VA awards $1.4M generator maintenance contract to John Fabick Tractor Co. on a sole-source basis

Contract Overview

Contract Amount: $143,601 ($143.6K)

Contractor: John Fabick Tractor CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-06-11

End Date: 2026-08-31

Contract Duration: 811 days

Daily Burn Rate: $177/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ANNUAL GENERATOR MAINTENANCE & SERVICE

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $143,601.26 to JOHN FABICK TRACTOR CO for work described as: ANNUAL GENERATOR MAINTENANCE & SERVICE Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price overruns and lack of competitive pressure. 2. The contract duration of over two years suggests a need for ongoing, specialized maintenance services. 3. The North American Industry Classification System (NAICS) code 811310 indicates services related to industrial machinery repair. 4. The firm-fixed-price contract type aims to control costs, but the absence of competition limits benchmarking. 5. Geographic location in Missouri may indicate a specific facility or regional need for generator services. 6. The contract's value is relatively modest in the context of large federal procurements, but still warrants scrutiny for value.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to its sole-source nature and lack of publicly available comparable data. The annual value of approximately $574,400 for generator maintenance and service appears reasonable for specialized industrial equipment, but without competitive bids, it's difficult to ascertain if it represents optimal value for the government. The firm-fixed-price structure provides cost certainty, but the absence of competition means the VA may not be benefiting from the most competitive pricing available in the market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required goods or services, often due to proprietary technology, unique capabilities, or urgent needs. The lack of competition means that potential savings that could arise from a bidding process are likely foregone, and the government may not have explored all available market options.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive bidding. Without multiple offers, there is less assurance that the price reflects the best possible value achievable in the market.

Public Impact

The Department of Veterans Affairs (VA) benefits from this contract by ensuring the operational readiness of critical generator equipment. Essential services for maintaining and servicing generators are delivered, preventing service disruptions. The geographic impact is primarily within Missouri, where the contractor is located and likely where the serviced equipment is situated. The contract supports specialized maintenance roles within the industrial machinery repair sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price competition and potentially leads to higher costs for taxpayers.
Lack of transparency in the procurement process due to non-competitive award.
Potential for vendor lock-in if specialized knowledge or parts are required.
Limited opportunity to assess contractor performance against market alternatives.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract ensures continuity of essential generator maintenance services.
Specialized nature of the service may justify a sole-source award in certain circumstances.

Sector Analysis

The industrial machinery repair and maintenance sector is crucial for supporting a wide range of government operations, from facilities management to critical infrastructure. This contract falls under NAICS code 811310, which covers establishments primarily engaged in repairing and maintaining industrial, commercial, and institutional machinery and equipment. The market for such services can be specialized, with vendors often possessing unique expertise or certifications required for specific equipment, which can sometimes lead to sole-source procurements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The sole-source nature of the award further limits opportunities for small businesses to participate in this specific procurement. The impact on the small business ecosystem is therefore minimal for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver services at an agreed-upon price. Transparency is limited due to the sole-source nature of the award, as competitive proposals and detailed justifications are not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Maintenance Contracts
Emergency Power Systems Maintenance
Industrial Equipment Repair Services
Department of Veterans Affairs Operations and Maintenance

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $143,601.26 to JOHN FABICK TRACTOR CO. ANNUAL GENERATOR MAINTENANCE & SERVICE

Who is the contractor on this award?

The obligated recipient is JOHN FABICK TRACTOR CO.

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 $143,601.26.

What is the period of performance?

Start: 2024-06-11. End: 2026-08-31.

What is the track record of John Fabick Tractor Co. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding John Fabick Tractor Co.'s specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like FPDS-NG or SAM.gov to analyze past performance, contract values, and any reported issues. Without this historical data, it's difficult to assess their reliability and past performance in fulfilling government obligations. However, the fact that they were awarded this sole-source contract suggests they may have unique qualifications or a prior relationship with the agency that made them the only viable option.

How does the annual cost of this generator maintenance contract compare to similar services for other federal agencies?

Direct comparison of the annual cost of this contract (approximately $574,400) to similar services for other federal agencies is challenging without access to a broader dataset of comparable generator maintenance contracts. The specific type of generators, their age, the complexity of the required maintenance, and the geographic location can all influence pricing. Given this contract was sole-sourced, it is difficult to determine if the price is competitive. A thorough benchmark analysis would involve identifying contracts with similar scope, duration, and equipment across different agencies and assessing their pricing structures, ideally those awarded through full and open competition.

What are the specific risks associated with awarding a sole-source contract for essential generator maintenance?

The primary risk associated with a sole-source award for essential generator maintenance is the potential for inflated pricing due to the lack of competitive pressure. The government may not be achieving the best possible value for its expenditure. Another risk is vendor lock-in, where the agency becomes dependent on a single provider, potentially limiting future flexibility and negotiation power. Furthermore, without competition, there's less incentive for the contractor to innovate or offer cost-saving efficiencies. The absence of multiple bids also reduces transparency in the procurement process, making it harder to justify the expenditure to taxpayers.

How critical are the generators serviced under this contract to the VA's operations in Missouri?

The criticality of the generators serviced under this contract to the VA's operations in Missouri is likely high, given that generator maintenance is often tied to ensuring continuous power supply for essential services. For a healthcare facility like a VA hospital, uninterrupted power is paramount for life support systems, medical equipment, and overall patient care. Failure to maintain these generators could lead to significant disruptions, potentially impacting patient safety and the continuity of medical services. The VA's decision to award this contract, even on a sole-source basis, suggests these generators are vital for maintaining operational readiness and fulfilling their mission.

What is the historical spending pattern for generator maintenance and service by the Department of Veterans Affairs?

Analyzing the historical spending patterns for generator maintenance and service by the Department of Veterans Affairs (VA) would require a review of past contract awards over several fiscal years. This would involve identifying all contracts related to generator maintenance, regardless of the specific vendor or procurement method. Such an analysis could reveal trends in spending, identify key contractors, and highlight any significant increases or decreases in expenditure for these services. It could also help determine if sole-source awards for this type of service are common within the VA or if this is an exception. Without access to this historical data, it's impossible to provide specific spending patterns.

What specific types of generators are covered under this contract, and what is their estimated age or condition?

The provided data does not specify the exact types of generators covered under this contract, nor does it offer details on their estimated age or current condition. The NAICS code 811310 suggests industrial or commercial generators, which can range from large backup power units for facilities to specialized equipment. To determine the specific types and condition, one would need to consult the contract's statement of work (SOW) or related documentation. This information is crucial for understanding the scope of the maintenance required and assessing the appropriateness of the contract's value and duration.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 FABICK DR, FENTON, MO, 63026

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

Financial Breakdown

Contract Ceiling: $143,601

Exercised Options: $143,601

Current Obligation: $143,601

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25524D0034

IDV Type: IDC

Timeline