Coast Guard awards $968,950 contract for HVAC replacement at Channel Islands Harbor station

Contract Overview

Contract Amount: $96,895 ($96.9K)

Contractor: Tesfaye LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-25

End Date: 2026-05-31

Contract Duration: 248 days

Daily Burn Rate: $391/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE HVAC AT USCG STATION CHANNEL ISLANDS HARBOR

Place of Performance

Location: OXNARD, VENTURA County, CALIFORNIA, 93035

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $96,895 to TESFAYE LLC for work described as: REPLACE HVAC AT USCG STATION CHANNEL ISLANDS HARBOR Key points: 1. Contract awarded to Tesfaye LLC for HVAC replacement services. 2. The contract has a fixed price structure, indicating clear cost expectations. 3. The duration of the contract is 248 days, suggesting a focused scope of work. 4. The contract was competed under Simplified Acquisition Procedures (SAP), implying a focus on smaller value procurements. 5. The award is a definitive contract, indicating a firm commitment from the government. 6. The project is located in California, a state with significant federal infrastructure needs.

Value Assessment

Rating: good

The contract value of $968,950 for HVAC replacement appears reasonable for a definitive contract of this duration. Benchmarking against similar HVAC replacement projects for federal facilities in California would provide a more precise value-for-money assessment. The firm fixed-price nature suggests that the contractor has adequately estimated costs, but it also places the risk of cost overruns on Tesfaye LLC. Without specific cost breakdowns or comparisons to market rates for similar services in the region, a definitive assessment of exceptional value is difficult, but the award seems to be within a typical range for such projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a full and open competition for procurements valued below a certain threshold (often $250,000, though this can vary). The data indicates 14 bids were received, suggesting a healthy level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government. The use of SAP indicates the agency sought competitive offers within the established regulatory framework for smaller acquisitions.

Taxpayer Impact: The robust competition, with 14 bids, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. This level of engagement ensures that the government is receiving competitive market pricing for the HVAC services.

Public Impact

The U.S. Coast Guard station at Channel Islands Harbor will benefit from upgraded HVAC systems, improving operational efficiency and personnel comfort. This project directly supports the Coast Guard's mission readiness by ensuring a functional and climate-controlled environment. The geographic impact is localized to the Channel Islands Harbor area in California. The contract is expected to create or sustain jobs within the HVAC contracting sector in California.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during replacement, though the fixed-price contract shifts this risk to the contractor.
Dependence on Tesfaye LLC's performance and adherence to the schedule, as delays could impact station operations.

Positive Signals

The contract was competed under SAP with 14 bids, indicating strong market interest and competitive pricing.
The firm fixed-price contract provides cost certainty for the government.
The project addresses a critical infrastructure need for the U.S. Coast Guard.

Sector Analysis

The HVAC services sector is a vital component of the construction and facilities maintenance industry. Federal agencies frequently contract for HVAC services to maintain operational readiness and ensure suitable working environments. Spending in this sector is driven by the need to replace aging systems, comply with energy efficiency standards, and support new construction or renovations. Comparable spending benchmarks for federal HVAC replacements can vary significantly based on facility size, complexity, and geographic location, but this contract appears to be a standard procurement for a single facility upgrade.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures (SAP) and awarded to Tesfaye LLC. There is no explicit indication of a small business set-aside or subcontracting requirements in the provided data. While Tesfaye LLC's size is not specified, the competitive nature of the award suggests that small businesses had the opportunity to bid if they met the qualifications. Further analysis would be needed to determine if subcontracting opportunities exist or if small business participation was a specific goal.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Coast Guard contracting office within the Department of Homeland Security. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Performance monitoring will be crucial to ensure the work is completed according to specifications and on schedule. Transparency is generally maintained through contract award databases, though detailed project-specific oversight mechanisms are internal to the agency.

Related Government Programs

Federal Building HVAC Maintenance
Military Base Infrastructure Upgrades
Coast Guard Facility Modernization
Department of Homeland Security Procurement

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions impacting scope/cost
Ensuring contractor performance meets quality standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $96,895 to TESFAYE LLC. REPLACE HVAC AT USCG STATION CHANNEL ISLANDS HARBOR

Who is the contractor on this award?

The obligated recipient is TESFAYE LLC.

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 $96,895.

What is the period of performance?

Start: 2025-09-25. End: 2026-05-31.

What is Tesfaye LLC's track record with federal contracts, particularly for HVAC services?

A review of federal contract databases would be necessary to fully assess Tesfaye LLC's track record. This would involve examining past awards, performance evaluations (if publicly available), and any history of contract disputes or modifications. Understanding their experience with similar-sized projects and government clients, especially within the Department of Homeland Security or U.S. Coast Guard, would provide crucial context for evaluating their capability to successfully execute this HVAC replacement contract. Without specific historical data, it's difficult to definitively assess their reliability and past performance.

How does the $968,950 contract value compare to similar HVAC replacement projects at Coast Guard facilities?

To benchmark the value, one would need to compare this $968,950 contract against other definitive contracts awarded by the U.S. Coast Guard or similar Department of Homeland Security components for HVAC system replacements at comparable facilities. Key comparison factors include the size and type of facility, the scope of work (e.g., full system replacement vs. partial upgrade), the age and complexity of the existing systems, and the geographic location, as regional labor and material costs vary. A preliminary assessment suggests the value is within a reasonable range for a single facility HVAC overhaul, but a detailed comparative analysis with similar projects is required for a definitive value-for-money conclusion.

What are the primary risks associated with this HVAC replacement project for the U.S. Coast Guard?

The primary risks for the U.S. Coast Guard in this HVAC replacement project include potential delays in project completion, which could disrupt station operations and personnel comfort. There's also a risk of the contractor encountering unforeseen issues during the replacement process (e.g., discovering asbestos, structural problems) that could lead to scope changes or cost increases, although the firm fixed-price contract aims to mitigate the latter for the government. Ensuring the new system meets performance specifications and energy efficiency standards is another critical risk area. Finally, ensuring proper integration with existing building infrastructure and minimal disruption to ongoing Coast Guard activities are key considerations.

What is the expected impact of this contract on the operational effectiveness of the U.S. Coast Guard station?

The successful completion of this HVAC replacement contract is expected to significantly enhance the operational effectiveness of the U.S. Coast Guard station at Channel Islands Harbor. Modern, reliable HVAC systems are crucial for maintaining a stable and comfortable internal environment, which directly impacts the morale, health, and productivity of personnel. Furthermore, a well-functioning HVAC system is essential for protecting sensitive electronic equipment and ensuring the proper storage of supplies and materials. This upgrade should reduce the likelihood of equipment malfunctions due to temperature fluctuations and minimize downtime associated with HVAC system failures, thereby supporting the station's continuous operational readiness.

How has federal spending on HVAC services for the U.S. Coast Guard trended over the past five years?

Analyzing federal spending trends on HVAC services for the U.S. Coast Guard over the past five years would require accessing and aggregating data from contract award databases. This analysis would reveal whether spending has been increasing, decreasing, or remaining stable, and identify any significant fluctuations. Factors influencing these trends could include aging infrastructure requiring replacements, new construction projects, changes in energy efficiency mandates, and budget allocations. Understanding historical spending patterns can help contextualize the current $968,950 award and inform future budget planning and procurement strategies for HVAC services within the Coast Guard.

What are the specific performance metrics or deliverables expected from Tesfaye LLC under this contract?

The specific performance metrics and deliverables for Tesfaye LLC under this contract would be detailed in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Typically, for an HVAC replacement project, deliverables would include the complete installation of specified HVAC units, associated ductwork, and control systems, all meeting defined technical specifications and energy efficiency standards. Performance metrics would likely focus on adherence to the project schedule, quality of workmanship (e.g., passing inspections), successful system testing and commissioning, and timely completion of all punch list items. The government will likely conduct inspections and require documentation to verify that all requirements have been met before final payment.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 30796PR250000009

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 YESLER WAY, SEATTLE, WA, 98104

Business Categories: Black 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: $96,895

Exercised Options: $96,895

Current Obligation: $96,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline