DoD awards $17.6M for HVAC equipment to YORK INTERNATIONAL CORPORATION, a sole-source contract
Contract Overview
Contract Amount: $17,597,640 ($17.6M)
Contractor: York International Corporation
Awarding Agency: Department of Defense
Start Date: 2004-06-29
End Date: 2010-02-24
Contract Duration: 2,066 days
Daily Burn Rate: $8.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: YORK, YORK County, PENNSYLVANIA, 17405
Plain-Language Summary
Department of Defense obligated $17.6 million to YORK INTERNATIONAL CORPORATION for work described as: Key points: 1. The contract value of $17.6 million is significant for this type of equipment. 2. The sole-source nature raises questions about potential overpricing and lack of competition. 3. The long duration (2004-2010) suggests a need for ongoing support or a large-scale project. 4. The sector is manufacturing of HVAC and refrigeration equipment, a critical component for facilities.
Value Assessment
Rating: questionable
Without competitive bids, it's difficult to assess if the $17.6 million price is reasonable. Benchmarking against similar sole-source contracts or market rates for comparable equipment would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for vendors to bid against each other.
Taxpayer Impact: The lack of competition on a $17.6 million contract likely resulted in higher costs than a competitively awarded contract would have achieved.
Public Impact
Taxpayers may have paid a premium for HVAC equipment due to the absence of competition. The Department of Defense relies on this equipment for operational readiness, making its cost and availability critical. The long contract period could indicate potential for cost overruns or inefficiencies if not closely managed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Essential equipment for DoD operations
- Firm fixed price contract type can limit cost uncertainty
Sector Analysis
The manufacturing of air-conditioning, heating, and refrigeration equipment is a mature industry. Spending benchmarks for similar DoD contracts would typically involve competitive bidding to ensure fair market prices.
Small Business Impact
There is no indication that small businesses were involved in this sole-source award, which is common when a specific manufacturer's product is required.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny to ensure the price paid was fair and reasonable. Oversight should focus on the justification for the sole-source award and the management of the contract's long duration.
Related Government Programs
- Air-Conditioning and Warm Air Heating Equipment and Commercial and Industrial Refrigeration Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for inflated pricing due to sole-source award.
- Lack of competitive pressure may have reduced incentive for cost efficiency.
- Long contract duration increases risk of obsolescence or changing needs.
- Limited transparency on the justification for sole-source procurement.
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 $17.6 million to YORK INTERNATIONAL CORPORATION. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is YORK INTERNATIONAL CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $17.6 million.
What is the period of performance?
Start: 2004-06-29. End: 2010-02-24.
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 the unavailability of the required item from multiple sources. Adequate documentation would include a detailed analysis of the market, a clear explanation of why only one source could meet the requirement, and a cost/price analysis to support the negotiated price.
How does the $17.6 million price compare to market rates for similar HVAC and refrigeration equipment, especially considering the contract's duration?
Without competitive bids, a direct comparison is challenging. However, the price should be benchmarked against industry standards for similar equipment, factoring in installation, maintenance, and potential upgrades over the contract's seven-year period. Any significant deviation from market rates would indicate potential overpricing.
What mechanisms were in place to ensure the effectiveness and efficiency of the HVAC equipment delivered under this long-term contract?
Effectiveness would be measured by the equipment's performance against specifications and its reliability throughout the contract period. Efficiency relates to energy consumption and maintenance costs. Oversight should have included regular performance reviews, acceptance testing, and monitoring of operational data to ensure the equipment met DoD requirements.
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: YES
Timeline
Start Date: 2004-06-29
Current End Date: 2010-02-24
Potential End Date: 2010-02-24 00:00:00
Last Modified: 2010-04-01
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