Treasury's Bureau of Engraving and Printing Awards $3.1M Contract for Pallet Racking System to Valcorp Enterprises LLC
Contract Overview
Contract Amount: $3,100,186 ($3.1M)
Contractor: Valcorp Enterprises LLC
Awarding Agency: Department of the Treasury
Start Date: 2025-02-25
End Date: 2026-06-30
Contract Duration: 490 days
Daily Burn Rate: $6.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN AND CONSTRUCT A PALLET RACKING SYSTEM.
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76131
State: Texas Government Spending
Plain-Language Summary
Department of the Treasury obligated $3.1 million to VALCORP ENTERPRISES LLC for work described as: DESIGN AND CONSTRUCT A PALLET RACKING SYSTEM. Key points: 1. The contract is for the design and construction of a pallet racking system. 2. The total award amount is $3,100,185.61. 3. The contract is a definitive contract with a firm fixed price. 4. The contract duration is 490 days. 5. The contract was not available for competition.
Value Assessment
Rating: questionable
The contract value of $3.1M for a pallet racking system appears high when compared to typical construction projects of this nature. Without specific details on the system's complexity and scale, it's difficult to benchmark accurately, but the price warrants scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as competitive pressures are absent.
Taxpayer Impact: The lack of competition may result in the government paying a premium for the pallet racking system, impacting taxpayer funds.
Public Impact
The Bureau of Engraving and Printing will receive a new pallet racking system, potentially improving operational efficiency. Taxpayers may be overpaying due to the sole-source nature of the contract. The project's success hinges on Valcorp Enterprises LLC's ability to deliver the system on time and within budget.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potentially high cost for a racking system
Positive Signals
- Firm fixed price contract
- Clear project scope (design and construct)
Sector Analysis
The contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary widely based on project scope, materials, and labor costs. A $3.1M project for internal infrastructure like racking suggests a significant operational need or scale.
Small Business Impact
The contract was awarded to Valcorp Enterprises LLC, which is not indicated as a small business. There is no information provided on whether small businesses were solicited or subcontracted.
Oversight & Accountability
The firm fixed price contract provides some cost control, but the lack of competition requires diligent oversight from the Department of the Treasury to ensure value for money and adherence to contract terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of the Treasury Contracting
- Bureau of Engraving and Printing Programs
Risk Flags
- Sole-source award lacks competition
- High contract value for a racking system
- Potential for cost overruns or inflated pricing
- Limited transparency on vendor selection criteria
Tags
commercial-and-institutional-building-co, department-of-the-treasury, tx, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $3.1 million to VALCORP ENTERPRISES LLC. DESIGN AND CONSTRUCT A PALLET RACKING SYSTEM.
Who is the contractor on this award?
The obligated recipient is VALCORP ENTERPRISES LLC.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Bureau of Engraving and Printing).
What is the total obligated amount?
The obligated amount is $3.1 million.
What is the period of performance?
Start: 2025-02-25. End: 2026-06-30.
What specific features or scale of the pallet racking system justify the $3.1M price tag, especially given the sole-source award?
The justification for the $3.1M price tag is not provided in the data. Typically, such a high cost for a racking system would imply a highly specialized, large-scale, or integrated automated solution. Without detailed specifications, it's impossible to ascertain if the price reflects fair market value or if it's inflated due to the absence of competitive bidding.
What are the risks associated with a sole-source contract for critical infrastructure like a pallet racking system?
Sole-source contracts carry inherent risks, including the potential for inflated pricing due to a lack of competitive pressure. There's also a risk that the chosen vendor may not offer the most innovative or cost-effective solution available. Furthermore, reliance on a single vendor can create dependency and limit future flexibility for upgrades or replacements.
How will the effectiveness of the pallet racking system be measured to ensure it meets the Bureau of Engraving and Printing's operational needs?
Effectiveness will likely be measured against predefined performance metrics outlined in the contract's statement of work. This could include capacity, accessibility, durability, and integration with existing workflows. Post-installation inspections, user feedback, and performance monitoring during the warranty period will be crucial to confirm the system meets the intended operational requirements.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 2031ZA25R00011
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4101 MURRAY AVE, HALTOM CITY, TX, 76117
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $3,100,186
Exercised Options: $3,100,186
Current Obligation: $3,100,186
Actual Outlays: $358,343
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-02-25
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-04-10
More Contracts from Valcorp Enterprises LLC
- Contractor to Provide ALL Labor, Materials, Tools, Transportation, Equipment and Supervision to Complete the Mechanical Refurbish Project Including, BUT NOT Limited to, AIR Handling Unit - 211 (AHU) Replacement in the Automation Wing, HWS AIR Separat — $6.6M (Department of Transportation)
- Replace Condensate Lines and Pumps AT the Oscar G Johnson Vamc AT Iron Mountain, MI — $1.4M (Department of Veterans Affairs)
Other Department of the Treasury Contracts
- Advertising Services — $636.5M (True North Communications Inc)
- Cade 2 Ltis3 Covid-19 — $383.8M (Deloitte Consulting LLP)
- Establish a Broad Networking and Telecommunications Service Environment to Meet ITS Network Services (wide Area and Local Area Network), Voice Telecommunications Services, Audio/Video/Web Conferencing, and Cyber Requirements — $320.2M (AT&T Enterprises, LLC)
- THE Internal Revenue Service (IRS), Office of Information Technology Office, Issues This Order Under GSA Alliant 2 (unrestricted). Enterprise Case Management (ECM) Solution Integration Services — $305.5M (Booz Allen Hamilton Inc)
- THE Tfcceis Task Order IS to Transition the Existing Tfcc Services From the Networx Contract Onto the EIS Contract Vehicle in a Manner That Will Enable Continuity of an Enterprise Network of Toll Free Services for the IRS — $264.6M (Verizon Business Network Services LLC)