Department of Agriculture Awarded a Contract to TRANE U.S. INC. for $48,853.38

Summary of Award

In June 2023, a contract was awarded to TRANE U.S. INC., a prominent manufacturer and service provider in the HVAC (heating, ventilation, and air conditioning) industry, by the Department of Agriculture's Agricultural Research Service. The contract, identified by the procurement instrument identifier (PIID) 12405B23P0220, was categorized as a “Purchase Order” with a firm fixed price, valued at $48,853.38, and classified under the facilities support services sector, NAICS code 561210. The contract was specifically for the emergency repair of a 160-ton York chiller at the National Sedimentation Laboratory in Oxford, Mississippi.

### Contract Overview

This contract is particularly significant due to its focus on a critical infrastructure component—a large-scale chiller essential for environmental control within the USDA's research facilities. Efficient operation of such equipment is crucial for maintaining the delicate conditions required for various agricultural and environmental research activities conducted at the laboratory. The type of contract pricing—firm fixed price—ensures that the agreed costs remain constant, thereby reducing any financial uncertainty for the federal agency during the course of the project's execution. The fixed nature of the pricing reflects a straightforward procurement strategy suited for well-defined requirements, which presumably includes the repair of specific components of the chiller. ### Department and Agency The funding and awarding agency for this contract is the Agricultural Research Service (ARS), a branch of the U.S. Department of Agriculture (USDA). The ARS is the USDA's chief scientific in-house research agency, responsible for advancing agricultural productivity, promoting sustainable practices, and addressing pressing agricultural challenges. ### Recipient Details TRANE U.S. INC. is part of Trane Technologies, a global climate innovator focused on sustainable climate solutions. The parent company, TRANE TECHNOLOGIES PUBLIC LIMITED COMPANY, is incorporated in the U.S. despite being foreign-owned, indicating a corporate structure that allows it to operate effectively within international markets while compliant with U.S. corporate regulations. Located in White Bear Lake, Minnesota, TRANE U.S. INC. is well-placed within the U.S. market to deliver products and services that address the complex needs of various industrial and governmental clients. As a part of its business classification, the company fits into several categories, including being a corporate entity not tax-exempt, a manufacturer of goods, and a foreign-owned-and-U.S.-incorporated business, which permits it to participate in diverse governmental contracts across multiple sectors. ### Transaction Details The contract's transactions include two significant entries: 1. **Initial Transaction:** - **Date:** June 12, 2023 - **Amount:** $48,853.38 - This transaction represents the primary issuance of funds correlating with the purchase order for the repair work. It marks the start of the contract's accounting period and reflects the total obligation assumed by the USDA under this contract for the specified repair services. 2. **Subsequent Adjustment:** - **Date:** April 10, 2025 - **Amount:** -$0.38 - This transaction appears as a minor negative adjustment to the initial contract amount. Such adjustments can occur due to various reasons, such as final reconciliation of project expenses or administrative corrections. The negligible nature of this adjustment implies it likely resulted from routine financial oversight or a rounding error correction. ### Regulatory and Legislative Compliance The contract details reflect compliance with several regulatory considerations. For instance, the absence of a set-aside indicates a procurement process open to broader competition, albeit only one offer was received. Despite the lack of multiple competing offers, the contract was awarded following established simplified acquisition procedures. The presence of labor standards further underscores the adherence to lawful employment practices under federal procurement regulations. ### Geographical and Performance Specifics The work under the contract is set to be conducted entirely within the United States, specifically at the USDA's location in Oxford, Mississippi. This geographical specification underscores the localized nature of the contract and ensures that the economic impact remains within the U.S. market. The contractual period of performance commenced on June 12, 2023, concluding on July 11, 2023. Such a limited timeframe for repair suggests a rapid response requirement, typical for maintenance and repair operations critical to ongoing research activities. Additionally, the contract's final modified date is noted as April 10, 2025, marking a closure point for financial and administrative activities related to the contract. In conclusion, this contract not only highlights the necessary governmental interactions with private sector entities for critical operational needs but also reflects the regulatory and strategic financial practices essential in managing public funds effectively. By leveraging specialized services from established entities like TRANE U.S. INC., the USDA enhances its capability to maintain essential research infrastructure while aligning with federal procurement standards.