DoD Awards $196.5M for Air Conditioning Equipment to York International Corp
Contract Overview
Contract Amount: $12,566,198 ($12.6M)
Contractor: York International Corporation
Awarding Agency: Department of Defense
Start Date: 2002-04-30
End Date: 2010-09-15
Contract Duration: 3,060 days
Daily Burn Rate: $4.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200208!001110!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554002C0046 !A!N! !N! !20020430!20070430!196561252!196561252!196561252!N!YORK INTERNATIONAL CORPORATION!631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000007717987!N!N!000017667488!4120!AIR CONDITIONING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !333415!E! !3!C!S! ! ! !99990909!B! ! !A! !D!U!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! ! ! ! !0001!
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17403
Plain-Language Summary
Department of Defense obligated $12.6 million to YORK INTERNATIONAL CORPORATION for work described as: 200208!001110!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554002C0046 !A!N! !N! !20020430!20070430!196561252!196561252!196561252!N!YORK INTERNATIONAL CORPORATION!631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK … Key points: 1. The contract, valued at $196.5 million, was awarded to York International Corporation. 2. This award represents a significant portion of spending within the HVAC equipment sector. 3. The 'Not Competed' classification raises questions about potential price discovery and competition. 4. The long duration of the contract (2002-2010) suggests a need for sustained equipment provision.
Value Assessment
Rating: fair
The total contract value of $196.5 million over its life appears high for air conditioning equipment. Benchmarking against similar large-scale HVAC procurements is necessary to assess if this represents a fair price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method may limit price discovery and potentially lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in the government paying a premium for the air conditioning equipment, impacting taxpayer funds.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long-term nature of the contract could lock the government into a single supplier for critical equipment. Potential for reduced innovation and higher maintenance costs if the sole-source provider's technology becomes outdated.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Long Contract Duration
- Potential for Overpricing
Positive Signals
- Award to established US company
- Potential for specialized equipment needs
Sector Analysis
This contract falls within the 'Air-Conditioning and Warm Air Heating Equipment' manufacturing sector. Spending in this area is typically driven by infrastructure projects and facility maintenance for government installations.
Small Business Impact
This contract was awarded to a large corporation, York International Corporation. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'Not Competed' status warrants further review by oversight bodies to ensure the justification for sole-source procurement was sound and that the pricing was fair.
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
- Lack of competitive bidding
- Potential for inflated pricing
- Long contract duration may lead to obsolescence
- Limited oversight visibility due to sole-source nature
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 $12.6 million to YORK INTERNATIONAL CORPORATION. 200208!001110!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554002C0046 !A!N! !N! !20020430!20070430!196561252!196561252!196561252!N!YORK INTERNATIONAL CORPORATION!631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000007717987!N!N!000017667488!4120!AIR CONDITIONING EQUIP !C9E!ALL OTHER SUPPLIES AND EQUIPME!2000!NOT DISCERNABLE OR CLASSIFIED !333415!E! !3!C!S! ! ! !99990909!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 $12.6 million.
What is the period of performance?
Start: 2002-04-30. End: 2010-09-15.
What was the specific justification for awarding this contract on a sole-source basis, and was it adequately documented?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternatives. Without access to the contract's specific documentation, it's impossible to confirm the exact reasons. However, the 'Not Competed' designation strongly suggests that a competitive process was bypassed, necessitating a thorough review of the justification's validity and completeness by oversight agencies.
How does the per-unit cost of the air conditioning equipment compare to similar procurements or commercial market prices at the time?
Benchmarking the per-unit cost is crucial for assessing value. Given the contract's sole-source nature and long duration, it's essential to compare the pricing against industry standards for similar commercial or government-procured HVAC systems. A significant deviation upwards could indicate overpayment and a failure to achieve best value for taxpayer funds.
What is the long-term risk associated with relying on a single supplier for critical air conditioning equipment over an extended period?
The primary long-term risks include potential price escalation, limited access to technological upgrades, and vendor lock-in. If York International Corporation's technology becomes outdated or their pricing becomes uncompetitive, the government may be forced to continue with a suboptimal solution. This also poses a risk if the company undergoes significant changes or ceases operations.
Industry Classification
NAICS: Manufacturing › Ventilation, Heating, Air-Conditioning, and Commercial Refrigeration Equipment Manufacturing › Air-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: 2002-04-30
Current End Date: 2010-09-15
Potential End Date: 2010-09-15 00:00:00
Last Modified: 2010-06-06
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