State Department awards $2.29M HVAC contract to IMGC GLOBAL, LLC for offshore services
Contract Overview
Contract Amount: $22,925 ($22.9K)
Contractor: Imgc Global, LLC
Awarding Agency: Department of State
Start Date: 2023-07-07
End Date: 2023-08-11
Contract Duration: 35 days
Daily Burn Rate: $655/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ISB-UR-WH-EXP -HVAC-OFFSHORE
Place of Performance
Location: WOODINVILLE, KING County, WASHINGTON, 98072
Plain-Language Summary
Department of State obligated $22,925 to IMGC GLOBAL, LLC for work described as: ISB-UR-WH-EXP -HVAC-OFFSHORE Key points: 1. Contract awarded for essential HVAC services, indicating a need for operational support. 2. The contract was competed under SAP, suggesting a streamlined procurement process for smaller value awards. 3. A short performance period of 35 days points to a specific, time-bound requirement. 4. The firm-fixed-price structure helps manage cost certainty for the government. 5. The award value is relatively modest, suggesting it's not a major strategic investment. 6. Focus on offshore services highlights the unique logistical challenges and requirements of the location.
Value Assessment
Rating: fair
The contract value of $2.29 million for a 35-day period appears high on a daily basis, but the specific nature of offshore HVAC services, which can involve specialized equipment, logistics, and personnel, may justify the cost. Without comparable offshore HVAC contracts or detailed cost breakdowns, a precise value-for-money assessment is difficult. The firm-fixed-price nature provides cost predictability.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was competed under the Simplified Acquisition Procedures (SAP), indicating that it was likely advertised and open to a broad range of potential offerors. With 5 bidders, there was a reasonable level of competition for this purchase order. This suggests that the agency sought multiple quotes to ensure a competitive price.
Taxpayer Impact: The competition level indicates that taxpayers likely benefited from a competitive price, as multiple firms vied for the contract, driving down costs compared to a sole-source award.
Public Impact
The Department of State benefits from the provision of essential HVAC services, ensuring operational continuity. Personnel and operations at the specified offshore location are supported by reliable climate control. The contract supports the maintenance and functionality of critical infrastructure at the offshore site. The contract likely involves skilled technicians and support staff, contributing to employment in relevant trades.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Short performance duration may indicate potential for future contract modifications or extensions if needs persist.
- Offshore operations can present unique logistical and security challenges that may impact performance.
- Dependence on a single award for critical services requires careful monitoring of contractor performance.
Positive Signals
- Competition under SAP suggests a fair and open process for this acquisition.
- Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
- Award to a single contractor ensures clear lines of responsibility for service delivery.
Sector Analysis
The HVAC services sector is a critical component of infrastructure maintenance and operational support across various industries. Federal spending in this area supports the upkeep of government facilities, both domestically and internationally. This contract, specifically for offshore services, falls within a niche but essential segment of the broader facilities maintenance market, often characterized by specialized logistical requirements and higher operational costs.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The presence of 5 bidders suggests that both small and large businesses may have had the opportunity to compete, but further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
As a purchase order awarded under SAP, oversight would typically be managed through the contracting officer's representative (COR) and adherence to the terms of the firm-fixed-price agreement. Standard procurement regulations and agency policies govern the oversight of such contracts. Transparency is generally maintained through contract award databases.
Related Government Programs
- Department of State Facilities Management Contracts
- Offshore Operations Support Services
- HVAC Maintenance and Repair Contracts
- Government Procurement under Simplified Acquisition Procedures
Risk Flags
- Offshore Operations Risk
- Logistical Complexity
- Short Performance Period
- Contractor Capability Verification
Tags
hvac, department-of-state, offshore, purchase-order, competed-under-sap, firm-fixed-price, facilities-maintenance, washington-dc, small-acquisition
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $22,925 to IMGC GLOBAL, LLC. ISB-UR-WH-EXP -HVAC-OFFSHORE
Who is the contractor on this award?
The obligated recipient is IMGC GLOBAL, LLC.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $22,925.
What is the period of performance?
Start: 2023-07-07. End: 2023-08-11.
What is the track record of IMGC GLOBAL, LLC with federal contracts, particularly in offshore environments?
A review of federal procurement data indicates that IMGC GLOBAL, LLC has received federal awards. However, specific details regarding their experience with offshore HVAC services or the volume and nature of their past performance with the Department of State or other agencies would require a deeper dive into contract history databases. Understanding their past performance, including any past issues or successes, is crucial for assessing the risk associated with this award. Without more granular data on their specific experience in similar environments, it's difficult to definitively gauge their capability for this particular offshore requirement.
How does the cost per day for this contract compare to industry benchmarks for offshore HVAC services?
The contract value is $2,292,500 over 35 days, equating to approximately $65,500 per day. Benchmarking this figure for offshore HVAC services is challenging due to the highly specialized nature of such operations. Offshore environments often incur significantly higher costs related to logistics, specialized personnel, safety protocols, and potentially remote site premiums compared to onshore services. Without access to specific market research or data on comparable offshore HVAC contracts, it is difficult to definitively state whether this daily rate is high or low. However, the complexity and unique demands of offshore work suggest that costs would naturally be elevated.
What are the primary risks associated with this contract, given its offshore nature and short duration?
The primary risks associated with this contract include logistical challenges inherent in offshore operations, such as transportation of personnel and equipment, and potential weather disruptions impacting service delivery. The short duration (35 days) presents a risk of insufficient time for unforeseen issues to be resolved, potentially leading to delays or the need for contract modifications. There's also a risk related to contractor performance; ensuring IMGC GLOBAL, LLC has the necessary expertise and resources for this specific offshore environment is critical. Finally, ensuring the security of personnel and equipment in an offshore setting is a paramount concern that requires robust management.
What is the expected effectiveness of the HVAC services provided under this contract for the Department of State's offshore operations?
The effectiveness of the HVAC services is expected to be high, assuming IMGC GLOBAL, LLC meets the contract's performance standards. Reliable HVAC systems are critical for maintaining operational readiness, ensuring the comfort and safety of personnel, and protecting sensitive equipment at offshore facilities. The firm-fixed-price nature of the contract incentivizes the contractor to deliver services efficiently and effectively within the agreed-upon budget. The Department of State's reliance on these services suggests they are essential for the continuity and success of their offshore mission objectives.
How does this contract's value compare to the Department of State's historical spending on similar offshore support services?
Comparing this $2.29 million contract to the Department of State's historical spending on similar offshore support services requires access to detailed historical procurement data. Without that specific data, it's difficult to provide a direct comparison. However, the value suggests a significant, albeit short-term, requirement for critical infrastructure support. The Department of State operates globally, and offshore facilities can be costly to maintain. This award likely represents a portion of their broader budget allocated to ensuring operational capabilities in challenging environments. Further analysis of past contracts for similar services would be needed for a comprehensive historical context.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Imgc Global LLC
Address: 18607 168TH AVE NE, WOODINVILLE, WA, 98072
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,925
Exercised Options: $22,925
Current Obligation: $22,925
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2023-07-07
Current End Date: 2023-08-11
Potential End Date: 2023-08-11 00:00:00
Last Modified: 2026-04-12
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