VA awards $997,839 contract for chiller transformer repair and replacement to VENERGY GROUP LLC

Contract Overview

Contract Amount: $997,839 ($997.8K)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-15

End Date: 2027-04-14

Contract Duration: 364 days

Daily Burn Rate: $2.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHILLER TRANSFORMER REPAIR AND REPLACEMENT

Place of Performance

Location: DUBLIN, LAURENS County, GEORGIA, 31021

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $997,839 to VENERGY GROUP LLC for work described as: CHILLER TRANSFORMER REPAIR AND REPLACEMENT Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 364 days suggests a focused scope of work. 3. Awarded by the Department of Veterans Affairs, likely supporting healthcare facilities. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized technical consulting. 5. This contract represents a single delivery order under a larger vehicle, potentially. 6. The contract value is relatively modest for infrastructure maintenance. 7. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: good

The contract value of $997,839 for chiller transformer repair and replacement appears reasonable for a single year of service. Benchmarking against similar infrastructure maintenance contracts for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the VA. Without specific details on the scope of work or the condition of the equipment, a definitive comparison is challenging, but the award to VENERGY GROUP LLC suggests they met the VA's technical and cost requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, leading to potentially better pricing and service quality. The fact that it was competed fully suggests that the VA sought the best value from the market. The number of bidders is not specified, but the full and open nature is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition maximizes the opportunity for taxpayers to receive the best possible value by encouraging a wide range of qualified contractors to bid, potentially driving down costs.

Public Impact

Veterans and VA staff benefit from reliable and functional HVAC systems, crucial for healthcare operations. Ensures the continuity of critical medical services by maintaining essential infrastructure. The contract supports specialized technical services within the Georgia region. Potential for skilled labor employment in technical repair and maintenance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial assessment of repair needs is inaccurate.
Dependence on VENERGY GROUP LLC for specialized expertise in chiller transformer systems.
Risk of unforeseen complexities in aging infrastructure requiring additional funding.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Full and open competition suggests a competitive award process.
Contract duration is clearly defined, allowing for focused project management.

Sector Analysis

The contract falls within the broader category of facilities maintenance and technical consulting services for government infrastructure. The market for specialized HVAC and electrical system repair is competitive, with numerous firms offering these services. The Department of Veterans Affairs, like other federal agencies, relies on such contracts to maintain its extensive network of hospitals and clinics, ensuring operational readiness. Spending benchmarks for similar infrastructure repairs can vary significantly based on the size and complexity of the facility and the specific equipment involved.

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. This means that larger businesses were eligible to compete and potentially win the award. The absence of a small business set-aside might limit opportunities for smaller, specialized firms in this particular procurement, though they may compete on other contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance checks to ensure that VENERGY GROUP LLC meets the terms and conditions of the contract. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Buildings and Facilities Maintenance
HVAC System Repair and Maintenance
Specialized Technical Consulting Services
Department of Veterans Affairs Infrastructure

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Contractor performance risk.
Dependence on specialized technical expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $997,839 to VENERGY GROUP LLC. CHILLER TRANSFORMER REPAIR AND REPLACEMENT

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 $997,839.

What is the period of performance?

Start: 2026-04-15. End: 2027-04-14.

What is the track record of VENERGY GROUP LLC in performing similar chiller transformer repair and replacement services for the federal government?

Assessing VENERGY GROUP LLC's track record requires a review of their past performance on federal contracts. This would involve examining contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any reported issues or successes. A history of successful, on-time, and within-budget completion of similar projects would indicate a lower performance risk. Conversely, a pattern of delays, cost overruns, or negative performance reviews would raise concerns about their capability to execute this specific contract effectively. Without access to detailed performance data, it is difficult to definitively assess their past performance.

How does the awarded amount of $997,839 compare to the estimated cost or market rates for similar chiller transformer repair and replacement services?

The awarded amount of $997,839 represents the total value for the specified period of performance. To benchmark this value, one would need to compare it against similar contracts awarded by the VA or other federal agencies for comparable services. Factors such as the size and type of chiller transformer, the extent of the required repairs or replacement, labor rates in the specific geographic location (Georgia), and the overall scope of work are critical for a fair comparison. If this amount is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing/underbidding. The firm-fixed-price nature suggests the contractor believes this amount is sufficient.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include potential unforeseen technical issues with aging equipment, leading to scope creep and cost increases, despite the firm-fixed-price contract. There's also a risk related to the contractor's performance and ability to meet deadlines and quality standards. Mitigation strategies likely involve thorough initial inspections, clear contract language defining deliverables and exclusions, robust contract administration by the VA to monitor progress and quality, and potentially performance bonds. The full and open competition aims to mitigate the risk of selecting an unqualified contractor. The defined contract duration also helps manage project timelines.

What is the expected impact of this contract on the operational effectiveness of the Department of Veterans Affairs facilities it serves?

This contract is crucial for maintaining the operational effectiveness of VA facilities by ensuring the reliable functioning of essential chiller transformer systems. These systems are vital for climate control, which is paramount in healthcare settings for patient comfort, equipment function, and infection control. A failure or degradation of these systems could disrupt critical medical services, compromise patient care, and lead to costly emergency repairs. By addressing repair and replacement needs proactively, this contract helps prevent such disruptions, thereby supporting the VA's mission to provide high-quality healthcare services to veterans.

What has been the historical spending pattern for chiller transformer repair and replacement by the Department of Veterans Affairs?

Analyzing historical spending for chiller transformer repair and replacement by the VA would involve reviewing aggregate data over several fiscal years. This would reveal trends in annual expenditures, identify periods of increased or decreased spending, and potentially highlight specific facilities or regions with higher maintenance needs. Understanding these patterns can help in budget forecasting, identifying potential infrastructure aging issues across the VA system, and assessing whether current spending levels are consistent with historical investments or represent a significant shift. It also helps in evaluating the long-term cost-effectiveness of maintenance versus replacement strategies.

Were there any specific technical requirements or challenges that led to this contract being awarded to VENERGY GROUP LLC?

The provided data does not specify the exact technical requirements or unique challenges that may have influenced the award to VENERGY GROUP LLC. However, given the nature of chiller transformer repair and replacement, it implies a need for specialized expertise in electrical engineering, HVAC systems, and potentially specific manufacturer knowledge. The full and open competition suggests that VENERGY GROUP LLC was among the offerors who best met the technical specifications, demonstrated the necessary qualifications, and provided a competitive price. Further details on the solicitation's technical evaluation criteria would be needed to understand specific award drivers.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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: 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: $997,839

Exercised Options: $997,839

Current Obligation: $997,839

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F054BA

IDV Type: FSS

Timeline