VA awards $19M for generator installation, highlighting need for reliable power infrastructure

Contract Overview

Contract Amount: $18,960,842 ($19.0M)

Contractor: MEM Contracting, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-21

End Date: 2025-12-31

Contract Duration: 1,106 days

Daily Burn Rate: $17.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INSTALLATION OF STANBY GENERATOR UNITS

Place of Performance

Location: PERRY POINT, CECIL County, MARYLAND, 21902

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.0 million to MEM CONTRACTING, INC. for work described as: INSTALLATION OF STANBY GENERATOR UNITS Key points: 1. Contract value appears reasonable given the scope of installing standby generator units. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over three years indicates a significant, long-term project. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project addresses critical infrastructure needs for the Department of Veterans Affairs. 6. The contractor, MEM CONTRACTING, INC., is responsible for delivering essential power solutions.

Value Assessment

Rating: good

The contract value of approximately $19 million for the installation of standby generator units seems aligned with similar infrastructure projects. While specific per-unit cost benchmarks are not readily available without more detailed project specifications, the overall award amount reflects the complexity and scale of ensuring reliable power for a federal facility. The firm-fixed-price structure provides cost certainty for the VA, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential bidders were solicited and allowed to submit proposals. The specific number of bidders is not provided, but the "full and open" designation generally suggests a robust competitive environment, which is favorable for price discovery and achieving a fair market price.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring the government receives competitive pricing for essential services and infrastructure.

Public Impact

Veterans receiving care at VA facilities will benefit from uninterrupted power supply, ensuring continuity of essential medical services. The installation of standby generators will enhance the operational resilience of VA medical centers. The project's geographic impact is focused on Maryland, where the installations will take place. This contract supports the construction and electrical services sector, potentially creating or sustaining jobs in that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions are encountered during installation.
Ensuring seamless integration with existing power systems requires meticulous planning and execution.

Positive Signals

The firm-fixed-price contract type limits the government's exposure to cost increases.
The extended contract duration allows for thorough planning, execution, and testing of the generator systems.
Awarding to a single contractor streamlines management and accountability for the project.

Sector Analysis

The installation of standby generator units falls within the broader construction and engineering services sector, specifically related to critical infrastructure and power systems. This contract supports the government's ongoing efforts to modernize and ensure the reliability of its facilities. Comparable spending benchmarks for similar large-scale generator installations at federal sites can vary significantly based on capacity, complexity, and location, but this award represents a substantial investment in power redundancy.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, should MEM CONTRACTING, INC. choose to engage small businesses for specialized services or materials. Without specific subcontracting plans, the direct benefit to small businesses from this prime contract is not guaranteed.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a firm-fixed-price contract, the primary accountability measure is the successful completion of the installation according to the specified requirements and timeline. Transparency is generally maintained through contract award databases and reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Building and Fire Safety Program
VA Capital Asset and Business Development Management
Critical Infrastructure Protection Programs
Department of Defense Facilities Modernization

Risk Flags

Potential for cost overruns if not managed tightly despite fixed-price.
Risk of project delays due to unforeseen site conditions or supply chain issues.
Ensuring long-term reliability and maintenance readiness of installed generators.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.0 million to MEM CONTRACTING, INC.. INSTALLATION OF STANBY GENERATOR UNITS

Who is the contractor on this award?

The obligated recipient is MEM CONTRACTING, INC..

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 $19.0 million.

What is the period of performance?

Start: 2022-12-21. End: 2025-12-31.

What is the specific capacity and type of standby generator units being installed, and how does this align with the VA facility's power requirements?

The provided data does not specify the exact capacity (e.g., in kilowatts) or type (e.g., diesel, natural gas) of the standby generator units. To assess alignment with the VA facility's power requirements, a detailed analysis of the facility's critical load, peak demand, and redundancy needs would be necessary. This information is typically found in the contract's Statement of Work (SOW) or technical specifications. Without these details, it's difficult to definitively state how well the chosen units match the facility's specific power demands beyond the general understanding that they are intended to provide backup power.

How does the $18.96 million contract value compare to the average cost of similar standby generator installation projects for federal agencies of comparable size?

Benchmarking the $18.96 million contract value requires comparing it to similar projects, considering factors like the number of units, total power output (kW), complexity of installation (e.g., underground fuel lines, integration with existing switchgear), and geographic location. While specific data on comparable VA projects isn't immediately available, large-scale generator installations for critical facilities can range from several hundred thousand to millions of dollars. The value of this contract suggests a significant undertaking, potentially involving multiple large-capacity units or complex integration at one or more VA facilities. A more precise comparison would necessitate access to detailed project scopes for other federal generator installations.

What are the key performance indicators (KPIs) or milestones outlined in the contract to measure the successful installation and performance of the generator units?

The provided summary data does not detail the specific Key Performance Indicators (KPIs) or milestones for this contract. However, typical KPIs for such projects would likely include adherence to the project schedule, successful completion of installation phases (e.g., foundation, unit placement, fuel system, electrical connections), passing of rigorous testing protocols (e.g., load bank testing, simulated outage tests), and final acceptance by the VA. Milestones would likely be tied to the completion of these phases. The firm-fixed-price nature implies that meeting these defined requirements and milestones is crucial for the contractor's payment and successful contract closeout.

What is MEM CONTRACTING, INC.'s track record with the Department of Veterans Affairs and for similar infrastructure projects?

Information regarding MEM CONTRACTING, INC.'s specific track record with the Department of Veterans Affairs or for similar infrastructure projects is not included in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contracts awarded to the company by the VA or other federal agencies, and any history of project success or challenges. This due diligence is critical for understanding the contractor's capability and reliability in executing a project of this magnitude and importance.

What are the potential risks associated with the long duration (over 3 years) of this contract, and what mitigation strategies are in place?

The extended duration of over three years for this generator installation contract presents several potential risks. These include the possibility of material cost escalation (though mitigated by the fixed-price structure), potential for contractor resource reallocation to other projects, and the risk of technology obsolescence if the project timeline slips significantly. Mitigation strategies typically involve clear contract milestones, regular progress reviews, defined clauses for managing delays, and potentially performance bonds. The firm-fixed-price nature also incentivizes the contractor to manage resources effectively to maintain profitability over the contract term.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24522R0034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 819 S PHILADELPHIA BLVD, ABERDEEN, MD, 21001

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $18,960,842

Exercised Options: $18,960,842

Current Obligation: $18,960,842

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline