VA awards $1.68M for physical access systems, with 2 bidders competing for a 29-day firm-fixed-price purchase order

Contract Overview

Contract Amount: $16,825 ($16.8K)

Contractor: 3:5 Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-20

End Date: 2026-04-18

Contract Duration: 29 days

Daily Burn Rate: $580/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PHYSICAL ACCESS SYSTEM INSTALLATION

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16,825 to 3:5 GROUP, LLC for work described as: PHYSICAL ACCESS SYSTEM INSTALLATION Key points: 1. The contract value of $1.68 million for physical access systems appears reasonable given the short duration and specialized nature of the service. 2. Competition was limited to two bidders, suggesting potential for price discovery limitations. 3. The short performance period (29 days) may indicate an urgent need or a task order against a larger contract. 4. The firm-fixed-price contract type shifts risk to the contractor, which is typical for installation services. 5. The award was made under Simplified Acquisition Procedures (SAP), indicating an expectation of a smaller, less complex procurement. 6. The contractor, 3:5 GROUP, LLC, is relatively new to federal contracting based on the limited award data. 7. The service falls under Security Systems Services, a niche within the broader facilities maintenance sector.

Value Assessment

Rating: good

The contract value of $1.68 million for a 29-day period for physical access system installation is difficult to benchmark precisely without more data on the scope of work. However, given the specialized nature of security systems and the firm-fixed-price structure, the pricing appears to be within a reasonable range for a rapid deployment. The limited competition, however, warrants careful consideration of the value achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for streamlined competition for procurements under the federal micro-purchase threshold. With only two bidders, the level of competition was limited. While SAP aims for efficiency, a higher number of bidders typically leads to more robust price discovery and potentially better value for the government.

Taxpayer Impact: Limited competition under SAP means taxpayers may not have benefited from the most competitive pricing achievable through a broader solicitation. The government secured a vendor, but the potential for cost savings through wider bidding was likely constrained.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving enhanced physical security for its facilities. The contract delivers installation services for physical access systems, likely including card readers, electronic locks, and control panels. The geographic impact is focused on Texas, where the services will be performed. The contract may have implications for the local workforce in Texas, potentially creating short-term employment opportunities for installation technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may result in higher costs for taxpayers.
The short performance period could indicate rushed work or potential for future follow-on requirements.
Contractor's track record with the VA or similar complex security installations is not detailed.
The specific scope of 'physical access system installation' is broad and could encompass significant variations in complexity and cost.

Positive Signals

Firm-fixed-price contract type effectively transfers cost overrun risk to the contractor.
Award under SAP suggests an efficient procurement process for a potentially urgent need.
The contract specifies a clear end date, providing a defined period for service delivery.
The service is essential for facility security and operational integrity.

Sector Analysis

The physical access control systems market is a segment of the broader security and building management industry. This contract falls under the Security Systems Services (NAICS 561621) category. The market is characterized by technological advancements in areas like biometrics and smart card technology, alongside traditional keycard systems. Federal spending in this area is driven by the need to secure sensitive government facilities and assets, with agencies like the VA consistently investing in upgrades and maintenance.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information on subcontracting plans. The award to 3:5 GROUP, LLC, a company that may be a small business, does not automatically imply a small business set-aside strategy for this specific procurement. Further analysis would be needed to determine the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and program managers. As a purchase order under SAP, it may have less formal oversight than larger, more complex contracts. Transparency is limited by the nature of SAP procurements, and there is no explicit mention of Inspector General jurisdiction for this specific award, though the IG retains broad authority over VA spending.

Related Government Programs

Physical Security Systems
Access Control Systems
Facility Maintenance Services
Department of Veterans Affairs IT and Facilities Contracts
Security Services Contracts

Risk Flags

Limited Competition
Short Performance Period
Unclear Scope of Work
Contractor Track Record Unknown

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16,825 to 3:5 GROUP, LLC. PHYSICAL ACCESS SYSTEM INSTALLATION

Who is the contractor on this award?

The obligated recipient is 3:5 GROUP, 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 $16,825.

What is the period of performance?

Start: 2026-03-20. End: 2026-04-18.

What is the specific scope of work for the 'PHYSICAL ACCESS SYSTEM INSTALLATION' and what specific technologies are being installed?

The provided data does not detail the specific scope of work or the technologies involved in the 'PHYSICAL ACCESS SYSTEM INSTALLATION.' This could range from installing new card readers and electronic locks to upgrading existing control panels or integrating new software. Understanding the precise nature of the installation is crucial for accurately assessing its value and comparing it to market rates. Without this detail, the $1.68 million award for a 29-day period remains difficult to fully contextualize in terms of the quantity and complexity of the systems being deployed.

What is the track record of 3:5 GROUP, LLC with the Department of Veterans Affairs or similar federal agencies?

Information regarding the track record of 3:5 GROUP, LLC is limited in the provided data. As a relatively new entity in federal contracting, its history with the VA or other agencies for similar physical access system installations is not readily available. A deeper dive into contract databases would be necessary to ascertain past performance, any prior issues, and the successful completion of previous projects. This information is vital for assessing the contractor's reliability and capability to execute the current contract successfully.

How does the per-day cost of this contract compare to similar physical access system installation projects?

Calculating a meaningful per-day cost for this contract is challenging due to the short duration and the nature of installation services, which often involve significant upfront work and setup rather than continuous daily effort. The total award is $1.68 million over 29 days, averaging approximately $57,931 per day. However, this figure does not represent a true per-unit cost or a comparable benchmark for installation services. A more accurate comparison would require understanding the number of systems installed, the complexity of each installation, and the labor hours involved, which are not provided.

What are the potential risks associated with a 29-day performance period for a physical access system installation?

A 29-day performance period for physical access system installation presents several potential risks. Firstly, it suggests a potentially urgent requirement, which can sometimes lead to rushed work, compromising quality or security. Secondly, it might indicate that this is a task order against a larger, indefinite-delivery/indefinite-quantity (IDIQ) contract, meaning the full scope and long-term implications are not captured here. Thirdly, if the scope is indeed limited to 29 days, it raises questions about whether the contractor can adequately complete complex installations within such a tight timeframe without incurring additional costs or sacrificing thoroughness.

What is the historical spending pattern of the VA for physical access systems in Texas?

The provided data does not offer historical spending patterns for the VA specifically for physical access systems in Texas. To analyze this, one would need to query federal procurement databases (like USASpending.gov) for contracts awarded by the VA in Texas within the NAICS code 561621 (Security Systems Services) or related categories over several fiscal years. This would reveal trends in contract values, competition levels, and the types of services procured, allowing for a better understanding of whether this $1.68 million award is consistent with past spending or represents an anomaly.

What are the implications of awarding under Simplified Acquisition Procedures (SAP) with only two bidders?

Awarding under Simplified Acquisition Procedures (SAP) is intended to streamline the procurement process for purchases below the federal micro-purchase threshold. However, with only two bidders, the intended benefits of increased competition and price discovery may be diminished. While SAP allows for flexibility, a low number of bidders can indicate potential issues such as insufficient market research, unclear solicitation requirements, or limited contractor availability. For taxpayers, this means there's a higher chance that the government did not secure the most competitive price possible, as a wider field of bidders typically drives prices down.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: NA

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 125O2 EXCHANGE DR STE 404, STAFFORD, TX, 77477

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $16,825

Exercised Options: $16,825

Current Obligation: $16,825

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline