VA awards $266,574 for emergency boiler repair to Terminal Connections, LLC

Contract Overview

Contract Amount: $266,574 ($266.6K)

Contractor: Terminal Connections, L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-03

End Date: 2026-06-03

Contract Duration: 92 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EMERGENCY REPAIR SERVICE FOR IC BOILER SYSTEM

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $266,574 to TERMINAL CONNECTIONS, L.L.C. for work described as: EMERGENCY REPAIR SERVICE FOR IC BOILER SYSTEM Key points: 1. The contract is for emergency repair of an IC boiler system. 2. The award was made to Terminal Connections, LLC. 3. The Department of Veterans Affairs is the contracting agency. 4. The contract duration is 92 days. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: questionable

The contract value of $266,574 for a 92-day emergency repair seems high. Without a competitive bid, it's difficult to assess if this price is reasonable compared to similar emergency boiler repair services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under the Simplified Acquisition Procedures (SAP), indicating a limited competition approach. This method may not yield the best price discovery for the government.

Taxpayer Impact: The lack of full and open competition could result in taxpayers paying a premium for this emergency service.

Public Impact

Veterans may experience service disruptions if boiler systems are not adequately maintained. Emergency repairs can be costly and impact agency budgets. The VA's ability to secure timely and cost-effective repairs is crucial for facility operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High emergency repair cost
Short contract duration for potentially complex repairs

Positive Signals

Emergency need addressed
Specific contractor identified

Sector Analysis

This contract falls under the construction and maintenance sector, specifically for facility repairs. Emergency repairs often command higher prices due to urgency and limited contractor availability.

Small Business Impact

There is no indication that small businesses were considered or involved in this procurement, which limits opportunities for smaller contractors.

Oversight & Accountability

The limited competition approach warrants oversight to ensure the VA obtained fair pricing and that emergency procurement procedures were followed appropriately.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for overpayment due to lack of competition.
Limited transparency in the procurement process.
No clear indication of small business participation.
Urgency may have bypassed standard cost-saving measures.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $266,574 to TERMINAL CONNECTIONS, L.L.C.. EMERGENCY REPAIR SERVICE FOR IC BOILER SYSTEM

Who is the contractor on this award?

The obligated recipient is TERMINAL CONNECTIONS, L.L.C..

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 $266,574.

What is the period of performance?

Start: 2026-03-03. End: 2026-06-03.

What was the justification for not competing this contract under SAP, given the value?

The justification for not competing under SAP is not provided in the data. Typically, emergency situations or specific technical requirements might lead to limited competition. However, for a value of $266,574, a more robust competitive process would usually be expected to ensure best value.

What is the risk associated with a sole-source or limited competition emergency repair?

The primary risk is paying an inflated price due to the lack of competitive bidding. There's also a risk that the chosen contractor may not be the most qualified or experienced, potentially leading to subpar repairs or further issues down the line.

How effective is this contract in ensuring the long-term functionality of the boiler system?

The effectiveness in ensuring long-term functionality is uncertain based on this data. This contract appears to be for immediate emergency repairs, not a comprehensive maintenance or upgrade plan. The quality of the repair work itself will determine its effectiveness.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C263-26-AP-2297

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 101 CENTER ROAD DILLON, MARSHALLTOWN, IA, 50158

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

Financial Breakdown

Contract Ceiling: $266,574

Exercised Options: $266,574

Current Obligation: $266,574

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline