Interior's Bureau of Indian Affairs Leases Chiller for $143,516 from Temperature Technology, Inc
Contract Overview
Contract Amount: $143,516 ($143.5K)
Contractor: Temperature Technology, Inc.
Awarding Agency: Department of the Interior
Start Date: 2025-06-13
End Date: 2025-11-15
Contract Duration: 155 days
Daily Burn Rate: $926/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CHILLER RENTAL FOR PINE RIDGE AGENCY OJS
Place of Performance
Location: PINE RIDGE, SHANNON County, SOUTH DAKOTA, 57770
Plain-Language Summary
Department of the Interior obligated $143,516 to TEMPERATURE TECHNOLOGY, INC. for work described as: CHILLER RENTAL FOR PINE RIDGE AGENCY OJS Key points: 1. Spending on chiller rental is $143,516 for a 5-month period. 2. The contract was not competed under SAP, raising potential competition concerns. 3. Risk is moderate due to the short-term nature of the rental and specific agency need. 4. The sector is industrial equipment rental, with limited public impact expected.
Value Assessment
Rating: fair
The rental cost of $143,516 for 5 months appears high for a chiller, especially without competitive bidding. Benchmarking against similar short-term industrial equipment rentals is difficult without more data, but the lack of competition suggests potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This lack of open competition may have hindered price discovery and potentially led to a higher price than could have been achieved through a competitive process.
Taxpayer Impact: Taxpayers may be impacted by a potentially inflated price due to the limited competition for this essential equipment rental.
Public Impact
Essential cooling services for agency operations in South Dakota. Potential for higher costs to taxpayers due to non-competitive award. Ensures operational continuity for the Bureau of Indian Affairs and Bureau of Indian Education.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential overpricing
- Lack of detailed justification for non-competition
Positive Signals
- Addresses an immediate operational need
- Short-term rental mitigates long-term financial risk
Sector Analysis
This spending falls within the industrial machinery and equipment rental sector. Benchmarks for chiller rentals vary significantly based on size, duration, and specific requirements, but a $143,516 price for a 5-month lease without competition warrants scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this procurement. The contract was awarded to Temperature Technology, Inc., and further analysis would be needed to determine if this prime contractor is a small business or if subcontracting opportunities were explored.
Oversight & Accountability
The award was made via a Purchase Order, which is a standard procurement instrument. Oversight would focus on the justification for not competing the requirement and ensuring the rental services meet the agency's needs effectively and at a reasonable cost.
Related Government Programs
- Other Commercial and Industrial Machinery and Equipment Rental and Leasing
- Department of the Interior Contracting
- Bureau of Indian Affairs and Bureau of Indian Education Programs
Risk Flags
- Lack of competition
- Potential for overpricing
- Limited transparency in procurement justification
- Short contract duration may indicate an urgent or temporary need
Tags
other-commercial-and-industrial-machiner, department-of-the-interior, sd, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $143,516 to TEMPERATURE TECHNOLOGY, INC.. CHILLER RENTAL FOR PINE RIDGE AGENCY OJS
Who is the contractor on this award?
The obligated recipient is TEMPERATURE TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of the Interior (Bureau of Indian Affairs and Bureau of Indian Education).
What is the total obligated amount?
The obligated amount is $143,516.
What is the period of performance?
Start: 2025-06-13. End: 2025-11-15.
What was the specific justification for not competing this chiller rental requirement under SAP?
The provided data indicates the contract was 'NOT COMPETED UNDER SAP'. A thorough review would require access to the contract file to ascertain the specific justification, such as an urgent and compelling need, sole-source justification, or other exceptions to full and open competition. Without this documentation, it's difficult to assess the validity of the procurement approach.
How does the rental cost compare to market rates for similar chiller rentals in South Dakota?
Benchmarking this $143,516, 5-month chiller rental against market rates is challenging without specific details on the chiller's capacity, age, and required features. However, the absence of competition suggests the price may not reflect the best value. Obtaining quotes from other equipment rental companies for comparable units would be necessary for a definitive comparison.
What is the risk of equipment failure or inadequate performance during the rental period?
The risk of equipment failure or inadequate performance is inherent in any equipment rental. For a firm-fixed-price contract, the vendor, Temperature Technology, Inc., is responsible for providing a functional chiller. The agency should have procedures in place for testing, monitoring, and reporting any issues to ensure operational continuity and hold the vendor accountable for performance.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2809 PLANT ST, RAPID CITY, SD, 57702
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $143,516
Exercised Options: $143,516
Current Obligation: $143,516
Actual Outlays: $117,480
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2025-06-13
Current End Date: 2025-11-15
Potential End Date: 2025-11-15 00:00:00
Last Modified: 2026-04-07
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