VA awards $793K for Utility Steam Service to University of Kentucky, a sole-source contract

Contract Overview

Contract Amount: $79,359 ($79.4K)

Contractor: University of Kentucky

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $218/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTILITY STEAM SERVICE

Place of Performance

Location: LEXINGTON, FAYETTE County, KENTUCKY, 40502

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $79,359.45 to UNIVERSITY OF KENTUCKY for work described as: UTILITY STEAM SERVICE Key points: 1. The contract value is $793,599.45 for a 1-year period. 2. This is a sole-source award, limiting competition. 3. The risk appears low due to the nature of the service and established provider. 4. The sector is utilities, specifically steam and air-conditioning supply.

Value Assessment

Rating: fair

Pricing is not benchmarked against similar contracts as it's a sole-source award. The firm fixed price suggests cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not available for competition, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: Taxpayer funds are committed without competitive bidding, which may result in a less favorable price than if multiple vendors were considered.

Public Impact

Veterans in Kentucky will continue to receive essential services supported by this contract. The University of Kentucky benefits from a guaranteed revenue stream for its utility services. The Department of Veterans Affairs ensures operational continuity for its facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price negotiation.
Lack of competitive bidding may lead to inflated costs.

Positive Signals

Ensures continuity of essential utility services.
Established relationship with a known provider.

Sector Analysis

This contract falls within the utilities sector, specifically providing steam and air-conditioning. Spending benchmarks for such services can vary widely based on location and facility size.

Small Business Impact

There is no indication that small businesses were involved in this sole-source award. The contract was awarded directly to the University of Kentucky.

Oversight & Accountability

The award is a purchase order, which is a standard procurement instrument. Oversight would focus on contract performance and adherence to the firm fixed price.

Related Government Programs

Steam and Air-Conditioning Supply
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency on justification
No clear performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $79,359.45 to UNIVERSITY OF KENTUCKY. UTILITY STEAM SERVICE

Who is the contractor on this award?

The obligated recipient is UNIVERSITY OF KENTUCKY.

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 $79,359.45.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the justification for the sole-source award, and was a market research conducted to confirm no other viable sources exist?

The justification for the sole-source award is not provided in the data. Typically, sole-source awards require extensive market research to demonstrate that only one responsible source can provide the required supply or service. Without this information, it's difficult to assess if the VA adequately explored competitive options or if there are specific circumstances (e.g., unique capabilities, existing infrastructure integration) necessitating this approach.

How does the $793,599.45 price compare to historical utility steam service contracts for similar VA facilities or other government entities?

Benchmarking this price is challenging without access to comparable contract data. As a sole-source award, direct price comparisons are difficult. However, the VA should have internal historical data or industry benchmarks for utility services to assess if this price is reasonable given the duration, service level, and location. A significant deviation from historical averages could indicate potential overpricing.

What are the key performance indicators (KPIs) for this utility steam service contract, and how will the VA monitor service quality and reliability?

The provided data does not specify the KPIs for this contract. Effective oversight would involve defining clear metrics for steam quality, delivery reliability, response times for issues, and energy efficiency. The VA should have a robust system for monitoring these KPIs and holding the University of Kentucky accountable for meeting contractual obligations to ensure consistent and reliable service delivery.

Industry Classification

NAICS: Utilities › Water, Sewage and Other Systems › Steam and Air-Conditioning Supply

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 800 ROSE ST, LEXINGTON, KY, 40536

Business Categories: Category Business, Educational Institution, Government, Higher Education, U.S. National Government, Not Designated a Small Business, Higher Education (Public), U.S. Regional/State Government

Financial Breakdown

Contract Ceiling: $79,359

Exercised Options: $79,359

Current Obligation: $79,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline