VA awards $595K purchase order for boiler rental, raising questions on competition and value

Contract Overview

Contract Amount: $594,845 ($594.8K)

Contractor: Ivan Ware & SON, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2026-07-31

Contract Duration: 545 days

Daily Burn Rate: $1.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SHERIDAN BOILER RENTAL

Place of Performance

Location: SHERIDAN, SHERIDAN County, WYOMING, 82801

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $594,845.28 to IVAN WARE & SON, LLC for work described as: SHERIDAN BOILER RENTAL Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery. 2. The duration of the rental period is 545 days, spanning over 1.5 years. 3. The awarded amount of $594,845.28 for boiler rental appears high for the specified period. 4. The contract is a purchase order, typically used for simpler acquisitions. 5. The vendor, Ivan Ware & Son, LLC, is receiving this award without a competitive process. 6. The contract is for 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing'.

Value Assessment

Rating: questionable

The awarded price of $594,845.28 for a 545-day boiler rental is substantial. Without competitive bidding, it is difficult to benchmark this price against market rates or similar government contracts. The lack of competition suggests potential overpayment or a lack of cost-effectiveness for the taxpayer. Further analysis would be needed to determine if this price reflects fair market value for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source or limited competition procurement. This means that only one vendor, Ivan Ware & Son, LLC, was solicited or considered for this requirement. The absence of a competitive bidding process prevents the government from exploring multiple offers and potentially securing a lower price.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for this essential equipment rental, as there was no pressure from competing vendors to offer lower bids.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, ensuring operational continuity for its facilities. The contract provides essential boiler rental services, likely for heating or industrial processes. The geographic impact is limited to Wyoming, where the vendor is located and services are likely rendered. There are no immediate workforce implications directly tied to this rental contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding raises concerns about price reasonableness and potential overspending.
The significant dollar amount for equipment rental warrants scrutiny, especially without a competitive process.
The sole-source nature of the award limits transparency and accountability in the procurement process.

Positive Signals

The contract ensures the VA has necessary equipment for its operations.
The award is for a defined period, providing clarity on the duration of the service.
The vendor is identified, allowing for tracking of performance if issues arise.

Sector Analysis

This contract falls under the 'Other Commercial and Industrial Machinery and Equipment Rental and Leasing' category. This sector involves providing temporary use of various types of machinery and equipment. Government spending in this area can fluctuate based on infrastructure needs, facility maintenance, and project-specific requirements. Benchmarking this specific boiler rental against broader equipment rental spending is challenging due to its specialized nature and the lack of competitive data.

Small Business Impact

This contract was not competed and there is no indication of small business set-aside or subcontracting requirements. Therefore, it does not appear to directly impact the small business ecosystem or provide opportunities for small business participation.

Oversight & Accountability

As a purchase order, oversight may be managed through the VA's internal procurement and contract management systems. Transparency is limited due to the non-competitive nature of the award. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the procurement or execution of this contract.

Related Government Programs

General Services Administration (GSA) Schedules for Equipment Rental
Department of Defense (DoD) Equipment Rental Contracts
Other Government Agency Equipment Leasing Agreements

Risk Flags

Non-competitive award raises concerns about price reasonableness.
Lack of transparency in procurement process.
Potential for taxpayer funds to be used inefficiently.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $594,845.28 to IVAN WARE & SON, LLC. SHERIDAN BOILER RENTAL

Who is the contractor on this award?

The obligated recipient is IVAN WARE & SON, 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 $594,845.28.

What is the period of performance?

Start: 2025-02-01. End: 2026-07-31.

What is the specific operational need driving the requirement for this boiler rental, and why was it not competed?

The provided data does not specify the exact operational need for the boiler rental. However, the 'NOT COMPETED' status suggests potential urgency, a lack of available vendors in the local market, or a previous relationship with the vendor that led to a sole-source justification. Typically, agencies must document the rationale for non-competitive awards, citing reasons such as urgent and compelling needs, unique capabilities of a single source, or when only one responsible source can provide the supplies or services. Without this documentation, the justification for not competing remains unclear, raising concerns about the procurement process.

How does the $594,845.28 price for a 545-day boiler rental compare to industry benchmarks or similar government contracts?

Benchmarking this specific boiler rental contract is challenging due to the lack of detailed specifications (e.g., boiler capacity, type, condition) and the absence of competitive pricing data. However, a rough daily cost can be estimated at approximately $1,091 ($594,845.28 / 545 days). This figure appears high for standard industrial boiler rentals, especially when considering that many government contracts for similar equipment are awarded through competitive processes that drive prices down. Without access to the justification for sole-source award or comparative market research conducted by the agency, it is difficult to definitively assess value for money. Further investigation into market rates for comparable boiler rentals in Wyoming would be necessary for a more precise comparison.

What is the track record of Ivan Ware & Son, LLC with federal contracts, particularly with the Department of Veterans Affairs?

The provided data indicates that Ivan Ware & Son, LLC is the recipient of this purchase order from the Department of Veterans Affairs (VA). However, the data does not offer insights into the company's broader federal contracting history, past performance, or previous awards. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review their history of awards, contract types, and any reported performance issues or successes. Without this broader context, it's difficult to evaluate their reliability and experience beyond this single award.

What are the potential risks associated with awarding a significant contract like this on a non-competitive basis?

Awarding a contract of this magnitude ($594,845.28) on a non-competitive basis carries several risks. Primarily, it increases the risk of paying an inflated price due to the lack of market competition, potentially leading to wasteful spending of taxpayer funds. It also reduces transparency in the procurement process, making it harder to ensure fairness and accountability. Furthermore, it can stifle innovation and limit opportunities for other qualified vendors, potentially hindering the government's ability to access the best solutions and pricing in the future. There's also a risk that the agency may not have fully explored all available options or identified the most cost-effective solution.

How does this contract align with the VA's overall spending patterns for equipment rental and maintenance?

This contract represents a significant expenditure for boiler rental services within the VA. To assess alignment with overall spending patterns, a comparative analysis of historical VA contracts for similar equipment rentals would be required. This would involve examining the frequency, duration, and cost of past boiler rentals, as well as the procurement methods used (competitive vs. non-competitive). Without this historical data, it's difficult to determine if this $595K award is an anomaly, a consistent investment, or an outlier in terms of cost and procurement strategy for the VA's equipment needs.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Commercial and Industrial Machinery and Equipment Rental and Leasing › Other Commercial and Industrial Machinery and Equipment Rental and Leasing

Product/Service Code: LEASE/RENT EQUIPMENT › LEASE OR RENTAL OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3401 BASHFORD AVENUE CT, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $594,845

Exercised Options: $594,845

Current Obligation: $594,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline