VA Awards $2M for Water Management and Legionella Testing to Venergy Group LLC

Contract Overview

Contract Amount: $1,999,484 ($2.0M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-06-15

End Date: 2025-07-01

Contract Duration: 1,477 days

Daily Burn Rate: $1.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VISN 6 WATER MANAGEMENT PLAN MONITORING AND LEGIONELLA TESTING SERVICES

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23667

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to VENERGY GROUP LLC for work described as: VISN 6 WATER MANAGEMENT PLAN MONITORING AND LEGIONELLA TESTING SERVICES Key points: 1. Contract awarded for essential water management and Legionella testing services. 2. Competition method was 'COMPETED UNDER SAP', indicating a potentially limited but structured process. 3. The contract duration is over 4 years, suggesting a long-term need for these services. 4. The total award value is $1.99M, providing a benchmark for similar services.

Value Assessment

Rating: good

The $1.99M award for water management and Legionella testing over 4 years appears reasonable given the critical nature of the services. Benchmarking against similar facilities support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves a limited number of bidders. While this can expedite the process, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayers are funding essential health and safety services for veterans. The use of SAP suggests an effort to balance efficiency with cost-effectiveness, though a broader competition might have yielded greater savings.

Public Impact

Ensures safe drinking water for veterans at VA facilities. Mitigates health risks associated with Legionella bacteria. Supports compliance with environmental and health regulations. Provides critical facility support services for the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition under SAP
Long contract duration may not reflect evolving needs
Lack of specific performance metrics provided

Positive Signals

Addresses critical health and safety requirements
Awarded to a specific company for dedicated service
Firm Fixed Price contract provides cost certainty

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operation, and management of physical infrastructure. Spending in this sector is crucial for government operations, with benchmarks varying widely based on facility size and complexity.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure Venergy Group LLC meets all performance requirements and delivers services effectively. Regular performance reviews and audits are standard oversight mechanisms.

Related Government Programs

Facilities Support Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for limited competition
Long contract duration
Reliance on a single vendor
Lack of detailed performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to VENERGY GROUP LLC. VISN 6 WATER MANAGEMENT PLAN MONITORING AND LEGIONELLA TESTING SERVICES

Who is the contractor on this award?

The obligated recipient is VENERGY GROUP 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 $2.0 million.

What is the period of performance?

Start: 2021-06-15. End: 2025-07-01.

What is the specific scope of work for water management and Legionella testing, and how does it align with VA facility needs?

The scope likely includes regular water quality testing, system flushing, maintenance of water systems to prevent stagnation, and specific Legionella testing protocols as mandated by health and safety regulations. This aligns with the VA's critical need to ensure safe water for its patient population and staff, mitigating significant public health risks within its facilities.

What are the potential risks associated with relying on a single vendor for over four years for such critical services?

Key risks include potential complacency leading to decreased service quality, price escalation beyond market rates over time, and vendor lock-in making it difficult to switch if performance issues arise. The long duration also means the VA is exposed to the vendor's financial stability and operational continuity for an extended period.

How effectively does the 'COMPETED UNDER SAP' process ensure value for money compared to other procurement methods?

SAP aims for efficiency in smaller procurements but may limit the pool of potential bidders, potentially reducing competitive pressure on price and innovation. While it can be effective for straightforward needs, a broader competition might have yielded better value, especially for a contract spanning several years and significant value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24621Q0337

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3130 SEMINOLE RD, FORT PIERCE, FL, 34951

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,999,484

Exercised Options: $1,999,484

Current Obligation: $1,999,484

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline