VA Awards $2.95M Design Contract for West Haven Chiller Plant Replacement to Miller-Remick, LLC

Contract Overview

Contract Amount: $2,950,393 ($3.0M)

Contractor: Miller-Remick, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-02-16

End Date: 2026-03-24

Contract Duration: 1,497 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 689-21-122 A/E WEST HAVEN CHILLER PLANT REPLACEMENT DESIGN SERVICES

Place of Performance

Location: WEST HAVEN, NEW HAVEN County, CONNECTICUT, 06516

State: Connecticut Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to MILLER-REMICK, LLC for work described as: 689-21-122 A/E WEST HAVEN CHILLER PLANT REPLACEMENT DESIGN SERVICES Key points: 1. Contract awarded for essential facility upgrade at West Haven VA Medical Center. 2. Engineering services sector sees significant federal investment. 3. Potential for cost overruns or schedule delays exists in complex infrastructure projects. 4. Competition method aimed for broad participation but excluded specific sources.

Value Assessment

Rating: good

The contract value of $2.95 million for design services appears reasonable given the scope of a chiller plant replacement. Benchmarking against similar large-scale facility design projects would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific limitations. This method may impact price discovery by narrowing the pool of potential bidders.

Taxpayer Impact: Taxpayer funds are being used for a necessary infrastructure upgrade, aiming for long-term operational efficiency and reliability at a VA facility.

Public Impact

Ensures continued operation and modernization of critical VA healthcare infrastructure. Supports local economy through engineering services contract. Potential for improved energy efficiency and reduced maintenance costs post-replacement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition limits broader market engagement.
Long project duration (over 4 years) increases risk of scope creep and cost escalation.
Firm Fixed Price contract may not fully account for unforeseen design complexities.

Positive Signals

Essential infrastructure upgrade for a critical VA facility.
Competitive bidding process, albeit with exclusions, was utilized.
Clear contract end date established.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a common area for federal spending on infrastructure and facility modernization. Benchmarks for similar design projects vary widely based on complexity and scale.

Small Business Impact

The contract was awarded to Miller-Remick, LLC, and there is no indication that small businesses were specifically targeted or subcontracted. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency, implying internal oversight. The contract's long duration necessitates diligent monitoring to ensure adherence to scope, schedule, and budget.

Related Government Programs

Engineering Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition due to source exclusion.
Extended contract duration increases risk.
Potential for design obsolescence over time.
Firm Fixed Price may not cover all unforeseen design issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to MILLER-REMICK, LLC. 689-21-122 A/E WEST HAVEN CHILLER PLANT REPLACEMENT DESIGN SERVICES

Who is the contractor on this award?

The obligated recipient is MILLER-REMICK, 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 $3.0 million.

What is the period of performance?

Start: 2022-02-16. End: 2026-03-24.

What specific criteria led to the exclusion of certain sources in the competitive bidding process?

The exclusion of sources suggests that the agency may have had specific technical requirements, past performance considerations, or unique project needs that narrowed the field of eligible contractors. Understanding these criteria is crucial for assessing the fairness and effectiveness of the competition method employed.

What are the primary risks associated with the long duration of this design contract?

The extended duration of nearly five years for a design-only contract presents significant risks. These include potential for design obsolescence if technology or requirements change, increased likelihood of scope creep as project details evolve, and greater exposure to inflation and market fluctuations impacting future construction costs.

How will the success of this design contract be measured in terms of value for taxpayer money?

Success will be measured by the delivery of a complete, accurate, and constructible design that meets all specified requirements within budget and schedule. Ultimately, the true value will be realized if the designed chiller plant operates efficiently, reliably, and cost-effectively for the VA, justifying the initial design investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C24121R0181

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1010 KING HWY S BLDG 2 FL 2, CHERRY HILL, NJ, 08034

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,679,432

Exercised Options: $2,950,393

Current Obligation: $2,950,393

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline