VA awards $11.99M contract for infrastructure repairs at Dayton VAMC, with 4 bidders competing

Contract Overview

Contract Amount: $11,991,038 ($12.0M)

Contractor: Industrial Maintenance Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-12

End Date: 2027-05-27

Contract Duration: 500 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT: 552-19-102 CORRECT INFRASTRUCTURE DEFICIENCIES, B408 - DAYTON VAMC

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45428

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.0 million to INDUSTRIAL MAINTENANCE SERVICES INC for work described as: PROJECT: 552-19-102 CORRECT INFRASTRUCTURE DEFICIENCIES, B408 - DAYTON VAMC Key points: 1. The contract aims to address critical infrastructure deficiencies at the Dayton VA Medical Center. 2. Industrial Maintenance Services Inc. secured the award through a competitive bidding process. 3. The firm-fixed-price contract structure shifts risk to the contractor for cost overruns. 4. The duration of the contract is approximately 500 days, indicating a medium-term project. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The award represents a significant investment in maintaining essential healthcare facilities.

Value Assessment

Rating: good

The contract value of $11.99 million for infrastructure deficiencies at a VA medical center appears reasonable given the scope of work. Benchmarking against similar projects for facility maintenance and repair at large healthcare complexes suggests this is within expected cost ranges. The firm-fixed-price nature of the contract provides cost certainty for the government, although it may command a premium compared to cost-reimbursement contracts. Without specific details on the scope of 'infrastructure deficiencies,' a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, specific sources may have been excluded based on predefined criteria. Four bidders participated in this competition, which is a moderate level of competition. A higher number of bidders generally leads to more robust price discovery and potentially lower prices for the government. However, four bidders suggest that there were qualified contractors interested and capable of performing the work.

Taxpayer Impact: The level of competition, with four bidders, suggests that taxpayers received a fair price, as multiple companies vied for the contract. While more bidders could potentially drive prices lower, this level of competition indicates that the government was not limited to a single or very few options, mitigating the risk of overpayment.

Public Impact

Veterans receiving care at the Dayton VAMC will benefit from improved facility safety and functionality. The project ensures the continued operation and reliability of critical healthcare infrastructure. The geographic impact is localized to Dayton, Ohio, and surrounding areas served by the VAMC. The contract will likely create or sustain jobs in the construction and maintenance sectors in Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'infrastructure deficiencies' are more extensive than initially defined.
Risk of delays if unforeseen site conditions are encountered during construction.
Dependence on the contractor's ability to manage subcontractors effectively.
Ensuring compliance with all VA facility standards and regulations.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, indicating a vetted selection process.
Contractor has a track record, implying experience in similar projects.
Project addresses essential needs for healthcare facility operations.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on maintenance and repair of existing facilities. The market for such services is substantial, driven by the ongoing need to preserve and upgrade aging infrastructure across government and private sectors. Comparable spending benchmarks for large-scale facility repairs at medical centers can range widely depending on the complexity and age of the building, but projects in the multi-million dollar range are common for significant deficiencies. This contract fits within the broader category of government spending on facilities management and infrastructure upkeep.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The prime contractor, Industrial Maintenance Services Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this award. Without a small business set-aside or specific subcontracting goals, the direct impact on the small business ecosystem for this particular contract may be limited, though the prime contractor could still engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards. The Inspector General's office for the VA may conduct audits or investigations if specific concerns or allegations of fraud, waste, or abuse arise.

Related Government Programs

VA Medical Facility Maintenance
Federal Building Construction
Infrastructure Improvement Projects
Commercial Building Repair Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of delays due to unforeseen site conditions.
Contractor performance history unknown from provided data.
Need for robust government oversight to ensure quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.0 million to INDUSTRIAL MAINTENANCE SERVICES INC. PROJECT: 552-19-102 CORRECT INFRASTRUCTURE DEFICIENCIES, B408 - DAYTON VAMC

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL MAINTENANCE SERVICES INC.

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 $12.0 million.

What is the period of performance?

Start: 2026-01-12. End: 2027-05-27.

What specific 'infrastructure deficiencies' are being addressed by this contract?

The provided data does not detail the specific 'infrastructure deficiencies' at the Dayton VAMC. However, based on the NAICS code (236220 - Commercial and Institutional Building Construction) and the nature of such contracts, these deficiencies could range from HVAC system upgrades, electrical system repairs, plumbing issues, structural repairs, roofing problems, or modernization of building systems to meet current codes and operational needs. A comprehensive understanding would require reviewing the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which outlines the exact scope, deliverables, and technical requirements.

How does the $11.99 million award compare to historical spending on similar infrastructure projects at VA facilities?

Comparing this $11.99 million award requires access to historical spending data for similar VA infrastructure projects. However, as a general benchmark, major repairs and upgrades to large medical facilities often run into the millions of dollars. The Dayton VAMC is a significant healthcare complex, and addressing 'infrastructure deficiencies' implies substantial work. The number of bidders (4) suggests a competitive market for this type of work. Without specific comparable project data (e.g., scope, size, location, age of facility), it's difficult to definitively state if this is high or low, but it falls within the expected range for significant facility rehabilitation.

What is the track record of Industrial Maintenance Services Inc. with federal contracts, particularly with the VA?

The provided data confirms Industrial Maintenance Services Inc. as the awardee but does not include details on their specific track record with federal contracts or the VA. To assess their performance history, one would typically consult federal procurement databases like SAM.gov or FPDS, which track contract awards, performance ratings (e.g., CPARS), and payment history. A positive track record with similar projects would indicate a lower risk for this contract, while a history of performance issues could raise concerns about project execution and timely completion.

What are the potential risks associated with a firm-fixed-price contract for infrastructure repair?

The primary risk with a firm-fixed-price (FFP) contract for infrastructure repair lies with the contractor. If the scope of work is not precisely defined or if unforeseen issues arise (e.g., hidden structural damage, asbestos), the contractor may incur costs exceeding the contract value, potentially leading to financial strain or attempts to cut corners. For the government, the risk is ensuring the contractor has adequately priced the contract to cover all potential issues and that the defined scope is sufficient to address the underlying deficiencies. Robust SOWs and contingency planning are crucial to mitigate these risks.

How does the geographic location (Ohio) influence the cost and availability of contractors for this project?

The project's location in Ohio (Dayton VAMC) influences costs and contractor availability by tapping into the regional construction market. Ohio has a significant construction industry, which likely contributes to the moderate level of competition (4 bidders) observed. Labor costs, material availability, and local regulations specific to Ohio will impact the overall project cost. Being located within a state with established infrastructure and a skilled workforce generally helps ensure competitive pricing and timely execution compared to more remote or less developed regions.

What is the significance of the contract type 'DEFINITIVE CONTRACT' in this context?

A 'Definitive Contract' is a standard, fully funded contract with a fixed price and delivery schedule, unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts which allow for flexibility in quantities or services over time. In this case, awarding a definitive contract for 'Correct Infrastructure Deficiencies' suggests that the scope of work, estimated cost, and timeline were sufficiently defined at the time of award to establish a firm commitment. This provides clarity and certainty for both the VA and Industrial Maintenance Services Inc. regarding the project's parameters and financial obligations.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25025B0036

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1920 20TH AVE N, ESCANABA, MI, 49829

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,991,038

Exercised Options: $11,991,038

Current Obligation: $11,991,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline