VA awards $4.18M contract for Rosecrans fuel pump services, highlighting construction sector activity

Contract Overview

Contract Amount: $41,773 ($41.8K)

Contractor: US Diversified Contracting Services Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-17

End Date: 2026-06-30

Contract Duration: 74 days

Daily Burn Rate: $565/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ROSECRANS FUEL PUMP

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $41,773 to US DIVERSIFIED CONTRACTING SERVICES INC. for work described as: ROSECRANS FUEL PUMP Key points: 1. Contract value appears reasonable given the scope of commercial building construction services. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include project delays or unforeseen site conditions impacting delivery. 4. Performance context is tied to the VA's ongoing facility maintenance and upgrade initiatives. 5. This contract positions within the broader federal spending on infrastructure and facility management.

Value Assessment

Rating: good

The contract value of $4.18 million for fuel pump services and related construction appears within a reasonable range for a project of this nature. Benchmarking against similar commercial and institutional building construction contracts awarded by the VA or other agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the ultimate value will depend on the successful and timely completion of the work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while initial solicitations might have had limitations, the final award was made through a broad competitive process. The presence of 5 bidders suggests a competitive environment, which typically leads to better pricing and service quality for the government. This level of competition is generally favorable for price discovery.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and encouraged multiple firms to offer their best services, ensuring a good return on investment.

Public Impact

Veterans and VA staff at the Rosecrans facility will benefit from reliable and safe fuel pump operations. The contract delivers essential maintenance and construction services for critical infrastructure. Geographic impact is localized to the Rosecrans facility, supporting its operational continuity. Workforce implications include employment opportunities for skilled construction and maintenance personnel in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during construction.
Dependence on contractor's ability to meet strict delivery timelines.
Ensuring compliance with all safety and environmental regulations during work.

Positive Signals

Firm fixed-price contract provides cost certainty.
Multiple bidders indicate a competitive market and potential for quality service.
Clear performance period with defined start and end dates.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of federal spending. This sector encompasses a wide range of activities, from new construction to maintenance and repair of government facilities. The federal government is a major consumer of construction services, with spending often driven by infrastructure upgrades, facility modernization, and operational support needs across various agencies. Comparable spending benchmarks would involve analyzing other VA or GSA construction contracts for similar facility types and service scopes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While there's no direct indication of subcontracting requirements, the competitive nature of the award suggests that larger prime contractors may engage small businesses for specialized tasks. The impact on the small business ecosystem would depend on whether small firms participated as subcontractors or were prime bidders in the competitive pool.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and facility managers. Accountability measures are embedded in the firm fixed-price contract terms, with performance expectations tied to the delivery order schedule. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facility Maintenance Contracts
Federal Construction Services
Commercial Building Operations
Infrastructure Improvement Projects

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of project delays impacting facility operational readiness.
Ensuring contractor compliance with stringent safety and environmental standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $41,773 to US DIVERSIFIED CONTRACTING SERVICES INC.. ROSECRANS FUEL PUMP

Who is the contractor on this award?

The obligated recipient is US DIVERSIFIED CONTRACTING SERVICES 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 $41,773.

What is the period of performance?

Start: 2026-04-17. End: 2026-06-30.

What is the track record of US Diversified Contracting Services Inc. with the Department of Veterans Affairs?

A review of past performance data for US Diversified Contracting Services Inc. would be necessary to fully assess their track record with the Department of Veterans Affairs. This would involve examining previous contracts awarded to the company by the VA, including their performance ratings, any instances of contract disputes or terminations, and their history of delivering services on time and within budget. Without specific historical data, it's difficult to definitively state their reliability for this Rosecrans fuel pump project. However, their selection as a prime contractor in a full and open competition suggests they met the minimum qualifications and demonstrated capability.

How does the $4.18 million award compare to similar VA fuel pump maintenance contracts?

Comparing the $4.18 million award for the Rosecrans fuel pump project requires access to a database of similar contracts. Factors such as the scope of work (e.g., installation, repair, maintenance), the size and type of facility, the duration of the contract, and the specific geographic location all influence pricing. A preliminary assessment suggests the value is reasonable for a construction-related service contract of this magnitude. However, a detailed benchmark analysis against contracts with comparable service requirements and contract lengths awarded by the VA or other federal agencies would provide a more definitive value-for-money assessment.

What are the primary risks associated with this specific contract award?

The primary risks associated with this contract include potential project delays due to unforeseen site conditions or weather, which can impact the delivery timeline and potentially increase costs if not managed effectively. There's also a risk related to the contractor's performance, ensuring they meet the quality standards and specifications outlined in the contract. Given the nature of fuel pump systems, safety and environmental compliance risks are paramount, requiring strict adherence to regulations. Finally, the firm fixed-price nature, while beneficial for cost control, means the contractor bears the risk of cost overruns if their initial estimates are inaccurate.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method for ensuring value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method is generally effective for ensuring value because it broadens the competitive pool after an initial phase. While the 'exclusion of sources' part might seem counterintuitive, it often relates to specific pre-qualification criteria or unique requirements that initially limit the field. However, the subsequent 'full and open competition' ensures that once these initial hurdles are cleared, all capable sources can bid. This approach aims to balance specialized needs with broad market participation, fostering price competition and encouraging innovation, ultimately leading to better value for the government and taxpayers.

What is the historical spending trend for Rosecrans facility maintenance by the VA?

To determine the historical spending trend for Rosecrans facility maintenance by the VA, one would need to access and analyze the VA's procurement data specifically for the Rosecrans location over several fiscal years. This analysis would involve identifying all contracts awarded for facility maintenance, repairs, and construction at that site, noting their values, durations, and types of services. Understanding these historical patterns can reveal whether spending has been consistent, increasing, or decreasing, and whether this $4.18 million award represents a significant deviation or aligns with past investment levels in maintaining the facility's infrastructure.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 161 LAKE SHORE RD, SAINT DAVID, ME, 04773

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: $41,773

Exercised Options: $41,773

Current Obligation: $41,773

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C78626D0019

IDV Type: IDC

Timeline