VA Awards $306K Chiller Maintenance Contract to Sterileco LLC for 3 Years

Contract Overview

Contract Amount: $306,626 ($306.6K)

Contractor: Sterileco LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $842/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CHILLER MAINTENANCE SERVICES

Place of Performance

Location: AUGUSTA, RICHMOND County, GEORGIA, 30904

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $306,625.64 to STERILECO LLC for work described as: CHILLER MAINTENANCE SERVICES Key points: 1. Contract awarded to a single vendor, Sterileco LLC, for chiller maintenance. 2. The contract value is $306,625.64 over a 3-year period. 3. Awarded by the Department of Veterans Affairs, indicating a need for facility support. 4. The NAICS code 238220 suggests services related to plumbing, heating, and air-conditioning contractors.

Value Assessment

Rating: fair

The contract value of $306,625.64 over three years for chiller maintenance appears reasonable given the specialized nature of the service. Benchmarking against similar contracts for HVAC maintenance in federal facilities would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), suggesting it was likely a limited competition. While SAP can lead to efficient procurement for smaller values, it may not always yield the lowest possible price compared to full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential facility maintenance. The efficiency of the procurement process under SAP will influence the overall value for money.

Public Impact

Ensures continued operation of critical cooling systems within VA facilities. Supports the maintenance of a healthy and functional environment for veterans and staff. Contributes to the operational readiness of Department of Veterans Affairs infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 84 / 10

Warning Flags

Limited competition under SAP may not have secured the best price.
Lack of detailed performance metrics in the provided data.
Potential for price increases in future contract renewals.

Positive Signals

Contract addresses a critical operational need for the VA.
Firm Fixed Price contract provides cost certainty.
Long-term relationship (3 years) can foster expertise and efficiency.

Sector Analysis

This contract falls within the facilities maintenance and repair sector, specifically focusing on HVAC systems. Spending in this area is crucial for government operations, ensuring the functionality and comfort of public buildings. Benchmarks for similar services vary widely based on facility size and complexity.

Small Business Impact

The provided data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure service delivery meets requirements and that funds are used appropriately. Standard contract management practices should be in place.

Related Government Programs

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

Risk Flags

Potential for higher costs due to limited competition.
Dependence on a single vendor for critical maintenance.
Risk of service disruptions if vendor performance is inadequate.
Need for robust oversight to ensure contract compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $306,625.64 to STERILECO LLC. CHILLER MAINTENANCE SERVICES

Who is the contractor on this award?

The obligated recipient is STERILECO 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 $306,625.64.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the specific scope of work included in the chiller maintenance services?

The provided data does not detail the specific scope of work for the chiller maintenance services. Typically, such contracts would include routine inspections, preventative maintenance, emergency repairs, and potentially parts replacement for chiller systems. A thorough review of the contract's Statement of Work (SOW) is necessary for a complete understanding.

How does Sterileco LLC's pricing compare to industry benchmarks for similar chiller maintenance contracts?

Without access to detailed pricing breakdowns and specific service levels, a direct comparison to industry benchmarks is challenging. The contract value of $306,625.64 over three years suggests an average annual cost of approximately $102,208. This figure needs to be evaluated against the size and type of chillers maintained and the service frequency.

What mechanisms are in place to ensure the effectiveness and efficiency of the maintenance services provided?

Effectiveness and efficiency are typically ensured through performance standards outlined in the contract's Statement of Work, service level agreements (SLAs), and regular performance reviews by the contracting officer's representative (COR). The firm fixed-price nature of the contract incentivizes the contractor to perform efficiently to maintain profitability.

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

Solicitation ID: 36C24726Q0022

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1402 COMMERCE AVE, INDIANAPOLIS, IN, 46201

Business Categories: Black American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,108,479

Exercised Options: $1,108,479

Current Obligation: $306,626

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline