VA Awards $4.28M Fire Alarm System Contract to Venergy Group LLC

Contract Overview

Contract Amount: $4,280,474 ($4.3M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-01

End Date: 2027-01-31

Contract Duration: 426 days

Daily Burn Rate: $10.0K/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: 598-22-125 | REPAIR/REPLACE FIRE ALARM SYSTEMS - NLR/JLM

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.3 million to VENERGY GROUP LLC for work described as: 598-22-125 | REPAIR/REPLACE FIRE ALARM SYSTEMS - NLR/JLM Key points: 1. Contract value of $4.28M for fire alarm system repair/replacement. 2. Venergy Group LLC is the awardee. 3. Department of Veterans Affairs is the contracting agency. 4. Contract duration is over 2 years (426 days). 5. Fixed-price contract type suggests cost certainty.

Value Assessment

Rating: fair

The contract value of $4.28M for fire alarm system repair/replacement appears reasonable given the scope and duration. Benchmarking against similar construction and maintenance contracts for federal facilities would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method implies that while competition was sought, certain sources were excluded, potentially limiting price discovery and the most competitive outcome.

Taxpayer Impact: The use of a limited competition method may result in a higher price than full and open competition, impacting taxpayer funds. Further details on the exclusion rationale are needed.

Public Impact

Ensures operational safety and compliance for VA facilities. Supports critical infrastructure maintenance for veterans' healthcare. Potential impact on local employment in Arkansas. Reliability of fire alarm systems is crucial for patient safety.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Lack of small business participation noted.
Contract type is fixed price, but scope creep could increase costs.

Positive Signals

Addresses critical safety infrastructure.
Clear contract duration and end date.
Fixed-price contract provides cost predictability.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector is significant for government operations, covering maintenance, repair, and new construction of federal facilities. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data indicates that small businesses were not involved in this contract (ss: false, sb: false). This represents a missed opportunity to support small business participation in federal contracting, particularly in the construction sector.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight should focus on ensuring the quality of work, adherence to the contract terms, and the effectiveness of the limited competition process.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may lead to higher costs.
No small business participation.
Potential for scope creep in fixed-price contracts.
Lack of detailed cost breakdown for assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.3 million to VENERGY GROUP LLC. 598-22-125 | REPAIR/REPLACE FIRE ALARM SYSTEMS - NLR/JLM

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 $4.3 million.

What is the period of performance?

Start: 2025-12-01. End: 2027-01-31.

What was the rationale for excluding sources in the competition process?

The rationale for excluding sources is critical to understanding the fairness and competitiveness of the award. Without this information, it's difficult to assess if the government obtained the best possible value. Further investigation into the specific criteria used for exclusion and whether these were justified is warranted to ensure taxpayer funds were used efficiently.

What is the estimated per-unit cost for fire alarm system components or services?

Determining the per-unit cost for fire alarm system components or services is essential for a robust value assessment. Without this benchmark, it's challenging to ascertain if Venergy Group LLC's pricing is competitive. Comparing these unit costs against industry standards and similar government contracts would highlight potential overpricing or cost savings.

How will the effectiveness of the repaired/replaced fire alarm systems be measured?

Measuring the effectiveness of the repaired or replaced fire alarm systems is crucial for ensuring the safety of VA facility occupants. Key performance indicators should include system reliability, response times to alarms, and successful integration with existing safety protocols. Post-installation testing and ongoing monitoring are vital to confirm the systems meet all safety and operational requirements.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25625R0055

Offers Received: 4

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: $4,280,474

Exercised Options: $4,280,474

Current Obligation: $4,280,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline