Agriculture Department awards $732K contract for cooling tower repairs to Crowley Holdings LLC

Contract Overview

Contract Amount: $732,292 ($732.3K)

Contractor: Crowley Holdings LLC

Awarding Agency: Department of Agriculture

Start Date: 2026-04-03

End Date: 2026-07-31

Contract Duration: 119 days

Daily Burn Rate: $6.2K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REMOVE AND REPLACE BOILER/COOLING TOWER/REHEAT COILS.

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38133

State: Tennessee Government Spending

Plain-Language Summary

Department of Agriculture obligated $732,291.6 to CROWLEY HOLDINGS LLC for work described as: REMOVE AND REPLACE BOILER/COOLING TOWER/REHEAT COILS. Key points: 1. The contract value of $732,291.60 appears reasonable for the scope of work involving boiler, cooling tower, and reheat coil repairs. 2. The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a focus on smaller value procurements. 3. The fixed-price nature of the contract shifts performance risk to the contractor, Crowley Holdings LLC. 4. The contract duration of 119 days is relatively short, indicating a focused repair effort. 5. The award to Crowley Holdings LLC, a single entity, requires further investigation into the competitive landscape. 6. The geographic location in Tennessee (TN) may influence local labor costs and material availability.

Value Assessment

Rating: good

The contract value of $732,291.60 for HVAC system repairs, specifically boiler, cooling tower, and reheat coils, seems within a reasonable range for such specialized maintenance. Benchmarking against similar federal contracts for HVAC system overhauls or major component replacements would provide a more precise value-for-money assessment. However, given the fixed-price structure, the government has a defined cost for the specified work, mitigating cost overrun risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source but may not reach the full and open competition level for larger contracts. The number of bidders (13) is a positive indicator of interest, but the specific details of the solicitation and outreach under SAP are crucial to understanding the true level of competition. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competition level under SAP, with 13 bidders, suggests that taxpayers likely benefited from a reasonably competitive bidding process, leading to a fair market price for the required HVAC repairs.

Public Impact

The primary beneficiaries are the facilities managed by the Animal and Plant Health Inspection Service (APHIS) within the Department of Agriculture, ensuring operational continuity. The services delivered include essential repairs and maintenance for critical building infrastructure, specifically boiler, cooling tower, and reheat coils. The geographic impact is localized to Tennessee (TN), where the facilities requiring these repairs are situated. Workforce implications include the employment of skilled tradespeople for the repair and maintenance tasks, likely sourced locally in Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition details under SAP require further scrutiny to ensure optimal value.
The specific scope of 'REHEAT COILS' needs clarification to assess potential for additional costs if not fully defined.
Contractor's past performance on similar complex HVAC repair projects should be reviewed.

Positive Signals

The contract is firm-fixed-price, providing cost certainty for the government.
A relatively high number of bidders (13) indicates market interest and potential for competitive pricing.
The short contract duration suggests a focused and efficient execution plan.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC systems. The North American Industry Classification System (NAICS) code 238220, Plumbing, Heating, and Air-Conditioning Contractors, represents a significant segment of the construction industry. Federal spending in this area is crucial for maintaining government infrastructure across various agencies. Comparable spending benchmarks would involve analyzing other federal contracts for similar HVAC repair and maintenance services, particularly those awarded under SAP or to small businesses.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While Crowley Holdings LLC's size is not specified, the use of SAP can sometimes favor small businesses due to simplified procedures. However, without explicit set-aside status or information on the size of the awardee, the direct impact on the small business ecosystem is unclear. Subcontracting opportunities for small businesses may arise depending on Crowley Holdings LLC's business practices and the specific requirements of the repair work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Agriculture's contracting officers and program managers within the Animal and Plant Health Inspection Service. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed-upon cost and timeframe. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Buildings and Facilities Maintenance
HVAC System Repair and Replacement
Department of Agriculture Procurement
Simplified Acquisition Procedures Contracts

Risk Flags

Potential for unforeseen conditions during repair work.
Reliance on a single awardee for a significant repair scope.
Need to verify contractor's past performance on similar projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $732,291.6 to CROWLEY HOLDINGS LLC. REMOVE AND REPLACE BOILER/COOLING TOWER/REHEAT COILS.

Who is the contractor on this award?

The obligated recipient is CROWLEY HOLDINGS LLC.

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 $732,291.6.

What is the period of performance?

Start: 2026-04-03. End: 2026-07-31.

What is the track record of Crowley Holdings LLC in performing similar federal HVAC repair contracts?

A review of Crowley Holdings LLC's past performance on federal contracts is essential to assess their capability and reliability in executing this type of work. Specifically, examining previous awards for boiler, cooling tower, and reheat coil repairs, along with their performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), would provide insight into their ability to meet quality standards, timelines, and budget constraints. Understanding their experience with similar-sized projects and their adherence to federal regulations and specifications will help mitigate performance risks associated with this $732,291.60 award.

How does the awarded price of $732,291.60 compare to market rates for similar HVAC repair services in Tennessee?

To benchmark the value for money, the awarded price of $732,291.60 should be compared against prevailing market rates for similar HVAC repair services in Tennessee. This involves researching average costs for boiler, cooling tower, and reheat coil repairs from private sector contractors in the region, considering factors like labor rates, material costs, and typical overhead. Additionally, comparing this award to other federal contracts of similar scope and value, especially those awarded through competitive processes, can provide a strong indicator of whether the government secured a fair price. The fixed-price nature of this contract suggests a defined cost, but ensuring it aligns with market realities is key to taxpayer value.

What are the specific risks associated with the scope of work for boiler, cooling tower, and reheat coil repairs?

The primary risks associated with repairing boilers, cooling towers, and reheat coils often stem from the potential for unforeseen conditions discovered during the work. For instance, aging infrastructure might reveal hidden corrosion, structural damage, or outdated components that require more extensive repairs than initially anticipated. This could lead to scope creep and potential cost increases if not managed carefully, despite the firm-fixed-price contract. Ensuring a thorough site inspection and detailed scope definition prior to award is crucial. Additionally, the specialized nature of these systems means that contractor expertise and adherence to safety protocols are critical to prevent accidents or system failures.

How effective are Simplified Acquisition Procedures (SAP) in ensuring competitive pricing for contracts of this value?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions valued below the threshold for full and open competition (currently $250,000, though certain exceptions apply). While SAP can increase efficiency and potentially encourage participation from a wider range of vendors, including small businesses, its effectiveness in ensuring optimal competitive pricing depends heavily on how it is implemented. The solicitation strategy, outreach efforts, and the number of responsive bids received are critical factors. In this case, with 13 bidders, SAP appears to have facilitated a reasonably competitive environment, but a detailed analysis of the solicitation process would be needed to confirm the extent of price discovery achieved.

What is the historical spending pattern for HVAC maintenance and repair within the Animal and Plant Health Inspection Service (APHIS)?

Analyzing historical spending patterns for HVAC maintenance and repair within APHIS is crucial for understanding the agency's investment in facility upkeep and identifying potential trends or anomalies. This involves examining contract data over several fiscal years to determine the average annual expenditure on such services, the types of contracts awarded (e.g., fixed-price, cost-reimbursement), and the primary contractors utilized. Significant fluctuations in spending could indicate changes in infrastructure needs, deferred maintenance, or shifts in procurement strategies. Comparing this contract's value ($732,291.60) to historical averages can help assess whether it represents a typical investment or an outlier, providing context for its value and necessity.

What are the potential implications of the contract being awarded in Tennessee for labor and material costs?

The contract's specified location in Tennessee (TN) has direct implications for labor and material costs. Regional labor rates for skilled tradespeople, such as HVAC technicians and mechanics, can vary significantly across different states and even within regions of a state. Tennessee's specific economic conditions, including prevailing wage rates and the availability of qualified labor, will influence the contractor's pricing. Similarly, the cost and availability of specialized parts and materials required for boiler, cooling tower, and reheat coil repairs can be affected by local supply chains and transportation costs within Tennessee. Understanding these regional economic factors is key to assessing the reasonableness of the contract's total price.

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: 12639526Q0038

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1033 JACKSON AVE STE 202, NEW ORLEANS, LA, 70130

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $732,292

Exercised Options: $732,292

Current Obligation: $732,292

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline