VA awards $807K for emergency water heater replacement in Louisiana, highlighting critical infrastructure needs

Contract Overview

Contract Amount: $80,707 ($80.7K)

Contractor: Gaudin Equipment & Supply CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-05-01

Contract Duration: 29 days

Daily Burn Rate: $2.8K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EMERGENCY WATER HEATHER REPLACEMENT

Place of Performance

Location: KENNER, JEFFERSON County, LOUISIANA, 70062

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $80,707 to GAUDIN EQUIPMENT & SUPPLY CO for work described as: EMERGENCY WATER HEATHER REPLACEMENT Key points: 1. Contract addresses urgent need for functional water heating systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Short performance period suggests a time-sensitive operational requirement. 4. Focus on a single vendor may limit market-driven price discovery. 5. Geographic concentration in Louisiana indicates localized infrastructure challenges.

Value Assessment

Rating: fair

The contract value of $807,070 for emergency water heater replacement appears high for a short-term service, especially given the lack of competitive bidding. Without comparable contracts or detailed scope of work, it's difficult to benchmark the value definitively. The firm fixed-price structure offers cost certainty but may not reflect the most economical solution if competition were leveraged.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, indicating that it was not competed. The Department of Veterans Affairs likely determined that only one vendor, GAUDIN EQUIPMENT & SUPPLY CO, could meet the specific, urgent requirements. This lack of competition means taxpayers did not benefit from a potentially lower price that could have been achieved through a bidding process.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as they bypass the competitive pressure that typically drives down prices.

Public Impact

Veterans in Louisiana will benefit from improved living conditions with reliable hot water. Essential services at a VA facility in Louisiana will be maintained. The contract supports local employment through the awarded contractor's operations. Ensures continuity of care and comfort for residents at the VA facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Urgency of the award could have precluded thorough market research.
Short duration might indicate a temporary fix rather than a long-term solution.

Positive Signals

Addresses an immediate and critical need for essential services.
Firm fixed-price contract provides budget certainty.
Award to a single vendor suggests specialized capability or urgent need.

Sector Analysis

The plumbing, heating, and air-conditioning contracting sector is vital for maintaining operational facilities across government agencies. This contract falls within the broader facilities maintenance and repair category. While specific benchmarks for emergency water heater replacements are not readily available, spending in this sector is often driven by infrastructure age and the need for immediate repairs, as seen here with the VA.

Small Business Impact

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. The sole-source nature further limits the potential for small business participation.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) and the agency's procurement office. The Department of Veterans Affairs has internal audit and oversight functions, but the specifics of monitoring this particular contract's execution and value are not detailed here. Transparency is limited due to the sole-source nature.

Related Government Programs

VA Facility Maintenance
Emergency Repair Contracts
Plumbing and HVAC Services
Infrastructure Modernization

Risk Flags

Sole-source award
High dollar value for short duration
Lack of competitive bidding

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $80,707 to GAUDIN EQUIPMENT & SUPPLY CO. EMERGENCY WATER HEATHER REPLACEMENT

Who is the contractor on this award?

The obligated recipient is GAUDIN EQUIPMENT & SUPPLY 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 $80,707.

What is the period of performance?

Start: 2026-04-02. End: 2026-05-01.

What is the track record of GAUDIN EQUIPMENT & SUPPLY CO with the Department of Veterans Affairs?

Information regarding GAUDIN EQUIPMENT & SUPPLY CO's specific track record with the Department of Veterans Affairs is not detailed in the provided data. A comprehensive review would require accessing historical contract databases to identify past performance, any issues encountered, and the overall value of previous awards. Understanding their history with the VA, particularly on similar emergency repair or infrastructure projects, would provide context for this current sole-source award and help assess reliability and past performance.

How does the $807,070 cost compare to similar emergency water heater replacement contracts?

Benchmarking this $807,070 contract against similar emergency water heater replacement contracts is challenging without access to a broader dataset of comparable procurements. Factors such as the number of units, complexity of installation, specific facility requirements, and geographic location significantly influence cost. Given this was a sole-source award for a short duration, it is plausible that the price may be higher than a competitively bid contract. Further analysis would require identifying contracts with similar scope, scale, and urgency, ideally within the same region or for similar facility types.

What are the primary risks associated with this sole-source award?

The primary risks associated with this sole-source award include potential overpayment due to the lack of competitive bidding, which can lead to reduced value for taxpayer money. There's also a risk that the urgency of the requirement may have led to insufficient due diligence in selecting the vendor or defining the scope, potentially resulting in suboptimal service or unexpected costs. Furthermore, reliance on a single vendor for critical infrastructure can create dependencies and limit flexibility if issues arise during the contract period.

How effective is the Department of Veterans Affairs in managing emergency repair contracts?

The effectiveness of the Department of Veterans Affairs (VA) in managing emergency repair contracts can vary. The VA manages a vast portfolio of facilities, and emergency repairs are critical to maintaining operational readiness and resident well-being. While this specific contract addresses an urgent need, the reliance on sole-source awards for such significant amounts suggests potential challenges in proactive maintenance planning or competitive sourcing strategies. Oversight mechanisms and the quality of contracting officers' representatives play a crucial role in ensuring effectiveness and value for money on these types of contracts.

What are the historical spending patterns for plumbing and HVAC services at this VA facility or region?

Historical spending patterns for plumbing and HVAC services at this specific VA facility or within Louisiana are not provided in the current data. Analyzing past expenditures would reveal trends in maintenance costs, frequency of emergency repairs versus planned upgrades, and the typical procurement methods used (e.g., competitive vs. sole-source). Understanding these patterns could indicate whether this $807,070 award represents an anomaly, a recurring need, or a potential area for improved long-term infrastructure investment and maintenance strategies.

Industry Classification

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

Product/Service Code: PLUMBING, HEATING, WASTE DISPOSAL

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2711 PIEDMONT ST, KENNER, LA, 70062

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

Financial Breakdown

Contract Ceiling: $80,707

Exercised Options: $80,707

Current Obligation: $80,707

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline