DHS Coast Guard awards $16.78M for refrigeration equipment, with 11 bids received

Contract Overview

Contract Amount: $16,786 ($16.8K)

Contractor: Mahan's Thermal Products, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2026-02-25

End Date: 2026-04-08

Contract Duration: 42 days

Daily Burn Rate: $400/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 11

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONDENSER, REFRIGERATION/4420-01-F15-4442

Place of Performance

Location: COVINGTON, NEWTON County, GEORGIA, 30016

State: Georgia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $16,786 to MAHAN'S THERMAL PRODUCTS, INC. for work described as: CONDENSER, REFRIGERATION/4420-01-F15-4442 Key points: 1. The contract value of $16.78M appears reasonable given the scope of refrigeration equipment procurement. 2. A competitive bidding process with 11 offers suggests a healthy market for this type of equipment. 3. The firm-fixed-price contract type mitigates cost overrun risks for the government. 4. The short performance period (42 days) indicates a need for rapid deployment or replacement. 5. This procurement falls within the Miscellaneous Electrical Equipment manufacturing sector. 6. The award to Mahan's Thermal Products, Inc. represents a significant single contract for the firm.

Value Assessment

Rating: good

The contract value of $16.78M for refrigeration and condenser units seems within a reasonable range for specialized equipment. Benchmarking against similar procurements for large-scale refrigeration systems would provide a more precise value-for-money assessment. The firm-fixed-price structure is advantageous, locking in costs and reducing the government's exposure to price fluctuations. The number of bids suggests sufficient market interest to drive competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition for procurements below a certain threshold. The receipt of 11 bids demonstrates robust market engagement and suggests that multiple vendors were aware of and interested in the opportunity. This level of competition is generally favorable for price discovery and ensures the government receives competitive offers.

Taxpayer Impact: The strong competition indicates that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best price and terms for the required refrigeration equipment.

Public Impact

The U.S. Coast Guard will benefit from the acquisition of essential refrigeration equipment, supporting its operational readiness. The services delivered include the provision of specialized condenser and refrigeration units. The geographic impact is primarily within the operational areas of the U.S. Coast Guard. The contract supports manufacturing jobs within the electrical equipment sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for long-term maintenance costs not fully detailed in the award notice.
Dependence on a single supplier for potentially critical components could pose a future risk.
The rapid delivery timeline might strain the contractor's production capacity, potentially impacting quality if not managed well.

Positive Signals

The firm-fixed-price contract protects against cost increases.
A competitive bidding process with 11 offers suggests a favorable price point was achieved.
The award to an established company like Mahan's Thermal Products, Inc. indicates a degree of reliability.
The short performance period suggests the equipment is needed urgently, addressing an immediate operational gap.

Sector Analysis

This contract falls within the 'All Other Miscellaneous Electrical Equipment and Component Manufacturing' sector. This broad category encompasses a wide range of electrical products not elsewhere classified. The market for refrigeration and cooling systems is substantial, driven by commercial, industrial, and government needs. Comparable spending benchmarks would involve analyzing procurements for similar industrial-grade refrigeration units across various federal agencies.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is not clear from this award alone.

Oversight & Accountability

The contract is a Purchase Order, a common instrument for procurements under SAP. Oversight would typically be managed by the contracting officer and the relevant program office within the U.S. Coast Guard. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Procurement Data System (FPDS)
Simplified Acquisition Procedures (SAP)
Department of Homeland Security Contracts
U.S. Coast Guard Equipment Procurement

Risk Flags

Short performance period may increase delivery risk.
Potential for long-term maintenance costs not fully captured.
Dependence on specific manufacturer for specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $16,786 to MAHAN'S THERMAL PRODUCTS, INC.. CONDENSER, REFRIGERATION/4420-01-F15-4442

Who is the contractor on this award?

The obligated recipient is MAHAN'S THERMAL PRODUCTS, 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 $16,786.

What is the period of performance?

Start: 2026-02-25. End: 2026-04-08.

What is the track record of Mahan's Thermal Products, Inc. with federal contracts?

Mahan's Thermal Products, Inc. has received this specific award from the U.S. Coast Guard. Further analysis of federal procurement databases would be required to determine the company's full federal contracting history, including past performance on similar contracts, any prior awards from different agencies, and their overall performance ratings. Understanding their experience with government contracts, particularly those involving refrigeration systems and adherence to delivery schedules, is crucial for assessing future reliability. A review of past contract modifications, disputes, or terminations would also provide valuable insights into their operational and contractual management capabilities.

How does the awarded price compare to market rates for similar refrigeration equipment?

The awarded price of $16.78M for condenser and refrigeration units needs to be benchmarked against current market rates for comparable industrial-grade equipment. Factors such as capacity (BTU/hr), energy efficiency ratings, specific environmental operating conditions (e.g., marine environments), and warranty terms significantly influence pricing. Without detailed specifications of the equipment procured, a precise comparison is difficult. However, the presence of 11 bids suggests that the pricing achieved through competition is likely competitive. Further research into industry price catalogs and quotes from other manufacturers for similar specifications would be necessary for a definitive value assessment.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential delays in delivery due to the short performance period (42 days), which could impact the Coast Guard's operational readiness if the equipment is critical. There's also a risk related to the long-term reliability and maintenance of the specialized refrigeration units, especially if they are intended for harsh maritime environments. While the firm-fixed-price contract mitigates cost overrun risks, the contractor might face challenges in meeting specifications or quality standards under tight deadlines. Ensuring the contractor has adequate capacity and robust quality control processes is key to mitigating these risks.

How effective is the U.S. Coast Guard in procuring necessary equipment through competitive bidding?

The U.S. Coast Guard's procurement of refrigeration equipment through a competitive process with 11 bids indicates a generally effective approach to soliciting offers. The use of Simplified Acquisition Procedures (SAP) for this award suggests an effort to streamline the acquisition process for procurements below certain thresholds, aiming for efficiency. The success of this approach is measured by the number of responsive bids received and the final negotiated price. Continued monitoring of contract performance, delivery timelines, and equipment functionality post-award will provide a more comprehensive assessment of the effectiveness of their procurement strategy for this specific need.

What is the historical spending trend for refrigeration equipment by the U.S. Coast Guard?

Analyzing historical spending trends for refrigeration equipment by the U.S. Coast Guard would require a review of past contract awards over several fiscal years. This would involve querying procurement databases for similar equipment categories (e.g., PSC codes related to refrigeration, HVAC, or electrical equipment) and filtering by the U.S. Coast Guard as the awarding agency. Understanding the frequency, value, and types of refrigeration systems procured historically would reveal patterns, identify periods of increased or decreased investment, and highlight any shifts in procurement strategies or technology adoption. This context is essential for evaluating the current $16.78M award within a broader financial and operational framework.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: FURNACE/STEAM/DRYING; NUCL REACTOR

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 70Z08526Q40075B00

Offers Received: 11

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30 JUNIPER CT, COVINGTON, GA, 30016

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

Financial Breakdown

Contract Ceiling: $16,786

Exercised Options: $16,786

Current Obligation: $16,786

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline