USDA awards $554K contract for HVAC upgrades at Hawaii research station, highlighting facility modernization needs

Contract Overview

Contract Amount: $554,525 ($554.5K)

Contractor: EPC Service Inc

Awarding Agency: Department of Agriculture

Start Date: 2025-08-29

End Date: 2026-11-13

Contract Duration: 441 days

Daily Burn Rate: $1.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF HVAC SYSTEMS TO ANIMAL ROOMS AT NWRC FIELD STATION, HILO, HI

Place of Performance

Location: HILO, HAWAII County, HAWAII, 96720

State: Hawaii Government Spending

Plain-Language Summary

Department of Agriculture obligated $554,525 to EPC SERVICE INC for work described as: REPLACEMENT OF HVAC SYSTEMS TO ANIMAL ROOMS AT NWRC FIELD STATION, HILO, HI Key points: 1. Contract addresses critical infrastructure at NWRC Field Station, Hilo, HI. 2. Focus on replacing aging HVAC systems to ensure operational continuity. 3. Firm Fixed Price contract type suggests defined scope and cost certainty. 4. Competition level indicates potential for fair market pricing. 5. Contract duration of 441 days aligns with project scope. 6. Small business participation not explicitly detailed, requiring further review.

Value Assessment

Rating: good

The contract value of $554,525 for HVAC system replacement appears reasonable for a specialized facility. Benchmarking against similar government projects for building system upgrades in remote or specialized locations would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the absence of detailed cost breakdowns limits a granular price assessment. The contract's focus on essential infrastructure replacement suggests a necessary investment rather than discretionary spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), indicating a competitive process for procurements under the federal micro-purchase threshold. With 4 bidders, the competition level suggests a reasonable opportunity for price discovery and market engagement. The SAP process is designed to be efficient while still allowing for multiple offers, which generally benefits the government by fostering competitive pricing.

Taxpayer Impact: The competitive bidding process, even under SAP, likely resulted in a more favorable price for taxpayers compared to a sole-source award. Multiple bidders ensure that the government receives proposals that reflect market conditions.

Public Impact

Benefits the Northwest Research Station (NWRC) by ensuring a stable and controlled environment for animal research. Delivers essential infrastructure upgrades, improving the reliability and efficiency of facility operations. Geographic impact is localized to the Hilo, Hawaii field station. Workforce implications include potential employment for skilled HVAC technicians and contractors in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during HVAC replacement in an older facility.
Dependence on contractor's ability to source specialized parts for the specific HVAC systems.
Risk of project delays due to logistical challenges in Hawaii.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Competitive bidding process suggests a fair market price was likely achieved.
Contract addresses a critical operational need for the research facility.

Sector Analysis

The contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC services. This sector is characterized by a mix of large and small contractors, with significant regional variations in labor costs and material availability. Government spending in this area is often driven by the need to maintain aging infrastructure and ensure compliance with environmental and operational standards. Comparable spending benchmarks for HVAC upgrades in federal buildings vary widely based on size, complexity, and location.

Small Business Impact

While the contract was competed under SAP, which can include small businesses, there is no explicit indication of a small business set-aside. The prime contractor, EPC SERVICE INC, is not identified as a small business in the provided data. Further investigation into subcontracting opportunities would be necessary to determine the extent of small business involvement in fulfilling this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Agriculture's Animal and Plant Health Inspection Service (APHIS). The firm fixed-price nature of the contract provides a degree of cost control. Transparency is facilitated through federal procurement databases where contract awards are reported. Accountability measures are inherent in the contract terms, with potential for penalties or remedies for non-performance.

Related Government Programs

Federal Building and Facilities Maintenance
Research Facility Infrastructure Upgrades
HVAC System Modernization Contracts
Department of Agriculture Procurement

Risk Flags

Potential for unforeseen conditions in older facility infrastructure.
Logistical challenges for materials and labor in Hawaii.
Ensuring specialized environmental controls for research continuity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $554,525 to EPC SERVICE INC. REPLACEMENT OF HVAC SYSTEMS TO ANIMAL ROOMS AT NWRC FIELD STATION, HILO, HI

Who is the contractor on this award?

The obligated recipient is EPC SERVICE INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Animal and Plant Health Inspection Service).

What is the total obligated amount?

The obligated amount is $554,525.

What is the period of performance?

Start: 2025-08-29. End: 2026-11-13.

What is the track record of EPC SERVICE INC with federal contracts, particularly for HVAC replacements?

A review of federal procurement data indicates that EPC SERVICE INC has been awarded federal contracts. To assess their track record specifically for HVAC replacements, a deeper analysis of their past performance on similar projects is required. This would involve examining contract histories for timeliness, adherence to budget, quality of work, and any reported disputes or terminations. Understanding their experience with government facilities, especially those with unique requirements like research stations, is crucial for evaluating their capability to successfully execute this contract.

How does the awarded amount of $554,525 compare to similar HVAC replacement projects at federal research facilities?

Benchmarking this $554,525 contract against similar HVAC replacement projects at federal research facilities requires access to detailed cost data from comparable contracts. Factors such as facility size, age, specific HVAC system complexity, geographic location (influencing labor and material costs), and the scope of work (e.g., full system replacement vs. partial upgrade) significantly impact project costs. Without specific comparable contract data, it's challenging to definitively state if this award represents excellent, fair, or questionable value. However, the competitive nature of the award suggests it is likely aligned with market rates for such specialized work.

What are the primary risks associated with replacing HVAC systems in an older research facility like the NWRC Field Station?

Replacing HVAC systems in an older facility like the NWRC Field Station presents several risks. These include the potential for discovering unforeseen structural or electrical issues during demolition and installation, which could lead to scope creep and cost overruns. Compatibility issues with existing building infrastructure (e.g., ductwork, power supply) may arise. Furthermore, the specialized nature of research environments often requires stringent controls on temperature, humidity, and air quality, making system integration complex. Logistical challenges in remote locations like Hilo, Hawaii, can also impact material delivery and specialized labor availability, potentially leading to project delays.

What is the expected impact of these HVAC upgrades on the effectiveness of research conducted at the NWRC Field Station?

The HVAC upgrades are expected to significantly enhance the effectiveness of research at the NWRC Field Station. Reliable and precise climate control is critical for many types of biological and environmental research, ensuring consistent experimental conditions and protecting sensitive samples or equipment. Aging HVAC systems can lead to fluctuations in temperature and humidity, compromising research integrity and potentially leading to failed experiments or data inaccuracies. Modernized systems will provide greater stability, improved air filtration, and potentially better energy efficiency, creating a more conducive environment for scientific endeavors and ensuring the long-term operational viability of the facility.

How has federal spending on facility maintenance and upgrades, specifically HVAC systems, trended in recent years?

Federal spending on facility maintenance and upgrades, including HVAC systems, has generally trended upwards in recent years, driven by an aging federal infrastructure portfolio. Agencies are increasingly prioritizing investments in modernizing buildings to improve energy efficiency, enhance security, and ensure operational continuity. While specific figures for HVAC-only spending are difficult to isolate, broader categories like 'Maintenance, Repair, and Operations' (MRO) and 'Construction of Facilities' show consistent federal outlays. Budgetary pressures and a focus on deferred maintenance have led to increased allocation towards these essential upgrades across various agencies, including the Department of Agriculture.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 12639525R0013

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 98-021 KAMEHAMEHA HWY, AIEA, HI, 96701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $554,525

Exercised Options: $554,525

Current Obligation: $554,525

Actual Outlays: $22,981

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline