VA Awards $6.99M Steam System Piping Replacement to Ironclad Services Inc. in West Haven, CT

Contract Overview

Contract Amount: $6,992,274 ($7.0M)

Contractor: Ironclad Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-14

End Date: 2027-04-15

Contract Duration: 548 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: STEAM SYSTEM PIPING REPLACEMENT PROJECT 689-24-113, VAMC WEST HAVEN, CT

Place of Performance

Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.0 million to IRONCLAD SERVICES INC for work described as: STEAM SYSTEM PIPING REPLACEMENT PROJECT 689-24-113, VAMC WEST HAVEN, CT Key points: 1. The Department of Veterans Affairs (VA) awarded a $6.99 million contract for a steam system piping replacement project. 2. Ironclad Services Inc. secured the contract, indicating potential market concentration or specialized capabilities. 3. The contract's full and open competition after exclusion of sources raises questions about the initial bidding process and potential price discovery limitations. 4. The project falls within the Commercial and Institutional Building Construction sector, a critical area for facility maintenance and upgrades.

Value Assessment

Rating: fair

The contract value of $6.99 million for a 548-day project needs comparison against similar VA or federal building construction projects to assess pricing fairness. Without specific benchmarks for steam system replacements, a definitive assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggests an initial limited scope or a specific reason for excluding certain bidders. This could impact price discovery by reducing the number of competitive offers.

Taxpayer Impact: The taxpayer impact is tied to ensuring the $6.99 million award represents a fair market price for essential facility upgrades, avoiding overpayment due to limited competition.

Public Impact

Ensures critical infrastructure upgrades at the VAMC West Haven, improving facility reliability and patient care environment. Supports construction sector employment through the awarded contract. Potential for future similar projects in other VA facilities, highlighting the importance of efficient procurement and oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may have impacted price discovery.
Lack of specific per-unit cost benchmarks for comparison.
Project duration is substantial, requiring close monitoring for adherence to schedule.

Positive Signals

Awarded to a single contractor, potentially streamlining project execution.
Firm Fixed Price contract provides cost certainty for the VA.
Project addresses essential facility maintenance needs.

Sector Analysis

This project falls under Commercial and Institutional Building Construction, a sector vital for maintaining government facilities. Spending benchmarks for similar piping replacement projects within the VA or other federal agencies would provide better context for the $6.99 million award.

Small Business Impact

The data indicates the award was not made to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses had an opportunity to compete or if the project scope necessitated larger contractors.

Oversight & Accountability

Oversight will be crucial to ensure Ironclad Services Inc. adheres to the contract terms, delivers the project on time and within budget, and meets quality standards. The VA's contracting office and project managers will be responsible for monitoring performance and addressing any issues.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition method.
Lack of clear per-unit cost data for benchmarking.
Potential for cost overruns if unforeseen issues arise during the extensive project duration.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.0 million to IRONCLAD SERVICES INC. STEAM SYSTEM PIPING REPLACEMENT PROJECT 689-24-113, VAMC WEST HAVEN, CT

Who is the contractor on this award?

The obligated recipient is IRONCLAD SERVICES 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 $7.0 million.

What is the period of performance?

Start: 2025-10-14. End: 2027-04-15.

What was the specific justification for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The justification for excluding sources is not provided in the data. This procurement method suggests that while the competition was intended to be open, certain potential bidders were disqualified or not considered, possibly due to specific technical requirements, past performance issues, or other criteria. This exclusion could limit the number of competitive bids received, potentially leading to a higher price than if a broader range of contractors had participated.

How does the $6.99 million cost compare to industry benchmarks for similar steam system piping replacement projects of this scale and complexity?

Without access to detailed industry benchmark data for steam system piping replacements of this specific scale (548 days duration, $6.99M cost) and complexity, a direct comparison is difficult. Factors like the age and condition of the existing system, the specific materials required, labor costs in Connecticut, and unforeseen site conditions can significantly influence project costs. A thorough benchmark analysis would require detailed project scope and cost breakdowns from comparable federal or commercial projects.

What are the potential risks associated with a single contractor performing this critical infrastructure upgrade, and what mitigation strategies are in place?

The primary risk with a single contractor is potential over-reliance and lack of recourse if performance issues arise. Mitigation strategies typically include robust contract management, clear performance metrics, regular progress reviews, and contingency plans for contractor default or substandard work. The VA's oversight team plays a critical role in monitoring progress, ensuring quality, and enforcing contract terms to minimize these risks.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1500 MAIN ST, SPRINGFIELD, MA, 01115

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,992,274

Exercised Options: $6,992,274

Current Obligation: $6,992,274

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24124D0107

IDV Type: IDC

Timeline