VA awards $22.9M contract for generator upgrades in New York, ensuring facility resilience

Contract Overview

Contract Amount: $22,900,000 ($22.9M)

Contractor: Cdeem CO

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-02

End Date: 2027-05-19

Contract Duration: 716 days

Daily Burn Rate: $32.0K/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: UPGRADE EMERGENCY GENERATORS

Place of Performance

Location: NORTHPORT, SUFFOLK County, NEW YORK, 11768

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.9 million to CDEEM CO for work described as: UPGRADE EMERGENCY GENERATORS Key points: 1. Contract focuses on critical infrastructure upgrades, enhancing operational continuity. 2. Competition was open, suggesting a potentially competitive pricing environment. 3. Fixed-price contract type helps mitigate cost overrun risks. 4. Project duration of nearly two years indicates a substantial scope of work. 5. Geographic focus on New York facilities highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $22.9 million for generator upgrades appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects for federal facilities suggests this is within expected cost ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a broad solicitation process. While the specific number of bidders isn't detailed, this approach generally fosters competitive pricing and allows a wide range of qualified contractors to participate, leading to better price discovery.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it increases the likelihood of securing the best possible price for essential infrastructure upgrades.

Public Impact

Veterans receiving care at VA facilities in New York will benefit from improved power reliability. Ensures uninterrupted critical services during power outages, enhancing patient safety and care quality. Supports the operational readiness of key healthcare infrastructure. Potential for local job creation in the construction and electrical trades within New York.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during generator replacement.
Dependence on contractor's ability to meet stringent installation and testing timelines.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Clear performance period with defined start and end dates.
Focus on essential infrastructure ensures long-term operational benefits.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on electrical and mechanical systems upgrades. The market for federal construction and infrastructure projects is substantial, with agencies like the VA consistently investing in maintaining and modernizing their facilities. This project aligns with broader government efforts to ensure the resilience of critical infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor is there explicit information on subcontracting plans. Further analysis would be needed to determine if small businesses had opportunities to participate either as prime contractors or subcontractors in this procurement.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established procurement regulations and oversight mechanisms. The firm fixed-price nature of the contract provides a degree of financial oversight. Transparency regarding contract performance and any potential issues would typically be available through VA contract management systems and potentially Inspector General reports if significant problems arise.

Related Government Programs

VA Facility Maintenance and Repair
Federal Infrastructure Modernization
Emergency Power Systems Procurement
Construction Services for Government Buildings

Risk Flags

Potential for delays
Supply chain risks
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.9 million to CDEEM CO. UPGRADE EMERGENCY GENERATORS

Who is the contractor on this award?

The obligated recipient is CDEEM CO.

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 $22.9 million.

What is the period of performance?

Start: 2025-06-02. End: 2027-05-19.

What is the track record of CDEEM CO in performing similar federal contracts?

Information regarding CDEEM CO's specific track record with federal contracts, particularly those involving generator upgrades or similar infrastructure projects for the VA or other agencies, is not provided in the summary data. A deeper dive into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to assess their past performance, including contract values, timeliness, quality of work, and any past performance issues or awards.

How does the awarded amount compare to historical spending on generator upgrades at VA facilities?

The provided data does not include historical spending figures for generator upgrades at VA facilities, making a direct comparison difficult. To assess this, one would need to analyze past VA contracts for similar projects, considering factors like facility size, age, and the scope of the upgrade (e.g., capacity, technology). This would help determine if the $22.9 million award represents an increase, decrease, or stable level of investment in this area.

What are the primary risks associated with this generator upgrade project?

Key risks include potential delays in construction due to unforeseen site conditions, supply chain disruptions for critical components, or contractor performance issues. Given the critical nature of generators for healthcare operations, any failure to meet performance standards or timelines could significantly impact patient care. The firm fixed-price contract mitigates financial risk for the government but places more risk on the contractor for cost overruns.

What is the expected impact of these upgrades on the operational effectiveness of the VA facilities?

These upgrades are expected to significantly enhance the operational effectiveness of the VA facilities by ensuring a reliable and continuous power supply. This is crucial for maintaining life-support systems, medical equipment, and essential building functions during grid outages or emergencies. Improved power reliability contributes directly to patient safety, quality of care, and the overall mission readiness of the healthcare facilities.

Were there any specific technical requirements or performance standards mandated for the new generators?

The summary data does not detail the specific technical requirements or performance standards for the generators. Typically, such contracts would include specifications for power output (kW), fuel type, emissions standards, transfer switch capabilities, integration with building management systems, and compliance with relevant codes (e.g., NFPA, NEC). These details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24225R0007

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 651 DANVILLE DR, ORLANDO, FL, 32825

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $22,900,000

Exercised Options: $22,900,000

Current Obligation: $22,900,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline