VA awards $1.2M contract for boiler testing and tuning, with 5 bids received

Contract Overview

Contract Amount: $120,624 ($120.6K)

Contractor: Caldaia Controls LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-06-01

End Date: 2027-04-30

Contract Duration: 1,794 days

Daily Burn Rate: $67/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BOILER TESTING AND TUNING B+4 OPTION

Place of Performance

Location: ROSEBURG, DOUGLAS County, OREGON, 97470

State: Oregon Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $120,624 to CALDAIA CONTROLS LLC for work described as: BOILER TESTING AND TUNING B+4 OPTION Key points: 1. Contract awarded to CALDAIA CONTROLS LLC for boiler testing and tuning services. 2. The contract has a base value of $1.2M and includes options, extending to April 2027. 3. Competition was conducted under Simplified Acquisition Procedures (SAP), indicating a focus on smaller procurements. 4. The contract type is Firm Fixed Price, providing cost certainty for the government. 5. Services will be delivered in Oregon, supporting VA facilities in the region. 6. The North American Industry Classification System (NAICS) code is 561210 for Facilities Support Services.

Value Assessment

Rating: good

The contract value of $1.2M for boiler testing and tuning appears reasonable for a multi-year federal contract of this nature. Without specific benchmarks for boiler maintenance in the Oregon region or detailed service scope, a precise value-for-money assessment is challenging. However, the firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The number of bids (5) indicates a degree of market interest and potential for competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements under the simplified acquisition threshold. Five bids were received, suggesting a healthy level of interest from potential contractors. This level of competition is generally positive as it allows for price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The competition level indicates that taxpayers likely benefited from a fair market price due to multiple vendors vying for the contract, preventing potential price inflation.

Public Impact

The Department of Veterans Affairs (VA) will benefit from reliable operation of its boiler systems. Essential maintenance and testing services will ensure the safety and efficiency of VA facilities. The contract supports facility operations in Oregon. The contract supports the Facilities Support Services sector, contributing to the operational readiness of government infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the fixed-price contract.
Dependence on a single contractor for critical facility maintenance could pose a risk if performance issues arise.
Ensuring consistent quality of service across the contract duration requires diligent oversight.

Positive Signals

Firm Fixed Price contract provides cost predictability for the VA.
Multiple bids received suggest a competitive environment and potential for good value.
Contract duration allows for sustained support and relationship building with the awarded vendor.

Sector Analysis

The Facilities Support Services sector is a broad category encompassing a wide range of maintenance, repair, and operational services for commercial and institutional buildings. Federal spending in this sector is substantial, driven by the need to maintain a vast portfolio of government-owned and leased properties. Contracts like this one, for specialized services such as boiler testing and tuning, are crucial for ensuring the operational integrity and energy efficiency of these facilities. Benchmarks for similar services can vary significantly based on facility size, complexity, and geographic location.

Small Business Impact

This contract was competed under Simplified Acquisition Procedures and does not appear to have a specific small business set-aside. While the contract itself is not set aside, the use of SAP can sometimes facilitate participation by small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officer and contract specialists. Performance monitoring and quality assurance will be key to ensuring the services meet the required standards. As a purchase order, it falls under standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases.

Related Government Programs

Federal Facilities Maintenance Contracts
Boiler and HVAC Services
Department of Veterans Affairs Procurement

Risk Flags

Potential for performance issues impacting facility operations.
Risk of safety incidents if protocols are not strictly followed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $120,624 to CALDAIA CONTROLS LLC. BOILER TESTING AND TUNING B+4 OPTION

Who is the contractor on this award?

The obligated recipient is CALDAIA CONTROLS 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 $120,624.

What is the period of performance?

Start: 2022-06-01. End: 2027-04-30.

What is the historical spending pattern for boiler testing and tuning services by the Department of Veterans Affairs?

Analyzing historical spending for boiler testing and tuning by the VA requires access to detailed federal procurement data. Typically, agencies like the VA issue numerous contracts for facilities maintenance, including specialized services like boiler upkeep. Spending patterns can fluctuate based on infrastructure needs, budget allocations, and the lifecycle of existing equipment. A review of past contracts would reveal trends in contract values, durations, awarded vendors, and geographic distribution of services. For instance, if the VA is undergoing a modernization of its facilities, spending on new equipment and associated maintenance might increase. Conversely, if facilities are aging, spending on repairs and routine testing could rise. Understanding these patterns helps in forecasting future needs and budgeting effectively for essential services.

How does the awarded price compare to market rates for similar boiler testing and tuning services?

Benchmarking the awarded price of $1.2 million against market rates for similar boiler testing and tuning services requires detailed service scope and regional cost data. Factors influencing market rates include the size and complexity of the boiler systems, the frequency of testing, the specific tuning procedures required, and prevailing labor and material costs in Oregon. Without a granular breakdown of the services provided under this contract and comparable market data, a precise comparison is difficult. However, the fact that five bids were received suggests that the market has capacity and that the pricing is likely competitive. Federal procurement officers typically conduct market research to ensure that proposed prices are fair and reasonable before awarding contracts.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured?

Key performance indicators (KPIs) for a boiler testing and tuning contract typically focus on ensuring the safe, efficient, and reliable operation of the boiler systems. These might include metrics such as the percentage of scheduled maintenance completed on time, adherence to safety protocols during testing and tuning, achievement of specified efficiency targets (e.g., fuel consumption, emissions), and response times for any emergency service calls. Performance measurement would likely involve regular progress reports from the contractor, site inspections by VA personnel, and potentially the use of specialized monitoring equipment to verify system performance. The contract's terms and conditions would outline the specific KPIs and the methodology for assessing contractor performance.

What is the track record of CALDAIA CONTROLS LLC in performing similar federal contracts?

Assessing the track record of CALDAIA CONTROLS LLC requires reviewing their past performance on federal contracts, particularly those involving boiler testing and tuning or similar facility support services. Federal procurement systems often include past performance evaluations that contracting officers can access. These evaluations provide insights into a contractor's reliability, quality of work, adherence to schedule, and overall customer satisfaction. A review of publicly available contract databases (like FPDS or SAM.gov) could reveal the types and values of contracts previously awarded to CALDAIA CONTROLS LLC, as well as any reported performance issues or commendations. A strong performance history generally indicates a lower risk for the government.

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

Potential risks associated with this contract include performance failures by the contractor leading to boiler downtime, cost overruns if the fixed-price contract is not well-defined, and potential safety incidents during testing and tuning. Mitigation strategies typically involve thorough pre-award evaluations of contractor capabilities and past performance, clear and comprehensive contract language defining scope and deliverables, robust oversight by the contracting officer's representative (COR), and adherence to strict safety protocols. The firm fixed-price nature of the contract shifts some cost risk to the contractor. Regular performance reviews and communication channels are also crucial for identifying and addressing issues proactively.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 71 MID CAPE TER STE 3, CAPE CORAL, FL, 33991

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $295,494

Exercised Options: $120,624

Current Obligation: $120,624

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline