VA awards $6.5M contract for underground storage tank services to JF Acquisition, LLC

Contract Overview

Contract Amount: $6,500 ($6.5K)

Contractor: JF Acquisition, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $9/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNDERGROUND STORAGE TANK INSPECTION/TESTING

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23667

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6,500 to JF ACQUISITION, LLC for work described as: UNDERGROUND STORAGE TANK INSPECTION/TESTING Key points: 1. Contract awarded via competitive process under Simplified Acquisition Procedures (SAP). 2. Firm Fixed Price contract type suggests predictable costs for the government. 3. Duration of 729 days indicates a medium-term need for these services. 4. The award to JF Acquisition, LLC is for testing laboratories and services. 5. This contract supports the Department of Veterans Affairs' infrastructure maintenance needs.

Value Assessment

Rating: good

The contract value of $6.5 million over two years for underground storage tank inspection and testing appears reasonable given the scope. Without specific benchmarks for this exact service in Virginia, it's difficult to provide a precise per-unit cost comparison. However, the competitive nature of the award suggests that pricing was vetted against multiple offers, implying a degree of value for money. The firm fixed-price structure further aids in cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a streamlined procurement process for purchases below certain thresholds. While the specific number of bidders is not detailed, the 'competed under SAP' designation implies that multiple offers were solicited and evaluated. This level of competition, even within SAP, is generally positive for price discovery and ensuring a fair market price.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers are likely to benefit from a fair market price due to multiple vendors vying for the contract.

Public Impact

Ensures the safe and compliant operation of underground storage tanks at VA facilities. Supports environmental protection by preventing leaks and contamination. Benefits veterans by maintaining the infrastructure necessary for healthcare services. Provides services within Virginia, impacting the local economy and workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial inspections reveal unforeseen issues requiring extensive remediation.
Dependence on JF Acquisition, LLC for critical infrastructure maintenance.
Risk of price escalation in future contract renewals if market conditions change significantly.

Positive Signals

Competitive award process suggests a fair market price was achieved.
Firm Fixed Price contract provides cost certainty for the duration.
Supports a critical government function for environmental and operational safety.

Sector Analysis

The market for environmental testing and inspection services, particularly for underground storage tanks, is a specialized segment within the broader professional, scientific, and technical services sector. This contract falls under NAICS code 541380 (Testing Laboratories and Services). Spending in this area is driven by regulatory compliance (EPA mandates) and the need to maintain aging infrastructure across government agencies. Comparable spending benchmarks would typically involve analyzing other federal or state contracts for similar tank inspection and testing services.

Small Business Impact

The provided data does not indicate if this contract included a small business set-aside. As a competed contract under SAP, it's possible small businesses participated, but without specific set-aside information, their direct role or subcontracting opportunities remain unclear. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. The firm fixed-price nature of the purchase order provides a degree of accountability by fixing the cost. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Environmental Compliance Services
Infrastructure Maintenance Contracts
Federal Facility Management
Underground Storage Tank Management Programs

Risk Flags

Contract Competed Under Simplified Acquisition Procedures (SAP)
Firm Fixed Price Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6,500 to JF ACQUISITION, LLC. UNDERGROUND STORAGE TANK INSPECTION/TESTING

Who is the contractor on this award?

The obligated recipient is JF ACQUISITION, 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 $6,500.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the track record of JF Acquisition, LLC in performing similar underground storage tank inspection and testing services for the federal government?

A review of federal procurement data would be necessary to fully assess JF Acquisition, LLC's track record. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of contract modifications or disputes. Without this specific data, it's challenging to definitively gauge their experience and past performance in delivering similar services. However, the fact that they were awarded this contract suggests they met the minimum requirements and were deemed capable by the Department of Veterans Affairs during the competitive evaluation process.

How does the awarded price of $6.5 million compare to similar underground storage tank inspection and testing contracts awarded by the VA or other federal agencies?

Benchmarking this $6.5 million contract requires access to detailed data on comparable contracts, including scope, duration, geographic location, and specific services rendered. The provided data indicates a 729-day duration (approximately 2 years) and a Firm Fixed Price award. To perform a true comparison, one would need to analyze other VA or federal contracts for underground storage tank inspection and testing services of similar size and complexity. Factors such as the number and type of tanks, testing methodologies required, and regional labor costs would significantly influence pricing. The competitive nature of this award suggests the price is likely within a reasonable market range, but a definitive comparison requires more granular data.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks include potential unforeseen issues discovered during inspections that could lead to scope creep and cost overruns, despite the Firm Fixed Price structure. There's also a risk related to contractor performance and adherence to quality standards. Mitigation strategies typically involve clear contract language defining the scope of work, robust government oversight during inspections, and performance monitoring. The VA's procurement process, including vetting the contractor's qualifications, aims to mitigate performance risks. For scope creep, change order procedures would be followed, requiring justification and potentially additional funding approval.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for contracts of this value?

Simplified Acquisition Procedures (SAP) are designed for procurements below certain thresholds (e.g., $250,000, though this can be higher for certain categories) and aim to streamline the process while still encouraging competition. For contracts like this one, which is competed under SAP, it generally involves soliciting quotes from multiple sources. While it may not involve the extensive documentation and outreach of full and open competition, it is intended to provide adequate price competition. The effectiveness relies on the agency actively seeking out and encouraging bids from qualified vendors. The fact that this contract was competed suggests SAP was utilized to achieve a competitive outcome efficiently.

What is the historical spending pattern for underground storage tank inspection and testing services by the Department of Veterans Affairs?

Analyzing historical spending patterns for underground storage tank inspection and testing by the VA would require accessing and aggregating data from federal procurement databases (like FPDS) over several fiscal years. This would involve filtering for relevant NAICS codes (e.g., 541380) and keywords related to 'underground storage tank,' 'inspection,' and 'testing,' specifically attributed to the VA. Such an analysis would reveal trends in contract values, awardees, contract types, and the overall volume of spending in this category, helping to contextualize the current $6.5 million award within the VA's broader procurement history for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Testing Laboratories and Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24625Q0519

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 PERIMETER PARK DR STE H, MORRISVILLE, NC, 27560

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,500

Exercised Options: $6,500

Current Obligation: $6,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline