VA awards $1.88M contract for Duplex Vacuum Condensate System Replacement to Dahme Mechanical Industries Inc

Contract Overview

Contract Amount: $187,600 ($187.6K)

Contractor: Dahme Mechanical Industries Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-01

End Date: 2026-12-28

Contract Duration: 545 days

Daily Burn Rate: $344/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DUPLEX VACUUM CONDENSATE SYSTEM REPLACEMENT

Place of Performance

Location: ARLINGTON HEIGHTS, COOK County, ILLINOIS, 60005

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $187,600 to DAHME MECHANICAL INDUSTRIES INC for work described as: DUPLEX VACUUM CONDENSATE SYSTEM REPLACEMENT Key points: 1. Contract awarded for a critical infrastructure replacement at a VA facility. 2. The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The award value of $1.88 million falls within a range that typically attracts multiple bids. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The contract duration of 545 days indicates a significant but manageable project timeline. 6. The North American Industry Classification System (NAICS) code 339112 points to the manufacturing of surgical and medical instruments, which may be indirectly related to the system's application.

Value Assessment

Rating: good

The contract value of $1.88 million for a system replacement appears reasonable given the scope. Without specific details on the system's complexity and the facility's needs, a direct comparison is difficult. However, for infrastructure upgrades of this nature, pricing is often benchmarked against similar projects within the VA or other federal agencies. The fixed-price structure suggests the contractor has priced in potential risks and overhead, aiming for a specific profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition than micro-purchases but is generally less formal than full and open competition for larger contracts. The presence of 3 bids indicates a degree of competition, suggesting that multiple vendors were aware of and interested in the opportunity. This level of competition is generally sufficient to promote price discovery for procurements within the SAP threshold.

Taxpayer Impact: The competition level indicates that taxpayers likely received a fair price due to the multiple bids received, preventing potential price gouging.

Public Impact

Patients and medical staff at the VA facility will benefit from an upgraded and reliable condensate system, ensuring operational continuity for medical services. The contract supports the maintenance and modernization of critical healthcare infrastructure. The project's geographic impact is localized to Illinois, where the VA facility is located. The contract supports jobs within the construction and mechanical services sector, likely benefiting the local Illinois workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the replacement process, despite the firm-fixed-price structure.
Dependence on the contractor's ability to procure specialized parts within the specified timeline.
Risk of disruption to facility operations if the replacement schedule is not meticulously managed.

Positive Signals

The firm-fixed-price contract shifts financial risk to the contractor.
The competition, even under SAP, suggests multiple vendors were interested, potentially leading to a competitive price.
The contract is for a necessary infrastructure upgrade, ensuring long-term operational efficiency and reliability.

Sector Analysis

This contract falls within the broader construction and facilities maintenance sector, specifically addressing mechanical systems. The market for such services is competitive, with numerous firms capable of performing system replacements. The value of this contract, at $1.88 million, is moderate for a federal infrastructure project, and it fits within the typical spending patterns for VA facility upgrades and maintenance.

Small Business Impact

The contract was competed under Simplified Acquisition Procedures (SAP), which can sometimes include set-asides for small businesses. However, the data indicates this was not a small business set-aside. Dahme Mechanical Industries Inc.'s size is not specified, but the competition suggests larger firms may also participate. There is no explicit mention of subcontracting requirements for small businesses, so their direct involvement is uncertain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and facility managers. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified system replacement. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if fraud or significant mismanagement were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Federal Construction Projects
HVAC System Replacements
Mechanical System Upgrades

Risk Flags

Potential for supply chain disruptions impacting delivery timelines.
Risk of unforeseen site conditions requiring scope adjustments.
Contractor performance variability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $187,600 to DAHME MECHANICAL INDUSTRIES INC. DUPLEX VACUUM CONDENSATE SYSTEM REPLACEMENT

Who is the contractor on this award?

The obligated recipient is DAHME MECHANICAL INDUSTRIES 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 $187,600.

What is the period of performance?

Start: 2025-07-01. End: 2026-12-28.

What is the track record of Dahme Mechanical Industries Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding Dahme Mechanical Industries Inc.'s specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or corrective actions. Understanding their experience with similar system replacements and their performance on prior VA projects would provide crucial insight into their reliability and capability for this current contract. Without this historical data, assessing their suitability relies heavily on the competitive nature of this award and the VA's due diligence during the procurement process.

How does the awarded price of $1.88 million compare to similar Duplex Vacuum Condensate System replacements in federal facilities?

Benchmarking the $1.88 million award for this Duplex Vacuum Condensate System replacement requires access to a database of comparable federal projects. Factors such as the size and complexity of the system, the specific VA facility's requirements, geographic location (which influences labor and material costs), and the age and condition of the existing infrastructure all play a significant role in pricing. Given that this was competed under Simplified Acquisition Procedures (SAP) with 3 bids, the price is likely competitive for its scope. However, without specific details on the system's capacity, technical specifications, and the extent of associated work (e.g., demolition, integration, testing), a precise comparison to market rates or similar federal contracts is challenging. Further analysis would involve identifying contracts with similar NAICS codes (339112, though this seems more related to manufacturing than installation) or service descriptions for mechanical system replacements in healthcare settings.

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

The primary risks associated with this contract include potential delays in project completion, cost overruns (though mitigated by the firm-fixed-price structure), and disruption to ongoing VA facility operations. Delays could stem from unforeseen site conditions, supply chain issues for specialized components, or contractor performance issues. Cost overruns are largely borne by Dahme Mechanical Industries Inc. due to the firm-fixed-price nature, but significant unforeseen issues could still strain the contractor's resources or lead to disputes. Disruption risk is managed through careful scheduling and coordination with the VA facility, likely requiring work during off-peak hours or phased implementation. The VA's oversight and the contractor's performance history (if available) are key mitigation factors.

What is the expected effectiveness of the new Duplex Vacuum Condensate System in improving the VA facility's operations?

The expected effectiveness of the new Duplex Vacuum Condensate System hinges on its design specifications meeting the operational needs of the VA facility and the quality of its installation. A properly functioning condensate system is crucial for maintaining optimal conditions within medical equipment and HVAC systems, preventing moisture-related damage, and ensuring energy efficiency. Replacing an aging or inefficient system should lead to improved reliability, reduced maintenance costs, and potentially lower energy consumption. The effectiveness will be measured by the system's performance against its design parameters, its uptime, and its contribution to the overall operational stability and safety of the healthcare environment. The VA's acceptance criteria and post-installation testing will formally assess its effectiveness.

How does historical spending on similar infrastructure projects by the VA compare to this award?

Historical spending by the VA on similar infrastructure projects, particularly mechanical system replacements, can vary widely based on the scale of the facility, the specific systems being replaced, and the overall modernization budget. Awards in the range of $1-5 million for significant system upgrades are common within the VA. This $1.88 million award for a Duplex Vacuum Condensate System replacement appears to be a mid-range investment for a critical component. To provide a precise comparison, one would need to analyze VA spending trends for projects categorized under similar NAICS codes or service descriptions, looking at average award values, contract durations, and the number of bids received over several fiscal years. This contract aligns with the VA's ongoing efforts to maintain and upgrade its aging infrastructure across its network of healthcare facilities.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: PUMPS AND COMPRESSORS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25225Q0495

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 610 S ARTHUR AVE, ARLINGTON HEIGHTS, IL, 60005

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $187,600

Exercised Options: $187,600

Current Obligation: $187,600

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline