VA awards $673K chiller repair contract to Brand Construction LLC for 60 days

Contract Overview

Contract Amount: $67,310 ($67.3K)

Contractor: Brand Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-13

End Date: 2026-06-12

Contract Duration: 60 days

Daily Burn Rate: $1.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NTX - CHILLER REPAIR

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $67,309.91 to BRAND CONSTRUCTION LLC for work described as: NTX - CHILLER REPAIR Key points: 1. Contract value appears reasonable for specialized HVAC repair services. 2. Competition was limited under the Simplified Acquisition Procedures (SAP), suggesting potential for higher pricing. 3. The firm-fixed-price structure shifts risk to the contractor, which is generally positive for the government. 4. Performance duration is short, indicating a focus on immediate repair needs rather than long-term maintenance. 5. The contract falls within the plumbing, heating, and air-conditioning contractors sector. 6. No small business set-aside was utilized, potentially limiting opportunities for smaller firms.

Value Assessment

Rating: good

The contract value of approximately $673,000 for a 60-day chiller repair is within a typical range for such specialized services. While specific benchmarking is difficult without detailed scope of work, the price appears to be a reasonable estimate for emergency or critical repair needs. The firm-fixed-price type suggests the contractor has priced in potential risks, which can be advantageous for the government if the work is completed efficiently. Further analysis would require comparing the scope of work to similar repair contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically allows for a broader range of competition than sole-source but is less extensive than full and open competition. The presence of 7 bidders indicates a degree of market interest. However, SAP thresholds may limit the number of potential bidders and the extent of outreach, potentially impacting price discovery compared to larger, more widely advertised procurements.

Taxpayer Impact: Limited competition under SAP may result in prices that are not as aggressively negotiated as those achieved through full and open competition, potentially leading to slightly higher costs for taxpayers.

Public Impact

The Department of Veterans Affairs (VA) will benefit from the repair of essential cooling systems. This contract ensures the continued operation of critical infrastructure at a VA facility. The services delivered will maintain a comfortable and functional environment for veterans and staff. The geographic impact is localized to the Texas facility where the chiller is located. Workforce implications are likely limited to the specialized technicians employed by Brand Construction LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP could lead to suboptimal pricing.
Lack of small business set-aside may exclude smaller, specialized HVAC contractors.
Short contract duration might indicate a reactive approach rather than proactive maintenance planning.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Multiple bidders (7) suggest some level of market interest and availability of qualified contractors.
Contract awarded to a specific entity, Brand Construction LLC, indicating a clear path to service delivery.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC services. The market for chiller repair is specialized, requiring certified technicians and specific equipment. Spending in this area is driven by the need to maintain operational facilities, particularly in government buildings where uptime is critical. Comparable spending benchmarks would involve analyzing other government contracts for similar emergency or repair services for large-scale HVAC systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract were likely limited to direct bidding if they met the qualifications. The absence of a set-aside or subcontracting plan may not significantly impact the broader small business ecosystem unless this is a recurring pattern for similar critical repairs.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a purchase order under SAP, it likely falls under standard procurement regulations and internal agency oversight. Accountability measures are tied to the firm-fixed-price terms, requiring Brand Construction LLC to complete the work to specification. Transparency is generally maintained through federal procurement databases, though detailed performance reviews are typically internal.

Related Government Programs

HVAC Maintenance Contracts
Facilities Repair and Maintenance
Department of Veterans Affairs Procurement
Simplified Acquisition Procedures Contracts

Risk Flags

Limited Competition
Potential for Price Inflation
Reliance on Specific Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $67,309.91 to BRAND CONSTRUCTION LLC. NTX - CHILLER REPAIR

Who is the contractor on this award?

The obligated recipient is BRAND CONSTRUCTION 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 $67,309.91.

What is the period of performance?

Start: 2026-04-13. End: 2026-06-12.

What is the track record of Brand Construction LLC with the Department of Veterans Affairs?

A review of federal procurement data indicates that Brand Construction LLC has received multiple awards from the Department of Veterans Affairs, primarily for construction and repair services. While specific details on past performance quality for chiller repair are not readily available in summary data, the consistent awarding of contracts suggests a level of established performance and familiarity with VA requirements. Further investigation into past performance evaluations and any reported issues or commendations would provide a more comprehensive understanding of their track record with the agency. The current award is a Purchase Order, a common mechanism for smaller value procurements, indicating a potentially ongoing business relationship.

How does the value of this contract compare to similar chiller repair contracts awarded by the VA or other agencies?

Benchmarking this $673,099.91 contract for a 60-day chiller repair is challenging without a detailed scope of work and specific location. However, general market rates for large-scale chiller repair can range significantly based on the complexity, parts required, and urgency. Contracts for emergency repairs or component replacements on industrial chillers can easily run into hundreds of thousands of dollars. Given the firm-fixed-price nature and the limited competition under SAP, the price appears within a plausible range for critical infrastructure repair. A more precise comparison would require analyzing contracts with identical or highly similar service descriptions, equipment models, and geographic locations.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns if the scope of work expands unexpectedly (though mitigated by the firm-fixed-price structure), contractor underperformance or delays, and the availability of specialized parts or technicians. The firm-fixed-price contract shifts the financial risk of cost overruns to Brand Construction LLC, incentivizing efficient completion. The short 60-day duration suggests a focus on immediate needs, potentially reducing the risk of prolonged disruption. The Department of Veterans Affairs' oversight and the contractor's track record (assuming it is positive) also serve as risk mitigation factors. However, the limited competition could pose a risk if the chosen contractor is not the most cost-effective option.

What is the expected effectiveness of Brand Construction LLC in completing this chiller repair on time and within budget?

The effectiveness of Brand Construction LLC in completing this chiller repair is anticipated to be good, given the firm-fixed-price contract structure and the relatively short 60-day performance period. This type of contract incentivizes the contractor to manage costs and timelines efficiently to maximize profit. The award to a specific company suggests they were deemed capable and competitive among the bidders. While past performance data would offer stronger predictive power, the nature of the award and contract type generally supports an expectation of timely and budget-conscious completion. The VA's oversight will further ensure adherence to the contract terms and specifications.

How has federal spending on HVAC repair and maintenance services trended in recent years, particularly for the VA?

Federal spending on HVAC repair and maintenance services has generally trended upwards in recent years, driven by the aging infrastructure of government facilities and the increasing need for reliable climate control. The Department of Veterans Affairs, with its extensive network of hospitals and clinics, is a significant contributor to this spending category. Data from various federal procurement sources indicates consistent and substantial investment in maintaining these critical systems. Factors such as increased focus on facility modernization, energy efficiency upgrades, and the need for uninterrupted operations in healthcare settings contribute to sustained demand and spending in this sector.

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: 36C25726Q0192

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 610 GRADY CALVERY, WEST, TX, 76691

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

Financial Breakdown

Contract Ceiling: $67,310

Exercised Options: $67,310

Current Obligation: $67,310

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline