VA awards $573K for generator maintenance, but competition was limited, raising value questions

Contract Overview

Contract Amount: $57,340 ($57.3K)

Contractor: John Fabick Tractor CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-11

End Date: 2027-06-10

Contract Duration: 364 days

Daily Burn Rate: $158/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AUTHORIZED DISTRIBUTOR GENERATOR MAINTENANCE & SERVICES ***ORDERING PERIOD 3***

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $57,340 to JOHN FABICK TRACTOR CO for work described as: AUTHORIZED DISTRIBUTOR GENERATOR MAINTENANCE & SERVICES ***ORDERING PERIOD 3*** Key points: 1. Contract awarded to a single supplier, limiting price discovery and potentially increasing costs. 2. The contract duration of one year is relatively short, allowing for frequent re-evaluation. 3. Focus on generator maintenance suggests a critical need for operational continuity within VA facilities. 4. The specific nature of the service may limit the pool of qualified bidders. 5. Lack of competition is a key risk indicator for potential overspending. 6. The contract is a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle, details of which are not provided.

Value Assessment

Rating: questionable

Without a competitive bidding process, it is difficult to assess if John Fabick Tractor Co. provided the best value for the government. The firm fixed price contract type offers some cost certainty, but the absence of competition prevents benchmarking against market rates or other potential suppliers. The total award amount of $573,400 for a one-year maintenance contract for generators appears reasonable on its face, but without comparative data or multiple bids, its true value proposition remains unclear.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, John Fabick Tractor Co., was solicited. This approach bypasses the standard competitive procurement process, which typically involves soliciting bids from multiple qualified vendors. While sole-source awards can be justified under specific circumstances (e.g., unique capabilities, urgent needs), the provided data does not offer justification. The lack of competition means the government did not benefit from the price reductions and service improvements that often arise from a competitive environment.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competition. Without multiple bids, there is no assurance that the price reflects the lowest achievable cost for these essential generator maintenance services.

Public Impact

Veterans and VA staff benefit from reliable power supply, ensuring continuity of care and operations. Essential maintenance services are delivered to critical infrastructure at VA facilities. The geographic impact is focused on Missouri, where John Fabick Tractor Co. is located. The contract supports specialized technical jobs in machinery maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition increases the risk of paying above-market rates.
Sole-source award limits transparency and potential for cost savings.
No data provided on contractor performance history or past issues.

Positive Signals

Firm fixed price contract provides cost certainty for the awarded amount.
Contract duration is one year, allowing for reassessment of competition and value.
Focus on maintenance ensures operational readiness of critical equipment.

Sector Analysis

The market for industrial machinery maintenance and repair is diverse, with many providers capable of servicing generators. However, specific equipment models or specialized maintenance requirements can sometimes lead to limited competition, especially if a particular vendor holds unique expertise or dealership rights. The Department of Veterans Affairs, like other federal agencies, relies on such services to maintain critical infrastructure, making this a recurring need within the federal procurement landscape. Benchmarking this contract's value is challenging without knowing the specific type and age of the generators being serviced.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the information provided. John Fabick Tractor Co. is likely a larger entity, and the sole-source nature of the award further reduces the likelihood of small business participation through subcontracting. This contract does not appear to actively contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. As a delivery order under an IDIQ, the parent contract likely has its own oversight mechanisms. Transparency is limited due to the sole-source nature and lack of publicly available justification. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Facility Maintenance Contracts
Generator Maintenance Services
Federal IDIQ Contracts
Commercial and Industrial Machinery Repair

Risk Flags

Limited Competition
Sole-Source Award
Lack of Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $57,340 to JOHN FABICK TRACTOR CO. AUTHORIZED DISTRIBUTOR GENERATOR MAINTENANCE & SERVICES ***ORDERING PERIOD 3***

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 $57,340.

What is the period of performance?

Start: 2026-06-11. End: 2027-06-10.

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 SAM.gov or FPDS to analyze past performance, contract values, and any reported issues or awards. Without this historical data, it's difficult to assess their reliability, past performance quality, or pricing consistency on previous government engagements. Understanding their history could provide context for this sole-source award, such as if they are the incumbent or possess unique qualifications.

How does the awarded price compare to market rates for similar generator maintenance services?

The provided data does not include sufficient detail to compare the awarded price of $573,400 to market rates for similar generator maintenance services. Key missing information includes the specific type, size, and age of the generators, the scope of maintenance required (e.g., preventative, emergency, parts included), and the geographic location's cost of living and labor. Without these specifics and comparative data from other service providers or industry benchmarks, a meaningful assessment of value for money is not possible. The sole-source nature of the award further complicates this comparison, as competitive pricing dynamics were absent.

What are the specific risks associated with a sole-source award for critical infrastructure maintenance?

Sole-source awards for critical infrastructure maintenance, such as generator services for the VA, carry several risks. Primarily, the lack of competition can lead to inflated prices, as the contractor faces no pressure to offer competitive rates. This can result in the government overpaying for services. Secondly, without multiple bidders, there's a reduced incentive for the sole provider to innovate or offer superior service quality, as there are no competitors to attract business from. Lastly, it raises concerns about transparency and fairness in the procurement process, potentially indicating that the government did not adequately explore available options or that the justification for a sole-source award may be weak, leading to potential waste of taxpayer funds.

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

The provided data snippet focuses on a single contract and does not offer insights into the Department of Veterans Affairs' historical spending patterns for generator maintenance. To analyze this, one would need to examine aggregated spending data over several fiscal years, looking at the total amount spent on generator maintenance, the number of contracts awarded, the distribution between competitive and sole-source awards, and the primary contractors. Such an analysis could reveal trends in pricing, identify potential areas of overspending, and highlight reliance on specific vendors or contract types. Understanding historical context is crucial for evaluating the significance of the current $573,400 award.

Are there any performance metrics or service level agreements (SLAs) associated with this contract?

The provided data does not specify any performance metrics or service level agreements (SLAs) tied to this contract. While the contract type is Firm Fixed Price, which defines the cost, it doesn't inherently detail the expected quality or timeliness of the maintenance services. For critical infrastructure like generators, SLAs are crucial for ensuring operational readiness, response times for emergencies, and preventative maintenance schedules. The absence of this information in the summary makes it difficult to assess how the VA will measure the contractor's performance and ensure the reliability of the generators.

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: $57,340

Exercised Options: $57,340

Current Obligation: $57,340

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