USDA Awards $4.16M HVAC Contract to Red Bison Services for Agricultural Research Facility

Contract Overview

Contract Amount: $4,162,480 ($4.2M)

Contractor: RED Bison Services, LLC

Awarding Agency: Department of Agriculture

Start Date: 2025-10-01

End Date: 2026-12-02

Contract Duration: 427 days

Daily Burn Rate: $9.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: HVAC REPLACEMENT PHASES 2A.

Place of Performance

Location: STUTTGART, ARKANSAS County, ARKANSAS, 72160

State: Arkansas Government Spending

Plain-Language Summary

Department of Agriculture obligated $4.2 million to RED BISON SERVICES, LLC for work described as: HVAC REPLACEMENT PHASES 2A. Key points: 1. Contract value of $4.16 million for HVAC replacement. 2. Awarded to Red Bison Services, LLC. 3. Procurement method is 'NOT AVAILABLE FOR COMPETITION', raising potential concerns about price discovery. 4. The sector is primarily Construction (HVAC services).

Value Assessment

Rating: questionable

The contract value is $4.16 million. Without comparable contract data or a detailed breakdown of the HVAC replacement scope, it is difficult to assess if this price is competitive. The 'NOT AVAILABLE FOR COMPETITION' status further complicates a direct pricing assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This method may lead to higher prices as there is no direct comparison with other potential bidders to drive down costs.

Taxpayer Impact: The lack of competition could result in taxpayers paying more than necessary for the HVAC services.

Public Impact

Ensures operational continuity for critical agricultural research by maintaining essential climate control. Potential for increased costs due to limited competition may impact overall federal budget allocation for similar projects. Supports infrastructure modernization within a key federal research agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of clear justification for sole-source award
Potential for cost overruns

Positive Signals

Addresses critical infrastructure need
Supports agricultural research

Sector Analysis

This contract falls within the Construction sector, specifically focusing on HVAC services for federal facilities. Benchmarks for similar HVAC replacement projects can vary significantly based on facility size, complexity, and geographic location.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if opportunities were missed to engage small businesses in this procurement.

Oversight & Accountability

The 'NOT AVAILABLE FOR COMPETITION' status warrants closer oversight to ensure the justification for limited competition is robust and that the pricing reflects fair market value.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Agriculture Contracting
Agricultural Research Service Programs

Risk Flags

Limited competition
Lack of transparency in pricing
Potential for cost overruns
No small business participation indicated

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $4.2 million to RED BISON SERVICES, LLC. HVAC REPLACEMENT PHASES 2A.

Who is the contractor on this award?

The obligated recipient is RED BISON SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Agricultural Research Service).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-12-02.

What is the specific justification for awarding this contract without full and open competition, and how was the fair market price determined?

The justification for awarding this contract without full and open competition is not provided in the data. Typically, such justifications are required for limited competition procurements and might include factors like urgent need, unique capabilities of the contractor, or lack of available sources. The determination of fair market price in such scenarios often relies on historical pricing, independent government cost estimates, or market research conducted by the agency.

What are the potential risks associated with a 'NOT AVAILABLE FOR COMPETITION' award for HVAC services, and how can they be mitigated?

The primary risk of a 'NOT AVAILABLE FOR COMPETITION' award is the potential for inflated pricing due to the absence of competitive pressure. Other risks include contractor performance issues if the selection was not based on demonstrated capability. Mitigation strategies include rigorous independent cost estimation, detailed scope definition, strong contract surveillance, and clear performance metrics.

How does this HVAC replacement project contribute to the overall effectiveness and mission of the Agricultural Research Service?

This HVAC replacement project is crucial for maintaining the operational effectiveness of the Agricultural Research Service by ensuring stable environmental conditions within its facilities. Reliable climate control is essential for preserving sensitive research samples, equipment, and maintaining optimal conditions for experiments, thereby directly supporting the agency's mission of advancing agricultural science and innovation.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 1232SA25R0021

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 FAYETTE ST, KENNER, LA, 70062

Business Categories: 8(a) Program Participant, American Indian Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,162,480

Exercised Options: $4,162,480

Current Obligation: $4,162,480

Actual Outlays: $62,437

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline