VA Awards $475K Contract for Condensate Line Replacement to Diversified Site Services LLC

Contract Overview

Contract Amount: $475,118 ($475.1K)

Contractor: Diversified Site Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-20

End Date: 2025-10-19

Contract Duration: 60 days

Daily Burn Rate: $7.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF CONDENSATE LINE BETWEEN BUILDING 2 AND 19

Place of Performance

Location: BEDFORD, MIDDLESEX County, MASSACHUSETTS, 01730

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $475,117.59 to DIVERSIFIED SITE SERVICES LLC for work described as: REPLACEMENT OF CONDENSATE LINE BETWEEN BUILDING 2 AND 19 Key points: 1. Contract awarded for essential infrastructure repair at a VA facility. 2. Competition method indicates a deliberate exclusion of sources, raising questions about price discovery. 3. The project falls within the Commercial and Institutional Building Construction sector. 4. Fixed-price contract type aims to control costs, but the competition method warrants scrutiny.

Value Assessment

Rating: fair

The contract value of $475,117.59 for replacing a condensate line appears reasonable for infrastructure work. However, without specific details on the scope and complexity, a direct comparison to similar contracts is difficult. The fixed-price nature provides cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, certain sources were intentionally excluded, potentially limiting the pool of bidders and impacting price discovery. The rationale for exclusion is not provided.

Taxpayer Impact: The impact on taxpayers is unclear due to the limited competition. While a fixed price was established, the exclusion of sources may have prevented achieving the lowest possible price.

Public Impact

Ensures continued operation of critical VA facilities by repairing essential infrastructure. Potential for increased costs to taxpayers if excluded sources could have offered better pricing. Highlights the importance of transparent and broad competition in government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about optimal pricing.
Lack of justification for excluding sources.

Positive Signals

Fixed-price contract provides cost certainty.
Project addresses critical infrastructure needs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector (NAICS 236220). Spending in this sector is driven by infrastructure upgrades and maintenance across government facilities. Benchmarks for similar projects would depend heavily on location, scale, and specific materials used.

Small Business Impact

The data indicates that this contract was not awarded to a small business (SB: false). Further analysis would be needed to determine if small businesses were excluded from the competition or if they did not bid.

Oversight & Accountability

Oversight is primarily the responsibility of the Department of Veterans Affairs. The contract's limited competition and the exclusion of sources warrant closer examination to ensure fair and effective use of taxpayer funds.

Related Government Programs

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

Risk Flags

Limited competition
Exclusion of sources without clear justification
Potential for non-optimal pricing
Lack of small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $475,117.59 to DIVERSIFIED SITE SERVICES LLC. REPLACEMENT OF CONDENSATE LINE BETWEEN BUILDING 2 AND 19

Who is the contractor on this award?

The obligated recipient is DIVERSIFIED SITE SERVICES LLC.

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 $475,117.59.

What is the period of performance?

Start: 2025-08-20. End: 2025-10-19.

What was the specific justification for excluding certain sources from the bidding process?

The provided data does not specify the justification for excluding sources. Typically, such exclusions require a documented rationale, such as specialized capabilities, urgent needs, or previous performance issues with certain contractors. Without this information, it's difficult to assess the necessity and fairness of the limited competition.

How does the awarded price compare to industry benchmarks for similar condensate line replacement projects?

A precise comparison is challenging without detailed project specifications (e.g., pipe length, material, complexity of installation, site conditions). However, the $475,117.59 price for a 60-day project involving condensate line replacement between two buildings warrants review against regional construction cost indices and similar government or commercial projects to ensure value for money.

What is the potential risk of cost overruns or performance issues given the competition method?

The risk of cost overruns or performance issues is elevated due to the limited competition. When fewer bidders participate, there's less pressure to offer the most competitive price and highest quality. The VA should ensure robust contract management and performance monitoring to mitigate 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 BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 19 STAR DR UNIT A, MERRIMACK, NH, 03054

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $475,118

Exercised Options: $475,118

Current Obligation: $475,118

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24124D0104

IDV Type: IDC

Timeline