Agriculture awards $1.41M contract for HVAC services, with a 77% benchmarked price advantage

Contract Overview

Contract Amount: $141,000 ($141.0K)

Contractor: Universal Mechanical Services LLC

Awarding Agency: Department of Agriculture

Start Date: 2021-05-19

End Date: 2026-05-31

Contract Duration: 1,838 days

Daily Burn Rate: $77/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE HVAC/MAINTENANCE SERVICES AT MORGANTOWN FO.

Place of Performance

Location: WAYNESBURG, GREENE County, PENNSYLVANIA, 15370

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Agriculture obligated $141,000 to UNIVERSAL MECHANICAL SERVICES LLC for work described as: PROVIDE HVAC/MAINTENANCE SERVICES AT MORGANTOWN FO. Key points: 1. The contract's fixed-price nature provides cost certainty for the government. 2. Competition under SAP suggests a streamlined procurement process, potentially impacting efficiency. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The awarded contractor has secured this sole contract, highlighting their current market position. 5. The service location in Pennsylvania may have implications for local workforce and economic impact.

Value Assessment

Rating: excellent

The awarded price of $1.41 million for HVAC maintenance services appears to be highly favorable, with a reported benchmark advantage of 77%. This suggests significant cost savings compared to market rates or similar contracts. The firm-fixed-price structure further enhances value by locking in costs and mitigating the risk of cost overruns for the government. The long duration of the contract (over 5 years) also allows for consistent service delivery and potential economies of scale in maintenance planning.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP (Simplified Acquisition Procedures), indicating a competitive process suitable for smaller dollar values. While the specific number of bidders is not provided, SAP generally encourages competition. The fact that it was competed suggests that multiple vendors had the opportunity to bid, which typically leads to better pricing and service options for the government.

Taxpayer Impact: The competitive nature of this award, even under SAP, likely resulted in taxpayer savings due to multiple vendors vying for the contract. This process helps ensure that the government is not overpaying for essential maintenance services.

Public Impact

Federal employees and visitors at the Morgantown Forest Office will benefit from reliable heating, ventilation, and air conditioning systems. Essential building maintenance services are ensured, contributing to a safe and functional work environment. The contract supports the operational continuity of the Forest Service's Morgantown facility. The contract is geographically focused on Pennsylvania, potentially supporting local employment in the HVAC sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count for SAP competition limits full understanding of competitive intensity.
Long contract duration could pose risks if technology or service needs change significantly.
Reliance on a single contractor for over five years might reduce future competitive pressure.

Positive Signals

Strong price advantage (77% benchmark) indicates excellent value for taxpayer funds.
Firm-fixed-price contract provides budget certainty and cost control.
Awarded under competitive SAP, suggesting a fair and open bidding process.
Long-term contract ensures consistent service delivery for critical facility operations.

Sector Analysis

The HVAC and maintenance services sector is a critical component of facility management across all government agencies. This contract falls within the broader construction and maintenance services industry, specifically focusing on mechanical systems. The market for these services is generally robust, with numerous providers ranging from small local businesses to large national corporations. Government contracts for such services are common, often awarded through competitive bidding processes to ensure cost-effectiveness and reliable performance.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not explicitly provided in the data. As the contract was competed under SAP and awarded to Universal Mechanical Services LLC, further investigation would be needed to determine if small businesses were involved as prime contractors or subcontractors. The absence of specific set-aside information suggests it may not have been a primary focus for this particular procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Agriculture's Forest Service contracting officers and program managers. Standard contract administration procedures would be in place to monitor performance, ensure compliance with terms, and manage payments. The contract's fixed-price nature simplifies some aspects of oversight by focusing on service delivery rather than cost reconciliation. Transparency is generally maintained through contract award databases.

Related Government Programs

Federal Building Maintenance Contracts
HVAC Services for Government Facilities
Forest Service Operational Support
General Services Administration (GSA) Facility Management

Risk Flags

Potential for contractor performance degradation over a long contract term.
Risk of technological obsolescence impacting long-term cost-effectiveness.
Limited transparency on the specific number of bidders in the SAP competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $141,000 to UNIVERSAL MECHANICAL SERVICES LLC. PROVIDE HVAC/MAINTENANCE SERVICES AT MORGANTOWN FO.

Who is the contractor on this award?

The obligated recipient is UNIVERSAL MECHANICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Forest Service).

What is the total obligated amount?

The obligated amount is $141,000.

What is the period of performance?

Start: 2021-05-19. End: 2026-05-31.

What is the track record of Universal Mechanical Services LLC with federal contracts?

Detailed information on Universal Mechanical Services LLC's federal contract history is not provided in the given data. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS. This would reveal past performance on similar contracts, any history of disputes or contract terminations, and their overall experience with government agencies. A positive history with timely delivery and quality service on previous contracts would be a strong indicator of reliability for this current HVAC maintenance agreement.

How does the $1.41 million contract value compare to similar HVAC maintenance contracts awarded by the Forest Service or USDA?

The contract value of $1.41 million for HVAC maintenance services over approximately 5 years (1838 days) needs to be benchmarked against similar contracts. Without specific comparative data, it's difficult to definitively state its position. However, the reported 77% benchmark advantage is a significant indicator that this price is exceptionally favorable. To provide a more precise comparison, one would analyze contracts for similar facility sizes, geographic locations, and service scopes awarded by the Forest Service or other USDA agencies within the last few years. This would involve looking at total contract values, durations, and per-year costs.

What are the primary risks associated with a long-term (5+ year) firm-fixed-price contract for HVAC services?

A significant risk with a long-term firm-fixed-price contract for HVAC services is the potential for technological obsolescence or the emergence of more efficient, cost-effective technologies during the contract period. If the contractor is locked into maintaining older systems, the government might miss out on upgrades that could lead to further energy savings or improved performance. Another risk is contractor performance degradation over time; while the fixed price incentivizes efficiency, a lack of ongoing competition could lead to complacency. Furthermore, unforeseen increases in labor or parts costs could impact the contractor's profitability, potentially leading to disputes or a desire to renegotiate, although the fixed-price nature aims to prevent this.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for contracts of this size?

Simplified Acquisition Procedures (SAP) are designed for purchases up to certain thresholds (e.g., $250,000, though this can vary) and aim to streamline the procurement process for smaller dollar value acquisitions. While SAP generally encourages competition by making it easier for vendors to participate, its effectiveness in ensuring the *most* competitive pricing compared to full and open competition can vary. For contracts closer to the SAP threshold, the competition might be less intense than for larger, more complex procurements. However, the reported 77% benchmark advantage suggests that for this specific contract, SAP was effective in driving a highly competitive outcome, likely due to the nature of the service and the number of capable vendors in the region.

What are the historical spending patterns for HVAC and maintenance services within the Department of Agriculture's Forest Service?

Historical spending patterns for HVAC and maintenance services within the Department of Agriculture's Forest Service would reveal the agency's consistent need for such services across its various facilities. Analyzing past contract awards for similar services would show the typical contract values, durations, and the frequency with which these contracts are issued. This data can help establish baseline costs and identify trends in spending. For instance, consistent annual spending on HVAC maintenance suggests it's a core operational requirement. Understanding these patterns is crucial for budget forecasting and ensuring that current contract awards align with historical investment levels and represent good value.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12444821Q0025

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1417 BIG SHANNON RUN RD, WAYNESBURG, PA, 15370

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $141,000

Exercised Options: $141,000

Current Obligation: $141,000

Actual Outlays: $119,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline