VA awards $499,750 boiler repair contract to JM Federal Services, highlighting maintenance needs

Contract Overview

Contract Amount: $49,975 ($50.0K)

Contractor: JM Federal Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-06

End Date: 2026-10-06

Contract Duration: 183 days

Daily Burn Rate: $273/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOILER REPAIR

Place of Performance

Location: CAYCE, LEXINGTON County, SOUTH CAROLINA, 29033

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,975 to JM FEDERAL SERVICES LLC for work described as: BOILER REPAIR Key points: 1. Contract focuses on essential facility maintenance, ensuring operational continuity for VA facilities. 2. Sole-source award suggests limited market availability or specific contractor expertise required. 3. Short performance period indicates a need for immediate or time-sensitive repairs. 4. Fixed-price contract shifts performance risk to the contractor. 5. Awarded by the Department of Veterans Affairs, directly supporting veteran services infrastructure.

Value Assessment

Rating: fair

The contract value of $499,750 for a 6-month boiler repair period appears within a reasonable range for specialized industrial maintenance. However, without specific details on the scope of work (e.g., type of boilers, extent of repairs needed), a precise value-for-money assessment is challenging. Benchmarking against similar VA boiler repair contracts would provide better context for pricing efficiency. The fixed-price nature of the award helps control costs, but the lack of competition could lead to a less favorable price than a competed contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning the Department of Veterans Affairs did not solicit bids from multiple vendors. This approach is typically used when only one vendor is capable of meeting the requirement, or in urgent situations. The lack of competition means that the VA did not benefit from a competitive bidding process, which could have potentially driven down the price or led to a wider range of technical solutions.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive bidding. The government's ability to negotiate favorable terms is limited in sole-source procurements.

Public Impact

Veterans receiving services at VA facilities will benefit from reliable heating and hot water systems. The contract ensures the continued operation of critical infrastructure at VA medical centers or administrative buildings. Maintenance services will be performed in South Carolina, impacting the local economy through employment and resource utilization. Specialized technicians will be employed for the repair and maintenance work, potentially requiring specific certifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially reduces value for taxpayer dollars.
Lack of transparency in the justification for sole-source award.
Short contract duration may indicate a reactive rather than proactive maintenance strategy.

Positive Signals

Addresses critical infrastructure needs for veteran healthcare facilities.
Fixed-price contract provides cost certainty for the government.
Award to a specific contractor suggests they possess unique or essential capabilities.

Sector Analysis

The Commercial and Industrial Machinery and Equipment Repair and Maintenance sector is vital for ensuring the operational readiness of government facilities. This contract falls under the broader category of facility support services, which includes a wide range of maintenance and repair activities. The market for specialized boiler repair can be niche, with a limited number of contractors possessing the necessary expertise and certifications. Spending in this area is consistent with the ongoing need to maintain aging federal infrastructure.

Small Business Impact

This contract was not awarded to a small business, nor does it appear to have a small business set-aside designation. There is no explicit information regarding subcontracting opportunities for small businesses within this award. The absence of small business participation in this sole-source contract means potential benefits to the small business ecosystem are not realized through this specific procurement.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs contracting office responsible for the facility. Accountability measures are embedded in the firm-fixed-price contract terms, requiring JM Federal Services to complete the work to specification. Transparency is limited due to the sole-source nature of the award, with justifications for this procurement method typically available through agency procurement data systems.

Related Government Programs

Federal Building Maintenance Contracts
VA Facility Operations
Industrial Equipment Repair Services
Public Health Infrastructure Support

Risk Flags

Sole-source award may indicate lack of competition, potentially leading to higher costs.
Limited public information on the specific scope of work and repair details.
Contract duration is relatively short, suggesting a specific, possibly urgent, need.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,975 to JM FEDERAL SERVICES LLC. BOILER REPAIR

Who is the contractor on this award?

The obligated recipient is JM FEDERAL SERVICES 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 $49,975.

What is the period of performance?

Start: 2026-04-06. End: 2026-10-06.

What specific boiler systems are covered under this contract, and what is the scope of the required repairs?

The provided data does not specify the exact type or number of boiler systems, nor the detailed scope of repairs. This information is crucial for a comprehensive understanding of the contract's value and the necessity of a sole-source award. Typically, such details would be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) attached to the contract. Without this, it's difficult to ascertain if the $499,750 price is justified for the work performed. Further investigation into the contract's SOW would be required to assess the technical requirements and the appropriateness of the vendor selection.

What is the historical performance record of JM Federal Services with the Department of Veterans Affairs or similar agencies?

Information on JM Federal Services' historical performance is not detailed in the provided data. A thorough analysis would require accessing past performance reviews, contract histories, and any documented issues or commendations. Agencies like the VA maintain contractor performance assessment reporting systems (CPARS) that can offer insights into a contractor's reliability, quality of work, and adherence to schedules and budgets on previous contracts. Understanding their track record is essential for evaluating the risk associated with this sole-source award and ensuring successful project completion.

What was the justification for awarding this contract on a sole-source basis instead of through a competitive process?

The justification for a sole-source award typically falls under specific exceptions to full and open competition, such as the availability of only one responsible source, or in cases of urgent and compelling need where competition is not feasible. For this contract, the 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures) designation suggests it was likely procured under specific FAR (Federal Acquisition Regulation) exceptions. The Department of Veterans Affairs would have documented the rationale, potentially citing unique technical capabilities of JM Federal Services, proprietary technology, or an emergency requirement that precluded a competitive solicitation. Accessing the Justification and Approval (J&A) document would provide the precise reasoning.

How does the $499,750 contract value compare to similar boiler repair contracts awarded by the VA or other federal agencies?

Benchmarking this contract's value requires comparing it to similar boiler repair services for facilities of comparable size and complexity. Without access to a database of historical contract awards for similar services, a precise comparison is difficult. However, a $499,750 award for a 6-month repair period suggests a significant scope of work or specialized repair needs. Factors such as geographic location, type of boiler system (e.g., high-pressure steam, hot water), and the extent of required maintenance (e.g., routine overhaul vs. emergency repair) heavily influence pricing. A more detailed analysis would involve querying federal procurement databases for comparable contracts.

What are the potential risks associated with a sole-source award for essential facility maintenance like boiler repair?

Sole-source awards carry inherent risks, primarily related to cost and performance. Without competition, there is less pressure on the contractor to offer the most competitive pricing, potentially leading to higher costs for taxpayers. Furthermore, the government has limited options if the contractor fails to meet performance expectations, as there isn't a readily available alternative. This can also stifle innovation, as other potential vendors are not given the opportunity to propose alternative solutions or technologies. For essential services like boiler repair, a sole-source award necessitates strong contract management and oversight from the agency to mitigate these risks.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 916 OAKLAND AVE, CAYCE, SC, 29033

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

Financial Breakdown

Contract Ceiling: $49,975

Exercised Options: $49,975

Current Obligation: $49,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline