VA awards $146K contract for sanitary system study, highlighting engineering services for facility upgrades

Contract Overview

Contract Amount: $145,913 ($145.9K)

Contractor: Valhalla Engineering Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-09

End Date: 2026-12-28

Contract Duration: 263 days

Daily Burn Rate: $555/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26: NRM (PROJ: 673-26-123) STUDY SANITARY SYSTEM BUILDING 100

Place of Performance

Location: ENGLEWOOD, ARAPAHOE County, COLORADO, 80110

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $145,913 to VALHALLA ENGINEERING GROUP, LLC for work described as: FY26: NRM (PROJ: 673-26-123) STUDY SANITARY SYSTEM BUILDING 100 Key points: 1. Contract focuses on essential facility maintenance and upgrades, indicating a commitment to infrastructure. 2. Engineering services are critical for ensuring compliance and operational efficiency in federal buildings. 3. The fixed-price contract type suggests a clear scope and budget, mitigating cost overrun risks. 4. A relatively short performance period indicates a focused and time-bound project. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $145,913 for a sanitary system study appears reasonable for specialized engineering services. Given the short duration and specific scope, it's likely benchmarked against similar facility assessment projects. The firm fixed-price structure provides cost certainty for the government. Without direct comparisons to identical studies, a precise value-for-money assessment is challenging, but the amount aligns with typical engineering consulting fees for such tasks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while competition was sought, certain sources may have been excluded for specific reasons, possibly related to prior performance, specialized capabilities, or a pre-existing contract vehicle. The presence of 7 bidders indicates a degree of competition, which is generally positive for price discovery. However, the exclusion of sources warrants further investigation to ensure fairness and optimal value.

Taxpayer Impact: The competition level, while involving multiple bidders, suggests that taxpayers may not have benefited from the broadest possible market engagement. The exclusion of certain sources could potentially limit the most competitive pricing.

Public Impact

The Department of Veterans Affairs (VA) benefits from improved facility infrastructure and operational efficiency. Veterans and VA staff will experience enhanced sanitary conditions within Building 100. The project's geographic impact is localized to the specific VA facility in Colorado. Engineering firms specializing in sanitary systems and facility assessments are engaged, supporting the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires scrutiny to ensure it did not unduly limit competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the contractor's track record on similar projects.
The specific nature of the sanitary system study could have implications for health and safety if not executed rigorously.

Positive Signals

The firm fixed-price contract type provides budget certainty.
The award involves multiple bidders, indicating some level of market interest and competition.
The contract addresses critical infrastructure needs within a federal facility.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a segment of the broader professional services market. Federal spending in engineering services supports a wide range of activities, from facility design and maintenance to specialized studies. The market is characterized by a mix of large firms and smaller, specialized consultancies. Comparable spending benchmarks would typically involve analyzing the cost of similar facility assessments or engineering studies across various federal agencies.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). There is no information on subcontracting plans. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized tasks within the study.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and project managers. Accountability is established through the firm fixed-price contract terms and the defined performance period. Transparency is facilitated by federal contract databases, though detailed project-specific reporting may vary. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Federal Engineering Services
Sanitary System Infrastructure Projects
Professional Services Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Need for clear definition of 'sanitary system' scope to avoid ambiguity.
Contractor performance verification required.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $145,913 to VALHALLA ENGINEERING GROUP, LLC. FY26: NRM (PROJ: 673-26-123) STUDY SANITARY SYSTEM BUILDING 100

Who is the contractor on this award?

The obligated recipient is VALHALLA ENGINEERING GROUP, 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 $145,913.

What is the period of performance?

Start: 2026-04-09. End: 2026-12-28.

What is the track record of Valhalla Engineering Group, LLC with the Department of Veterans Affairs or similar federal agencies?

Information regarding Valhalla Engineering Group, LLC's specific track record with the Department of Veterans Affairs or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal awards. This includes examining their experience with similar sanitary system studies and facility engineering projects to gauge their capability and reliability in delivering on this contract's objectives.

How does the $145,913 award compare to the typical cost of sanitary system studies for federal facilities?

The award of $145,913 for a sanitary system study appears to be within a reasonable range for specialized engineering services, especially considering the firm fixed-price nature and the short performance period (263 days). Benchmarking this against similar contracts would involve analyzing the scope, complexity, and duration of other VA or federal facility studies. Factors such as the size and age of Building 100, the specific components of the sanitary system being studied, and the required deliverables (e.g., reports, recommendations, design modifications) would influence the overall cost. Without more granular data on comparable projects, it's difficult to provide a precise value-for-money comparison, but the amount is not inherently excessive for professional engineering consulting.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep if the study's requirements are not precisely defined, contractor underperformance leading to delays or inadequate findings, and unforeseen complexities within the sanitary system itself. Mitigation strategies are primarily embedded in the contract structure: the firm fixed-price (FFP) nature limits financial risk for the government, assuming the scope is well-defined. The short duration (263 days) helps contain project timelines. The Department of Veterans Affairs' oversight, through contracting officers and project managers, is crucial for monitoring progress and ensuring deliverables meet quality standards. A clear statement of work and robust communication channels are essential to manage scope and performance risks.

What does the competition level ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES') imply for the effectiveness of the procurement process?

This competition type suggests that the VA intended to solicit offers from all responsible sources but, for specific, documented reasons, excluded certain potential offerors. This could be due to pre-qualification requirements, past performance issues with specific contractors, or the need for specialized expertise only available from a limited pool. While 7 bidders participated, indicating some level of market engagement, the exclusion of sources means the competition might not have been as broad as 'full and open' competition without exclusions. This could potentially impact the final price achieved, as the most competitive offer might have come from an excluded source. The effectiveness hinges on the justification for exclusions being valid and ensuring that the remaining pool still provided adequate price discovery and value.

How does this contract fit into the VA's broader strategy for facility maintenance and modernization?

This contract represents a component of the VA's ongoing efforts to maintain and modernize its extensive portfolio of healthcare facilities. Sanitary systems are critical for public health and operational continuity, especially in healthcare settings. Studies like this inform necessary repairs, upgrades, or replacements, ensuring compliance with health codes and improving the environment for veterans and staff. It aligns with the VA's responsibility to provide safe and effective healthcare infrastructure, contributing to the overall reliability and efficiency of its medical centers and clinics.

What is the significance of this contract being a 'DELIVERY ORDER'?

The designation 'DELIVERY ORDER' indicates that this contract is likely issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar multiple-award framework. IDIQs allow agencies to procure services or supplies over a period of time up to a specified maximum amount, with individual orders placed as needed. This approach provides flexibility and streamlines the procurement process for recurring or anticipated needs. For the VA, using delivery orders under an IDIQ for engineering services can expedite the acquisition of specialized studies and support, ensuring timely attention to facility requirements like the sanitary system assessment.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C24826Q0305

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Valhalla Engineering Group LLC

Address: 750 W HAMPDEN AVE, ENGLEWOOD, CO, 80110

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

Financial Breakdown

Contract Ceiling: $145,913

Exercised Options: $145,913

Current Obligation: $145,913

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24824D0029

IDV Type: IDC

Timeline