VA awards $4.38M for HVAC services to JIVG ENTERPRISES LLC, a purchase order under SAP

Contract Overview

Contract Amount: $4,376,161 ($4.4M)

Contractor: Jivg Enterprises LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-01

End Date: 2027-06-30

Contract Duration: 1,825 days

Daily Burn Rate: $2.4K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HVAC SERVICE & MONITORING FOR EL PASO VA

Place of Performance

Location: EL PASO, EL PASO County, TEXAS, 79930

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to JIVG ENTERPRISES LLC for work described as: HVAC SERVICE & MONITORING FOR EL PASO VA Key points: 1. Contract awarded using a competitive process under the Simplified Acquisition Procedures (SAP). 2. The contract is a Firm Fixed Price (FFP) type, indicating predictable costs. 3. Performance period spans five years, from July 2022 to June 2027. 4. The contract is for HVAC service and monitoring at the El Paso VA. 5. No small business set-aside was utilized for this award. 6. The North American Industry Classification System (NAICS) code is 238220 for Plumbing, Heating, and Air-Conditioning Contractors.

Value Assessment

Rating: good

The contract value of $4.38 million over five years for HVAC services appears reasonable for a federal facility of this size. Benchmarking against similar HVAC service contracts for federal buildings of comparable square footage and complexity would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost predictability for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition for awards under the micro-purchase threshold and up to the SAP threshold. While the exact number of bidders is not specified, SAP aims to foster competition. The use of SAP suggests a streamlined procurement process.

Taxpayer Impact: The competitive nature of SAP awards generally leads to better price discovery and value for taxpayers compared to sole-source or limited competition contracts.

Public Impact

Ensures the continued operation and maintenance of critical HVAC systems at the El Paso VA Medical Center. Supports a comfortable and safe environment for veterans receiving care at the facility. Maintains the operational integrity of medical equipment that relies on stable environmental controls. Provides essential services to a key healthcare facility within the Department of Veterans Affairs. Impacts the daily operations and patient experience at the El Paso VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond standard monitoring and service.
Dependence on a single contractor for a critical building system could pose a risk if performance issues arise.
Limited transparency on the specific performance metrics and quality control measures within the purchase order.

Positive Signals

Firm Fixed Price contract provides cost certainty for the duration of the award.
Five-year contract duration allows for consistent service and relationship building with the contractor.
Awarded under a competitive process, suggesting potential for good value.
Service and monitoring contract ensures proactive maintenance, potentially reducing costly emergency repairs.

Sector Analysis

The HVAC services sector is a vital component of facility maintenance across all industries, including federal government operations. Federal agencies, particularly those with large physical footprints like the Department of Veterans Affairs, rely heavily on contractors for specialized maintenance and repair of complex building systems. Spending in this area is consistent with the need to ensure operational readiness and occupant comfort in government facilities. Comparable spending benchmarks would typically be assessed based on square footage, building age, and system complexity.

Small Business Impact

This contract was not awarded as a small business set-aside. There is no explicit information provided regarding subcontracting plans or requirements for small business participation. Further analysis would be needed to determine if small businesses are involved in subcontracting opportunities under this award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officer and program managers. The firm fixed price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon cost. Transparency is generally facilitated through contract award databases, but specific performance monitoring details are typically internal to the agency.

Related Government Programs

VA Facilities Maintenance Contracts
Federal HVAC Services
Department of Veterans Affairs Medical Center Operations
Simplified Acquisition Procedures (SAP) Awards
Purchase Orders for Services

Risk Flags

Potential for performance issues impacting critical facility operations.
Risk of unforeseen major repair costs not fully covered by contract scope.
Dependence on a single contractor for essential building systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to JIVG ENTERPRISES LLC. HVAC SERVICE & MONITORING FOR EL PASO VA

Who is the contractor on this award?

The obligated recipient is JIVG ENTERPRISES 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 $4.4 million.

What is the period of performance?

Start: 2022-07-01. End: 2027-06-30.

What is the track record of JIVG ENTERPRISES LLC with the federal government, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that JIVG ENTERPRISES LLC has received federal contracts. To assess their track record specifically with the Department of Veterans Affairs (VA) and for HVAC services, a deeper dive into contract performance history, past performance evaluations, and any reported issues or awards would be necessary. This would include examining previous contracts awarded to the company, their value, duration, and whether they were completed satisfactorily. Understanding their history with the VA is crucial for evaluating their reliability and capability in fulfilling the current HVAC service and monitoring contract.

How does the awarded price of $4.38 million compare to market rates for similar HVAC services for federal facilities?

The awarded price of $4.38 million over five years for HVAC services at the El Paso VA represents an average annual cost of approximately $875,000. To benchmark this against market rates, one would need to compare it with contracts for similar services at federal facilities of comparable size, complexity, and geographic location. Factors such as the age and type of HVAC systems, the scope of monitoring required, and prevailing labor rates in the El Paso region would influence this comparison. Without specific data on comparable contracts or detailed service scope, it is difficult to definitively state if the price is above or below market, but it falls within a range expected for comprehensive facility maintenance.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential performance failures by JIVG ENTERPRISES LLC, leading to disruptions in HVAC services critical for patient care and facility operations. Another risk is the possibility of unforeseen major equipment failures requiring costly repairs beyond the scope of routine service, potentially leading to cost overruns if not adequately addressed in the contract terms. Mitigation strategies typically involve robust performance monitoring by the VA, clear service level agreements (SLAs), and contingency planning for emergency repairs. The firm fixed price nature helps mitigate cost escalation for defined services, but the contract's specific clauses on major repairs and remedies for non-performance are key to risk management.

How effective is the current HVAC system at the El Paso VA, and how does this contract contribute to its effectiveness?

The effectiveness of the HVAC system at the El Paso VA is directly supported by this contract, which provides essential service and monitoring. Regular maintenance and monitoring are crucial for ensuring the system operates efficiently, maintains optimal temperature and air quality, and prevents breakdowns. This contract ensures that qualified personnel are performing these tasks, contributing to the overall reliability and longevity of the HVAC infrastructure. The effectiveness of the system itself is a function of its design, age, and maintenance history, which this contract aims to positively influence through proactive care.

What has been the historical spending trend for HVAC services at the El Paso VA or similar VA facilities?

Analyzing historical spending trends for HVAC services at the El Paso VA or similar VA facilities would provide valuable context for the current $4.38 million award. This would involve examining past contracts for HVAC maintenance, repair, and monitoring, noting their values, durations, and whether they were competed or sole-sourced. Understanding if spending has increased, decreased, or remained stable over time can indicate changes in system condition, service needs, or procurement strategies. A consistent or increasing trend might suggest aging infrastructure or growing service requirements, while a decrease could point to improved efficiency or different contracting approaches.

What is the scope of 'monitoring' included in this contract, and how is it measured?

The scope of 'monitoring' within this HVAC service contract typically involves the continuous or periodic observation of the HVAC system's performance parameters. This can include tracking temperature, humidity, air pressure, energy consumption, and equipment operational status. Monitoring systems often utilize sensors and software to detect anomalies, predict potential failures, and optimize system efficiency. The contract should specify the methods of monitoring (e.g., remote, on-site), the frequency, the data to be collected, and the reporting requirements. Measurement of effectiveness would likely be tied to system uptime, energy efficiency metrics, and the timely identification and resolution of potential issues before they escalate.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25722Q0220

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1712 WYOMING AVE, EL PASO, TX, 79902

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,393,747

Exercised Options: $4,376,161

Current Obligation: $4,376,161

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline