VA awards $944K contract for steam trap monitoring, highlighting utility system maintenance needs

Contract Overview

Contract Amount: $944,064 ($944.1K)

Contractor: Utility Systems Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-12

End Date: 2027-04-11

Contract Duration: 1,094 days

Daily Burn Rate: $863/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANNUAL STEAM TRAP MONITORING

Place of Performance

Location: BROCKTON, PLYMOUTH County, MASSACHUSETTS, 02301

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $944,064 to UTILITY SYSTEMS SOLUTIONS, INC. for work described as: ANNUAL STEAM TRAP MONITORING Key points: 1. Contract focuses on essential utility system maintenance, ensuring operational efficiency. 2. The fixed-price structure provides cost certainty for the government. 3. Competition was robust, suggesting a competitive market for these services. 4. The contract duration of three years allows for consistent service delivery. 5. This award falls within the broader category of facility maintenance and operations. 6. The small value of the contract suggests it's for a specific, localized need.

Value Assessment

Rating: good

The contract value of $944,064 over three years appears reasonable for annual steam trap monitoring services. While specific benchmarks for this niche service are difficult to ascertain without more granular data, the firm fixed-price nature suggests the contractor is taking on the risk of cost overruns. Comparing this to similar utility maintenance contracts, the pricing seems aligned with industry standards for specialized monitoring services. The value proposition lies in preventing costly failures and optimizing energy efficiency through proactive maintenance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of a single award for a delivery order suggests that the contracting agency sought the best value among qualified offerors. The competitive process likely contributed to a fair market price for the services rendered, as vendors would need to be competitive to win the bid.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential utility maintenance, preventing potential overspending on less competitive bids.

Public Impact

The Department of Veterans Affairs facilities will benefit from improved steam system efficiency and reliability. Services include annual monitoring of steam traps to detect and address potential issues. This contributes to the overall operational readiness and energy management of VA facilities. The contract supports specialized technical services within the facility maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if monitoring requirements expand beyond initial parameters.
Dependence on contractor expertise for accurate diagnostics and reporting.
Risk of service disruption if contractor performance falters unexpectedly.

Positive Signals

Firm fixed-price contract provides budget predictability.
Full and open competition suggests a healthy market and competitive pricing.
Award to a single vendor for a specific service indicates focused expertise.

Sector Analysis

This contract falls within the broader industrial equipment maintenance and repair sector, specifically focusing on steam systems. Steam traps are critical components in many industrial and institutional facilities for efficient energy transfer and operational integrity. The market for such specialized maintenance services is often characterized by a mix of large facility management companies and smaller, specialized service providers. Benchmarking this contract's value against broader facility maintenance spending shows it represents a small but crucial segment focused on optimizing utility infrastructure.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While the prime contractor is Utility Systems Solutions, Inc., there is no explicit information regarding subcontracting plans for small businesses within the provided data. Further analysis would be needed to determine if small businesses are involved in the supply chain or service delivery for this contract.

Oversight & Accountability

The contract is subject to the oversight of the Department of Veterans Affairs. As a firm fixed-price contract, financial oversight will focus on ensuring deliverables meet the specified requirements. Transparency is maintained through the Federal Procurement Data System (FPDS), which records contract awards. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Maintenance Contracts
Utility System Upgrades and Maintenance
Energy Efficiency Programs
Department of Veterans Affairs Facility Management

Risk Flags

Potential for performance issues if contractor lacks specialized expertise.
Risk of cost overruns if unforeseen issues require extensive repairs beyond monitoring scope.
Dependence on accurate reporting for effective decision-making.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $944,064 to UTILITY SYSTEMS SOLUTIONS, INC.. ANNUAL STEAM TRAP MONITORING

Who is the contractor on this award?

The obligated recipient is UTILITY SYSTEMS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $944,064.

What is the period of performance?

Start: 2024-04-12. End: 2027-04-11.

What is the historical spending pattern for steam trap monitoring services by the Department of Veterans Affairs?

Analyzing historical spending for steam trap monitoring by the VA requires accessing detailed procurement data over multiple fiscal years. Without direct access to this historical data, it's challenging to establish a precise pattern. However, the current award of $944,064 suggests a consistent need for such services. Typically, agencies like the VA maintain extensive infrastructure requiring regular upkeep. If steam trap monitoring is a critical component of their facility management strategy, one would expect recurring awards, potentially with fluctuating values based on facility needs, contract scope, and market pricing. A deeper dive into FPDS or agency-specific contract databases would be necessary to quantify historical spending trends and identify any significant shifts in investment in this area.

How does the awarded price compare to industry benchmarks for similar steam trap monitoring services?

Determining precise industry benchmarks for 'annual steam trap monitoring' is complex due to the specialized nature of the service and variations in contract scope, facility size, and geographic location. The awarded amount of $944,064 over three years ($314,688 annually) for Utility Systems Solutions, Inc. needs context. If this contract covers a large portfolio of VA facilities nationwide, the per-facility cost might be relatively low. Conversely, if it's for a concentrated group of buildings, the annual cost per facility could be higher. General facility maintenance cost indices or data from large facilities management providers might offer a rough comparison. However, without detailed service level agreements and facility specifics, a definitive benchmark comparison is difficult. The firm fixed-price nature suggests the contractor has priced competitively based on their assessment of the scope and risk.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

While the specific Key Performance Indicators (KPIs) are not detailed in the provided data, typical performance metrics for a steam trap monitoring contract would likely include: 1) Timeliness of service delivery (e.g., completion of annual monitoring within scheduled windows), 2) Accuracy and completeness of monitoring reports, 3) Identification of faulty steam traps and recommendations for repair/replacement, 4) Effectiveness of identified repairs in improving system efficiency (potentially measured by energy savings or reduced steam loss), and 5) Compliance with safety and environmental regulations. The contract's firm fixed-price structure implies that performance will be measured against the defined scope of work and service level expectations outlined in the contract documents. Failure to meet these KPIs could result in contractual remedies.

What is the track record of Utility Systems Solutions, Inc. in performing similar government contracts?

To assess the track record of Utility Systems Solutions, Inc. (USS) in performing similar government contracts, a review of their past performance information within the Federal Procurement Data System (FPDS) or other government performance databases would be necessary. This would involve searching for previous awards to USS, particularly those involving facility maintenance, utility systems management, or specialized monitoring services. Key aspects to examine would include the types of agencies they've served, the value and duration of previous contracts, and any available past performance ratings or feedback. A positive track record with successful completion of similar contracts would indicate a lower performance risk for this current award. Conversely, any history of performance issues, contract disputes, or negative feedback would raise concerns.

What is the potential impact of this contract on energy efficiency within the VA facilities it covers?

This contract has a direct positive impact on energy efficiency within the VA facilities it covers. Steam traps are crucial for preventing the loss of live steam, which is a significant source of energy waste in heating and industrial processes. By ensuring these traps are functioning correctly through annual monitoring, the contract helps to: 1) Minimize steam leaks, thereby reducing unnecessary energy consumption and associated costs. 2) Optimize the performance of the steam system, ensuring heat is delivered effectively where needed. 3) Prevent equipment damage and system failures that could lead to inefficient operation or downtime. The proactive identification and remediation of faulty traps directly contribute to the VA's goals of operational efficiency and potentially its sustainability targets.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Automatic Environmental Control Manufacturing for Residential, Commercial, and Appliance Use

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14330 MIDWAY ROAD STE 200, DALLAS, TX, 75244

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,688,088

Exercised Options: $944,064

Current Obligation: $944,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F0508Y

IDV Type: FSS

Timeline