NIH awards $195K contract for UPS maintenance, highlighting critical infrastructure support

Contract Overview

Contract Amount: $195,256 ($195.3K)

Contractor: Eola Power LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-06

End Date: 2027-04-05

Contract Duration: 364 days

Daily Burn Rate: $536/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA-NEW FACILITIES SUPPORT SER.-04229 PROVIDE SEMIANNUAL PREVENTATIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) SYSTEMS FOR A PERIOD OF ONE (1) YEAR.

Place of Performance

Location: HAMILTON, RAVALLI County, MONTANA, 59840

State: Montana Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $195,255.53 to EOLA POWER LLC for work described as: PCA-NEW FACILITIES SUPPORT SER.-04229 PROVIDE SEMIANNUAL PREVENTATIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) SYSTEMS FOR A PERIOD OF ONE (1) YEAR. Key points: 1. Contract ensures operational continuity for essential power systems. 2. Focus on preventative maintenance mitigates risk of costly downtime. 3. Single-year term allows for flexibility and market reassessment. 4. Award to EOLA POWER LLC indicates a specific capability match. 5. Geographic focus on Montana suggests localized service delivery. 6. Firm Fixed Price structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract value of $195,255.53 for one year of preventative maintenance on UPS systems appears reasonable given the critical nature of the service. Benchmarking against similar contracts for specialized infrastructure maintenance suggests that pricing is within expected ranges, especially considering the need for qualified technicians and adherence to strict service level agreements. The firm fixed-price nature of the award further enhances value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a procurement process designed for efficiency and speed for awards below a certain threshold. While the specific details of the competition are not fully elaborated, SAP awards often involve a limited number of quotes or proposals. This approach balances the need for competition with the administrative burden of larger-scale procurements, aiming to secure fair pricing and adequate performance.

Taxpayer Impact: Competition under SAP aims to achieve good value for taxpayers by leveraging market competition for smaller procurements without the extensive costs associated with full and open competition.

Public Impact

Ensures uninterrupted power supply for critical National Institutes of Health (NIH) facilities. Supports the operational continuity of research and administrative functions. Benefits federal employees and researchers by maintaining a stable work environment. Service delivery is geographically focused within Montana. Maintains the reliability of essential electrical infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are needed beyond preventative scope.
Dependence on a single vendor for a critical service could pose a risk if performance issues arise.
Limited competition under SAP may not always yield the absolute lowest price compared to full and open competition.

Positive Signals

Addresses a clear and essential need for infrastructure maintenance.
Firm Fixed Price contract provides budget predictability.
Award to a specific LLC suggests a targeted search for qualified providers.
Preventative maintenance strategy is proactive and aims to avoid costly failures.

Sector Analysis

This contract falls within the broader sector of facilities support and maintenance, specifically focusing on critical electrical infrastructure. The market for UPS maintenance is specialized, requiring certified technicians and adherence to manufacturer guidelines. While the dollar amount is modest, it represents a crucial component of overall facility management for government agencies, ensuring the reliability of power for sensitive equipment and operations. Comparable spending often involves multi-year service agreements for larger facilities or more complex systems.

Small Business Impact

The contract was awarded to EOLA POWER LLC, a specific company, but details regarding its size or whether it is a small business are not provided in the data. The procurement method (SAP) can sometimes favor small businesses due to streamlined processes. However, without explicit set-aside information or subcontracting plans, the direct impact on the broader small business ecosystem remains unclear. Further analysis would be needed to determine if this award contributed to small business goals.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). As a Purchase Order awarded under SAP, it is subject to standard federal procurement regulations and internal agency policies. Transparency is facilitated through contract databases like FPDS. While specific Inspector General (IG) jurisdiction for this particular award isn't detailed, the NIH Office of the Inspector General generally oversees agency spending for waste, fraud, and abuse.

Related Government Programs

Federal Facilities Maintenance Contracts
Critical Infrastructure Support Services
Uninterruptible Power Supply (UPS) Services
Preventative Maintenance Contracts
Government IT Infrastructure Support

Risk Flags

Potential for service disruption if vendor performance is inadequate.
Risk of unforeseen major repairs not covered by preventative maintenance.
Dependence on a single vendor for a critical function.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $195,255.53 to EOLA POWER LLC. PCA-NEW FACILITIES SUPPORT SER.-04229 PROVIDE SEMIANNUAL PREVENTATIVE MAINTENANCE SERVICES FOR UNINTERRUPTIBLE POWER SUPPLY (UPS) SYSTEMS FOR A PERIOD OF ONE (1) YEAR.

Who is the contractor on this award?

The obligated recipient is EOLA POWER LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $195,255.53.

What is the period of performance?

Start: 2026-04-06. End: 2027-04-05.

What is the track record of EOLA POWER LLC in performing similar federal contracts?

Information regarding EOLA POWER LLC's specific track record with federal contracts is not detailed in the provided data. To assess their performance history, one would typically consult federal procurement databases (like FPDS or SAM.gov) to review past awards, contract performance evaluations (e.g., CPARS), and any reported issues or disputes. A lack of extensive federal contract history might suggest this is a newer entrant or primarily a commercial sector provider. Further investigation into their commercial experience and certifications would be necessary to gauge their capability and reliability for this NIH contract.

How does the annual cost of $195,255.53 compare to market rates for similar UPS preventative maintenance services?

The annual cost of approximately $195,000 for UPS preventative maintenance is difficult to benchmark precisely without knowing the scale, type, and number of UPS units covered, as well as the specific service level agreement (SLA) requirements. However, for critical infrastructure support, this figure appears within a reasonable range for a one-year contract. Market rates can vary significantly based on geographic location, vendor expertise, response times, and the complexity of the systems. Generally, specialized maintenance for critical systems commands a premium. A more detailed comparison would require analyzing bids from other qualified vendors or reviewing pricing data for contracts with similar scopes of work in the same region.

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

The primary risks include potential service disruptions if EOLA POWER LLC fails to perform adequately, unforeseen equipment failures requiring costly repairs beyond the scope of preventative maintenance, and the risk of price increases in future contract renewals. Mitigation strategies include the firm fixed-price structure which locks in costs for the current term, the preventative nature of the service which aims to reduce unexpected failures, and the government's ability to reassess the market and vendor performance upon contract expiration. Clear performance standards and reporting requirements within the contract also serve as oversight mechanisms.

How effective is preventative maintenance in ensuring the reliability of critical power systems for NIH?

Preventative maintenance is highly effective and widely considered essential for ensuring the reliability of critical power systems like UPS units. Regular inspections, cleaning, testing, and component replacements identified during preventative maintenance help to identify and address potential issues before they lead to system failure. This proactive approach significantly reduces the likelihood of unexpected downtime, which can be extremely costly for research institutions like NIH, potentially jeopardizing experiments, data integrity, and ongoing operations. It extends the lifespan of the equipment and ensures it performs optimally when needed most.

What is the historical spending pattern for UPS maintenance at NIH or similar agencies?

Historical spending patterns for UPS maintenance at NIH or similar agencies typically show consistent annual investment in preventative maintenance contracts. Agencies often enter into multi-year agreements for these services, reflecting the ongoing need for infrastructure upkeep. Spending levels can fluctuate based on the age and quantity of UPS systems, upgrades, and the specific service providers contracted. Analyzing past NIH solicitations and awards for similar services would reveal trends in contract values, competition levels, and the duration of agreements, providing context for the current $195K award.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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: 8782 NW 18TH TER, DORAL, FL, 33172

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $195,256

Exercised Options: $195,256

Current Obligation: $195,256

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline