VA awards $6.1M contract for HVAC replacement at Atlanta VAMC, with 13 bids received

Contract Overview

Contract Amount: $611,211 ($611.2K)

Contractor: DAV Energy Solutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-04-12

End Date: 2026-10-10

Contract Duration: 911 days

Daily Burn Rate: $671/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE AHUS ATLANTA VAMC

Place of Performance

Location: DECATUR, DEKALB County, GEORGIA, 30033

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $611,211 to DAV ENERGY SOLUTIONS, INC. for work described as: REPLACE AHUS ATLANTA VAMC Key points: 1. Contract value appears reasonable given the scope of HVAC replacement in a large medical facility. 2. Strong competition with 13 bids suggests a healthy market for these specialized engineering services. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over two years allows for phased implementation and minimizes disruption. 5. Geographic focus on Georgia aligns with the location of the Atlanta VAMC. 6. Engineering services are critical for maintaining operational efficiency and patient comfort in healthcare settings.

Value Assessment

Rating: good

The contract value of $6.1 million for HVAC replacement at the Atlanta VAMC seems within a reasonable range for such a project. While specific benchmarks for VAMC HVAC overhauls are not readily available, similar large-scale facility modernization projects in the healthcare sector often run into millions of dollars. The firm fixed-price structure provides cost certainty. Further analysis would involve comparing the per-square-foot cost or cost per ton of HVAC capacity to industry standards for comparable healthcare facilities.

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 that the initial exclusion of sources was justified, and then it proceeded to full and open competition. The receipt of 13 bids is a strong indicator of robust competition. This level of interest suggests that multiple qualified contractors were aware of and interested in the opportunity, which typically leads to more competitive pricing and better value for the government.

Taxpayer Impact: A high number of bidders generally translates to taxpayer savings by driving down prices through competitive pressure. It ensures that the contract is awarded to the most capable and cost-effective provider, preventing potential overpayment.

Public Impact

Veterans receiving care at the Atlanta VAMC will benefit from improved environmental conditions and potentially more reliable healthcare services due to upgraded HVAC systems. The contract delivers essential infrastructure maintenance and modernization services for a critical federal healthcare facility. The primary geographic impact is within Georgia, specifically serving the Atlanta metropolitan area. The contract supports jobs within the engineering and construction sectors, likely benefiting skilled trades and project management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the HVAC replacement.
Dependence on contractor's ability to meet project timelines to avoid service disruptions.
Ensuring compliance with all VA facility standards and regulations throughout the project.

Positive Signals

Firm fixed-price contract provides cost predictability.
Strong competition indicates a healthy market and potential for good value.
Contract duration allows for structured implementation and reduces immediate pressure.
Engineering services are essential for facility maintenance and operational continuity.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader construction and facilities management industry. The market for specialized engineering services, particularly for large-scale government facilities like VA medical centers, is substantial. This contract represents a significant investment in maintaining and upgrading essential infrastructure, aligning with government priorities for facility modernization and operational efficiency. Comparable spending benchmarks would involve looking at other large federal building renovation or upgrade contracts.

Small Business Impact

The contract details do not indicate a specific small business set-aside. However, with 13 bidders in a full and open competition, there is a possibility that small businesses participated. Further analysis would be needed to determine if any small businesses were awarded subcontracts or if the prime contractor has a history of subcontracting with small businesses. The absence of a specific set-aside means the primary focus was on competition among all eligible sources.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability regarding cost. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the performance of the contract.

Related Government Programs

VA Facilities Management Contracts
Federal HVAC Modernization Projects
Engineering Services for Government Buildings
Healthcare Infrastructure Improvement Programs

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk related to specialized HVAC installation.
Dependency on timely delivery of critical HVAC components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $611,211 to DAV ENERGY SOLUTIONS, INC.. REPLACE AHUS ATLANTA VAMC

Who is the contractor on this award?

The obligated recipient is DAV ENERGY SOLUTIONS, 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 $611,211.

What is the period of performance?

Start: 2024-04-12. End: 2026-10-10.

What is the contractor's track record with the Department of Veterans Affairs and similar federal agencies?

DAV ENERGY SOLUTIONS, INC. has been awarded this definitive contract by the Department of Veterans Affairs. To assess their track record, a deeper dive into their past performance with the VA and other federal agencies is necessary. This would involve reviewing past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. Understanding their experience with similar HVAC replacement projects in large healthcare facilities is crucial for evaluating their capability to successfully execute this $6.1 million contract within the specified timeframe and budget.

How does the awarded amount compare to similar HVAC replacement projects in federal healthcare facilities?

The $6.1 million award for HVAC replacement at the Atlanta VAMC needs to be benchmarked against similar projects. Without specific data on comparable VA facility HVAC overhauls, we can look at general trends. Large-scale HVAC replacements in healthcare settings are complex and costly due to stringent requirements for air quality, redundancy, and infection control. Factors like facility size, age, specific system components being replaced, and geographic location influence costs. A preliminary assessment suggests the value is reasonable, but a detailed comparison with projects of similar scope and complexity would provide a more definitive value-for-money assessment.

What are the key performance indicators (KPIs) and potential risks associated with this contract?

Key performance indicators for this contract would likely include adherence to the project schedule, successful completion of all specified HVAC system upgrades, system performance testing results meeting VA standards, and compliance with safety and environmental regulations. Potential risks include unforeseen structural or system issues discovered during demolition and installation, delays caused by supply chain disruptions for specialized equipment, contractor performance issues leading to schedule slippage, and potential cost increases if the firm fixed-price contract has poorly defined contingencies. Effective project management and clear communication channels are vital to mitigate these risks.

What is the historical spending trend for engineering services related to facility maintenance at the Atlanta VAMC?

Analyzing historical spending for engineering services at the Atlanta VAMC would provide context for this $6.1 million award. This involves examining past contracts for similar maintenance, repair, and upgrade projects over several fiscal years. Understanding the average annual expenditure on facility engineering services, the types of projects undertaken, and the contractors previously engaged can reveal patterns. Significant deviations from historical spending levels might warrant further investigation, while consistency could indicate a predictable need for such services. This historical data is essential for assessing whether the current contract represents a typical investment or an anomaly.

How does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method impact cost and competition?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests an initial justification for excluding certain sources, followed by a broad solicitation to all eligible responsible sources. This method aims to balance the need for specific capabilities or technologies with ensuring fair and open competition. While the 'exclusion of sources' part requires careful justification to avoid limiting competition unnecessarily, the subsequent 'full and open' phase with 13 bidders indicates robust market interest. This approach can lead to competitive pricing and a wider pool of qualified contractors, ultimately benefiting taxpayers by ensuring value for money, provided the initial exclusion was valid and well-documented.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C24723R0103

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2207 GARNET AVE STE I, SAN DIEGO, CA, 92109

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: $611,211

Exercised Options: $611,211

Current Obligation: $611,211

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline