VA Awards $102K for Chiller Rental to Trane U.S. Inc. for 6 Months
Contract Overview
Contract Amount: $102,605 ($102.6K)
Contractor: Trane U.S. Inc.
Awarding Agency: Department of Veterans Affairs
Start Date: 2026-03-12
End Date: 2026-09-30
Contract Duration: 202 days
Daily Burn Rate: $508/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CHILLER RENTAL
Place of Performance
Location: BALTIMORE, BALTIMORE CITY County, MARYLAND, 21201
State: Maryland Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $102,604.5 to TRANE U.S. INC. for work described as: CHILLER RENTAL Key points: 1. Spending on chiller rental is a recurring operational cost for facilities. 2. Trane U.S. Inc. is a major manufacturer and service provider in the HVAC industry. 3. The primary risk is potential overpricing due to limited competition. 4. This falls under the 'Construction' sector due to its relation to facility maintenance.
Value Assessment
Rating: fair
The award of $102,604.50 for a 6-month chiller rental appears reasonable given the specialized nature of the equipment. However, without specific performance metrics or comparison data, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, suggesting a limited competition approach. This could lead to less aggressive pricing as the vendor may not face direct market pressure.
Taxpayer Impact: Taxpayers may be impacted by potentially higher costs due to the lack of competitive bidding.
Public Impact
Ensures continued operation of essential cooling systems for VA facilities. Supports critical infrastructure maintenance for healthcare services. Potential for higher costs impacts overall budget allocation for the VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price escalation
Positive Signals
- Ensures operational continuity
- Specific equipment need addressed
Sector Analysis
This spending relates to facility maintenance and operations within the construction sector. Benchmarks for chiller rentals can vary significantly based on size, duration, and specific requirements.
Small Business Impact
There is no indication that small businesses were involved in this procurement, suggesting an opportunity missed for small business participation.
Oversight & Accountability
The award process and justification for limited competition should be reviewed to ensure adherence to procurement regulations and maximize taxpayer value.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Lack of competition
- Potential for overpayment
- Limited duration may indicate emergency or temporary need
- No small business participation noted
Tags
plumbing-heating-and-air-conditioning-co, department-of-veterans-affairs, md, purchase-order, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $102,604.5 to TRANE U.S. INC.. CHILLER RENTAL
Who is the contractor on this award?
The obligated recipient is TRANE U.S. INC..
Which agency awarded this contract?
Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).
What is the total obligated amount?
The obligated amount is $102,604.5.
What is the period of performance?
Start: 2026-03-12. End: 2026-09-30.
What is the typical market rate for a 6-month chiller rental of this capacity in the Maryland region?
Determining the typical market rate requires detailed specifications of the chiller's capacity (tons of cooling), age, and any associated installation/maintenance services. However, for a 6-month rental, costs can range from tens of thousands to over a hundred thousand dollars, depending heavily on these factors and the urgency of the need. Without more data, a precise benchmark is challenging.
What are the risks associated with a sole-source or limited-competition chiller rental?
The primary risks include paying a premium price due to the lack of competitive pressure, potentially receiving equipment that is not the best fit or most cost-effective option, and missing opportunities to foster competition among vendors. This can lead to inefficient use of taxpayer funds and reduced innovation in the market.
How does this rental contribute to the VA's overall operational effectiveness?
This chiller rental is crucial for maintaining the operational effectiveness of VA facilities, particularly those providing healthcare. Reliable cooling systems are essential for patient comfort, equipment function (like medical devices and servers), and overall facility safety. Failure to secure this rental could disrupt critical services.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4833 WHITE BEAR PARKWAY, WHITE BEAR LAKE, MN, 55110
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $102,605
Exercised Options: $102,605
Current Obligation: $102,605
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Timeline
Start Date: 2026-03-12
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-04-09
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