Treasury's Bureau of Engraving and Printing awards $32K for chilled water system at DC facility

Contract Overview

Contract Amount: $32,288 ($32.3K)

Contractor: Komori America Corp

Awarding Agency: Department of the Treasury

Start Date: 2025-06-20

End Date: 2026-04-30

Contract Duration: 314 days

Daily Burn Rate: $103/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PURCHASE ORDER FOR THE DESIGN AND INSTALLATION OF A SYSTEM THAT CONTROLS THE FLOW OF CHILLED WATER TO THE KOMORI PRESSES LOCATED AT THE WASHINGTON, DC FACILITY.

Place of Performance

Location: ROLLING MEADOWS, COOK County, ILLINOIS, 60008

State: Illinois Government Spending

Plain-Language Summary

Department of the Treasury obligated $32,288.29 to KOMORI AMERICA CORP for work described as: PURCHASE ORDER FOR THE DESIGN AND INSTALLATION OF A SYSTEM THAT CONTROLS THE FLOW OF CHILLED WATER TO THE KOMORI PRESSES LOCATED AT THE WASHINGTON, DC FACILITY. Key points: 1. The contract focuses on a specific system for Komori presses, indicating a targeted need. 2. The award value is relatively small, suggesting a localized or specialized service. 3. The duration of the contract is approximately 10 months, aligning with installation and initial operation. 4. The fixed-price contract type aims to control costs for the government. 5. The vendor, Komori America Corp, is likely chosen for specialized knowledge of their equipment.

Value Assessment

Rating: fair

This is a small purchase order for a specific system. Benchmarking is difficult without more detailed scope of work and comparable projects. The price appears reasonable for a specialized installation and design service for industrial printing equipment, but without more context on the complexity of the system, a definitive value assessment is challenging. The fixed-price nature provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), implying it was likely awarded directly to Komori America Corp. This suggests the vendor may be the original equipment manufacturer or has unique expertise required for the Komori presses, limiting competition.

Taxpayer Impact: A sole-source award means taxpayers did not benefit from competitive bidding, potentially leading to a higher price than if multiple vendors had competed.

Public Impact

The primary beneficiaries are the Bureau of Engraving and Printing's operations at the Washington, DC facility. The service delivered is the design and installation of a chilled water system crucial for the operation of Komori printing presses. The geographic impact is limited to the Washington, DC facility. Workforce implications are likely minimal, potentially involving a small team for installation and commissioning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in a higher cost to taxpayers.
Potential for vendor lock-in if specialized knowledge is required for future maintenance.

Positive Signals

Award to a specialized vendor ensures expertise for critical equipment.
Fixed-price contract provides cost predictability.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on HVAC systems for industrial equipment. The market for specialized industrial equipment maintenance and installation can be niche, often dominated by original equipment manufacturers or authorized service providers. The contract value is very small compared to typical construction or large-scale HVAC projects.

Small Business Impact

This contract does not appear to involve small business set-asides or subcontracting opportunities, as it was awarded directly to Komori America Corp. The focus is on specialized equipment, which may limit the involvement of smaller, generalist contractors.

Oversight & Accountability

As a purchase order, oversight would typically be managed by the Bureau of Engraving and Printing's contracting officers and facility managers. Transparency is limited due to the sole-source nature. There is no explicit mention of an Inspector General's involvement for this specific small award, though general oversight mechanisms would apply.

Related Government Programs

Bureau of Engraving and Printing Facility Maintenance
Industrial Equipment Installation
HVAC System Procurement

Risk Flags

Sole-source award limits price competition.
Potential for vendor lock-in due to specialized equipment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32,288.29 to KOMORI AMERICA CORP. PURCHASE ORDER FOR THE DESIGN AND INSTALLATION OF A SYSTEM THAT CONTROLS THE FLOW OF CHILLED WATER TO THE KOMORI PRESSES LOCATED AT THE WASHINGTON, DC FACILITY.

Who is the contractor on this award?

The obligated recipient is KOMORI AMERICA CORP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).

What is the total obligated amount?

The obligated amount is $32,288.29.

What is the period of performance?

Start: 2025-06-20. End: 2026-04-30.

What is the specific technical expertise Komori America Corp possesses that necessitates a sole-source award for this chilled water system?

The provided data indicates the system controls the flow of chilled water to Komori presses. Komori America Corp is the likely manufacturer or primary distributor of these presses in the US. Therefore, they possess the proprietary knowledge of the press's specific cooling requirements, integration points, and operational parameters. This specialized knowledge is crucial for designing and installing a system that is compatible, efficient, and does not void warranties or compromise the performance of the high-value printing equipment. Without this specific expertise, a general HVAC contractor might struggle to meet the precise technical demands, potentially leading to system failures, reduced print quality, or damage to the presses.

How does the $32,288.29 award compare to typical costs for similar industrial HVAC system installations?

Benchmarking this specific award is challenging without a detailed scope of work and understanding the complexity of the 'system that controls the flow of chilled water.' However, for a specialized, fixed-price design and installation for critical industrial equipment, $32,288.29 appears to be on the lower end, especially considering it's for a facility in Washington, DC, where labor and operational costs are generally higher. Typical industrial HVAC installations can range from tens of thousands to millions of dollars depending on scale, complexity, and integration requirements. This award likely represents a smaller, more contained system upgrade or component installation rather than a full facility-wide HVAC overhaul.

What are the potential risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the lack of competitive pricing, which can lead to the government paying a premium compared to a fully competed contract. Taxpayers may not receive the best value for their money. Additionally, sole-source awards can sometimes indicate a lack of market research or an over-reliance on a single vendor, potentially leading to vendor lock-in for future services or parts. There's also a reduced incentive for the awarded contractor to be highly efficient or innovative when competition is absent. For this specific contract, risks include potentially higher costs for the system and limited options for future maintenance or upgrades if Komori America Corp remains the sole provider of necessary expertise.

What is the expected performance outcome of this chilled water system installation?

The expected performance outcome is the reliable and efficient control of chilled water flow to the Komori printing presses. This is critical for maintaining optimal operating temperatures for the presses, which directly impacts the quality and consistency of the printed products. A well-functioning system should prevent overheating, reduce the risk of equipment malfunction or damage due to thermal stress, and ensure the presses can operate at their intended speeds and capacities. Ultimately, the system's success will be measured by its ability to support the continuous, high-quality operation of the printing facility.

What is the historical spending pattern for similar chilled water system services at the Bureau of Engraving and Printing?

The provided data does not include historical spending patterns for similar services at the Bureau of Engraving and Printing (BEP). To assess historical spending, one would need to query federal procurement databases for contracts related to HVAC, chilled water systems, or Komori press maintenance at the BEP over previous fiscal years. Without this data, it's impossible to determine if this $32,288.29 award is consistent with past investments, represents an increase or decrease in spending, or if such services have been procured frequently or infrequently.

Industry Classification

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

Product/Service Code: SPECIAL INDUSTRY MACHINERY

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

Parent Company: Komori Corporation

Address: 5520 MEADOWBROOK INDUSTRIAL CT, ROLLING MEADOWS, IL, 60008

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,288

Exercised Options: $32,288

Current Obligation: $32,288

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline