Chiller valve replacement contract awarded to Air Masters Mechanical Inc. for $20,000

Contract Overview

Contract Amount: $20,000 ($20.0K)

Contractor: AIR Masters Mechanical Inc

Awarding Agency: Department of Commerce

Start Date: 2026-04-07

End Date: 2026-05-07

Contract Duration: 30 days

Daily Burn Rate: $667/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRIPLE DUTY VALVE REPLACEMENT ON INTAKE SIDE OF CHILLER.

Place of Performance

Location: PASCAGOULA, JACKSON County, MISSISSIPPI, 39567

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $20,000 to AIR MASTERS MECHANICAL INC for work described as: TRIPLE DUTY VALVE REPLACEMENT ON INTAKE SIDE OF CHILLER. Key points: 1. Value for money appears reasonable given the short duration and specific nature of the task. 2. Competition dynamics indicate a single award under simplified acquisition procedures, suggesting potential for limited price discovery. 3. Risk indicators are low due to the small contract value and short performance period. 4. Performance context is a routine maintenance task for NOAA's infrastructure. 5. Sector positioning is within the facilities maintenance and repair services for government operations.

Value Assessment

Rating: good

The contract value of $20,000 for a 30-day service period for chiller valve replacement seems appropriate for the scope of work. Without specific details on the valve type and labor involved, a direct comparison is difficult. However, for a specialized mechanical repair task, this amount is within a reasonable range for a single component replacement and associated labor. The fixed-price nature of the award helps control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves fewer bidders than full and open competition. With only two bids received, the level of competition was limited. This suggests that while some price comparison was possible, the market may not have been fully explored, potentially impacting the final price achieved.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process.

Public Impact

The National Oceanic and Atmospheric Administration (NOAA) benefits from the maintenance of its critical cooling infrastructure. Services delivered include the replacement of a triple duty valve on the intake side of a chiller. Geographic impact is localized to the facility where the chiller is located. Workforce implications involve skilled technicians from Air Masters Mechanical Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition under SAP.
Reliance on a single contractor for a critical component replacement.

Positive Signals

Contract awarded under established procurement procedures (SAP).
Fixed-price contract limits cost overruns.
Short performance period minimizes disruption.

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically focusing on HVAC systems. The market for such services is robust, with numerous contractors capable of performing this type of work. Government spending in this area is consistent, supporting the operational needs of federal agencies. Benchmarks for similar HVAC component replacements vary widely based on equipment complexity and labor rates.

Small Business Impact

The contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. Air Masters Mechanical Inc. is categorized as a small business (MS), indicating that this award contributes to the small business prime contracting goals. Further analysis would be needed to determine if subcontracting opportunities were available to other small businesses.

Oversight & Accountability

The contract was awarded under Simplified Acquisition Procedures, which have streamlined oversight requirements compared to larger contracts. Accountability is maintained through the fixed-price purchase order, ensuring the contractor delivers the specified service. Transparency is provided by the contract award notice. Inspector General jurisdiction would apply if any fraud or significant mismanagement were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
HVAC Repair and Maintenance Services
Department of Commerce Procurement

Risk Flags

Limited Competition
Potential for Price Inflation

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $20,000 to AIR MASTERS MECHANICAL INC. TRIPLE DUTY VALVE REPLACEMENT ON INTAKE SIDE OF CHILLER.

Who is the contractor on this award?

The obligated recipient is AIR MASTERS MECHANICAL INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $20,000.

What is the period of performance?

Start: 2026-04-07. End: 2026-05-07.

What is the typical cost range for replacing a triple duty valve on a chiller intake side in the commercial market?

The cost for replacing a triple duty valve on a chiller intake side can vary significantly based on factors such as the valve size and type, the complexity of accessing the valve, labor rates in the specific geographic region, and whether the chiller requires draining or special procedures. Generally, for a standard commercial chiller, the parts alone could range from a few hundred to a couple of thousand dollars. Labor costs, which often constitute the majority of the expense, can add another $1,000 to $5,000 or more, depending on the hours required. Given the $20,000 contract value for this specific task, it suggests either a larger or more specialized valve, significant labor hours, or potentially higher prevailing wages in the contract's location. Without more specific technical details, a precise market benchmark is challenging, but the contract value appears to be on the higher end for a single valve replacement unless specialized circumstances apply.

What is the track record of Air Masters Mechanical Inc. with federal contracts?

Information regarding Air Masters Mechanical Inc.'s specific track record with federal contracts is not detailed in the provided data. However, the award of this purchase order indicates they are a registered vendor capable of performing services for the government. To assess their track record thoroughly, one would need to review their past performance on federal contracts, including client feedback, on-time delivery rates, and any history of disputes or contract modifications. The fact that they were awarded this contract suggests they met the basic requirements for participation in the Simplified Acquisition Procedures process. Further due diligence would involve searching federal procurement databases for their award history and performance evaluations.

How does the $20,000 contract value compare to other NOAA HVAC maintenance spending?

Comparing this $20,000 contract to NOAA's overall HVAC maintenance spending requires access to broader historical spending data for the agency. This single contract represents a small fraction of the total budget allocated for facilities maintenance. NOAA operates numerous facilities nationwide, each with its own HVAC systems requiring regular upkeep and occasional repairs. Larger projects, such as full system overhauls or replacements, would naturally command significantly higher values. This $20,000 award is likely for a specific, localized repair or component replacement, typical of routine maintenance activities. To provide a meaningful comparison, one would need to analyze the frequency and average cost of similar component replacements across NOAA's portfolio over several fiscal years.

What are the potential risks associated with a sole-source or limited competition award for HVAC services?

The primary risk associated with sole-source or limited competition awards for HVAC services, as seen in this case under SAP with two bids, is the potential for reduced price competition. When fewer vendors are involved, the government may not achieve the lowest possible price that could be secured through a broader, more competitive bidding process. This can lead to taxpayers paying more than necessary for the services rendered. Additionally, limited competition might reduce the incentive for contractors to offer innovative solutions or the most cost-effective methods, as they may face less pressure from rivals. While SAP is designed for smaller purchases where extensive competition might be inefficient, it's crucial to ensure that the competition, even if limited, is fair and that the awarded price represents reasonable value for the services provided.

What is the significance of the contract being a 'Purchase Order' under 'Competed Under SAP'?

A 'Purchase Order' (PO) is a common document used for relatively small dollar purchases, often for goods or services that are readily available. 'Competed Under SAP' signifies that the procurement followed Simplified Acquisition Procedures, which are designed for purchases below the simplified acquisition threshold (currently $250,000). SAP allows for more streamlined and less formal procurement processes compared to full and open competition. This typically involves obtaining quotes from a limited number of sources rather than a formal solicitation process. For this $20,000 contract, using a PO under SAP indicates an efficient method for acquiring necessary maintenance services quickly, while still incorporating some level of competition (in this case, two bids) to ensure a reasonable price and value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1633 HIGHWAY 90, GAUTIER, MS, 39553

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

Financial Breakdown

Contract Ceiling: $20,000

Exercised Options: $20,000

Current Obligation: $20,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline