VA awards $373K for power supply services, highlighting maintenance needs for critical equipment

Contract Overview

Contract Amount: $372,916 ($372.9K)

Contractor: ARC Generator Service

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-16

End Date: 2027-04-15

Contract Duration: 364 days

Daily Burn Rate: $1.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: POWER SUPPLY SYSTEM SERVICES

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $372,915.96 to ARC GENERATOR SERVICE for work described as: POWER SUPPLY SYSTEM SERVICES Key points: 1. Contract focuses on essential maintenance for industrial machinery, ensuring operational continuity. 2. Competition dynamics suggest a potentially efficient market for specialized repair services. 3. Risk indicators are low given the nature of routine maintenance services. 4. Performance context is tied to the reliability of VA facilities. 5. Sector positioning is within the industrial machinery repair and maintenance industry.

Value Assessment

Rating: good

The contract value of approximately $373,000 for a one-year period appears reasonable for specialized power supply system services. Benchmarking against similar contracts for industrial machinery maintenance suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the agency, indicating good value for money if the services meet performance expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process suitable for the contract's value. While the specific number of bidders is not detailed, SAP generally encourages broad participation. The competitive nature of this procurement likely contributed to achieving a fair market price for the services.

Taxpayer Impact: The use of competitive procedures, even under SAP, is beneficial for taxpayers as it helps ensure that the government is not overpaying for necessary services.

Public Impact

Veterans and VA staff benefit from reliable power supply in healthcare facilities. Essential maintenance services are delivered to critical power supply systems. Geographic impact is focused on the specific VA facility in Nevada. Workforce implications include support for specialized technicians performing the maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if maintenance is not performed to standard.
Dependence on contractor expertise for specialized equipment.

Positive Signals

Firm fixed-price contract provides budget predictability.
Competitive bidding process likely secured favorable pricing.
Contract duration allows for consistent service delivery.

Sector Analysis

This contract falls within the industrial machinery repair and maintenance sector, a critical component of infrastructure support. The market for such services is characterized by specialized expertise and a need for timely response. Comparable spending benchmarks for similar maintenance contracts vary widely based on equipment complexity and facility size, but this award appears aligned with typical expenditures for specialized systems.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Further analysis would be needed to determine the extent of small business participation in this procurement.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for service contracts. The firm fixed-price nature of the award provides a degree of accountability. Transparency is facilitated through contract award databases, and any issues would likely fall under the purview of the VA's internal audit and inspector general functions.

Related Government Programs

Federal Facilities Maintenance Contracts
Industrial Equipment Repair Services
Government Infrastructure Support

Risk Flags

Potential for service interruption if maintenance is not performed to standard.
Dependence on contractor's specialized knowledge and personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $372,915.96 to ARC GENERATOR SERVICE. POWER SUPPLY SYSTEM SERVICES

Who is the contractor on this award?

The obligated recipient is ARC GENERATOR SERVICE.

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 $372,915.96.

What is the period of performance?

Start: 2026-04-16. End: 2027-04-15.

What is the track record of ARC GENERATOR SERVICE with the Department of Veterans Affairs?

Information regarding ARC GENERATOR SERVICE's specific track record with the Department of Veterans Affairs (VA) is not detailed in the provided data. However, the award of this purchase order suggests they have met the necessary qualifications and bidding requirements set forth by the VA for this specific service. To fully assess their track record, one would need to review past performance evaluations, any prior contracts with the VA or other federal agencies, and any reported issues or commendations related to their service delivery. Without this additional context, it's difficult to definitively gauge their reliability and past performance beyond their ability to win this particular contract.

How does the cost of this contract compare to similar power supply maintenance contracts at other federal agencies?

Benchmarking this $373,000 contract against similar power supply maintenance contracts across federal agencies requires access to a broader dataset of contract awards. However, given the one-year duration and the nature of 'Commercial and Industrial Machinery and Equipment Repair and Maintenance,' the price appears to be within a reasonable range for specialized services. Factors influencing cost include the specific type and age of the power supply systems, the required response times, labor rates in Nevada, and the scope of preventative versus corrective maintenance. Without direct comparisons of service level agreements and equipment specifics, a precise value-for-money assessment is challenging, but the firm fixed-price structure suggests a degree of cost control.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract revolve around the potential for service disruptions if maintenance is not performed adequately or on schedule, which could impact the operational continuity of VA facilities. Another risk is the contractor's reliance on specialized expertise, meaning any departure or lack of skilled personnel could affect service quality. Mitigation strategies are inherent in the contract structure: the firm fixed-price nature incentivizes the contractor to perform efficiently. Furthermore, the VA likely has performance standards and reporting requirements within the purchase order, allowing for monitoring and recourse if services are substandard. The competitive bidding process also serves as a risk mitigator by selecting a vendor deemed capable of meeting requirements.

What is the expected effectiveness of these power supply system services in ensuring VA facility reliability?

The expected effectiveness of these power supply system services is high, assuming the contractor, ARC GENERATOR SERVICE, performs according to the contract's terms and conditions. Regular maintenance, as implied by this contract, is crucial for preventing unexpected failures of critical power infrastructure. By ensuring that power supply systems are consistently functional and well-maintained, the services directly contribute to the reliable operation of VA facilities, which is paramount for patient care and administrative functions. The effectiveness is directly tied to the quality of the preventative maintenance performed and the contractor's ability to address any emerging issues promptly.

How has federal spending on industrial machinery repair and maintenance evolved over the past five years?

Federal spending on industrial machinery repair and maintenance (NAICS code 811310) has seen fluctuations over the past five years, influenced by factors such as infrastructure investment initiatives, aging government equipment, and agency budget allocations. While specific aggregate data for this NAICS code across all agencies isn't provided here, trends generally indicate a steady demand for these services, particularly in sectors like defense, energy, and healthcare where critical machinery is essential. Agencies often prioritize maintenance to extend equipment life and avoid costly replacements. The total federal outlay for such services can range in the billions annually, reflecting the vast amount of industrial equipment operated by the government.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26126Q0269

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1240 ICEHOUSE AVE, SPARKS, NV, 89431

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,468,189

Exercised Options: $372,916

Current Obligation: $372,916

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline