VA Awards $3.9M for HVAC Maintenance to Water Treatment Services Inc

Contract Overview

Contract Amount: $3,915,107 ($3.9M)

Contractor: Water Treatment Services Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-25

End Date: 2026-09-24

Contract Duration: 1,460 days

Daily Burn Rate: $2.7K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AITC CRAC AND CRAH MAINTENANCE

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78741

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to WATER TREATMENT SERVICES INC. for work described as: AITC CRAC AND CRAH MAINTENANCE Key points: 1. Contract awarded to a single vendor for HVAC maintenance. 2. Competition method was 'Competed under SAP', suggesting a limited competition. 3. The contract type is 'Time and Materials', which can pose cost control risks. 4. The sector is related to facility maintenance and operations.

Value Assessment

Rating: fair

The contract is Time and Materials, which makes direct pricing comparison difficult without detailed labor rates and material markups. The awarded amount of $3.9M over 4 years suggests a moderate annual spend for maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was 'Competed under SAP' (Simplified Acquisition Procedures), indicating a limited competition, likely below the threshold for full and open competition. This method may not always yield the lowest possible price.

Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The limited competition raises questions about whether the best possible price was achieved.

Public Impact

Ensures operational readiness of critical VA facilities. Supports essential services for veterans by maintaining HVAC systems. Potential for cost overruns due to Time and Materials pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing structure
Limited competition under SAP
Contract duration of 4 years

Positive Signals

Essential service for VA operations
Clear end date for service provision

Sector Analysis

This contract falls within the facility maintenance and operations sector, specifically focusing on HVAC systems. Spending benchmarks for similar services can vary widely based on facility size, age, and geographic location.

Small Business Impact

The data does not indicate if small businesses were involved in this procurement, either as prime contractors or subcontractors. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard contract management practices should be in place to monitor performance and costs, especially given the T&M structure.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited competition may not yield best value.
Lack of transparency in labor and material costs.
Contract duration of 4 years requires ongoing monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to WATER TREATMENT SERVICES INC.. AITC CRAC AND CRAH MAINTENANCE

Who is the contractor on this award?

The obligated recipient is WATER TREATMENT SERVICES INC..

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 $3.9 million.

What is the period of performance?

Start: 2022-09-25. End: 2026-09-24.

What is the typical cost range for HVAC maintenance contracts of similar scope and duration within the federal government?

The typical cost range for federal HVAC maintenance contracts varies significantly based on factors like facility size, system complexity, geographic location, and contract type. Time and Materials contracts, like this one, can be harder to benchmark directly against fixed-price contracts. However, annual costs can range from tens of thousands to millions of dollars for large installations.

What are the specific risks associated with Time and Materials contracts for HVAC maintenance?

Time and Materials (T&M) contracts carry inherent risks of cost escalation if not managed closely. The government pays for actual labor hours and material costs, plus a markup. Without strict oversight, there's a risk of inefficient labor practices or inflated material costs, potentially leading to higher overall spending than anticipated.

How effective is the 'Competed under SAP' method in ensuring value for money for HVAC maintenance services?

Competing under Simplified Acquisition Procedures (SAP) is intended to streamline procurement for smaller dollar amounts, but it generally involves less competition than full and open procedures. While it can be efficient, it may not always result in the best possible price or the widest range of innovative solutions compared to broader competition.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 203 TOWNSEND DRIVE, MONROEVILLE, PA, 15146

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,109,055

Exercised Options: $3,915,107

Current Obligation: $3,915,107

Actual Outlays: $2,996,089

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline