detailed in the provided data. However, given the awardee's NAICS code ('Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing') and the agency (U.S. Coast Guard), it is highly probable that the equipment is intended for maintaining critical temperature-controlled environments within Coast Guard facilities, vessels, or specialized operational units. This could range from preserving sensitive materials, ensuring food safety on ships, to supporting research or operational equipment that requires specific climate conditions. The substantial value suggests a large-scale or highly specialized requirement.

How does the 'COMPETED UNDER SAP' designation affect the potential value for money compared to a full and open competition?

Competing under Simplified Acquisition Procedures (SAP) generally means the procurement process is streamlined and potentially faster, but it often involves a smaller pool of eligible bidders compared to full and open competition. This can sometimes lead to less aggressive pricing as the contractor may face less direct competition. While SAP is intended for acquisitions below certain thresholds (typically $250,000, though exceptions exist), its use for a $29.3 million contract suggests specific justifications or a different regulatory context might apply. For taxpayers, 'COMPETED UNDER SAP' can mean quicker acquisition but potentially a higher price point than if a broader market had been solicited, thus impacting the overall value for money.

What are the key performance indicators (KPIs) or acceptance criteria likely associated with this firm-fixed-price contract?

For a firm-fixed-price contract involving refrigeration equipment, key performance indicators (KPIs) and acceptance criteria would likely focus on the equipment's ability to meet specified cooling capacities, temperature ranges, energy efficiency standards, and operational reliability. Acceptance would probably hinge on successful installation, functional testing (demonstrating it maintains the required temperatures under various load conditions), compliance with safety regulations, and potentially a warranty period. The contractor, COSPOLICH INC., is responsible for meeting these criteria to receive full payment, as the risk of cost overruns lies with them.

What is COSPOLICH INC.'s track record with the U.S. Coast Guard or Department of Homeland Security for similar equipment?

The provided data does not include information on COSPOLICH INC.'s specific track record with the U.S. Coast Guard or the Department of Homeland Security. To assess this, one would need to consult federal procurement databases (like FPDS or SAM.gov) for past awards, contract performance reviews, and any reported issues. A positive track record with the agency for similar equipment would increase confidence in their ability to deliver successfully on this $29.3 million contract. Conversely, a history of performance problems could indicate a higher risk.

Are there any comparable federal contracts for industrial refrigeration equipment that can serve as a benchmark for this $29.3 million award?

Without access to detailed specifications of the refrigeration equipment being procured, finding precise comparable federal contracts is challenging. However, one could search federal procurement databases for contracts awarded to manufacturers of 'Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment' (NAICS 333415) by agencies with similar operational needs (e.g., Navy, Air Force, other DHS components). Benchmarking would involve comparing contract values relative to the quantity, technical specifications, and duration. The $29.3 million value suggests a significant, potentially custom or large-scale system, making direct comparisons difficult without more context.

What are the potential risks associated with the 'COMPETED UNDER SAP' approach for a contract of this magnitude?

The primary risk associated with using Simplified Acquisition Procedures (SAP) for a contract of this magnitude ($29.3 million) is the potential for reduced competition, which could lead to suboptimal pricing for the government. SAP is typically designed for smaller procurements, and its use here might indicate a specific justification or a less competitive market for this specialized equipment. Other risks include potentially less rigorous vetting of bidders compared to full and open competition, and a shorter evaluation period that might overlook subtle performance risks. This could translate to a higher overall cost for taxpayers or a less optimal solution if the chosen contractor underperforms.

Industry Classification

NAICS: Manufacturing › Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing › Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing

Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14695 AIRLINE HWY, DESTREHAN, LA, 70047

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,314

Exercised Options: $29,314

Current Obligation: $29,314

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline