VA Awards $1.36M Contract to Valcorp Enterprises for VAMC Condensate Line and Pump Replacement

Contract Overview

Contract Amount: $1,357,845 ($1.4M)

Contractor: Valcorp Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2026-10-13

Contract Duration: 195 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE CONDENSATE LINES AND PUMPS AT THE OSCAR G JOHNSON VAMC AT IRON MOUNTAIN, MI.

Place of Performance

Location: IRON MOUNTAIN, DICKINSON County, MICHIGAN, 49801

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.4 million to VALCORP ENTERPRISES LLC for work described as: REPLACE CONDENSATE LINES AND PUMPS AT THE OSCAR G JOHNSON VAMC AT IRON MOUNTAIN, MI. Key points: 1. The contract focuses on essential infrastructure upgrades at the Oscar G. Johnson VAMC. 2. Valcorp Enterprises LLC secured the award under a full and open competition. 3. The project aims to improve operational efficiency and prevent potential system failures. 4. This expenditure falls within the typical range for facility maintenance and repair contracts.

Value Assessment

Rating: good

The contract value of $1.36 million appears reasonable for replacing condensate lines and pumps at a large medical facility. Benchmarking against similar VAMC infrastructure projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded after excluding sources, indicating a competitive process was intended to ensure fair pricing. The 'full and open competition after exclusion of sources' method suggests a deliberate effort to solicit bids from qualified contractors.

Taxpayer Impact: Taxpayer funds are being used for necessary facility maintenance, ensuring the continued operation of a critical healthcare facility for veterans.

Public Impact

Ensures continued operation of vital healthcare services for veterans at the Iron Mountain VAMC. Improves the reliability and efficiency of the facility's HVAC and plumbing systems. Supports local economy through contract work and potential job creation in Michigan.

Waste & Efficiency Indicators

Waste Risk Score: 69 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during replacement.
Dependence on a single contractor for critical infrastructure repair.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Clear scope of work for essential facility maintenance.
Defined contract duration and delivery timeline.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on plumbing and HVAC systems for a federal healthcare facility. Spending benchmarks for similar VAMC infrastructure upgrades vary widely based on facility size and complexity.

Small Business Impact

The data indicates this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract to ensure timely completion and adherence to specifications. Robust oversight is crucial for infrastructure projects to manage risks and ensure value for taxpayer money.

Related Government Programs

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

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk.
Dependency on specialized equipment and materials.
Ensuring compliance with all relevant building codes and VA standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.4 million to VALCORP ENTERPRISES LLC. REPLACE CONDENSATE LINES AND PUMPS AT THE OSCAR G JOHNSON VAMC AT IRON MOUNTAIN, MI.

Who is the contractor on this award?

The obligated recipient is VALCORP ENTERPRISES 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 $1.4 million.

What is the period of performance?

Start: 2026-04-01. End: 2026-10-13.

What is the projected impact of these upgrades on the VAMC's operational efficiency and energy consumption?

The replacement of condensate lines and pumps is expected to improve the overall efficiency of the HVAC system, potentially leading to reduced energy consumption and lower utility costs for the VAMC. This upgrade also mitigates the risk of system failures, ensuring uninterrupted patient care and facility operations.

Are there any potential risks associated with the 'exclusion of sources' in the competition process?

While 'full and open competition after exclusion of sources' aims for competitiveness, it can raise concerns if the exclusion criteria were overly restrictive or not clearly justified. This could limit the pool of potential bidders and potentially impact the final price or innovation achieved.

How does the firm-fixed-price contract structure benefit the VA and taxpayers in this scenario?

A firm-fixed-price contract provides cost certainty for the VA and taxpayers, as the contractor assumes the risk of cost overruns. This structure is beneficial for projects with well-defined scopes, like replacing specific equipment, helping to prevent unexpected increases in the final cost.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25226B0005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4101 MURRAY AVE, HALTOM CITY, TX, 76117

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Manufacturer of Goods, 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: $1,357,845

Exercised Options: $1,357,845

Current Obligation: $1,357,845

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline