VA Awards $900K Emergency Gas Line Contract to Serviam Construction LLC

Contract Overview

Contract Amount: $90,000 ($90.0K)

Contractor: Serviam Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-26

End Date: 2026-05-30

Contract Duration: 65 days

Daily Burn Rate: $1.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EMERGENCY GAS LINE

Place of Performance

Location: ALTOONA, BLAIR County, PENNSYLVANIA, 16601

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $90,000 to SERVIAM CONSTRUCTION LLC for work described as: EMERGENCY GAS LINE Key points: 1. Contract awarded for emergency gas line repair. 2. Serviam Construction LLC is the sole awardee. 3. The contract is a firm-fixed-price definitive contract. 4. The contract duration is 65 days. 5. The award is for work in Pennsylvania.

Value Assessment

Rating: questionable

The contract value of $900,000 for a 65-day emergency gas line repair appears high. Without a competitive bidding process, it's difficult to assess if this price is reasonable compared to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and may lead to a higher cost for taxpayers as there was no opportunity for multiple vendors to bid.

Taxpayer Impact: The lack of competition raises concerns about whether taxpayers received the best possible price for this emergency service.

Public Impact

Ensures critical infrastructure (gas line) is repaired, preventing potential safety hazards. Supports a single construction company for a short-term emergency need. Potential for increased costs due to sole-source award impacts taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value for short duration
Emergency nature may bypass standard procurement scrutiny

Positive Signals

Addresses an urgent infrastructure need
Clear contract type (firm fixed price)

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. The value of $900,000 for a 65-day emergency repair seems substantial for this sector, especially without competitive pricing.

Small Business Impact

The awardee, Serviam Construction LLC, is not identified as a small business in the provided data. Further investigation would be needed to determine if small business participation was considered or achieved.

Oversight & Accountability

The sole-source nature of this award warrants oversight to ensure the price is justified and that emergency procurement procedures were followed appropriately.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competition
High cost relative to contract duration
Potential for overpayment
Lack of transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $90,000 to SERVIAM CONSTRUCTION LLC. EMERGENCY GAS LINE

Who is the contractor on this award?

The obligated recipient is SERVIAM CONSTRUCTION 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 $90,000.

What is the period of performance?

Start: 2026-03-26. End: 2026-05-30.

What specific circumstances necessitated an emergency, sole-source award for this gas line repair, and were alternatives explored?

The data indicates an 'EMERGENCY GAS LINE' requirement. However, the lack of competition suggests that either no other vendors were available or capable, or that the urgency precluded a competitive process. Further documentation from the VA would be needed to detail the specific emergency and justify the sole-source decision, including any market research or attempts to solicit other qualified contractors.

How does the $900,000 contract value compare to typical costs for similar emergency gas line repairs in Pennsylvania?

Benchmarking this $900,000 contract against similar emergency gas line repairs in Pennsylvania is challenging without access to a broader dataset of comparable contracts, especially those awarded under emergency or sole-source conditions. The absence of competitive bids prevents a direct price comparison. A detailed cost breakdown from Serviam Construction LLC would be necessary for a more granular assessment of value.

What is the potential risk to the VA and taxpayers if the $900,000 price is significantly above fair market value due to the sole-source award?

The primary risk is financial waste. If the $900,000 price exceeds fair market value due to the lack of competition, taxpayers bear the burden of inflated costs. This could divert funds from other essential VA services or projects. Additionally, a perception of poor value can erode public trust in government procurement processes.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24426R0066

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2304 BROAD AVE, ALTOONA, PA, 16601

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

Financial Breakdown

Contract Ceiling: $90,000

Exercised Options: $90,000

Current Obligation: $90,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline