GSA awards $11.6M for VBA Domestic Water Line Upgrade to Fedcap Rehabilitation Services, Inc

Contract Overview

Contract Amount: $11,637 ($11.6K)

Contractor: Fedcap Rehabilitation Services, Inc

Awarding Agency: General Services Administration

Start Date: 2026-04-06

End Date: 2026-07-05

Contract Duration: 90 days

Daily Burn Rate: $129/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: VBA DOMESTIC WATER LINE UPGRADE

Place of Performance

Location: NEWARK, ESSEX County, NEW JERSEY, 07102

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $11,637.3 to FEDCAP REHABILITATION SERVICES, INC for work described as: VBA DOMESTIC WATER LINE UPGRADE Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Short performance period of 90 days suggests a focused scope of work. 3. Facilities Support Services sector sees significant government investment. 4. Fixed-price contract type shifts risk to the contractor. 5. No small business set-aside, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $11.6 million for a 90-day water line upgrade appears high for the duration and scope. Without specific details on the project's complexity, it's difficult to benchmark against similar contracts. The firm fixed-price structure, however, provides cost certainty for the government, assuming the contractor can manage their expenses effectively within the awarded amount.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach limits the number of potential bidders and may result in higher prices than if a competitive process had been employed. The lack of competition means the government did not benefit from a range of proposals and pricing strategies.

Taxpayer Impact: The sole-source award means taxpayers may not have received the most competitive pricing available in the market for these services.

Public Impact

The primary beneficiary is the General Services Administration (GSA) through the upgrade of its facilities. The service delivered is essential infrastructure maintenance, specifically water line upgrades. The geographic impact is localized to New Jersey, where the project is being executed. The contract supports the workforce employed by Fedcap Rehabilitation Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
Lack of transparency in the sole-source justification process.
High contract value for a short-duration project warrants scrutiny of scope and efficiency.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract awarded to a known entity, Fedcap Rehabilitation Services, Inc.
Project addresses critical infrastructure needs for government facilities.

Sector Analysis

The Facilities Support Services sector is a broad category encompassing maintenance, repair, and operational support for government buildings and infrastructure. This contract falls under that umbrella, specifically addressing a critical utility upgrade. Spending in this sector is consistently high as agencies maintain aging facilities and ensure operational continuity. Comparable benchmarks are difficult without more project specifics, but large-scale utility upgrades can range significantly in cost.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means opportunities for small business participation in this specific contract are likely limited, and the primary awardee will manage the entire scope of work.

Oversight & Accountability

Oversight for this contract will be managed by the General Services Administration (GSA), specifically the Public Buildings Service. As a sole-source award, the justification and approval process would have been subject to internal GSA review and potentially higher-level agency approval. Transparency is limited due to the non-competitive nature, but performance will be monitored against the firm fixed-price contract terms.

Related Government Programs

Federal Buildings Maintenance Contracts
Public Infrastructure Improvement Programs
GSA Facilities Management
Water System Upgrades

Risk Flags

Sole-source award may lead to higher costs.
Limited public information on contractor's specific experience with water line upgrades.
High value for a short-duration project requires careful scope validation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $11,637.3 to FEDCAP REHABILITATION SERVICES, INC. VBA DOMESTIC WATER LINE UPGRADE

Who is the contractor on this award?

The obligated recipient is FEDCAP REHABILITATION SERVICES, INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $11,637.3.

What is the period of performance?

Start: 2026-04-06. End: 2026-07-05.

What is the specific scope of work for the VBA Domestic Water Line Upgrade, and what justifies the $11.6 million cost for a 90-day period?

The provided data does not detail the specific scope of work for the VBA Domestic Water Line Upgrade beyond the general description. The $11.6 million cost for a 90-day period suggests a potentially complex or extensive upgrade, possibly involving significant pipe replacement, system integration, or addressing unforeseen structural issues. Without a detailed statement of work, cost breakdown, or comparison to similar projects, it is challenging to definitively justify this expenditure. Factors such as material costs, labor, specialized equipment, permits, and potential disruption mitigation would contribute to the overall price. The sole-source nature of the award also means the government did not have the benefit of competitive bids to establish a market-based price for this specific scope.

What is Fedcap Rehabilitation Services, Inc.'s track record with similar infrastructure projects, particularly water line upgrades?

Fedcap Rehabilitation Services, Inc. is primarily known for its work in providing employment and training services for individuals with barriers to employment, as well as operating various service contracts for government agencies. While they may have experience in facilities maintenance and support, specific expertise or a significant track record in large-scale domestic water line upgrades is not immediately apparent from their general profile. Further investigation into their past performance on contracts with similar technical requirements and scale would be necessary to assess their capability and suitability for this particular project. The award being sole-source might imply prior positive performance or a unique capability, but this needs verification.

How does the $11.6 million contract value compare to typical spending on similar water line upgrade projects by the GSA or other federal agencies?

Benchmarking this $11.6 million contract for a 90-day water line upgrade is difficult without more specific project details. The cost per day is approximately $129,000. Typical federal spending on water line upgrades can vary dramatically based on the length of pipe, complexity of the terrain, materials used, and whether the work is new installation or replacement. For instance, municipal water main replacement projects can cost anywhere from $100 to over $1,000 per linear foot, depending on depth and diameter. A 90-day project could involve thousands of linear feet. Given the sole-source nature and lack of detailed scope, it's hard to say if this is high or low without comparative data on similar GSA facilities in New Jersey or comparable sole-source awards for similar work.

What are the potential risks associated with a sole-source award for this type of infrastructure project?

The primary risk associated with a sole-source award for this infrastructure project is the potential for inflated pricing due to the lack of competition. Without multiple bids, the government may not be securing the best possible value for its investment. Additionally, there's a risk that the chosen contractor, while potentially capable, might not be the most innovative or efficient provider available in the market. Transparency can also be a concern, as the justification for not competing the contract needs to be robust. Finally, if the contractor encounters unforeseen issues, the fixed-price nature could lead to change orders if the scope was not perfectly defined, or the contractor might absorb losses, potentially impacting their future performance or willingness to bid on future government work.

What oversight mechanisms are in place to ensure the successful completion and quality of the water line upgrade, given the sole-source award?

Oversight for this contract will primarily fall under the purview of the General Services Administration (GSA), likely through the contracting officer's representative (COR) assigned to monitor the project's progress and performance. As it is a firm fixed-price contract, the focus will be on ensuring the contractor meets the defined scope, schedule, and quality standards outlined in the contract. Regular progress meetings, site inspections, and review of deliverables will be crucial. Given the sole-source nature, the initial justification and approval process would have included scrutiny, but ongoing oversight is critical to mitigate risks associated with non-competitive awards. The contract's terms and conditions will dictate the specific reporting and inspection requirements.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: EQPMAD-26-0225

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 633 3RD AVE FL 6, NEW YORK, NY, 10017

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

Financial Breakdown

Contract Ceiling: $11,637

Exercised Options: $11,637

Current Obligation: $11,637

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47PC0725D0001

IDV Type: IDC

Timeline