VA awards $6.9M contract for steam and condensate line replacement in New York

Contract Overview

Contract Amount: $6,915,243 ($6.9M)

Contractor: Afci-Cci JV ONE LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-04-22

End Date: 2026-10-01

Contract Duration: 1,988 days

Daily Burn Rate: $3.5K/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: STEAM AND CONDENSATE LINE REPLACEMENT

Place of Performance

Location: BATH, STEUBEN County, NEW YORK, 14810

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.9 million to AFCI-CCI JV ONE LLC for work described as: STEAM AND CONDENSATE LINE REPLACEMENT Key points: 1. Contract value represents a significant investment in facility infrastructure. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Contract duration indicates a long-term need for these services. 4. Fixed-price contract type aims to control costs and provide predictability. 5. The awardee has a track record with federal contracts, requiring further review for performance. 6. Geographic focus on New York highlights regional infrastructure needs.

Value Assessment

Rating: fair

The contract value of $6.9 million for steam and condensate line replacement appears to be within a reasonable range for a project of this scope and duration, especially considering the complexity of infrastructure upgrades. Benchmarking against similar projects for facility maintenance and repair within the Department of Veterans Affairs (VA) or other federal agencies would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to manage cost overruns, but the total value should be assessed against the specific deliverables and the contractor's historical performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was intended to be open, certain sources may have been excluded for specific reasons. The presence of 5 bidders suggests a moderate level of competition. Further investigation into the reasons for excluding other potential sources is warranted to understand if the competition was truly maximized and if this impacted price discovery.

Taxpayer Impact: The limited competition, even after an initial exclusion of sources, may mean that taxpayers did not benefit from the lowest possible price achievable through a fully open and unrestricted bidding process.

Public Impact

Veterans in New York will benefit from improved facility conditions at VA sites. The contract ensures the continued operation and maintenance of critical building systems. Services delivered will focus on essential infrastructure upgrades, enhancing reliability. The project's geographic impact is concentrated in New York. Potential for local job creation in the skilled trades sector within New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the long-term contract.
Ensuring the quality of work meets VA standards throughout the project duration.
Understanding the specific reasons for excluding certain sources in the competition phase.
Assessing the contractor's capacity to manage a project of this scale over several years.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Multiple bidders participated, indicating some level of market interest.
The contract addresses essential infrastructure needs, ensuring operational continuity.
Long-term duration allows for phased implementation and potential efficiency gains.

Sector Analysis

This contract falls within the construction and maintenance sector, specifically focusing on mechanical systems for federal facilities. The market for such services is characterized by specialized contractors capable of handling large-scale infrastructure projects. The value of this contract, approximately $6.9 million, is substantial for a single project of this nature. Comparable spending benchmarks would involve looking at other VA facility modernization projects or similar infrastructure upgrades across federal agencies, which often involve significant capital outlays for essential building systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity or joint venture. The impact on the small business ecosystem would depend on whether the prime contractor engages small businesses for specialized subcontracting work, which is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and facilities management departments. Accountability measures are embedded in the firm fixed-price contract structure, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through federal contract databases, but detailed project progress reports and Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

Federal Building Infrastructure Modernization
Department of Veterans Affairs Facilities Management
Public Works and Utilities Contracts
HVAC and Plumbing System Upgrades

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of scope creep impacting final cost and timeline.
Dependency on contractor's long-term performance and quality control.
Uncertainty regarding the full extent of competition achieved due to source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.9 million to AFCI-CCI JV ONE LLC. STEAM AND CONDENSATE LINE REPLACEMENT

Who is the contractor on this award?

The obligated recipient is AFCI-CCI JV ONE 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 $6.9 million.

What is the period of performance?

Start: 2021-04-22. End: 2026-10-01.

What is the track record of AFCI-CCI JV ONE LLC with federal contracts, particularly for similar infrastructure projects?

AFCI-CCI JV ONE LLC is a joint venture, which can sometimes indicate a pooling of resources and expertise. To assess their track record, a review of their past performance on federal contracts, especially those involving facility maintenance, steam systems, or large-scale construction, would be necessary. This would involve examining past performance evaluations, any documented disputes or contract terminations, and the successful completion of similar projects. Understanding their experience with the Department of Veterans Affairs specifically would also be crucial, as agency-specific requirements and operating environments can differ significantly.

How does the awarded price compare to market rates for steam and condensate line replacement in the New York region?

Determining the precise market rate comparison for this $6.9 million contract requires detailed project specifications and local labor/material cost data. However, the firm fixed-price nature suggests the contractor has factored in these costs and a profit margin. Benchmarking would involve analyzing recent bids for similar projects in the New York metropolitan area, considering factors like project scale, complexity, and the specific types of materials and labor required. Without access to detailed cost breakdowns or a comprehensive database of comparable projects, a definitive statement on whether this price is above or below market is challenging, but the moderate competition suggests it's likely competitive.

What are the primary risks associated with a long-term (1988 days) infrastructure contract like this, and how are they mitigated?

The primary risks associated with a long-term infrastructure contract include potential cost escalation due to unforeseen site conditions, changes in material prices, or labor availability over the extended period. Scope creep, where the project's requirements expand beyond the original agreement, is another significant risk. For this contract, the firm fixed-price structure is a key mitigation strategy, placing the financial risk of cost overruns on the contractor. The Department of Veterans Affairs likely has oversight mechanisms, including regular progress reviews and inspections, to monitor performance, manage scope, and ensure adherence to the contract terms. Clear contract language and change order procedures are also crucial for managing scope.

What is the expected impact of this contract on the operational efficiency and reliability of the targeted VA facilities?

The replacement of steam and condensate lines is critical for maintaining the operational efficiency and reliability of any facility's heating and cooling systems. Aging or failing lines can lead to significant heat loss, reduced system performance, and potential breakdowns, impacting the comfort and functionality of the buildings. By replacing these components, the contract aims to ensure consistent and efficient energy distribution, reduce the risk of emergency repairs, and improve the overall reliability of the HVAC infrastructure. This directly contributes to a more stable and functional environment for the VA facilities and, by extension, the services provided to veterans.

How has VA's spending on facility maintenance and infrastructure upgrades trended in recent years, and does this contract align with those patterns?

Federal agencies, including the VA, consistently allocate significant portions of their budgets to maintaining and upgrading aging infrastructure. Spending on facility maintenance and upgrades often trends upwards as buildings age and require more intensive repairs or modernization. This $6.9 million contract for steam and condensate line replacement aligns with the general pattern of federal investment in essential infrastructure. To provide a more precise alignment, one would need to analyze the VA's historical spending data specifically on HVAC systems, plumbing, and general facility repairs over the past several fiscal years to identify trends and confirm if this award is consistent with their strategic investment priorities.

What specific criteria were used to justify the 'exclusion of sources' in the competition phase for this contract?

The justification for 'exclusion of sources' in federal contracting typically stems from specific circumstances outlined in the Federal Acquisition Regulation (FAR). Common reasons include the need for a unique capability or specialized product that only a limited number of sources can provide, urgent and compelling circumstances that preclude full and open competition, or situations where a previous contract was terminated for default and only the incumbent can meet the immediate needs. Without access to the specific justification document for this contract, it's impossible to state the exact criteria. However, the VA would have had to formally document and approve these reasons to proceed with a limited competition.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24220B0058

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 837 OAKTON STREET SUITE F UNIT 2, ELK GROVE VILLAGE, IL, 60007

Business Categories: Category Business, Limited Liability Corporation, 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: $6,915,243

Exercised Options: $6,915,243

Current Obligation: $6,915,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline