Coast Guard Awards $2.26M Contract for Boiler Replacement in Michigan City
Contract Overview
Contract Amount: $22,658 ($22.7K)
Contractor: Axion Contractors
Awarding Agency: Department of Homeland Security
Start Date: 2026-04-13
End Date: 2026-04-22
Contract Duration: 9 days
Daily Burn Rate: $2.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BOILER #1 REPLACEMENT, STA MICHIGAN CITY
Place of Performance
Location: MICHIGAN CITY, LA PORTE County, INDIANA, 46360
State: Indiana Government Spending
Plain-Language Summary
Department of Homeland Security obligated $22,658 to AXION CONTRACTORS for work described as: BOILER #1 REPLACEMENT, STA MICHIGAN CITY Key points: 1. Contract awarded to Axion Contractors for $2.26 million. 2. Project involves boiler replacement, a critical infrastructure need. 3. Competition method was 'COMPETED UNDER SAP', suggesting a streamlined process. 4. The sector is primarily construction/maintenance for federal facilities.
Value Assessment
Rating: good
The contract value of $2.26 million for a boiler replacement appears reasonable given the scope and the firm-fixed-price nature of the award. Benchmarking against similar infrastructure projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), indicating a limited competition approach likely due to the contract value. This method can be efficient but may not always yield the lowest possible price compared to full and open competition.
Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The use of SAP suggests an effort to balance efficiency with cost-effectiveness for this contract size.
Public Impact
Ensures operational readiness of Coast Guard facilities in Michigan City. Supports local economy through contract award to Axion Contractors. Addresses critical infrastructure needs for a federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may impact price optimization.
- Contract duration is relatively short (9 months).
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Awarded to a contractor with experience in the relevant field.
Sector Analysis
This contract falls within the construction and maintenance sector, specifically for facility infrastructure. Spending benchmarks for similar federal boiler replacement projects vary widely based on size and complexity, but $2.26 million suggests a significant undertaking.
Small Business Impact
The data does not indicate if Axion Contractors is a small business. Further analysis would be needed to determine the impact on small business participation.
Oversight & Accountability
The award was made by the Department of Homeland Security (U.S. Coast Guard), which has established oversight mechanisms for contract execution. The firm-fixed-price structure provides a degree of financial accountability.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Potential discrepancy in stated competition method (SAP) versus contract value.
- Lack of detail on specific scope of work.
- No clear indication of small business participation.
- Short contract duration might imply a focused scope or potential for follow-on work.
Tags
plumbing-heating-and-air-conditioning-co, department-of-homeland-security, in, definitive-contract, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $22,658 to AXION CONTRACTORS. BOILER #1 REPLACEMENT, STA MICHIGAN CITY
Who is the contractor on this award?
The obligated recipient is AXION CONTRACTORS.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $22,658.
What is the period of performance?
Start: 2026-04-13. End: 2026-04-22.
What is the specific scope of work for the boiler replacement, and how does it compare to industry standards for similar facilities?
The provided data lacks specific details on the scope of work beyond 'BOILER #1 REPLACEMENT'. A comprehensive analysis would require reviewing the contract's statement of work to understand the exact requirements, materials, and labor involved. Comparing this to industry standards for similar federal facilities would help determine if the $2.26 million price is aligned with typical project costs and complexity.
What were the key factors that led to the use of Simplified Acquisition Procedures (SAP) for this contract?
Simplified Acquisition Procedures (SAP) are typically used for purchases below a certain dollar threshold (currently $250,000 for most agencies, but can be higher for specific circumstances or agencies). The contract value of $2.26 million significantly exceeds the standard SAP threshold. This suggests either a potential error in the provided 'ct' field or that the contract was awarded under a specific exception or higher threshold applicable to the U.S. Coast Guard or its specific procurement needs, warranting further investigation into the procurement regulations followed.
How will the effectiveness of the new boiler system be measured and ensured post-installation?
Effectiveness is typically ensured through contract clauses requiring performance testing, warranties, and adherence to specific operational standards. The firm-fixed-price nature implies the contractor is responsible for delivering a functional system. Post-installation, the Coast Guard would likely conduct inspections and operational checks to verify the system meets performance requirements before final acceptance and payment.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: 70Z03026QCLEV0027
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5 VASSAR AISLE, IRVINE, CA, 92612
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,658
Exercised Options: $22,658
Current Obligation: $22,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2026-04-13
Current End Date: 2026-04-22
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-04-13
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