VA awards $2.1M HVAC contract to Jett's Specialty Contracting for Tuscaloosa VAMC

Contract Overview

Contract Amount: $2,114,316 ($2.1M)

Contractor: Jett's Specialty Contracting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-11

End Date: 2026-10-23

Contract Duration: 438 days

Daily Burn Rate: $4.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 679-22-106 REPLACE HVAC VARIOUS BLDGS, TUSCALOOSA VAMC

Place of Performance

Location: TUSCALOOSA, TUSCALOOSA County, ALABAMA, 35404

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to JETT'S SPECIALTY CONTRACTING, LLC for work described as: 679-22-106 REPLACE HVAC VARIOUS BLDGS, TUSCALOOSA VAMC Key points: 1. Contract focuses on essential building systems maintenance, crucial for facility operations. 2. Competition was open, suggesting a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Contract duration of over a year indicates a significant scope of work. 5. The awardee, Jett's Specialty Contracting, LLC, is a new entity in federal contracting. 6. The North American Industry Classification System (NAICS) code 238220 points to a specialized trade service.

Value Assessment

Rating: fair

The contract value of approximately $2.1 million for HVAC services at a VAMC facility appears within a reasonable range for a multi-year project of this nature. Benchmarking against similar HVAC repair and maintenance contracts for federal buildings of comparable size and complexity would provide a more definitive assessment of value. The firm fixed-price structure is a positive indicator for cost control, but the absence of detailed performance metrics makes a precise value-for-money assessment challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were excluded prior to the solicitation. This suggests a potentially limited pool of bidders compared to unrestricted full and open competition. The number of bidders (10) is a healthy sign, but the exclusion of sources warrants further investigation into the rationale and its potential impact on price discovery and overall competition.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may have resulted in a higher price than could have been achieved through unrestricted full and open competition, potentially costing taxpayers more.

Public Impact

Veterans receiving care at the Tuscaloosa VAMC will benefit from improved facility infrastructure and reliable HVAC systems. The contract ensures the continued operation and maintenance of critical building systems. The geographic impact is localized to Tuscaloosa, Alabama, and the surrounding region served by the VAMC. The contract supports jobs within the specialized HVAC contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the competition process raises concerns about the breadth of competition and potential impact on pricing.
Limited historical data on the awardee, Jett's Specialty Contracting, LLC, makes it difficult to assess their track record and past performance.
The specific scope of 'VARIOUS BLDGS' could lead to unforeseen complexities or cost overruns if not clearly defined.

Positive Signals

The firm fixed-price contract type provides cost certainty for the government.
The award of 10 bids indicates a degree of interest and potential capability within the market.
The contract addresses essential maintenance for a critical healthcare facility.

Sector Analysis

The HVAC services sector is a vital component of the construction and facilities maintenance industry. Federal agencies, particularly those with large infrastructure like the Department of Veterans Affairs, are significant consumers of these services. Spending in this area is driven by the need to maintain operational efficiency, ensure occupant comfort and safety, and comply with environmental regulations. Comparable spending benchmarks would typically involve analyzing contracts for similar HVAC upgrades, repairs, and maintenance across federal agencies and large commercial facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and facility management personnel. Accountability measures are typically embedded within the contract terms, including performance standards and payment schedules tied to successful completion of work. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facilities Maintenance Contracts
HVAC Services for Federal Buildings
Department of Veterans Affairs Construction Projects
General Services Administration (GSA) Building Operations

Risk Flags

Limited contractor experience
Potential for restricted competition
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to JETT'S SPECIALTY CONTRACTING, LLC. 679-22-106 REPLACE HVAC VARIOUS BLDGS, TUSCALOOSA VAMC

Who is the contractor on this award?

The obligated recipient is JETT'S SPECIALTY CONTRACTING, 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 $2.1 million.

What is the period of performance?

Start: 2025-08-11. End: 2026-10-23.

What is the track record of Jett's Specialty Contracting, LLC with federal contracts?

Based on the provided data, Jett's Specialty Contracting, LLC appears to be a relatively new entity in the federal contracting space, with this award being a significant initial contract. Further investigation into contract databases and agency procurement histories would be necessary to ascertain their full track record, including any prior performance on similar projects, past performance evaluations, and any history of contract disputes or terminations. The limited public information available for this specific awardee necessitates a cautious approach when assessing their reliability and experience for this critical HVAC project.

How does the awarded price compare to market rates for similar HVAC services?

The awarded price of approximately $2.1 million for this HVAC contract needs to be benchmarked against market rates for similar services. Factors such as the specific scope of work (e.g., repair, replacement, new installation), the size and complexity of the buildings at the Tuscaloosa VAMC, prevailing labor rates in Alabama, and the duration of the contract (438 days) are crucial for comparison. Without access to detailed cost breakdowns or a comprehensive market analysis of HVAC services in the region for federal facilities, it is difficult to definitively state whether this price represents excellent, fair, or concerning value. However, the firm fixed-price nature suggests an attempt to lock in costs.

What are the primary risks associated with this contract?

Key risks associated with this contract include potential performance issues from a less experienced contractor (Jett's Specialty Contracting, LLC), unforeseen complexities in the scope of work ('VARIOUS BLDGS'), and the possibility that the 'exclusion of sources' limited the competitive landscape, potentially leading to suboptimal pricing. Additionally, delays in project completion could impact the operational efficiency of the VAMC. The firm fixed-price contract, while beneficial for cost control, also shifts risk to the contractor; if they underestimate costs or encounter significant issues, it could impact their ability to complete the work satisfactorily.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach for this type of contract?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is debatable and depends heavily on the justification for excluding sources. While it aims to maintain a degree of competition, it inherently restricts the pool of potential bidders compared to unrestricted full and open competition. If the exclusions were based on legitimate technical requirements or past performance issues with certain vendors, it could lead to a more suitable contractor being selected. However, if the exclusions were arbitrary or overly broad, it could stifle competition, potentially leading to higher prices and reduced innovation. The fact that 10 bids were received suggests some level of market interest, but the true impact on price discovery and value requires further analysis of the exclusion criteria.

What is the historical spending pattern for HVAC services at the Tuscaloosa VAMC?

The provided data does not include historical spending patterns for HVAC services specifically at the Tuscaloosa VAMC. To analyze this, one would need to query federal procurement databases for previous contracts awarded to maintain and repair HVAC systems at this facility. Understanding past spending would allow for a comparison of contract values, durations, and awardees over time, helping to identify trends, potential cost increases, or shifts in contracting strategies. This historical context is crucial for assessing whether the current $2.1 million award is consistent with previous investments or represents a significant deviation.

What are the implications of the firm fixed-price (FFP) contract type for this project?

The Firm Fixed-Price (FFP) contract type is generally favored by government agencies for its cost certainty. Under an FFP contract, the contractor agrees to a total price for a well-defined scope of work, and is responsible for managing costs to achieve profitability. This shifts the risk of cost overruns from the government to the contractor. For this HVAC project, it means the Department of Veterans Affairs knows the maximum cost upfront, assuming no contract modifications. However, it also means the contractor has less incentive to control costs beyond what's necessary to meet the contract requirements, and the government may pay a premium for this price certainty. Changes to the scope of work would typically require contract modifications, potentially increasing the total price.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24725R0031

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 660 CHESTER HACK DR, PADUCAH, KY, 42003

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: $2,114,316

Exercised Options: $2,114,316

Current Obligation: $2,114,316

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline