VA awards $4.99M contract for JACC chilled water piping repair to The Spanos Group LLC

Contract Overview

Contract Amount: $4,992,977 ($5.0M)

Contractor: THE Spanos Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-07

End Date: 2026-10-20

Contract Duration: 378 days

Daily Burn Rate: $13.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 520-25-107 REPAIR JACC CHILLED WATER PIPING

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39531

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.0 million to THE SPANOS GROUP LLC for work described as: PROJECT 520-25-107 REPAIR JACC CHILLED WATER PIPING Key points: 1. Contract awarded for essential facility maintenance, ensuring operational continuity. 2. The Spanos Group LLC, a construction firm, secured this award. 3. Fixed-price contract type suggests cost certainty for the government. 4. Contract duration of 378 days indicates a focused, project-specific scope. 5. Awarded by the Department of Veterans Affairs, likely supporting a medical center. 6. No small business set-aside noted, suggesting a focus on specialized capabilities.

Value Assessment

Rating: fair

The contract value of $4.99 million for chilled water piping repair appears to be within a reasonable range for a project of this nature, though specific benchmarks are unavailable without more detailed project scope. The firm-fixed-price structure is generally favorable for managing costs. However, the lack of competitive bidding raises questions about whether the best possible value was achieved. Further analysis would require comparing this cost to similar repairs at other VA facilities or similar institutional buildings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. This approach is typically used when only one responsible source is available or when a compelling justification exists for not seeking competition. The limited competition raises concerns about potential price inflation and whether alternative, potentially more cost-effective solutions were overlooked. The absence of multiple bids means the government did not benefit from the price discovery mechanisms inherent in a competitive process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a bidding process, there's a risk that the awarded price is higher than it would have been in a competitive scenario.

Public Impact

Veterans receiving care at the facility will benefit from uninterrupted services due to reliable HVAC systems. The contract delivers essential infrastructure repair services, maintaining critical building functions. The geographic impact is localized to the specific Department of Veterans Affairs facility in Mississippi. The contract supports the construction and maintenance workforce through employment opportunities for The Spanos Group LLC's personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can indicate potential market failures or specific contractor dependencies.
Limited transparency into the justification for sole-source award.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Award to an established entity (The Spanos Group LLC) suggests some level of pre-qualification.
Project addresses critical infrastructure maintenance, ensuring facility operational continuity.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is vital for maintaining federal infrastructure. This contract falls within the broader category of facilities maintenance and repair, a consistent area of government spending. The market for such services is typically robust, with numerous firms capable of performing repairs. However, specific niche repairs or emergency situations can sometimes lead to less competitive awards. Benchmarking against similar repair projects in the healthcare or institutional building sectors would provide further context on value.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, The Spanos Group LLC, is either a large business or that the nature of the work did not lend itself to a small business set-aside. The absence of specific small business provisions means there is no direct mechanism within this contract to boost the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. The firm-fixed-price nature of the award simplifies some aspects of financial oversight. Accountability measures would be tied to the successful completion of the piping repair according to the contract's specifications and timeline. Transparency is limited due to the sole-source nature of the award, with the justification for this approach being a key area for scrutiny.

Related Government Programs

Department of Veterans Affairs Facility Maintenance Contracts
Federal Building Infrastructure Repair
Chilled Water System Maintenance
Commercial and Institutional Building Construction Services

Risk Flags

Sole-source award raises concerns about price competition.
Lack of small business participation noted.
Potential for cost overruns if scope is not fully defined in FFP contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.0 million to THE SPANOS GROUP LLC. PROJECT 520-25-107 REPAIR JACC CHILLED WATER PIPING

Who is the contractor on this award?

The obligated recipient is THE SPANOS 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 $5.0 million.

What is the period of performance?

Start: 2025-10-07. End: 2026-10-20.

What is the track record of The Spanos Group LLC with the Department of Veterans Affairs?

Information regarding The Spanos Group LLC's specific track record with the Department of Veterans Affairs (VA) is not detailed in the provided data. However, as a recipient of a definitive contract, the company has undergone some level of vetting by the agency. To fully assess their track record, one would need to examine past performance reviews, any history of contract modifications, timely completion rates, and overall satisfaction levels on previous VA projects. A deeper dive into federal procurement databases and past performance information repositories would be necessary to provide a comprehensive overview of their history with the VA and other federal agencies.

How does the $4.99 million cost compare to similar chilled water piping repair projects?

Without specific details on the scope, complexity, and location of the repair, a direct cost comparison for this $4.99 million contract is challenging. Similar projects can vary significantly in price based on factors such as the length and diameter of piping, the extent of damage, accessibility, the need for specialized materials, and labor costs in the specific geographic region. To benchmark this cost effectively, one would need to identify comparable VA facility repair contracts or similar institutional building projects that involved extensive chilled water piping work. Analyzing the cost per linear foot of piping repaired, or the cost as a percentage of the total facility value, could provide more meaningful comparative insights.

What are the primary risks associated with this sole-source contract award?

The primary risks associated with this sole-source contract award are related to cost and competition. Firstly, the lack of competition means the Department of Veterans Affairs (VA) may not have secured the most cost-effective price, potentially leading to overpayment by taxpayers. Secondly, sole-source awards can sometimes indicate a lack of available qualified contractors in the market for this specific type of repair, or a failure in the government's procurement process to identify and solicit from multiple sources. This could also imply a reliance on a single contractor, creating potential future dependencies and limiting options for subsequent work. Finally, the justification for the sole-source award itself needs careful scrutiny to ensure it was appropriate and not based on convenience.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and the risks are understood. For a project like repairing chilled water piping, where the physical work is tangible, an FFP contract provides the government with cost certainty. The contractor assumes the risk of cost overruns, incentivizing them to manage their expenses efficiently. This structure helps prevent unexpected budget increases for the VA. However, the effectiveness is contingent on the accuracy of the initial cost estimate and the completeness of the project scope defined in the contract. If unforeseen issues arise that significantly expand the scope, the FFP nature might lead to change orders, potentially increasing the total cost.

What is the historical spending pattern for similar facility repair contracts at the VA?

Historical spending patterns for similar facility repair contracts at the Department of Veterans Affairs (VA) typically show a significant and consistent allocation of funds towards maintaining its vast network of healthcare facilities. These expenditures cover a wide range of needs, from minor upkeep to major infrastructure overhauls like HVAC systems, roofing, and structural repairs. Spending can fluctuate based on agency budget appropriations, the age and condition of facilities, and specific repair initiatives. Analyzing past VA contract awards for building construction and maintenance, particularly those related to mechanical systems in medical centers, would reveal trends in contract values, types of services procured, and the prevalence of competitive versus non-competitive awards.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N/A

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 366 OKALOOSA RD NE, FORT WALTON BEACH, FL, 32548

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,992,977

Exercised Options: $4,992,977

Current Obligation: $4,992,977

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline