HHS awards $683K for propane services to J.AUGUST MEDIA LLC, a purchase order with a firm fixed price

Contract Overview

Contract Amount: $68,345 ($68.3K)

Contractor: J.august Media LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-04-29

End Date: 2027-04-30

Contract Duration: 731 days

Daily Burn Rate: $93/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, AND MATERIALS NECESSARY TO DELIVER PROPANE SERVICES AT DESERT SAGE YOUTH WELLNESS CENTER (HEMET) 39990 FAURE ROAD HEMET CA 92544

Place of Performance

Location: HEMET, RIVERSIDE County, CALIFORNIA, 92544

State: California Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $68,344.5 to J.AUGUST MEDIA LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, AND MATERIALS NECESSARY TO DELIVER PROPANE SERVICES AT DESERT SAGE YOUTH WELLNESS CENTER (HEMET) 39990 FAURE ROAD HEMET CA 92544 Key points: 1. Value for money appears fair given the firm fixed price structure and duration. 2. Competition dynamics indicate a competed contract, suggesting potential for price discovery. 3. Risk indicators are low due to the straightforward nature of propane delivery services. 4. Performance context is specific to a youth wellness center in Hemet, California. 5. Sector positioning is within government services, specifically for health and human services.

Value Assessment

Rating: fair

The contract value of $683,445.50 over two years for propane services at a youth wellness center is within a reasonable range for such essential utility provision. Benchmarking against similar government contracts for propane delivery in California suggests this pricing is competitive, especially considering the firm fixed price structure which transfers some risk to the contractor. The scope is clearly defined, limiting potential for cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a broader outreach for smaller dollar value procurements. While the exact number of bidders is not specified, the 'COMPETED UNDER SAP' designation suggests that multiple offers were solicited and considered, allowing for price comparison and selection of the most advantageous offer. This process generally fosters a competitive environment.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source award would have. It ensures that public funds are used efficiently by leveraging market forces.

Public Impact

The primary beneficiaries are the residents and staff of the Desert Sage Youth Wellness Center in Hemet, California, who will receive reliable propane services. The service delivered is the provision of propane, a critical utility for heating and other operational needs at the facility. The geographic impact is localized to Hemet, California, specifically at 39990 Faure Road. Workforce implications are minimal, likely involving a small team for delivery and maintenance from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases if market conditions for propane fluctuate significantly, though the firm fixed price contract aims to mitigate this.
Dependence on a single contractor for a critical utility could pose a risk if the contractor faces operational issues.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Competition under SAP suggests a structured procurement process.
Clear definition of services reduces ambiguity and potential disputes.

Sector Analysis

The propane supply industry is a mature sector within industrial gas manufacturing. Government contracts for utilities like propane are common across various agencies to support facilities nationwide. The market size for industrial gases is substantial, with numerous suppliers capable of meeting demand. This contract represents a small but essential component of the broader federal spending on facility operations and maintenance.

Small Business Impact

The contract was not specifically set aside for small businesses, nor is there an indication of mandatory subcontracting requirements for small businesses. J.AUGUST MEDIA LLC's status as a small business is not provided in the data. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Indian Health Service (IHS) within the Department of Health and Human Services. Standard procurement regulations and contract administration processes would apply. Transparency is maintained through federal procurement databases where contract awards are recorded. Inspector General jurisdiction would apply in cases of fraud or mismanagement.

Related Government Programs

Federal Utility Contracts
Department of Health and Human Services Contracts
Indian Health Service Procurement
Propane Supply Agreements

Risk Flags

Contractor Performance Risk
Market Price Volatility Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $68,344.5 to J.AUGUST MEDIA LLC. THE CONTRACTOR SHALL PROVIDE ALL LABOR, EQUIPMENT, AND MATERIALS NECESSARY TO DELIVER PROPANE SERVICES AT DESERT SAGE YOUTH WELLNESS CENTER (HEMET) 39990 FAURE ROAD HEMET CA 92544

Who is the contractor on this award?

The obligated recipient is J.AUGUST MEDIA LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $68,344.5.

What is the period of performance?

Start: 2025-04-29. End: 2027-04-30.

What is the track record of J.AUGUST MEDIA LLC in providing government services, particularly propane?

Information regarding J.AUGUST MEDIA LLC's specific track record in providing government services, especially propane, is not detailed in the provided data. As a 'COMPETED UNDER SAP' award, it suggests this may be a new or relatively small contract for the company within the federal space. Further investigation into the contractor's past performance, client references, and history with similar government procurements would be necessary to fully assess their reliability and expertise in delivering propane services. Without this historical data, it's difficult to gauge their established performance level.

How does the price of $683,445.50 for two years of propane services compare to market rates for similar facilities in California?

The total contract value of $683,445.50 over 731 days equates to approximately $934.95 per day for propane services. Benchmarking this against market rates requires detailed knowledge of propane consumption at the Desert Sage Youth Wellness Center and prevailing local prices in Hemet, CA. However, given the firm fixed price structure and the competitive bidding process indicated ('COMPETED UNDER SAP'), it is reasonable to infer that the price is aligned with or favorable compared to market rates. Government agencies often leverage bulk purchasing power and competitive solicitations to secure cost-effective utility services. A precise comparison would necessitate analyzing regional propane pricing indices and typical facility usage patterns.

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

The primary risks associated with this contract include potential fluctuations in propane market prices and the contractor's ability to consistently deliver services. The firm fixed price (FFP) contract structure is a key mitigation strategy, as it shifts the risk of price increases to J.AUGUST MEDIA LLC. For delivery reliability, the government relies on the contractor's performance history and the terms stipulated in the purchase order, which would likely include penalties for non-compliance or service disruptions. The relatively short duration of the contract (two years) also limits long-term exposure to these risks. Furthermore, the competitive award process suggests the selection of a contractor deemed capable of meeting performance expectations.

What is the expected effectiveness of this contract in ensuring reliable propane supply for the youth wellness center?

The effectiveness of this contract in ensuring a reliable propane supply is expected to be high, given the nature of the service and the procurement method. Propane delivery is a standard utility service with established logistical processes. The firm fixed price contract incentivizes the contractor to maintain consistent service to ensure profitability. The Indian Health Service, as the awarding agency, would have oversight responsibilities to monitor performance and address any issues promptly. The duration of the contract allows for a stable supply chain over the specified period, supporting the operational continuity of the Desert Sage Youth Wellness Center.

How does this contract's value and duration compare to historical spending patterns for propane services by the Indian Health Service?

Without access to historical spending data specifically for propane services by the Indian Health Service (IHS), a direct comparison is challenging. However, the contract value of approximately $683K over two years for a single facility suggests a moderate expenditure. IHS operates numerous facilities, many in remote areas where propane is a primary energy source. This award appears to be a standard procurement for essential services. Historical patterns for IHS likely show consistent spending on utilities across its portfolio, with individual contract values varying based on facility size, location, and local market prices. This specific award seems aligned with typical operational needs for such a facility.

Industry Classification

NAICS: Manufacturing › Basic Chemical Manufacturing › Industrial Gas Manufacturing

Product/Service Code: FUELS, LUBRICANTS, OILS, WAXES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75H70325Q00002

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2088 BRECONRIDGE DR SW, MARIETTA, GA, 30064

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $172,070

Exercised Options: $68,345

Current Obligation: $68,345

Actual Outlays: $14,396

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline