VA Spends $69.2M on New Boiler Plant for West LA Medical Center, Awarded to S. J. Amoroso Construction

Contract Overview

Contract Amount: $69,200,389 ($69.2M)

Contractor: S. J. Amoroso Construction CO., LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-27

End Date: 2027-03-22

Contract Duration: 753 days

Daily Burn Rate: $91.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NEW BOILER PLANT AT THE VA MEDICAL CENTER, WEST LOS ANGELES, CA

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $69.2 million to S. J. AMOROSO CONSTRUCTION CO., LLC for work described as: NEW BOILER PLANT AT THE VA MEDICAL CENTER, WEST LOS ANGELES, CA Key points: 1. The contract value of $69.2 million is significant for a single boiler plant project. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The project falls under Commercial and Institutional Building Construction, a sector with established benchmarks. 4. The firm fixed-price contract type aims to control costs, but potential for change orders exists.

Value Assessment

Rating: fair

The $69.2 million price tag for a boiler plant appears high compared to typical projects of this nature. Without specific details on the plant's capacity, complexity, and required technology, a direct comparison is difficult, but it warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the final price is a single award, and the number of bids received is not detailed, impacting the assessment of price discovery.

Taxpayer Impact: The significant expenditure of $69.2 million represents a substantial use of taxpayer funds for infrastructure at a VA facility.

Public Impact

Improved healthcare infrastructure for veterans in West Los Angeles. Potential for job creation during the construction phase. Ensures reliable heating and cooling systems for the medical center. Long-term operational cost savings may be realized if the new plant is more efficient.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High contract value for a single facility component.
Lack of detail on bid competitiveness.
Potential for cost overruns if scope changes.

Positive Signals

Utilized full and open competition.
Firm fixed-price contract type.
Addresses critical infrastructure needs.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for such projects vary widely based on size, complexity, and location. The $69.2 million figure suggests a large-scale or technologically advanced installation.

Small Business Impact

The data indicates that the contract was awarded to S. J. Amoroso Construction Co., LLC, and that small business participation (sb) is false. This suggests that small businesses were not directly involved in this specific prime contract award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms should be in place to ensure proper execution and accountability for the funds expended.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

High contract value.
Lack of bid count.
No small business participation noted.
Long project duration.
Potential for change orders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $69.2 million to S. J. AMOROSO CONSTRUCTION CO., LLC. NEW BOILER PLANT AT THE VA MEDICAL CENTER, WEST LOS ANGELES, CA

Who is the contractor on this award?

The obligated recipient is S. J. AMOROSO CONSTRUCTION CO., 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 $69.2 million.

What is the period of performance?

Start: 2025-02-27. End: 2027-03-22.

What specific technological advancements or unique requirements justify the $69.2 million cost for this boiler plant, and how do these compare to industry standards for similar VA facilities?

The substantial cost of $69.2 million for the boiler plant necessitates a detailed justification of any advanced technologies, specific capacity requirements, or unique site conditions that differentiate it from standard installations. A thorough review against industry benchmarks for VA medical center infrastructure projects is crucial to ascertain if the pricing reflects genuine value or potential overspending. Understanding these specifics is key to assessing the project's cost-effectiveness.

Given the firm fixed-price contract, what are the primary risks associated with potential change orders or unforeseen issues during the 753-day duration, and how are these risks being mitigated by the

Despite the firm fixed-price structure, risks of change orders and unforeseen issues persist, particularly over a 753-day project. Potential risks include unexpected site conditions, material price escalations beyond contract allowances, or design modifications. Mitigation strategies likely involve stringent contract management, detailed pre-construction surveys, and clear protocols for change order review and approval to safeguard against scope creep and budget overruns.

How will the efficiency and reliability improvements of the new boiler plant translate into measurable long-term operational cost savings and enhanced patient care at the West Los Angeles VA Medical C

The effectiveness of the new boiler plant will be measured by its contribution to reduced energy consumption, lower maintenance costs, and enhanced system reliability, directly impacting operational budgets. Improved climate control and consistent utility services are critical for patient comfort and the uninterrupted functioning of medical equipment, thereby indirectly enhancing the quality of care. Quantifying these savings and improvements over time will be essential for evaluating the project's ultimate value.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10F24R0018

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 390 BRIDGE PKWY, REDWOOD CITY, CA, 94065

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

Financial Breakdown

Contract Ceiling: $69,200,389

Exercised Options: $69,200,389

Current Obligation: $69,200,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline