IRS Awards $600K Water Contract to Town of Andover for Andover Facility
Contract Overview
Contract Amount: $60,000 ($60.0K)
Contractor: Town of Andover
Awarding Agency: Department of the Treasury
Start Date: 2025-10-01
End Date: 2026-09-30
Contract Duration: 364 days
Daily Burn Rate: $165/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: WATER CONTRACT FOR THE ANDOVER FACILITY FROM 10/01/2025 - 09/30/2026.
Place of Performance
Location: ANDOVER, ESSEX County, MASSACHUSETTS, 01810
Plain-Language Summary
Department of the Treasury obligated $60,000 to TOWN OF ANDOVER for work described as: WATER CONTRACT FOR THE ANDOVER FACILITY FROM 10/01/2025 - 09/30/2026. Key points: 1. The contract is for water supply and irrigation systems for the Andover facility. 2. The contract value is $600,000 for a one-year period. 3. The contract was not available for competition. 4. The sector is primarily related to facility operations and maintenance.
Value Assessment
Rating: fair
The contract value of $600,000 for a one-year water supply contract appears reasonable for a government facility. However, without specific details on the scope of services or volume of water, a direct comparison to similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION', suggesting a limited competition scenario. This could be due to the unique nature of the service provider or location. The lack of open competition may limit price discovery and potentially lead to higher costs.
Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to the limited competition. The value for money needs to be carefully assessed given the circumstances.
Public Impact
Ensures continued water supply for IRS operations at the Andover facility. Supports local infrastructure by contracting with the Town of Andover. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Lack of detailed pricing justification
Positive Signals
- Ensures essential service delivery
- Supports local government entity
Sector Analysis
This contract falls under facility operations and maintenance, specifically water supply. Government spending in this area is generally stable, driven by the need to maintain operational infrastructure. Benchmarks for such services can vary significantly based on location and facility size.
Small Business Impact
There is no indication that small businesses were involved in this specific contract award. The contract was awarded to the Town of Andover, which is a municipal entity, not a small business.
Oversight & Accountability
Oversight of this contract will be managed by the Department of the Treasury, specifically the Internal Revenue Service. Accountability for service delivery and cost management rests with the contracting officers.
Related Government Programs
- Water Supply and Irrigation Systems
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of detailed cost breakdown.
- Potential for price increases in future contract periods.
- Dependence on a single provider for an essential service.
Tags
water-supply-and-irrigation-systems, department-of-the-treasury, ma, purchase-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $60,000 to TOWN OF ANDOVER. WATER CONTRACT FOR THE ANDOVER FACILITY FROM 10/01/2025 - 09/30/2026.
Who is the contractor on this award?
The obligated recipient is TOWN OF ANDOVER.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $60,000.
What is the period of performance?
Start: 2025-10-01. End: 2026-09-30.
What is the justification for the contract being 'NOT AVAILABLE FOR COMPETITION'?
The justification for the contract being 'NOT AVAILABLE FOR COMPETITION' is crucial for understanding the value proposition. Typically, this designation implies a sole-source provider or a unique circumstance where only one entity can fulfill the requirement. Without this specific justification, it's difficult to assess if the limited competition was truly necessary or if it represents a missed opportunity for cost savings through a more open bidding process.
How does the per-unit cost of water compare to municipal rates or similar government facilities?
A detailed analysis of the per-unit cost of water is essential for evaluating the fairness of the price. Comparing the contracted rate to standard municipal water rates in Andover, MA, and to the per-unit costs of water contracts at similar-sized IRS facilities would provide valuable benchmarks. This comparison would help determine if the $600,000 award represents good value for the taxpayer or if it is inflated due to the limited competition.
What are the performance metrics and service level agreements (SLAs) associated with this water contract?
Understanding the performance metrics and SLAs is key to assessing the effectiveness of the contract. Clear, measurable standards for water quality, delivery reliability, and response times to issues are necessary. Without defined SLAs, it's challenging to hold the Town of Andover accountable for service quality and to ensure the IRS facility receives the necessary resources efficiently.
Industry Classification
NAICS: Utilities › Water, Sewage and Other Systems › Water Supply and Irrigation Systems
Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 36 BARTLET ST, ANDOVER, MA, 01810
Business Categories: Category Business, Government, U.S. Local Government, U.S. National Government, Not Designated a Small Business, U.S. Regional/State Government
Financial Breakdown
Contract Ceiling: $60,000
Exercised Options: $60,000
Current Obligation: $60,000
Actual Outlays: $9,690
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2025-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 09:44:43
Last Modified: 2026-04-08
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