DoD Awards $19.6M for Air Conditioning Equipment to York International Corp

Contract Overview

Contract Amount: $16,891,592 ($16.9M)

Contractor: York International Corporation

Awarding Agency: Department of Defense

Start Date: 2000-11-09

End Date: 2010-10-01

Contract Duration: 3,613 days

Daily Burn Rate: $4.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200111!018161!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4011 !A!N!*!N!BASIC !20001109!20030102!196561252!196561252!196561252!N!YORK INTERNATIONAL CORP !631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000002987178!N!N!000000000000!4120!AIR CONDITIONING EQUIP !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !333415!*!*!3! ! ! !*!*!*!B!*!*!B! !D !N!J!1!001!N!1A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: YORK, YORK County, PENNSYLVANIA, 17403

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to YORK INTERNATIONAL CORPORATION for work described as: 200111!018161!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4011 !A!N!*!N!BASIC !20001109!20030102!196561252!196561252!196561252!N!YORK INTERNATIONAL CORP !631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK … Key points: 1. Contract awarded for air conditioning equipment to support naval systems. 2. York International Corp. secured the $19.6M firm-fixed-price contract. 3. The contract was not competed, raising potential concerns about price discovery. 4. Spending falls within the manufacturing sector for climate control equipment.

Value Assessment

Rating: fair

The contract value of $19.6M for air conditioning equipment appears within a reasonable range for large-scale industrial units. However, without specific unit details or performance requirements, a precise benchmark is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices than if multiple vendors had competed for the contract.

Taxpayer Impact: The lack of competition could result in taxpayers paying a premium for the equipment.

Public Impact

Naval operations may be impacted by the availability and performance of this climate control equipment. The award to a single vendor raises questions about the government's procurement strategy for essential equipment. Taxpayers are directly funding this significant expenditure for defense infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Lack of price competition
  • Potential for overpayment

Positive Signals

  • Award to established company
  • Firm-fixed-price contract

Sector Analysis

This contract falls under the manufacturing sector, specifically for climate control equipment. Defense spending in this area is crucial for maintaining operational readiness in various environments.

Small Business Impact

The award went to York International Corporation, a large business. There is no indication of small business participation in this specific contract.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Oversight should confirm the necessity of a non-competitive award.

Related Government Programs

  • Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
  • Department of Defense Contracting
  • Defense Contract Management Agency Programs

Risk Flags

  • Sole-source award limits price competition.
  • Potential for inflated pricing due to lack of competition.
  • Dependency on a single supplier for critical equipment.
  • Limited transparency on justification for sole-source award.

Tags

air-conditioning-and-warm-air-heating-eq, department-of-defense, pa, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to YORK INTERNATIONAL CORPORATION. 200111!018161!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002401C4011 !A!N!*!N!BASIC !20001109!20030102!196561252!196561252!196561252!N!YORK INTERNATIONAL CORP !631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000002987178!N!N!000000000000!4120!AIR CONDITIONING EQUIP !A3 !SHIPS !2000!NOT DISCERNABLE OR CLASSIFIED !333415!*!*!3! ! ! !*!*!*!B!*!*!B!

Who is the contractor on this award?

The obligated recipient is YORK INTERNATIONAL CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2000-11-09. End: 2010-10-01.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies explored?

The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one vendor can fulfill the requirement. Without specific documentation, it's unclear if alternatives were thoroughly explored. This lack of transparency can obscure whether the government secured the best possible price and value for the taxpayer.

How does the per-unit cost of this air conditioning equipment compare to similar government or commercial procurements, considering the lack of competition?

Benchmarking the per-unit cost is challenging without detailed specifications and quantity. However, sole-source contracts inherently carry a higher risk of inflated pricing due to the absence of competitive pressure. A thorough post-award analysis or comparison with similar, competitively awarded contracts would be necessary to assess potential cost overruns.

What are the long-term implications for naval readiness and maintenance if this sole-source vendor faces disruptions or price increases in the future?

Reliance on a single supplier for critical components like air conditioning equipment can create vulnerabilities. Future price increases or supply chain disruptions for York International could impact naval readiness and increase long-term operational costs. Diversifying suppliers or establishing robust maintenance agreements could mitigate these risks.

Industry Classification

NAICS: ManufacturingVentilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment ManufacturingAir-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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson Controls Inc (UEI: 006092860)

Address: 631 S RICHLAND AVE, YORK, PA, 10

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2000-11-09

Current End Date: 2010-10-01

Potential End Date: 2010-10-01 00:00:00

Last Modified: 2010-06-06

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