Venergy Group LLC Awarded $394K for Boiler Tune-Up Services at VA Medical Center

Contract Overview

Contract Amount: $39,411 ($39.4K)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-01

End Date: 2027-04-30

Contract Duration: 698 days

Daily Burn Rate: $56/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOILER TUNE-UP SERVICES FOR HOT SPRINGS SD VAMC

Place of Performance

Location: HOT SPRINGS, FALL RIVER County, SOUTH DAKOTA, 57747

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $39,411.46 to VENERGY GROUP LLC for work described as: BOILER TUNE-UP SERVICES FOR HOT SPRINGS SD VAMC Key points: 1. Contract awarded through Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is for boiler tune-up services, a critical maintenance function for facility operations. 3. The duration of the contract is approximately 23 months, indicating a need for ongoing support. 4. The award was made to Venergy Group LLC, a single entity for this specific service. 5. The contract type is Firm Fixed Price, which provides cost certainty for the government. 6. The geographic location of service is South Dakota, serving the Hot Springs VA Medical Center.

Value Assessment

Rating: good

The contract value of $394,114.60 for approximately 23 months of boiler tune-up services appears reasonable for specialized facility maintenance. Benchmarking against similar HVAC maintenance contracts for federal facilities of comparable size and complexity would provide a more precise value assessment. However, given the fixed-price nature and the specific scope of tune-up services, the pricing is likely within an acceptable range for ensuring operational readiness of critical infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a less formal solicitation process than full and open competition. While the specific number of bidders is not detailed, SAP is often used for procurements valued below the simplified acquisition threshold, where competition may be more limited. The use of SAP suggests that the agency sought to streamline the acquisition process for a relatively smaller dollar value requirement.

Taxpayer Impact: The use of SAP for this contract may result in less aggressive price competition compared to full and open solicitations, potentially leading to slightly higher costs for taxpayers. However, the value is within a range where the administrative savings from SAP might offset some of the reduced competitive pressure.

Public Impact

Veterans receiving care at the Hot Springs SD VAMC benefit from reliable facility operations, ensured by properly maintained heating systems. The contract ensures the continued functionality of essential building systems, contributing to a safe and comfortable environment for patients and staff. Services are geographically focused on South Dakota, specifically supporting a key Department of Veterans Affairs facility. The contract supports specialized technical services, potentially involving skilled technicians in the HVAC and facility maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures.
Reliance on a single vendor for critical maintenance services.
Scope may not cover comprehensive repair needs, only tune-ups.

Positive Signals

Firm Fixed Price contract provides budget certainty.
Focus on essential maintenance to ensure facility operational continuity.
Service is for a specific, critical VA facility.

Sector Analysis

The facility maintenance and operations sector, particularly for government buildings, involves a wide range of specialized services. Boiler tune-up services fall under the HVAC (Heating, Ventilation, and Air Conditioning) segment of this market. Federal agencies often contract for these services to ensure the reliability and efficiency of their infrastructure, with spending varying significantly based on the size and age of facilities. Comparable spending benchmarks for HVAC maintenance can range from tens of thousands to millions of dollars annually, depending on the scope and scale of the facility.

Small Business Impact

The data indicates this contract was competed under SAP and does not specify small business set-aside or subcontracting goals. Without further information, it's difficult to assess the direct impact on small businesses. However, SAP procurements can sometimes offer opportunities for small businesses if they are actively solicited.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and facility managers. As a Purchase Order awarded under SAP, it is expected to adhere to federal acquisition regulations. Transparency is generally maintained through contract databases like SAM.gov. Specific Inspector General jurisdiction would apply if performance issues or fraud were suspected.

Related Government Programs

VA Facility Maintenance Contracts
HVAC Services for Federal Buildings
Boiler Maintenance Contracts
Simplified Acquisition Procedures (SAP) Procurements

Risk Flags

Potential for limited competition under SAP
Reliance on contractor for critical infrastructure maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $39,411.46 to VENERGY GROUP LLC. BOILER TUNE-UP SERVICES FOR HOT SPRINGS SD VAMC

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 $39,411.46.

What is the period of performance?

Start: 2025-06-01. End: 2027-04-30.

What is the track record of Venergy Group LLC with federal contracts, particularly for HVAC maintenance?

A review of federal contract databases would be necessary to fully assess Venergy Group LLC's track record. Information regarding past performance, contract history, and any reported issues or awards would provide insight into their reliability and experience. For this specific contract, the Department of Veterans Affairs would have conducted a pre-award assessment of the contractor's capability and past performance, especially given it's a critical maintenance service. Without access to detailed performance reviews or a comprehensive contract history, it's challenging to provide a definitive assessment of their track record beyond what is implied by the award itself.

How does the $394,114.60 contract value compare to similar boiler tune-up services at other VA facilities?

Benchmarking this contract's value requires comparing it to similar boiler tune-up and maintenance services at VA facilities of comparable size and operational complexity. Factors such as the number of boilers, the age of the facility's heating system, and the specific scope of 'tune-up' services (e.g., frequency, included checks) significantly influence cost. While $394,114.60 over approximately 23 months appears reasonable for specialized maintenance, a detailed comparison with contracts for similar-sized VAMCs or other federal medical centers would be needed to confirm if it represents excellent, fair, or questionable value for money. The fixed-price nature suggests cost certainty, but the unit cost or cost per service event is the key metric for comparison.

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

The primary risks associated with this contract include potential underperformance by the contractor leading to system failures, inadequate scope definition resulting in missed maintenance needs, and price escalation if the fixed price was not adequately set. Mitigation strategies likely involve the VA's pre-award assessment of Venergy Group LLC's capabilities, clear performance work statements (PWS) defining the scope and quality of services, and ongoing contract administration and oversight by VA personnel. The Firm Fixed Price (FFP) structure shifts some risk to the contractor, incentivizing them to perform efficiently. However, the risk of critical system failure due to unforeseen issues not covered by 'tune-up' remains.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for services like boiler tune-ups?

SAP is designed for efficiency in acquiring goods and services below a certain dollar threshold (currently $250,000, though specific agency thresholds may vary). While it streamlines the process, it generally offers less robust competition than full and open competition. For services like boiler tune-ups, which are critical but may not always attract a large number of specialized bidders, SAP can be effective in obtaining necessary services quickly. However, the reduced number of potential bidders might limit price discovery, potentially leading to higher costs than if the contract were competed more broadly. The effectiveness hinges on the agency's outreach efforts within the SAP framework.

What is the historical spending pattern for boiler maintenance at the Hot Springs SD VAMC?

Analyzing historical spending data for boiler maintenance at the Hot Springs SD VAMC would reveal trends in contract values, frequency of awards, and the types of contractors utilized. This information is crucial for understanding if current spending is consistent with past investments, if costs have increased or decreased over time, and whether there's a pattern of sole-sourcing or limited competition. Without access to this specific historical data, it's difficult to contextualize the current $394K award. A trend analysis could highlight potential inefficiencies or confirm consistent investment in facility upkeep.

What are the implications of a Firm Fixed Price (FFP) contract for boiler tune-up services?

A Firm Fixed Price (FFP) contract for boiler tune-up services means the contractor, Venergy Group LLC, is obligated to perform the specified work for a predetermined price, regardless of their actual costs. This provides the Department of Veterans Affairs (VA) with significant cost certainty and predictability. The contractor assumes the primary risk for cost overruns, incentivizing them to manage their resources efficiently and perform the work effectively to maintain profitability. For the VA, this structure simplifies budgeting and financial management. However, it's crucial that the initial price is fair and reflects the anticipated scope of work, as the FFP structure limits the VA's ability to adjust the price upwards if costs increase unexpectedly for the contractor.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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: 36C26325Q0579

Offers Received: 3

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, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $106,231

Exercised Options: $39,411

Current Obligation: $39,411

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline