VA awards $498K for underground fuel tank services, with 18 months remaining on contract

Contract Overview

Contract Amount: $49,838 ($49.8K)

Contractor: Unified Services of Texas, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-08-01

End Date: 2025-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $27/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNDERGROUND FUEL STORAGE TANK ANNUAL INSPECTION AND TESTING SERVICE.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63106

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $49,838.33 to UNIFIED SERVICES OF TEXAS, LLC for work described as: UNDERGROUND FUEL STORAGE TANK ANNUAL INSPECTION AND TESTING SERVICE. Key points: 1. Contract value appears reasonable for specialized inspection services. 2. Competition dynamics suggest a potentially efficient procurement process. 3. Risk indicators are low given the service type and duration. 4. Performance context is tied to maintaining critical infrastructure for VA facilities. 5. Sector positioning is within professional, scientific, and technical services.

Value Assessment

Rating: good

The contract value of $498,383.33 over its potential duration (estimated based on award date and end date) suggests a moderate annual spend for specialized inspection services. Benchmarking against similar contracts for underground storage tank maintenance and testing is difficult without more specific service details and geographic scope. However, the firm-fixed-price nature of the award provides cost certainty for the VA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. While the specific number of bidders is not provided, SAP generally encourages broad competition. The use of SAP suggests that the agency sought the best value through a competitive solicitation, which should lead to fair pricing.

Taxpayer Impact: The competitive nature of this procurement, even under SAP, is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source award would have.

Public Impact

Benefits the Department of Veterans Affairs by ensuring the safe and compliant operation of underground fuel storage tanks. Delivers essential inspection and testing services to maintain environmental and safety standards. Geographic impact is focused on VA facilities within Missouri, as indicated by the state code. Workforce implications involve specialized technicians for inspection and testing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competition intensity.
Potential for scope creep if additional services beyond standard inspection are required.
Reliance on a single contractor for critical infrastructure maintenance could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price award provides budget predictability.
Contract duration allows for consistent service delivery and relationship building.
Competition under SAP suggests an effort to achieve value for money.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to environmental and safety compliance. The market for underground storage tank inspection and testing is driven by regulatory requirements and the need to maintain aging infrastructure. Spending in this area is consistent across government agencies and private industry that operate fuel storage facilities.

Small Business Impact

The data indicates this contract was competed under Simplified Acquisition Procedures and does not specify a small business set-aside. Therefore, it is unclear if small businesses were specifically targeted or participated in the competition. Subcontracting opportunities for small businesses are not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. As a purchase order, it is a standard procurement instrument. Transparency is generally maintained through contract award databases, though specific performance monitoring details are not publicly available.

Related Government Programs

Environmental Compliance Services
Facility Maintenance Contracts
Public Infrastructure Support
Government Fuel Management

Risk Flags

Potential for performance issues over a long contract duration.
Limited transparency on specific competition details (number of bidders).

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $49,838.33 to UNIFIED SERVICES OF TEXAS, LLC. UNDERGROUND FUEL STORAGE TANK ANNUAL INSPECTION AND TESTING SERVICE.

Who is the contractor on this award?

The obligated recipient is UNIFIED SERVICES OF TEXAS, 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 $49,838.33.

What is the period of performance?

Start: 2020-08-01. End: 2025-07-31.

What is the specific scope of work for the 'UNDERGROUND FUEL STORAGE TANK ANNUAL INSPECTION AND TESTING SERVICE'?

The provided data does not detail the specific scope of work beyond the general description. Typically, such services include visual inspections, leak detection testing (e.g., using pressure or vacuum methods), cathodic protection testing, and verification of spill prevention and overfill equipment. The service likely ensures compliance with EPA regulations and VA internal standards for underground storage tanks, covering aspects like tank integrity, piping, and associated safety equipment. A more detailed statement of work would clarify the exact testing methodologies, reporting requirements, and frequency of specific tests.

How does the awarded price compare to market rates for similar services in Missouri?

Without specific details on the scope of work, the number of tanks inspected, and the exact geographic coverage within Missouri, a precise market rate comparison is challenging. However, the total contract value of approximately $498,383 over its potential duration suggests an average annual expenditure of roughly $166,127 (assuming a full three-year term). This figure needs to be evaluated against the number and size of tanks, the complexity of the required tests, and the specific location of the VA facilities being served. Industry benchmarks for tank testing can vary significantly based on these factors.

What is the track record of UNIFIED SERVICES OF TEXAS, LLC in performing similar government contracts?

Information regarding the specific track record of UNIFIED SERVICES OF TEXAS, LLC on government contracts, particularly for underground fuel storage tank inspection and testing, is not provided in the data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar federal or state procurements. This information is typically available through federal procurement data systems like SAM.gov or FPDS.

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

Primary risks include potential underperformance by the contractor leading to non-compliance or infrastructure issues, and the possibility of unforeseen environmental incidents related to the tanks. Mitigation strategies likely involve the VA's contract oversight, including regular performance reviews, adherence to strict testing protocols, and ensuring the contractor maintains appropriate insurance and certifications. The firm-fixed-price nature also mitigates financial risk for the government, provided the scope is well-defined.

What is the historical spending pattern for underground fuel storage tank services at this VA facility or region?

The provided data only includes details for this specific contract award. To understand historical spending patterns, one would need to analyze past contracts awarded by the Department of Veterans Affairs for similar services, potentially within the same region (Missouri) or for comparable facilities. This would involve querying federal procurement databases for previous awards to identify trends in contract values, durations, and awarded contractors over time.

How does the contract duration of 1825 days (5 years) impact the overall value and risk?

A five-year contract duration (1825 days) for specialized services like underground fuel tank inspection and testing offers potential benefits in terms of consistent service delivery and contractor familiarity with the specific VA facilities. It can also lead to better pricing through economies of scale for the contractor. However, a longer duration also increases the risk of contractor performance degradation over time or the need for services that may evolve beyond the initial scope. The firm-fixed-price structure helps lock in costs, but the VA must maintain vigilant oversight throughout the contract term.

Industry Classification

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

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25520Q0374

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2110 GREENBRIAR DR, SOUTHLAKE, TX, 76092

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $57,369

Exercised Options: $49,838

Current Obligation: $49,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline