VA awards $57.7K for emergency boiler plant O2 analyzer replacement to VENERGY GROUP LLC

Contract Overview

Contract Amount: $57,681 ($57.7K)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-05-31

Contract Duration: 60 days

Daily Burn Rate: $961/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY: BOILER PLANT O2 ANALYZER REPLACEMENT.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,681.24 to VENERGY GROUP LLC for work described as: EMERGENCY: BOILER PLANT O2 ANALYZER REPLACEMENT. Key points: 1. Contract awarded on a sole-source basis due to emergency. 2. Short performance period suggests a critical, immediate need. 3. Firm Fixed Price contract type limits cost overrun risk. 4. No small business set-aside utilized. 5. Geographic focus on Florida. 6. Electronic and Precision Equipment Repair and Maintenance sector.

Value Assessment

Rating: fair

The contract value of $57,681.24 for an emergency boiler plant O2 analyzer replacement appears reasonable for a specialized repair and maintenance service. However, without specific details on the equipment model, scope of work, or comparable emergency service rates, a definitive value-for-money assessment is challenging. The short duration of the contract (60 days) suggests a focused, urgent task, which can sometimes command premium pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, citing an emergency. This indicates that the Department of Veterans Affairs did not conduct a competitive procurement process. While emergencies can necessitate sole-source awards to ensure critical operations are maintained, it limits the agency's ability to explore multiple vendor options and potentially secure more favorable pricing or terms.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings that can arise from competitive bidding, potentially leading to higher prices than if multiple vendors had competed.

Public Impact

Benefits the Department of Veterans Affairs by ensuring the operational integrity of a boiler plant. Services delivered include the replacement of a critical O2 analyzer. Geographic impact is localized to the facility in Florida where the boiler plant is located. Workforce implications are minimal, likely involving specialized technicians for the replacement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition due to sole-source emergency award may have resulted in a higher price.
Limited transparency on the specific nature of the emergency and why competition was not feasible.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Short performance period ensures rapid resolution of the critical equipment need.
Award to VENERGY GROUP LLC, a known entity in the sector.

Sector Analysis

This contract falls within the Electronic and Precision Equipment Repair and Maintenance sector, specifically related to industrial plant equipment. The market for such specialized repair services can be niche, with a limited number of qualified providers. Emergency repairs often command higher rates due to the urgency and the need for immediate availability of skilled personnel and parts.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on its nature and value. The award was made directly to VENERGY GROUP LLC.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. As a sole-source award due to an emergency, it may be subject to review by the VA's Office of Inspector General to ensure the justification for the emergency and sole-source procurement was valid and that the pricing was reasonable under the circumstances.

Related Government Programs

VA Facility Maintenance Contracts
Industrial Equipment Repair Services
Emergency Procurement Procedures

Risk Flags

Sole-source award due to emergency
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,681.24 to VENERGY GROUP LLC. EMERGENCY: BOILER PLANT O2 ANALYZER 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 $57,681.24.

What is the period of performance?

Start: 2026-04-01. End: 2026-05-31.

What is the specific type and model of the O2 analyzer being replaced, and what is the criticality of its failure?

The provided data does not specify the exact make and model of the O2 analyzer. However, its replacement is categorized as an 'EMERGENCY,' indicating that the existing unit has failed or is critically malfunctioning, posing a significant risk to the boiler plant's safe and efficient operation. Boiler plant oxygen analyzers are crucial for monitoring combustion efficiency and emissions, and their failure can lead to reduced performance, increased fuel consumption, or potential safety hazards. The urgency suggests that immediate replacement was necessary to prevent operational disruption or safety compromise at the VA facility.

What is the justification for the sole-source award, and were alternative competitive options explored?

The justification for the sole-source award is stated as 'EMERGENCY.' This implies that the situation required immediate action, and the agency determined that soliciting bids from multiple vendors would cause unacceptable delays. Agencies typically document the specific circumstances of the emergency and why only one vendor could meet the urgent requirement. Without access to the full contract file, it's difficult to ascertain if any limited competitive actions were considered or if the emergency was so acute that only a direct award was feasible. Sole-source awards are exceptions to the general policy of full and open competition.

How does the price of $57,681.24 compare to similar emergency O2 analyzer replacements in the market?

Benchmarking this specific emergency O2 analyzer replacement cost is challenging without more detailed information. The $57,681.24 figure covers the analyzer itself, installation, and potentially any associated diagnostics or calibration, all under an emergency condition. Emergency services often incur a premium due to the immediate need for parts and labor, potentially including overtime or expedited shipping. Comparable costs would depend heavily on the specific analyzer technology, the complexity of the boiler plant system, and the geographic location. A typical non-emergency replacement might cost significantly less, but the 'EMERGENCY' designation suggests this price reflects a premium for rapid fulfillment.

What is VENERGY GROUP LLC's track record with the Department of Veterans Affairs and similar contracts?

The provided data indicates VENERGY GROUP LLC was awarded this contract. To assess their track record, one would need to examine their past performance history with the VA and other federal agencies, looking at factors like on-time delivery, quality of work, and adherence to contract terms. Information on previous contracts, including their value, scope, and customer satisfaction ratings, would be crucial. Without access to a comprehensive contractor performance database or specific details on VENERGY GROUP LLC's history with the VA, it's difficult to provide a detailed assessment of their reliability for this type of emergency repair.

What are the potential risks associated with a sole-source emergency procurement of this nature?

The primary risks associated with a sole-source emergency procurement include potentially paying a higher price than could be achieved through competition, and a reduced level of transparency in the acquisition process. There's also a risk that the chosen vendor may not be the most capable or cost-effective option if a thorough vetting process was bypassed due to urgency. Furthermore, over-reliance on emergency sole-source awards can indicate potential issues with proactive maintenance planning or supply chain management within the agency. Ensuring the emergency justification is valid and the price is fair under the circumstances is critical to mitigating these risks.

Industry Classification

NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24826Q0509

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, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $57,681

Exercised Options: $57,681

Current Obligation: $57,681

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline