Naval Surface Warfare Center contract for air conditioning equipment awarded to York International Corp for over $14.1 million

Contract Overview

Contract Amount: $14,130,583 ($14.1M)

Contractor: York International Corporation

Awarding Agency: Department of Defense

Start Date: 2003-02-14

End Date: 2011-08-05

Contract Duration: 3,094 days

Daily Burn Rate: $4.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200305!000641!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554003C0019 !A!N! !N! !20030214!20060214!196561252!196561252!196561252!N!YORK INTERNATIONAL CORP !631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000003063777!N!N!000000000000!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!1A!A!Y!F! ! !N!C!N! ! ! !Z!Z!A!A!000!A!D!N! ! ! ! ! ! !0001! !

Place of Performance

Location: YORK, YORK County, PENNSYLVANIA, 17403

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to YORK INTERNATIONAL CORPORATION for work described as: 200305!000641!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554003C0019 !A!N! !N! !20030214!20060214!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 essential climate control equipment, highlighting the importance of operational readiness. 2. The fixed-price contract structure suggests a defined scope and cost, potentially limiting cost overruns. 3. A single award without full and open competition raises questions about potential cost savings and broader market engagement. 4. The duration of the contract, spanning over 3000 days, indicates a long-term need for the equipment and services. 5. The procurement falls under the 'Air Conditioning Equipment' category, a critical component for various naval operations and facilities.

Value Assessment

Rating: fair

The contract value of $14.1 million for air conditioning equipment over a period of approximately 8.5 years appears to be within a reasonable range for specialized military-grade systems. However, without specific details on the type and quantity of equipment, a precise benchmark is difficult. The fixed-price nature of the contract provides some cost certainty, but the lack of competitive bidding means there's no direct comparison to market prices achieved through a competitive process. Further analysis would require understanding the specific technical requirements and comparing them to similar procurements for comparable systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, York International Corporation, was solicited. The justification for this approach is not detailed in the provided data, but sole-source awards typically occur when a specific capability or product is only available from a single source, or in cases of urgent need. The lack of competition means that the government did not benefit from the price discovery that typically occurs in a multi-bidder environment, potentially leading to a higher price than if multiple companies had competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a bidding process, there is less assurance that the price reflects the best value achievable in the market.

Public Impact

Naval operations benefit from reliable climate control systems, ensuring the functionality of sensitive equipment and the comfort of personnel. The contract supports the maintenance and operational readiness of naval facilities and vessels. Geographic impact is primarily within the operational areas of the Naval Surface Warfare Center, though the equipment itself may be manufactured elsewhere. The contract supports the workforce at York International Corporation and potentially its subcontractors involved in the manufacturing, delivery, and installation of the equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition, potentially increasing costs for taxpayers.
Long contract duration could lead to obsolescence issues if technology advances rapidly.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond delivery.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to a known entity (York International Corp) suggests a potentially reliable supplier.
The contract addresses a clear need for essential equipment for naval operations.

Sector Analysis

This contract falls within the manufacturing sector, specifically for air conditioning, heating, and refrigeration equipment. The market for such equipment is substantial, with significant government spending allocated to climate control systems for military installations and platforms. This procurement represents a portion of the Department of Defense's broader spending on operational infrastructure and equipment. Benchmarking this specific contract against other government procurements for similar specialized systems would provide further insight into its value.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it provide information on subcontracting opportunities for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, as the primary award went to a larger corporation. Further investigation into subcontracting plans would be needed to fully assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The fixed-price nature of the contract provides a degree of accountability by linking payment to delivery. Transparency is limited by the sole-source nature of the award and the lack of publicly available detailed performance reports. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Surface Warfare Center Operations
Department of Defense Equipment Procurement
Climate Control Systems for Federal Facilities
Defense Contract Management Agency Contracts

Risk Flags

Sole-source award
Lack of detailed technical specifications
Extended contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to YORK INTERNATIONAL CORPORATION. 200305!000641!1700!BW21F !NAVAL SURFACE WARFARE CENTER CAR!N6554003C0019 !A!N! !N! !20030214!20060214!196561252!196561252!196561252!N!YORK INTERNATIONAL CORP !631 S RICHLAND AVE !YORK !PA!17403!87048!133!42!YORK !YORK !PENN !+000003063777!N!N!000000000000!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 $14.1 million.

What is the period of performance?

Start: 2003-02-14. End: 2011-08-05.

What specific type and quantity of air conditioning equipment were procured under this contract?

The provided data indicates the National Stock Number (NSN) is 333415, which corresponds to 'Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing'. However, the specific model, capacity, or quantity of units procured is not detailed in the available information. This level of specificity is crucial for a thorough value assessment and comparison with market rates or similar contracts. Without this, we can only infer that it pertains to industrial-grade climate control solutions necessary for naval operations.

What was the justification for awarding this contract on a sole-source basis?

The provided data explicitly states the contract was 'NOT COMPETED', indicating a sole-source or limited competition award. The specific justification for this approach is not detailed in the data snippet. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need where competition is not feasible. Without the official justification document, it is impossible to ascertain the precise reason, but it implies that a competitive bidding process was deemed inappropriate or impossible for this particular procurement.

How does the per-unit cost of this equipment compare to similar systems purchased by other government agencies or the private sector?

A direct per-unit cost comparison is not feasible with the current data. The total contract value is $14,130,583.43 over a duration of 3094 days (approximately 8.5 years). The data does not specify the number of units procured. Furthermore, the contract was sole-sourced, meaning there was no competitive bidding to establish a market-driven price. To perform such a comparison, one would need to know the exact specifications, quantity, and unit price, and then benchmark these against publicly available data for similar industrial-grade climate control systems purchased competitively by other entities.

What is the track record of York International Corporation in fulfilling similar government contracts?

York International Corporation has a history of supplying climate control solutions. While this specific contract (N6554003C0019) was awarded in 2003, the company has likely fulfilled numerous other contracts, both government and commercial. Assessing their track record would involve reviewing past performance evaluations, any documented issues or successes on previous defense contracts, and their overall reputation within the industry for delivering complex HVAC and refrigeration systems. The provided data does not contain specific past performance details for this contractor on this or other contracts.

What are the potential risks associated with the long duration of this contract?

The contract duration of 3094 days (over 8.5 years) presents several potential risks. Firstly, technological advancements in air conditioning and refrigeration could render the procured equipment outdated or less efficient before the contract's end. Secondly, maintenance and repair challenges may arise if specialized parts become obsolete or difficult to source over such an extended period. Thirdly, the long timeframe increases the possibility of unforeseen operational changes within the Navy that might alter the requirements or the necessity of the equipment. Finally, prolonged contracts can sometimes mask underlying inefficiencies or a lack of proactive modernization planning.

How does this spending compare to overall federal spending on climate control equipment?

This contract, valued at over $14.1 million, represents a significant but likely small fraction of the total federal spending on climate control equipment. Federal agencies, particularly the Department of Defense, invest heavily in HVAC and refrigeration systems for a vast array of facilities, including bases, ships, aircraft, and sensitive research installations. Annual federal spending on such equipment can run into hundreds of millions or even billions of dollars across all agencies. To contextualize this specific contract, one would need to analyze broader spending trends and identify comparable procurements within the DoD and other agencies like GSA or NASA.

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

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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