VA Awards $6.5M Contract for Building Systems Upgrade to Nordstrom Contracting & Consulting Corp

Contract Overview

Contract Amount: $6,544,582 ($6.5M)

Contractor: Nordstrom Contracting & Consulting Corp

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-02-02

End Date: 2026-09-30

Contract Duration: 971 days

Daily Burn Rate: $6.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 14 MAIN AND EMERGENCY ELECTRICAL AND HOT WATER SYSTEMS UPGRADE

Place of Performance

Location: MONTROSE, WESTCHESTER County, NEW YORK, 10548

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.5 million to NORDSTROM CONTRACTING & CONSULTING CORP for work described as: BUILDING 14 MAIN AND EMERGENCY ELECTRICAL AND HOT WATER SYSTEMS UPGRADE Key points: 1. Contract awarded for essential building systems upgrade at VA facility. 2. Competition method indicates potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risk. 4. Construction sector spending is significant, requiring careful benchmarking.

Value Assessment

Rating: good

The contract value of $6.5M for electrical and hot water systems upgrade appears reasonable given the scope and duration. Benchmarking against similar VA facility upgrades would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a competitive process but with specific criteria. This method aims to ensure fair pricing while potentially focusing on specialized capabilities.

Taxpayer Impact: The use of full and open competition, even with exclusions, aims to secure value for taxpayers. The fixed-price nature further protects against unexpected cost increases.

Public Impact

Ensures operational continuity and safety for VA facility users. Supports modernization of critical infrastructure. Potential for job creation within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method requires justification.
Potential for scope creep if not managed tightly.
Dependency on a single contractor for critical systems.

Positive Signals

Fixed-price contract provides cost certainty.
Clear end date for project completion.
Awarded by a major federal agency (VA).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area is substantial, focusing on maintaining and upgrading government facilities. Benchmarks for similar projects are crucial for assessing value.

Small Business Impact

The data does not indicate whether small businesses were involved in the bidding or subcontracting process. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract's definitive nature and fixed-price terms suggest a structured approach to accountability, but performance monitoring is key.

Related Government Programs

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

Risk Flags

Potential for cost escalation if scope is not strictly managed.
Risk of delays impacting facility operations.
Dependence on contractor's technical expertise.
Need for robust quality assurance during execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.5 million to NORDSTROM CONTRACTING & CONSULTING CORP. BUILDING 14 MAIN AND EMERGENCY ELECTRICAL AND HOT WATER SYSTEMS UPGRADE

Who is the contractor on this award?

The obligated recipient is NORDSTROM CONTRACTING & CONSULTING CORP.

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 $6.5 million.

What is the period of performance?

Start: 2024-02-02. End: 2026-09-30.

What is the specific justification for excluding sources in the full and open competition?

The justification for excluding sources in 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' typically relates to specific technical requirements, past performance, or unique capabilities that only a limited number of contractors can meet. This ensures the government obtains the best value while maintaining a competitive environment, though it requires careful documentation to avoid limiting competition unnecessarily.

How does the $6.5M cost compare to similar VA electrical and hot water system upgrade projects?

Without specific benchmark data for comparable VA projects, a direct cost comparison is difficult. However, the contract value should be assessed against the project's scope, duration (971 days), and the complexity of upgrading both electrical and hot water systems. Factors like facility size, age, and specific upgrade requirements significantly influence costs.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness?

Key performance indicators for this contract should focus on timely completion within budget, adherence to quality standards for electrical and hot water systems, minimal disruption to facility operations, and compliance with all safety regulations. Regular site inspections and progress reports will be crucial for monitoring performance and ensuring the upgrade meets VA's operational needs.

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: SEALED BID

Solicitation ID: 36C24224B0005

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 52 OLD LAKE RD, CONGERS, NY, 10920

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: $6,544,582

Exercised Options: $6,544,582

Current Obligation: $6,544,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline