VA awards $6.76M contract for campus steam failure repairs to Jett's Specialty Contracting

Contract Overview

Contract Amount: $6,763,702 ($6.8M)

Contractor: Jett's Specialty Contracting, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-16

End Date: 2026-03-30

Contract Duration: 530 days

Daily Burn Rate: $12.8K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 657-23-115JB CORRECT CAMPUS STEAM FAILURES

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.8 million to JETT'S SPECIALTY CONTRACTING, LLC for work described as: 657-23-115JB CORRECT CAMPUS STEAM FAILURES Key points: 1. Contract addresses critical infrastructure needs for campus steam systems. 2. Jett's Specialty Contracting, an LLC, secured this award. 3. The contract is a firm-fixed-price definitive contract. 4. Performance period spans over 1.5 years. 5. Awarded under the Simplified Acquisition Procedures (SAP). 6. The contract value is within the typical range for specialized infrastructure repairs.

Value Assessment

Rating: good

The contract value of $6.76 million for campus steam failure repairs appears reasonable given the scope of work, which likely involves significant labor and materials for critical infrastructure. Benchmarking against similar large-scale HVAC and plumbing repair contracts for federal facilities suggests this pricing is competitive. The firm-fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchases but may not reach the full and open competition level of larger contracts. The specific number of bidders is not provided, but SAP aims to foster competition among qualified small businesses and other responsible sources. The limited competition under SAP can sometimes lead to slightly higher prices compared to full and open competition, but it also offers faster award timelines.

Taxpayer Impact: The use of SAP suggests an effort to balance competition with efficiency. Taxpayers benefit from a potentially faster resolution of critical infrastructure issues, while the government aims to secure a fair price through a structured, albeit not fully open, bidding process.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs facilities, ensuring operational continuity and a safe environment for veterans and staff. The services delivered include critical repairs to campus steam systems, preventing potential disruptions to heating, cooling, and other essential services. The geographic impact is localized to the specific VA campus where the repairs are being conducted in Missouri. The contract supports skilled labor in the plumbing, heating, and air-conditioning sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise in steam system repairs, though mitigated by firm-fixed-price.
Dependence on a single contractor for critical infrastructure maintenance could pose a risk if performance issues emerge.
Limited competition under SAP might not yield the absolute lowest price achievable through full and open bidding.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Contract addresses essential infrastructure, ensuring operational continuity for a critical federal agency.
Award to a specialized contractor suggests expertise in handling complex steam system issues.

Sector Analysis

The contract falls within the Construction and Facilities Maintenance sector, specifically focusing on specialized mechanical systems. The market for such services is robust, with numerous contractors capable of performing large-scale HVAC and plumbing work. Federal spending in this area is consistent, driven by the need to maintain aging infrastructure across government facilities. Comparable spending benchmarks for similar repair and maintenance contracts can vary widely based on facility size, system complexity, and geographic location.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Jett's Specialty Contracting, LLC is an LLC, its size status relative to small business definitions is not explicitly stated. The absence of a small business set-aside means larger businesses could potentially compete. Subcontracting opportunities for small businesses may arise if Jett's Specialty Contracting utilizes them for specialized tasks, but this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a definitive contract awarded under SAP, it is subject to standard procurement regulations and oversight. Accountability measures are embedded in the firm-fixed-price structure, requiring the contractor to complete the work within the agreed-upon budget. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facilities Maintenance Contracts
Federal HVAC Repair Services
Infrastructure Modernization Programs
Public Building Service Contracts

Risk Flags

Potential for cost overruns due to unforeseen infrastructure issues.
Risk of service disruption if repairs are delayed or incomplete.
Contractor performance quality concerns.
Dependency on a single vendor for critical repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.8 million to JETT'S SPECIALTY CONTRACTING, LLC. 657-23-115JB CORRECT CAMPUS STEAM FAILURES

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 $6.8 million.

What is the period of performance?

Start: 2024-10-16. End: 2026-03-30.

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

Information regarding Jett's Specialty Contracting, LLC's specific track record with the federal government is not detailed in the provided data snippet. However, the award of a $6.76 million contract by the Department of Veterans Affairs suggests they have met the necessary qualifications and demonstrated capability to perform such work. Further investigation into their past performance ratings, previous federal contracts, and any reported issues would be necessary for a comprehensive assessment. Federal procurement databases like SAM.gov or FPDS can often provide historical contract data, including performance evaluations, for contractors.

How does the $6.76 million contract value compare to similar VA steam system repair projects?

Without specific data on comparable VA steam system repair projects, a direct comparison is challenging. However, $6.76 million is a substantial amount, indicating a significant scope of work, potentially involving major overhauls or repairs across multiple buildings or a large central steam plant. The complexity of steam systems, their age, and the criticality of uninterrupted service often drive up costs. The firm-fixed-price nature suggests the VA has a defined scope and expects the contractor to manage costs within this budget. Benchmarking against similar infrastructure repair contracts for other federal agencies or large institutional facilities could provide a broader context for cost evaluation.

What are the primary risks associated with repairing campus steam failures?

Repairing campus steam failures presents several risks. Firstly, there's the risk of unforeseen complications within aging infrastructure, such as discovering more extensive pipe corrosion, insulation degradation, or structural damage than initially assessed, potentially leading to cost overruns if not managed effectively. Secondly, the critical nature of steam systems means any disruption can impact heating, cooling, and other essential services, affecting building occupants and operations. Thirdly, safety risks for workers are inherent in dealing with high-pressure, high-temperature systems. Finally, the potential for environmental hazards, such as asbestos in older insulation, requires careful handling and disposal protocols. The firm-fixed-price contract shifts some financial risk to the contractor, but operational and safety risks remain significant.

How effective is the Simplified Acquisition Procedures (SAP) in ensuring value for money for this type of contract?

Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for purchases below the simplified acquisition threshold (currently $250,000, though specific agency thresholds can vary, and this contract is significantly above that, suggesting a potential misinterpretation or a specific agency application of SAP principles). For contracts *above* the standard SAP threshold but still considered 'small business' procurements or using streamlined methods, SAP aims for efficiency and reasonable pricing. While it may not achieve the same level of price competition as full and open bidding, it can deliver good value by reducing administrative costs and speeding up delivery of essential services. The effectiveness hinges on proper solicitation, clear requirements, and adequate competition among the invited bidders. For a $6.76M contract, it's more likely that 'competed under SAP' refers to specific agency procedures that mirror SAP's efficiency goals rather than the standard dollar threshold.

What are the historical spending patterns for steam system maintenance at this VA facility?

The provided data does not include historical spending patterns for steam system maintenance at this specific VA facility. To assess this, one would need to access historical contract databases (e.g., FPDS, SAM.gov) and filter for contracts awarded to this VA facility or its parent organization for similar services (steam system repair, HVAC maintenance, plumbing) over previous fiscal years. Analyzing this data would reveal trends in spending, identify potential increases or decreases in maintenance costs, and highlight any recurring issues that may have led to this significant repair contract. Understanding historical spending is crucial for evaluating whether the current $6.76 million award represents a typical investment or an anomaly.

What are the implications of a firm-fixed-price contract for long-term infrastructure maintenance?

A firm-fixed-price (FFP) contract, like the one awarded to Jett's Specialty Contracting, obligates the contractor to perform the specified work for a predetermined price, regardless of the actual costs incurred. This provides the VA with significant cost certainty and budget predictability. The primary benefit is protection against cost overruns. However, for complex, long-term infrastructure maintenance where unforeseen issues are common, an FFP contract can incentivize the contractor to cut corners on quality or scope to protect their profit margin, or conversely, lead to disputes if the scope is not perfectly defined. It also places the risk of cost increases due to material prices or labor shortages squarely on the contractor. For critical systems, the VA must ensure the initial scope is comprehensive and the contractor has robust quality control measures.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25524R0096

Offers Received: 1

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: $6,763,702

Exercised Options: $6,763,702

Current Obligation: $6,763,702

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline