VA awards $133K for DI water tank rental and maintenance to Hydro, Inc

Contract Overview

Contract Amount: $133,502 ($133.5K)

Contractor: Hydro, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-01

End Date: 2026-02-28

Contract Duration: 729 days

Daily Burn Rate: $183/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DI WATER TANK RENTAL AND MAINTENANCE

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $133,502.34 to HYDRO, INC. for work described as: DI WATER TANK RENTAL AND MAINTENANCE Key points: 1. Contract awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The contract is a Firm Fixed Price (FFP) type, providing cost certainty for the government. 3. The duration of 729 days (2 years) indicates a need for ongoing service. 4. The award was made to a single contractor, Hydro, Inc. 5. The North American Industry Classification System (NAICS) code 562991 points to septic tank and related services. 6. The contract is geographically located in Alabama (AL).

Value Assessment

Rating: fair

The contract value of $133,502.34 over two years for water tank rental and maintenance appears to be within a reasonable range for specialized services. Without specific benchmarks for DI water tank rental and maintenance in Alabama, a direct comparison is difficult. However, the fixed-price nature of the contract helps manage cost fluctuations. The award amount is relatively modest, suggesting it may not represent a significant deviation from expected market rates for this type of service.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than micro-purchase thresholds but may not always involve the extensive outreach of full and open competition for larger contracts. The data indicates two bids were received, suggesting some level of competition, though the exact number of potential bidders and the extent of outreach are not detailed. This level of competition is generally sufficient for procurements within the SAP range.

Taxpayer Impact: The competition level, while not exhaustive, likely ensured a reasonable price for taxpayers given the contract's value. The receipt of two bids suggests that the price offered by Hydro, Inc. was likely competitive.

Public Impact

This contract directly benefits the Department of Veterans Affairs (VA) by ensuring the availability and maintenance of critical DI water tank systems. The services delivered include the rental and ongoing maintenance of DI water tanks, essential for various facility operations. The geographic impact is localized to Alabama (AL), where the VA facilities requiring these services are located. The contract supports specialized service providers within the environmental services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition data available under SAP.
Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for essential services.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded under Simplified Acquisition Procedures, potentially indicating efficient procurement for a smaller value contract.
Contract duration of two years allows for stable service provision.

Sector Analysis

The contract falls within the broader environmental services sector, specifically related to water and waste management. The NAICS code 562991 covers septic tank and related services, which often includes the maintenance and rental of various water containment and treatment systems. The market for such services is typically localized, with demand driven by regulatory requirements and operational needs of facilities. The contract value is modest, suggesting it serves a specific, localized need rather than a large-scale infrastructure project.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the service and the award value, it is possible that small businesses could participate, but the data does not confirm any specific provisions for them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the Department of Veterans Affairs. As a purchase order awarded under SAP, it is subject to standard procurement regulations and internal VA oversight processes. Transparency is generally maintained through contract databases like FPDS, where award details are recorded.

Related Government Programs

Water Treatment Services
Environmental Remediation Services
Facility Maintenance Contracts
Government Purchase Orders

Risk Flags

Limited competition observed.
Potential for service quality issues if contractor faces cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $133,502.34 to HYDRO, INC.. DI WATER TANK RENTAL AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is HYDRO, 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 $133,502.34.

What is the period of performance?

Start: 2024-03-01. End: 2026-02-28.

What is the typical cost range for DI water tank rental and maintenance services in Alabama for a two-year period?

Determining the precise typical cost range for DI water tank rental and maintenance in Alabama without more specific service details (e.g., tank size, water purity requirements, frequency of maintenance, emergency service needs) is challenging. However, based on general industry knowledge for specialized environmental services, a contract of this nature, valued at approximately $66,750 per year ($133,502.34 over two years), could be considered within a moderate range. Factors influencing cost include the specific type of DI water system, the required purity levels, the volume of water processed, the frequency of filter changes or system flushing, and the response time required for maintenance or emergency calls. For context, larger industrial water treatment contracts can run into millions annually, while very small, basic rentals might be in the low thousands. This VA contract appears to be for a specific, likely non-industrial, application.

How does the competition level of two bidders compare to similar procurements under SAP for environmental services?

Procurements under Simplified Acquisition Procedures (SAP), typically for contract values between $3,000 and $250,000, often see varying levels of competition. Receiving two bids is not uncommon within this range. For smaller, specialized services like DI water tank rental and maintenance, two bidders might represent a reasonable level of market interest, especially if the service area is geographically limited or requires specific certifications. However, a higher number of bids (e.g., 3-5 or more) generally indicates stronger competition and potentially better price discovery for the government. Without access to a broader dataset of similar SAP procurements for environmental services in Alabama, it's difficult to definitively benchmark this specific instance. The key takeaway is that while competition existed, it was not extensive, which could be a factor in future pricing.

What are the potential risks associated with a firm fixed-price contract for water tank services?

The primary risk associated with a Firm Fixed Price (FFP) contract for water tank services, from the government's perspective, is that the contractor might cut corners on quality or service to maximize profit if costs exceed initial estimates. However, for services like rental and maintenance, the risks are often more balanced. For the contractor, the risk lies in underestimating the costs of labor, materials, or unforeseen issues that arise during maintenance, potentially leading to reduced profit margins or even a loss. For the government, the risk is ensuring that the fixed price adequately covers all necessary services to maintain the required standards. The VA's oversight and performance monitoring are crucial to mitigate these risks and ensure the contractor meets all contractual obligations.

What is the historical spending pattern for DI water tank rental and maintenance by the Department of Veterans Affairs?

Analyzing the historical spending patterns for DI water tank rental and maintenance by the Department of Veterans Affairs (VA) requires access to comprehensive contract databases covering multiple fiscal years. This specific award of $133,502.34 is for a two-year period starting in March 2024. Without historical data, it's impossible to determine if this represents an increase, decrease, or consistent level of spending for these services. Factors influencing historical spending could include changes in facility needs, upgrades to water systems, shifts in contracting strategies, or the availability of alternative solutions. A thorough analysis would involve searching for previous contracts for similar services at VA facilities nationwide or specifically within the Alabama region to identify trends and budget allocations.

What are the implications of the NAICS code 562991 for the type of services being procured?

The North American Industry Classification System (NAICS) code 562991, 'All Other Waste Management Services,' is a broad category that encompasses a range of services not specifically classified elsewhere. In the context of this contract for 'DI WATER TANK RENTAL AND MAINTENANCE,' it suggests the services are related to the management, disposal, or treatment of waste, or the provision of essential services that fall under this umbrella. This could include services related to portable toilets, septic tanks, grease traps, and potentially specialized water handling or containment systems like DI water tanks, especially if they involve aspects of waste removal or system maintenance that generates byproducts. The classification indicates the government is procuring services from businesses operating within this specific segment of the waste management and environmental services industry.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Septic Tank and Related Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24724Q0296

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 117 MERCHANTS PARK DR, HOSCHTON, GA, 30548

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $212,173

Exercised Options: $133,502

Current Obligation: $133,502

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline