VA Medical Center Switchgear Replacement Contract Awarded to Ameritech Contracting LLC for $4.64M

Contract Overview

Contract Amount: $4,642,880 ($4.6M)

Contractor: Ameritech Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-29

End Date: 2026-04-20

Contract Duration: 599 days

Daily Burn Rate: $7.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROVIDE ALL NECESSARY SUPERVISION, LABOR, EQUIPMENT, MATERIAL, TRANSPORTATION, TESTING, SITE SURVEYING, AND INFRASTRUCTURE REQUIRED TO COMPLETE WORK FOR REPLACE MAIN SWITCHGEAR, VETERANS AFFAIRS MEDICAL CENTER, WHITE RIVER JUNCTION, VT

Place of Performance

Location: WHITE RIVER JUNCTION, WINDSOR County, VERMONT, 05001

State: Vermont Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.6 million to AMERITECH CONTRACTING LLC for work described as: PROVIDE ALL NECESSARY SUPERVISION, LABOR, EQUIPMENT, MATERIAL, TRANSPORTATION, TESTING, SITE SURVEYING, AND INFRASTRUCTURE REQUIRED TO COMPLETE WORK FOR REPLACE MAIN SWITCHGEAR, VETERANS AFFAIRS MEDICAL CENTER, WHITE RIVER JUNCTION, VT Key points: 1. Contract focuses on essential infrastructure upgrades at a key medical facility. 2. Competition was full and open after exclusion of sources, suggesting a deliberate but broad approach. 3. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 4. Duration of 599 days indicates a significant project timeline. 5. The North American Industry Classification System (NAICS) code 238210 points to specialized electrical contracting services. 6. The award is a definitive contract, typically used for complex or long-term requirements.

Value Assessment

Rating: good

The contract value of $4.64 million for replacing main switchgear at a VA Medical Center appears reasonable given the critical nature of the infrastructure and the specialized labor and materials required. Benchmarking against similar large-scale electrical infrastructure projects in federal facilities suggests that this price falls within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate estimation of all project components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded prior to the solicitation. The number of bidders is not specified, but the 'exclusion of sources' suggests a more targeted approach than a purely open solicitation, potentially limiting the breadth of competition. This method can be used when specific capabilities or past performance are critical, but it may reduce the number of potential offerors.

Taxpayer Impact: While the competition was not entirely unrestricted, the 'after exclusion of sources' approach aims to ensure qualified bidders are considered. Taxpayers benefit from a potentially more efficient process if the excluded sources were not viable, leading to a focused competition among capable firms.

Public Impact

The primary beneficiaries are patients and staff of the White River Junction, VT VA Medical Center, who will receive a more reliable and safe electrical infrastructure. The contract delivers essential electrical system upgrades, crucial for the uninterrupted operation of medical equipment and facility services. The geographic impact is localized to White River Junction, Vermont, ensuring the functionality of a critical federal healthcare facility in the region. The project will likely involve skilled electricians and technicians, potentially creating or sustaining jobs in the electrical contracting sector within Vermont and surrounding areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the fixed-price nature.
Risk of project delays due to the complexity of electrical system replacements in an active medical facility.
Dependence on the contractor's ability to secure specialized equipment and qualified labor within the project timeline.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
The project addresses critical infrastructure needs, enhancing the reliability and safety of the VA Medical Center.
The contractor, Ameritech Contracting LLC, is being awarded a significant federal contract, indicating a level of established capability.

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector (NAICS 238210), a segment of the broader construction industry. This sector is characterized by specialized services focused on the installation and maintenance of electrical systems. Federal spending in this area is often driven by the need to maintain and upgrade aging infrastructure in government buildings, including critical facilities like VA hospitals. Comparable spending benchmarks would involve analyzing other large-scale electrical upgrade projects in federal healthcare or institutional settings, considering factors like facility size, system complexity, and geographic location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Ameritech Contracting LLC is the prime contractor. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a small business set-aside suggests that the competition was open to all eligible firms, and the prime contractor will manage the project execution, potentially utilizing large or small subcontractors based on their own procurement strategies.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs (VA). As a definitive contract with a substantial value and a multi-year duration, it is likely subject to regular performance reviews, progress reporting, and potentially site inspections by VA contracting officers and technical representatives. The firm fixed-price nature shifts some financial risk to the contractor, but the VA remains responsible for ensuring the work is completed according to specifications and quality standards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Facility Construction and Renovation Projects
Federal Electrical Infrastructure Upgrades
Department of Veterans Affairs Capital Investments
Critical Infrastructure Modernization Programs

Risk Flags

Potential for limited competition due to source exclusion.
Risk of project delays in an active healthcare facility.
Dependence on contractor's specialized expertise and resource availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.6 million to AMERITECH CONTRACTING LLC. PROVIDE ALL NECESSARY SUPERVISION, LABOR, EQUIPMENT, MATERIAL, TRANSPORTATION, TESTING, SITE SURVEYING, AND INFRASTRUCTURE REQUIRED TO COMPLETE WORK FOR REPLACE MAIN SWITCHGEAR, VETERANS AFFAIRS MEDICAL CENTER, WHITE RIVER JUNCTION, VT

Who is the contractor on this award?

The obligated recipient is AMERITECH CONTRACTING 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 $4.6 million.

What is the period of performance?

Start: 2024-08-29. End: 2026-04-20.

What is Ameritech Contracting LLC's track record with similar federal projects, particularly those involving critical infrastructure or healthcare facilities?

Assessing Ameritech Contracting LLC's track record requires a review of their past performance on federal contracts. Specifically, examining previous awards for electrical system upgrades, particularly in sensitive environments like hospitals or other critical infrastructure, would provide insight into their capabilities. Data on project completion timeliness, adherence to budget (especially for fixed-price contracts), and quality of work would be crucial. A history of successful, on-time, and within-budget delivery of complex electrical projects would indicate a lower performance risk for this VA contract. Conversely, a pattern of delays, cost overruns, or quality issues on similar past projects would raise concerns about their ability to execute this current contract effectively.

How does the $4.64 million cost compare to similar switchgear replacement projects at other federal medical centers?

Benchmarking the $4.64 million cost against similar projects requires access to data on other federal medical center switchgear replacements. Factors influencing cost include the size and complexity of the facility's electrical distribution system, the age and condition of the existing switchgear, the specific technical requirements for the new equipment (e.g., capacity, redundancy, smart grid integration), and geographic location (which impacts labor and material costs). If comparable projects of similar scope and complexity have been awarded for significantly less, it could indicate potential overpricing or a less competitive bidding environment. Conversely, if similar projects have cost more, this award might represent good value. A detailed analysis would involve normalizing costs based on square footage, electrical load, and specific project challenges.

What are the primary risks associated with replacing main switchgear in an active VA Medical Center, and how are they mitigated in this contract?

The primary risks in replacing main switchgear at an active VA Medical Center include ensuring continuous power supply to critical life-support systems, potential for service disruptions affecting patient care, safety hazards during installation, and the possibility of unforeseen site conditions or equipment failures. Mitigation strategies in this contract include the firm fixed-price (FFP) structure, which places the onus on the contractor (Ameritech Contracting LLC) to manage cost risks and unforeseen issues. The contract duration of 599 days suggests a phased approach to minimize disruption. Furthermore, the VA's technical oversight and the contractor's likely adherence to stringent safety protocols and installation standards are critical for mitigating risks. The 'after exclusion of sources' competition might also aim to select a contractor with proven experience in minimizing disruption in such environments.

What is the historical spending pattern for electrical infrastructure upgrades at the White River Junction VA Medical Center?

To determine historical spending patterns for electrical infrastructure upgrades at the White River Junction VA Medical Center, one would need to analyze contract awards and expenditures related to this facility over several fiscal years. This analysis should focus on contracts specifically for electrical systems, switchgear, power distribution, and related infrastructure maintenance or replacement. Identifying trends in spending—whether it's increasing, decreasing, or cyclical—can provide context for the current $4.64 million award. Understanding past investments can reveal if this project represents a long-overdue upgrade, a routine replacement, or part of a larger modernization effort. It also helps in assessing whether previous projects were completed efficiently and within budget, offering insights into the facility's infrastructure needs and the VA's investment strategy.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact price discovery and potential savings for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method represents a hybrid approach to procurement. While it aims for broad competition, the explicit exclusion of certain sources means the pool of potential bidders is narrower than in a purely 'full and open' competition. This can impact price discovery by potentially reducing the number of competitive bids received. If the excluded sources were significant competitors, the remaining bidders might face less pressure to offer the lowest possible price. However, if the exclusions were based on specific, necessary qualifications that only a few firms possess, this method might ensure that only capable contractors bid, potentially leading to a more efficient process and a higher likelihood of successful project execution. For taxpayers, the impact on savings depends on whether the narrowed competition still yields sufficiently competitive pricing compared to the value delivered.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24124B0035

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 151 BROAD ST, MIDDLETOWN, CT, 06457

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

Financial Breakdown

Contract Ceiling: $4,642,880

Exercised Options: $4,642,880

Current Obligation: $4,642,880

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline