VA awards $2.2M contract for underground diesel tank replacement in Tennessee

Contract Overview

Contract Amount: $2,211,805 ($2.2M)

Contractor: Sage-Efs JV

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-26

End Date: 2026-03-16

Contract Duration: 720 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE UNDERGROUND DIESEL STORAGE TANKS

Place of Performance

Location: MOUNTAIN HOME, WASHINGTON County, TENNESSEE, 37684

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.2 million to SAGE-EFS JV for work described as: REPLACE UNDERGROUND DIESEL STORAGE TANKS Key points: 1. Contract value appears reasonable for the scope of replacing underground storage tanks. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is firm fixed price, which transfers risk to the contractor. 4. The duration of 720 days allows ample time for project completion. 5. The contractor, SAGE-EFS JV, is relatively new to federal contracting based on available data. 6. The project is located in Tennessee, impacting local infrastructure and potentially workforce.

Value Assessment

Rating: good

The contract value of $2.2 million for replacing underground diesel storage tanks is within a reasonable range for such infrastructure projects. Benchmarking against similar projects is challenging without more specific details on tank size, capacity, and site complexity. However, the firm fixed-price nature of the contract suggests that the contractor has assessed the risks and costs associated with the project, and the price reflects this assessment. The absence of extensive contract history for the awardee makes direct comparison difficult, but the price does not appear excessively high at first glance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit a bid. The solicitation process likely involved a public announcement and a period for interested contractors to respond. The number of bids received is not specified, but the 'full and open' designation generally implies a robust competition, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayers, as it maximizes the potential for receiving the most cost-effective solution by encouraging a wide range of qualified contractors to bid.

Public Impact

The Department of Veterans Affairs (VA) will benefit from improved fuel storage infrastructure, ensuring reliable operations. The contract delivers essential services for the replacement of underground diesel storage tanks. The project's geographic impact is focused on Tennessee, where the VA facility is located. The project may create or sustain jobs in the construction and related trades within Tennessee.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited public information on the contractor's past performance and capacity for projects of this scale.
Potential for unforeseen site conditions during excavation and tank replacement that could impact cost or schedule, despite the fixed-price nature.

Positive Signals

The contract was awarded through full and open competition, suggesting a competitive pricing environment.
The firm fixed-price contract type shifts cost overrun risk to the contractor.
The project addresses critical infrastructure needs for the VA, ensuring operational continuity.

Sector Analysis

The construction sector, particularly specialized areas like underground storage tank replacement, is a significant part of federal spending. This contract falls under the broader category of construction services, specifically related to infrastructure and facility maintenance. Federal agencies frequently contract for such services to maintain and upgrade their operational facilities. Comparable spending benchmarks for similar tank replacement projects can vary widely based on tank size, material, environmental regulations, and site-specific challenges.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The awardee, SAGE-EFS JV, is a joint venture, which can sometimes include small business participation. However, without further details on the joint venture's composition, its direct impact on the broader small business ecosystem is unclear. Future contracts of this nature could potentially include small business subcontracting goals to foster greater participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. The firm fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is facilitated by the public nature of federal contract awards. The Inspector General's office for the VA may conduct audits or investigations if specific concerns or allegations arise regarding contract performance or compliance.

Related Government Programs

Department of Veterans Affairs Facility Maintenance
Underground Storage Tank Management
Construction Services
Environmental Remediation Services

Risk Flags

Contractor performance history is not readily available.
Potential for unforeseen site conditions impacting project timeline or cost.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.2 million to SAGE-EFS JV. REPLACE UNDERGROUND DIESEL STORAGE TANKS

Who is the contractor on this award?

The obligated recipient is SAGE-EFS JV.

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 $2.2 million.

What is the period of performance?

Start: 2024-03-26. End: 2026-03-16.

What is the track record of SAGE-EFS JV in performing similar federal contracts?

Information regarding the specific track record of SAGE-EFS JV in performing federal contracts of this nature is limited in publicly available databases. As a joint venture, its operational history may be tied to its constituent members. Further investigation into the past performance of SAGE-EFS JV and its parent companies, if applicable, would be necessary to fully assess its capabilities and reliability for this project. The award being a definitive contract suggests a need for services that may have been identified after initial planning, but the 'full and open' competition indicates a structured procurement process was followed.

How does the awarded price compare to market rates for similar underground diesel storage tank replacement projects?

Directly comparing the $2.2 million award to market rates for similar projects is challenging without detailed specifications of the tanks being replaced (e.g., capacity, material, number of tanks) and the complexity of the site (e.g., accessibility, soil conditions, environmental regulations). However, the firm fixed-price contract suggests the contractor has factored in all anticipated costs and risks. Generally, infrastructure replacement projects of this scale can range significantly. The VA's use of full and open competition aims to ensure that the price secured is competitive within the market for the defined scope of work.

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

The primary risks associated with this contract include potential unforeseen site conditions (e.g., encountering unexpected soil contamination, underground utilities, or geological issues) during excavation and installation, which could lead to schedule delays or cost increases. Another risk could be the contractor's capacity to manage the project effectively within the given timeframe. Mitigation strategies include the firm fixed-price contract type, which transfers significant cost overrun risk to the contractor. The VA's oversight and the competitive bidding process also serve as risk mitigation tools, ensuring a qualified contractor is selected and that the project scope is clearly defined.

What is the expected impact of this contract on the VA's operational capabilities in Tennessee?

This contract is crucial for ensuring the continued operational capability of the VA facility in Tennessee by replacing aging or non-compliant underground diesel storage tanks. Reliable fuel storage is essential for backup power generation, vehicle fleets, and other critical functions. By addressing this infrastructure need, the contract helps prevent potential disruptions caused by tank failure, leaks, or regulatory non-compliance, thereby supporting the VA's mission to provide healthcare services without interruption.

What is the historical spending pattern for underground diesel storage tank replacement by the Department of Veterans Affairs?

Analyzing the historical spending patterns for underground diesel storage tank replacement by the Department of Veterans Affairs requires access to comprehensive contract databases over several fiscal years. While this specific $2.2 million contract is a single data point, the VA, like other large federal agencies, regularly invests in infrastructure maintenance and upgrades. Spending on such projects can fluctuate based on the age of facilities, regulatory changes, and budget allocations. A broader analysis would reveal trends in contract values, types of services procured, and geographic distribution of these investments across the VA system.

How does the 'definitive contract' award type influence the project's execution and oversight?

A definitive contract is typically used to establish the final terms and conditions for a project, often following an initial agreement or order. In this case, it signifies that the $2.2 million award represents the complete and final contract for the replacement of the diesel storage tanks. This structure provides clarity on the total cost and scope for both the VA and the contractor, SAGE-EFS JV. It implies that the requirements have been well-defined, and the contract is ready for execution. Oversight will focus on ensuring adherence to the defined scope, schedule, and quality standards within the fixed price.

Industry Classification

NAICS: Construction › Utility System Construction › Oil and Gas Pipeline and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24924B0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9511 ANGOLA CT STE 223, INDIANAPOLIS, IN, 46268

Business Categories: Category Business, Partnership or Limited Liability Partnership, 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: $2,211,805

Exercised Options: $2,211,805

Current Obligation: $2,211,805

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline