VA awards $17.7M for rock salt, Supply King USA secures contract

Contract Overview

Contract Amount: $17,680 ($17.7K)

Contractor: Supply King USA, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-27

End Date: 2026-03-31

Contract Duration: 155 days

Daily Burn Rate: $114/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BAGGED -AND BULK ROCK SALT - 646

Place of Performance

Location: ASPINWALL, ALLEGHENY County, PENNSYLVANIA, 15215

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17,680 to SUPPLY KING USA, LLC for work described as: BAGGED -AND BULK ROCK SALT - 646 Key points: 1. Contract awarded to Supply King USA, LLC for bagged and bulk rock salt. 2. The Department of Veterans Affairs is the procuring agency. 3. The contract has a duration of 155 days. 4. The award is a Purchase Order with a Firm Fixed Price. 5. The North American Industry Classification System (NAICS) code is 325998.

Value Assessment

Rating: fair

The contract value of $17.7 million for rock salt over a 155-day period appears high. Benchmarking against similar commodity purchases would be necessary to assess if this pricing is competitive, especially considering the relatively short duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be open, specific sources were excluded, potentially limiting price discovery and competition.

Taxpayer Impact: The impact on taxpayers is uncertain due to the limited competition. If the exclusion of sources led to higher prices, taxpayers could be overpaying for essential winter supplies.

Public Impact

Ensures availability of essential winter road maintenance materials for VA facilities. Supports critical infrastructure operations during adverse weather conditions. Potential for increased costs to taxpayers due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method raises concerns about price reasonableness.
High contract value for a commodity with a short duration.
Lack of detailed cost breakdown or justification for the award amount.

Positive Signals

Ensures supply of a critical winter commodity.
Awarded to a single vendor, potentially streamlining delivery.
Fixed price contract provides cost certainty for the duration.

Sector Analysis

The procurement falls under miscellaneous chemical product manufacturing. Spending on winter maintenance supplies like rock salt can fluctuate significantly based on weather patterns and regional needs. Benchmarking against other government agencies' salt purchases is recommended.

Small Business Impact

The data indicates that the awardee, SUPPLY KING USA, LLC, is not identified as a small business. Further analysis would be needed to determine if small business set-aside goals were considered or met in this procurement.

Oversight & Accountability

The use of a Purchase Order and the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrant oversight to ensure fair and effective price discovery and prevent potential overspending.

Related Government Programs

All Other Miscellaneous Chemical Product and Preparation Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition method.
High contract value for a short duration.
Lack of justification for source exclusion.
No small business participation noted.
Potential for price inflation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17,680 to SUPPLY KING USA, LLC. BAGGED -AND BULK ROCK SALT - 646

Who is the contractor on this award?

The obligated recipient is SUPPLY KING USA, 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 $17,680.

What is the period of performance?

Start: 2025-10-27. End: 2026-03-31.

What was the justification for excluding other potential sources in the full and open competition?

The justification for excluding other sources is not provided in the data. Typically, such exclusions require a documented rationale, such as specific technical requirements, urgent needs, or prior performance. Without this justification, it's difficult to assess if the exclusion was appropriate or if it unduly limited competition and potentially inflated the price.

How does the $17.7 million contract value compare to market rates for rock salt, considering the 155-day duration?

The $17.7 million value for 155 days of rock salt supply appears substantial. A thorough market analysis comparing this price to average commodity prices, regional bulk salt costs, and similar government contracts is crucial. Factors like delivery logistics, storage, and specific quality requirements could influence the price, but a significant deviation from market norms would indicate a potential risk of overpayment.

What are the potential risks associated with a 'limited' competition for a commodity like rock salt?

The primary risk of limited competition for a commodity like rock salt is the potential for inflated prices due to reduced market pressure. When fewer vendors can compete, the winning bidder may not offer the most cost-effective solution. This can lead to taxpayers bearing a higher cost for essential services, and it may also limit the availability of the product if the chosen vendor faces supply chain issues.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: CHEMICALS AND CHEMICAL PRODUCTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24425Q0978

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 55 OLD NYACK TPKE STE 210, NANUET, NY, 10954

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,680

Exercised Options: $17,680

Current Obligation: $17,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline