DOT Awards $2.4M for HVAC Chemical, Equipment, and Service to Industrial Water Engineering, Inc
Contract Overview
Contract Amount: $241,167 ($241.2K)
Contractor: Industrial Water Engineering, Inc.
Awarding Agency: Department of Transportation
Start Date: 2022-09-23
End Date: 2027-09-30
Contract Duration: 1,833 days
Daily Burn Rate: $132/day
Competition Type: NOT COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PROVIDE ALL CHEMICALS, EQUIPMENT, AND SERVICE TO MAINTAIN CONTROL PARAMETERS THROUGHOUT THE ALBUQUERQUE ARTCC BUILDING HVAC
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87109
Plain-Language Summary
Department of Transportation obligated $241,167.12 to INDUSTRIAL WATER ENGINEERING, INC. for work described as: PROVIDE ALL CHEMICALS, EQUIPMENT, AND SERVICE TO MAINTAIN CONTROL PARAMETERS THROUGHOUT THE ALBUQUERQUE ARTCC BUILDING HVAC Key points: 1. Contract awarded to Industrial Water Engineering, Inc. for HVAC maintenance. 2. The contract value is $2,411,671.12 over approximately 5 years. 3. The contract was not competed under Simplified Acquisition Procedures (SAP). 4. The NAICS code 541620 indicates Environmental Consulting Services. 5. The contract type is Firm Fixed Price.
Value Assessment
Rating: fair
The contract value of $2.4M over 5 years for HVAC maintenance services appears reasonable given the scope. However, without specific benchmarks for similar large-scale FAA facilities, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED UNDER SAP,' suggesting a limited competition approach. This method may not yield the most competitive pricing compared to a full and open competition.
Taxpayer Impact: The limited competition may result in higher costs for taxpayers than if the contract had been fully competed.
Public Impact
Ensures operational continuity of the Albuquerque Air Route Traffic Control Center (ARTCC) HVAC system. Supports critical infrastructure for air traffic control operations. Potential for cost savings if competition were expanded in the future.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to suboptimal pricing.
- Lack of detailed cost breakdown for services and materials.
- Potential for vendor lock-in due to specialized services.
Positive Signals
- Ensures critical HVAC system maintenance for a vital facility.
- Firm Fixed Price contract provides cost certainty for the government.
- Long-term contract allows for consistent service delivery.
Sector Analysis
The Federal Aviation Administration (FAA) frequently contracts for facility maintenance and environmental services. Spending benchmarks for HVAC maintenance in large government facilities vary widely based on size, complexity, and geographic location. This contract falls within the typical range for such services.
Small Business Impact
The contract was awarded to Industrial Water Engineering, Inc., and there is no indication that small businesses were involved as prime contractors or significant subcontractors. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The contract's limited competition status warrants oversight to ensure fair pricing and performance. The FAA should monitor contract performance closely and consider strategies for increasing competition in future contract actions.
Related Government Programs
- Environmental Consulting Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Limited competition may result in higher costs.
- Lack of transparency regarding the justification for limited competition.
- Potential for cost overruns if scope creep occurs.
- Dependence on a single vendor for critical services.
Tags
environmental-consulting-services, department-of-transportation, nm, definitive-contract, 100k-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $241,167.12 to INDUSTRIAL WATER ENGINEERING, INC.. PROVIDE ALL CHEMICALS, EQUIPMENT, AND SERVICE TO MAINTAIN CONTROL PARAMETERS THROUGHOUT THE ALBUQUERQUE ARTCC BUILDING HVAC
Who is the contractor on this award?
The obligated recipient is INDUSTRIAL WATER ENGINEERING, INC..
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $241,167.12.
What is the period of performance?
Start: 2022-09-23. End: 2027-09-30.
What specific environmental consulting services are included under this contract, and how do they relate to HVAC maintenance?
The NAICS code 541620 points to Environmental Consulting Services. This likely includes services such as water quality testing, chemical analysis for HVAC systems, compliance monitoring, and potentially recommendations for system optimization or remediation. These services are crucial for maintaining the efficiency and safety of the HVAC system by ensuring proper chemical balances and preventing issues like corrosion or microbial growth.
What is the justification for limiting competition on this contract, and how was the pricing determined to be fair and reasonable?
The data states the contract was 'NOT COMPETED UNDER SAP,' implying a limited competition strategy. The specific justification for this limitation is not provided. Pricing is typically determined fair and reasonable through methods like historical price analysis, comparison to similar contracts, or certified cost and pricing data. Without further details on the procurement process, it's difficult to assess the rigor of the price determination.
How will the effectiveness of the HVAC maintenance and environmental consulting services be measured and ensured throughout the contract period?
Effectiveness is typically measured through performance metrics outlined in the contract's Performance Work Statement (PWS). This could include adherence to maintenance schedules, response times for service calls, water quality test results, and compliance with environmental regulations. The government contracting officer and technical representatives would monitor these metrics and conduct regular reviews to ensure the contractor meets all requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Environmental Consulting Services
Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 697DCK-22-R-00120
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Industrial Water Engineering Inc.
Address: 8701 ALAMEDA PARK DR NE, ALBUQUERQUE, NM, 87113
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $414,495
Exercised Options: $358,187
Current Obligation: $241,167
Actual Outlays: $199,173
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-23
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-04-09
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