VA Awards $628K for Switchgear Upgrade to Blueway One JV LLC, Lacking Competition

Contract Overview

Contract Amount: $628,000 ($628.0K)

Contractor: Blueway ONE JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-19

End Date: 2026-06-18

Contract Duration: 272 days

Daily Burn Rate: $2.3K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROJECT 528A8-25-802 UPGRADE PARALLELING SWITCHGEAR

Place of Performance

Location: ALBANY, ALBANY County, NEW YORK, 12208

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $628,000 to BLUEWAY ONE JV LLC for work described as: PROJECT 528A8-25-802 UPGRADE PARALLELING SWITCHGEAR Key points: 1. Contract awarded for essential electrical infrastructure upgrade. 2. Sole awardee suggests limited market engagement or specific capabilities. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector is critical for facility operations and maintenance.

Value Assessment

Rating: fair

The contract value of $628,000 for switchgear upgrade appears reasonable for specialized electrical work. However, without competitive bids, it's difficult to definitively assess if this represents the best value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not fully leverage market forces to achieve the lowest possible price.

Taxpayer Impact: Taxpayer funds are utilized for this upgrade. The lack of competition raises concerns about potential overspending compared to a fully competed scenario.

Public Impact

Ensures reliable power for a VA facility, impacting patient care. Upgrade addresses aging infrastructure, reducing risk of outages. Supports local economy through contract award, though competition was limited.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for inflated pricing
Limited transparency in award process

Positive Signals

Addresses critical infrastructure need
Specific contract type (FFP) provides cost certainty

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector. Spending benchmarks for similar electrical infrastructure upgrades vary widely based on scope and location, but $628K for switchgear is within a typical range for specialized projects.

Small Business Impact

The awardee, Blueway One JV LLC, is a joint venture. Analysis is needed to determine the small business participation within the joint venture structure and if opportunities were missed for direct small business awards.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The limited competition approach warrants scrutiny to ensure fair pricing and adherence to procurement regulations.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competitive bidding
Potential for price overruns
Limited transparency in award justification
Need for small business participation verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $628,000 to BLUEWAY ONE JV LLC. PROJECT 528A8-25-802 UPGRADE PARALLELING SWITCHGEAR

Who is the contractor on this award?

The obligated recipient is BLUEWAY ONE JV 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 $628,000.

What is the period of performance?

Start: 2025-09-19. End: 2026-06-18.

What specific factors justified the limited competition for this switchgear upgrade, and were alternative competitive strategies considered?

The justification for limited competition needs to be thoroughly documented by the VA. Factors could include unique technical requirements, urgency, or the limited number of qualified contractors. Without this documentation, it's difficult to assess if alternative competitive strategies, such as a broader solicitation or phased approach, were adequately explored to ensure the best value for taxpayers.

How does the $628,000 price compare to industry benchmarks for similar switchgear upgrades, considering the specific technical requirements?

A comprehensive comparison requires detailed technical specifications of the switchgear and installation. However, preliminary assessment suggests the price is within a plausible range for specialized electrical work. Further analysis involving peer contracts for similar VA facilities or federal buildings would be necessary to establish a robust benchmark and identify potential cost deviations.

What is the potential impact of this upgrade on the operational effectiveness and reliability of the VA facility it serves?

Upgrading critical switchgear is essential for maintaining reliable power supply to a VA facility. This directly impacts the operational effectiveness by reducing the risk of power outages, which could disrupt patient care, essential services, and sensitive medical equipment. A successful upgrade enhances overall facility resilience and safety.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C24225R0102

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1730 PARK ST STE 123, NAPERVILLE, IL, 60563

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: $628,000

Exercised Options: $628,000

Current Obligation: $628,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline