VA awards $972,000 contract for boiler maintenance at Sierra Nevada healthcare system

Contract Overview

Contract Amount: $9,720 ($9.7K)

Contractor: Sierra Boiler Service, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-06-01

End Date: 2027-05-31

Contract Duration: 364 days

Daily Burn Rate: $27/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SEMI-ANNUAL TUNING OF NATURAL GAS, OIL AND ADJUST BURNER COMBUSTION AND CALIBRATION FOR BOILERS TO SUPPORT VA SIERRA NEVADA HEALTH CARE SYSTEM (VASNHCS) IN RENO, NV. BASE PLUS 4 OPTIONS: 06/01/2026 - 05/31/2031

Place of Performance

Location: RENO, WASHOE County, NEVADA, 89502

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9,720 to SIERRA BOILER SERVICE, INC. for work described as: SEMI-ANNUAL TUNING OF NATURAL GAS, OIL AND ADJUST BURNER COMBUSTION AND CALIBRATION FOR BOILERS TO SUPPORT VA SIERRA NEVADA HEALTH CARE SYSTEM (VASNHCS) IN RENO, NV. BASE PLUS 4 OPTIONS: 06/01/2026 - 05/31/2031 Key points: 1. Contract focuses on essential maintenance for critical infrastructure, ensuring operational reliability. 2. Competition was conducted under the Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 3. The contract term is 5 years, indicating a need for consistent, long-term service. 4. The awardee, Sierra Boiler Service, Inc., is a local Nevada-based company. 5. The contract type is Firm Fixed Price, which transfers some cost risk to the contractor. 6. This contract supports the operational continuity of the VA Sierra Nevada Health Care System.

Value Assessment

Rating: good

The contract value of $972,000 over five years for boiler maintenance appears reasonable for a healthcare facility of this size. Benchmarking against similar HVAC maintenance contracts for federal facilities of comparable square footage and complexity would provide a more precise value assessment. The firm fixed-price structure helps control costs, but the absence of detailed performance metrics makes a direct value-for-money comparison challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was competed under Simplified Acquisition Procedures (SAP), which are typically used for procurements valued below a certain threshold (e.g., $250,000, though this can vary). The number of bidders is not specified, but SAP competition generally aims for a reasonable number of offers to ensure fair pricing. The level of competition under SAP can sometimes be less robust than full and open competition, potentially impacting price discovery.

Taxpayer Impact: Competition under SAP aims to provide fair pricing for taxpayers on smaller procurements, balancing efficiency with cost-effectiveness.

Public Impact

Patients and staff at the VA Sierra Nevada Health Care System benefit from reliable heating and cooling systems. Essential maintenance services ensure the uninterrupted operation of critical medical facilities. The contract supports local employment through the awardee, Sierra Boiler Service, Inc. The geographic impact is localized to Reno, Nevada, serving the specific needs of the VA facility there.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen major repairs are required beyond the scope of routine tuning.
Limited transparency on the specific performance metrics and quality assurance measures for the tuning services.
Reliance on a single contractor for a critical infrastructure service could pose a risk if performance degrades.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the VA.
Long-term contract (5 years) ensures consistent maintenance and operational reliability.
Award to a local business may foster community relationships and potentially faster response times.

Sector Analysis

This contract falls within the broader facilities maintenance and operations sector, specifically focusing on HVAC systems. The market for such services is competitive, with numerous providers ranging from small local businesses to large national corporations. Federal spending in this area is substantial, supporting the upkeep of government buildings and infrastructure nationwide. This specific contract represents a small but vital component of the VA's overall facilities management budget, ensuring the operational integrity of a key healthcare asset.

Small Business Impact

The provided data does not indicate if this contract was specifically set aside for small businesses. However, given the use of Simplified Acquisition Procedures (SAP), it is likely that small businesses were eligible and potentially participated in the competition. Further analysis would be needed to determine if any subcontracting opportunities for small businesses are mandated or expected.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist within the Department of Veterans Affairs. Performance monitoring and quality assurance would be key aspects of oversight to ensure the contractor is meeting the terms of the firm fixed-price agreement. Transparency is generally maintained through contract databases, though specific performance reports may not be publicly available.

Related Government Programs

VA Facilities Management
Federal HVAC Maintenance Contracts
Healthcare Infrastructure Support
Boiler and Combustion System Services

Risk Flags

Potential for cost escalation if scope significantly expands beyond routine tuning.
Limited public data on contractor's past performance with federal agencies.
Competition level under SAP may not yield the lowest possible price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9,720 to SIERRA BOILER SERVICE, INC.. SEMI-ANNUAL TUNING OF NATURAL GAS, OIL AND ADJUST BURNER COMBUSTION AND CALIBRATION FOR BOILERS TO SUPPORT VA SIERRA NEVADA HEALTH CARE SYSTEM (VASNHCS) IN RENO, NV. BASE PLUS 4 OPTIONS: 06/01/2026 - 05/31/2031

Who is the contractor on this award?

The obligated recipient is SIERRA BOILER SERVICE, INC..

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 $9,720.

What is the period of performance?

Start: 2026-06-01. End: 2027-05-31.

What is the track record of Sierra Boiler Service, Inc. with federal contracts?

Information regarding Sierra Boiler Service, Inc.'s specific track record with federal contracts is not detailed in the provided data. A comprehensive review would involve searching federal procurement databases (like SAM.gov or FPDS) for past awards, performance evaluations, and any history of contract disputes or terminations. Understanding their past performance, especially with similar government entities or contract types, is crucial for assessing reliability and value. Without this specific data, it's difficult to definitively gauge their experience and suitability beyond the current award.

How does the annual cost of this contract compare to similar VA facilities?

The annual cost for this contract is approximately $194,400 ($972,000 / 5 years). To benchmark this effectively, we would need data on similar VA healthcare facilities in comparable geographic regions or with similar patient capacities and building sizes. Factors such as the age and complexity of the HVAC systems, local labor costs, and the specific scope of services (e.g., emergency response availability) significantly influence maintenance contract pricing. Without comparative data on these factors, it's challenging to definitively state whether this price is high, low, or average.

What are the primary risks associated with this boiler maintenance contract?

The primary risks associated with this contract include potential underperformance by the contractor leading to system failures, which could disrupt healthcare operations. There's also a risk of unforeseen major equipment failures that might exceed the scope of routine tuning and calibration, potentially leading to cost overruns if not managed contractually. Furthermore, a lack of detailed performance metrics could make it difficult to proactively identify and address issues before they escalate. The reliance on a single vendor for a critical service also presents a risk if the vendor experiences financial instability or operational difficulties.

How effective is the firm fixed-price contract type in ensuring value for this service?

The firm fixed-price (FFP) contract type is generally effective in providing cost certainty for the VA, as the price is set regardless of the contractor's actual costs. This transfers the risk of cost overruns to Sierra Boiler Service, Inc. For routine maintenance like boiler tuning and calibration, where the scope of work is relatively predictable, FFP can be a good choice. However, its effectiveness in ensuring overall value depends on the clarity of the SOW and the contractor's ability to perform efficiently. If unexpected major repairs arise, the FFP structure might not incentivize the contractor to seek the most cost-effective solutions for the VA, as their profit is fixed.

What is the historical spending trend for boiler maintenance at the VA Sierra Nevada Health Care System?

The provided data does not include historical spending trends for boiler maintenance at the VA Sierra Nevada Health Care System. To analyze this, one would need to examine past contracts for similar services at this specific facility over several fiscal years. This would reveal whether spending has been consistent, increasing, or decreasing, and whether this current award represents a significant change. Understanding historical patterns can help identify potential cost efficiencies, budget fluctuations, or changes in service requirements over time.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26126Q0497

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2969 S HIGHLAND DR, LAS VEGAS, NV, 89109

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

Financial Breakdown

Contract Ceiling: $48,600

Exercised Options: $9,720

Current Obligation: $9,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline