VA awards $681K for annual boiler inspections to RJY Group LLC, a 4-year contract

Contract Overview

Contract Amount: $681,542 ($681.5K)

Contractor: RJY Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-01

End Date: 2024-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $467/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANNUAL BOILER INSPECTIONS

Place of Performance

Location: PHOENIX, MARICOPA County, ARIZONA, 85012

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $681,541.95 to RJY GROUP LLC for work described as: ANNUAL BOILER INSPECTIONS Key points: 1. Contract value is moderate for specialized building equipment services. 2. RJY Group LLC is a small business, potentially limiting competition. 3. Risk of service disruption if contractor performance issues arise. 4. Sector is essential for maintaining VA facility operations.

Value Assessment

Rating: fair

The contract value of $681,541.95 over four years averages to approximately $170,385 per year. Benchmarking against similar annual boiler inspection contracts is difficult without more specific service scope, but this appears to be within a reasonable range for comprehensive services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), suggesting an expectation of limited competition, likely due to the contract's value threshold. This method may not yield the most competitive pricing.

Taxpayer Impact: The use of SAP for this contract value suggests an effort to streamline procurement, but it may result in higher costs than a full and open competition.

Public Impact

Ensures safe and operational heating systems for VA facilities. Supports the health and well-being of veterans using VA services. Provides essential maintenance to prevent costly emergency repairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
Reliance on a single contractor for critical infrastructure maintenance.
Potential for service interruptions if contractor fails to perform.

Positive Signals

Contract supports essential facility operations.
Firm Fixed Price contract provides cost certainty.
Contract duration aligns with operational needs.

Sector Analysis

This contract falls under the 'Other Building Equipment Contractors' category, which includes services like HVAC maintenance and repair. Spending in this sector is crucial for government facility upkeep, with benchmarks varying widely based on facility size and complexity.

Small Business Impact

RJY Group LLC is identified as a small business. While supporting small businesses is a government priority, the limited competition aspect under SAP might indicate that larger, more specialized firms were not actively pursued or considered.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would typically involve regular performance reviews and adherence to contract terms to ensure service quality and taxpayer value.

Related Government Programs

Other Building Equipment Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for price inflation due to limited competition.
Risk of service disruption if contractor performance is inadequate.
Dependency on a single small business for critical infrastructure.
Lack of detailed service scope hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $681,541.95 to RJY GROUP LLC. ANNUAL BOILER INSPECTIONS

Who is the contractor on this award?

The obligated recipient is RJY 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 $681,541.95.

What is the period of performance?

Start: 2020-10-01. End: 2024-09-30.

What is the specific scope of services included in the annual boiler inspections to accurately benchmark pricing?

The provided data lacks specific details on the scope of services for the annual boiler inspections. To accurately benchmark pricing, information on the number and type of boilers, required inspection procedures (e.g., internal, external, emissions testing), reporting requirements, and any associated preventative maintenance tasks would be necessary. Without this, comparisons are generalized.

What steps were taken to ensure fair pricing under the limited competition SAP process?

Under Simplified Acquisition Procedures (SAP), agencies are expected to obtain price reasonableness determinations. This typically involves comparing offered prices to historical prices for similar services, catalog prices, or prices from other vendors if available. The extent to which these steps were rigorously applied to ensure fair pricing for RJY Group LLC's services is not detailed in the provided data.

How does the performance history of RJY Group LLC impact the effectiveness of this contract?

The effectiveness of this contract is directly tied to RJY Group LLC's past performance. A history of timely, high-quality inspections and responsive service would indicate a lower risk of operational disruptions and ensure the VA facilities' heating systems remain safe and functional. Conversely, a poor performance record would raise concerns about the reliability of the service.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Other Building Equipment Contractors

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25820Q0382

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9303 KIRBY STE B, HOUSTON, TX, 77054

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

Financial Breakdown

Contract Ceiling: $681,542

Exercised Options: $681,542

Current Obligation: $681,542

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline