DoD Awards $127.7M for Refrigeration and Air Conditioning Equipment Maintenance
Contract Overview
Contract Amount: $17,412,633 ($17.4M)
Contractor: Chevron U.S.A. Inc.
Awarding Agency: Department of Defense
Start Date: 2003-07-01
End Date: 2008-06-30
Contract Duration: 1,826 days
Daily Burn Rate: $9.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200310!000844!2100!AE30 !TACOM - PICATINNY !DAAE3003C1116 !A!N! !N! !20030701!20031231!127762412!009140559!001382555!N!CHEVRON U S A INC !345 CALIFORNIA ST STE 3200!SAN FRANCISCO !CA!94104!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000001110000!N!N!000000000000!J041!MAINT & REPAIR OF EQ/REFRIGERATION, AIR COND EQUIP!S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !811310!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1A!C!N!Z! ! !Y!C!N! ! ! !B!B!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: PICATINNY ARSENAL, MORRIS County, NEW JERSEY, 07806
Plain-Language Summary
Department of Defense obligated $17.4 million to CHEVRON U.S.A. INC. for work described as: 200310!000844!2100!AE30 !TACOM - PICATINNY !DAAE3003C1116 !A!N! !N! !20030701!20031231!127762412!009140559!001382555!N!CHEVRON U S A INC !345 CALIFORNIA ST STE 3200!SAN FRANCISCO !CA!94104!58410!027!34!PICATINNY ARSENAL !MORRI… Key points: 1. Contract awarded to CHEVRON U.S.A. INC. for maintenance and repair services. 2. The contract value is substantial at $127.7 million over a 5-year period. 3. The procurement was not competed, raising potential concerns about price discovery. 4. Services fall under the 'Commercial and Industrial Machinery and Equipment Repair and Maintenance' sector.
Value Assessment
Rating: questionable
The contract value of $127.7 million for maintenance and repair of refrigeration and air conditioning equipment over five years appears high. Benchmarking against similar contracts is difficult without more specific service details, but the lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source justification. This method of procurement may not have resulted in the best possible price for the government as competitive pressures were absent.
Taxpayer Impact: The lack of competition could lead to higher costs for taxpayers compared to a fully competed contract.
Public Impact
Military bases relying on climate control systems will have their equipment maintained. Ensures operational readiness for facilities requiring specific environmental conditions. Potential for taxpayer funds to be used inefficiently due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing
- Long contract duration
Positive Signals
- Ensures critical equipment maintenance
- Single award to a known entity
Sector Analysis
This contract falls within the industrial machinery maintenance sector, specifically for refrigeration and air conditioning equipment. Spending in this area is critical for maintaining operational facilities, but competitive bidding is usually expected to ensure value.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large corporation, CHEVRON U.S.A. INC.
Oversight & Accountability
The non-competitive nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the services provided meet the government's needs effectively.
Related Government Programs
- Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- No small business participation identified
Tags
commercial-and-industrial-machinery-and-, department-of-defense, nj, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.4 million to CHEVRON U.S.A. INC.. 200310!000844!2100!AE30 !TACOM - PICATINNY !DAAE3003C1116 !A!N! !N! !20030701!20031231!127762412!009140559!001382555!N!CHEVRON U S A INC !345 CALIFORNIA ST STE 3200!SAN FRANCISCO !CA!94104!58410!027!34!PICATINNY ARSENAL !MORRIS !NEW JERSEY!+000001110000!N!N!000000000000!J041!MAINT & REPAIR OF EQ/REFRIGERATION, AIR COND EQUIP!S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !811310!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is CHEVRON U.S.A. INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $17.4 million.
What is the period of performance?
Start: 2003-07-01. End: 2008-06-30.
What was the justification for not competing this contract, and were alternative sources considered?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification for this decision would typically be documented by the contracting agency. Without this documentation, it's impossible to assess if alternative sources were considered or if there were valid reasons for a limited or sole-source award, which directly impacts the government's ability to secure competitive pricing.
How does the per-unit cost of this maintenance compare to industry benchmarks for similar services?
The data does not provide specific per-unit cost breakdowns for the maintenance services rendered. To assess value, a detailed analysis comparing the contract's pricing structure against industry benchmarks for refrigeration and air conditioning equipment maintenance would be necessary. The lack of competition makes such a comparison more critical.
What is the long-term impact of awarding such a large contract non-competitively on future procurement opportunities?
Awarding a significant contract like this without competition can set a precedent and potentially limit future competitive opportunities if not properly justified. It may signal to other potential vendors that the agency is less inclined to seek competitive bids, potentially impacting overall market dynamics and long-term cost-effectiveness for the government.
Industry Classification
NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Chevron Corporation (UEI: 001382555)
Address: 345 CALIFORNIA ST STE 3200, SAN FRANCISCO, CA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $824,603
Exercised Options: $824,603
Current Obligation: $17,412,633
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-07-01
Current End Date: 2008-06-30
Potential End Date: 2008-06-30 00:00:00
Last Modified: 2009-06-12
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