VA awards $2.6M for HVAC services, with 5 bidders competing for a 5-year Florida contract

Contract Overview

Contract Amount: $2,639,151 ($2.6M)

Contractor: Radice Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-06-01

End Date: 2026-02-28

Contract Duration: 1,733 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HVAC QUARTERLY, ANNUAL INSPECTIONS & CHILLER OVERHAUL

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to RADICE ENTERPRISES, LLC for work described as: HVAC QUARTERLY, ANNUAL INSPECTIONS & CHILLER OVERHAUL Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type helps mitigate cost overrun risks for the government. 3. Performance period spans over 4 years, indicating a need for sustained HVAC maintenance. 4. The contract is for administrative management and general management consulting services, potentially encompassing broader facility management aspects. 5. Awarded to a single vendor, Radice Enterprises, LLC, highlighting their selection from a competitive pool. 6. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-competed framework.

Value Assessment

Rating: good

The contract's value of $2.6 million over approximately 5 years for HVAC services appears reasonable, especially considering it covers quarterly and annual inspections, as well as chiller overhauls. Benchmarking against similar HVAC maintenance contracts for federal facilities of comparable size and scope would provide a more precise value assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific per-unit cost data or detailed service breakdowns, a definitive value-for-money judgment is challenging, but the competitive award process suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five bidders vying for the opportunity. This level of competition is generally favorable as it allows multiple vendors to propose solutions and pricing, driving down costs and encouraging innovation. The presence of five bidders suggests a healthy market for these services and indicates that the government likely received competitive proposals, leading to a more favorable price discovery process.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider range of service options. The active participation of five bidders suggests that the government secured a good value for taxpayer dollars by fostering a competitive environment.

Public Impact

Veterans and VA staff benefit from reliable and well-maintained facilities through consistent HVAC services. Ensures the operational readiness and comfort of VA facilities in Florida. Supports the ongoing operations of the Department of Veterans Affairs in the specified region. The contract likely supports local jobs within the HVAC service and potentially administrative management sectors in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if this is a sole-source follow-on without re-competition.
Dependence on a single contractor for critical facility maintenance could pose operational risks if performance falters.
Scope creep could occur if 'administrative management' aspects are not clearly defined and controlled.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm fixed-price contract type helps control costs and provides budget certainty.
The contract duration of over 4 years suggests a stable, long-term need being met.
Multiple bidders participated, implying a competitive market and potentially better service quality.

Sector Analysis

The HVAC services sector is a critical component of facility management across all industries, including government. Federal spending in this area is substantial, covering maintenance, repair, and upgrades for a vast portfolio of buildings. This contract for the Department of Veterans Affairs aligns with broader government efforts to ensure the operational efficiency and safety of its infrastructure. The market for HVAC services is competitive, with numerous providers ranging from small local businesses to large national corporations. This specific contract, valued at $2.6 million over its term, represents a moderate-sized award within the federal contracting landscape for facility maintenance.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the primary awardee is Radice Enterprises, LLC, further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this contract. The absence of a direct set-aside suggests that the primary focus was on obtaining the best value through open competition, rather than specifically targeting small business participation for the prime contract.

Oversight & Accountability

The contract is a firm fixed-price delivery order, which inherently provides a degree of cost control and accountability. Oversight would typically be managed by the contracting officer and the contract administration team within the Department of Veterans Affairs. Performance metrics and service level agreements, if included in the contract, would be key to monitoring performance. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Maintenance Contracts
Department of Veterans Affairs Facility Management
HVAC Services for Government Facilities
General Management Consulting Services
Indefinite Delivery/Indefinite Quantity (IDIQ) Vehicles

Risk Flags

Potential for performance issues impacting critical facility operations.
Risk of contractor not meeting service level agreements.
Dependence on a single vendor for essential maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to RADICE ENTERPRISES, LLC. HVAC QUARTERLY, ANNUAL INSPECTIONS & CHILLER OVERHAUL

Who is the contractor on this award?

The obligated recipient is RADICE ENTERPRISES, 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 $2.6 million.

What is the period of performance?

Start: 2021-06-01. End: 2026-02-28.

What is the track record of Radice Enterprises, LLC in performing similar HVAC and facility management services for the federal government?

A review of federal procurement data indicates that Radice Enterprises, LLC has received federal contracts primarily focused on facility maintenance and related services. While specific details on past performance for HVAC services, particularly chiller overhauls, would require a deeper dive into contract performance reports and past performance questionnaires, their award for this significant contract suggests they possess the necessary qualifications and experience. It is important to assess their history with similar firm fixed-price contracts and their ability to meet delivery schedules and quality standards. Examining their past performance on contracts of comparable size and complexity would provide further insight into their reliability and capability to execute this current requirement effectively for the Department of Veterans Affairs.

How does the awarded price of $2.6 million compare to market rates for similar HVAC services in Florida?

The awarded price of $2.6 million over approximately five years for comprehensive HVAC services, including inspections and chiller overhauls, needs to be benchmarked against prevailing market rates in Florida. Factors such as the number and size of facilities covered, the specific types of HVAC equipment, and the scope of services (preventive maintenance, emergency repairs, overhaul complexity) significantly influence pricing. Given that this was awarded under full and open competition with five bidders, it suggests the price is likely competitive within the market. However, a detailed comparison would require analyzing regional cost data for similar service contracts, considering labor rates, parts, and overhead specific to the Florida market. Without such granular data, it's challenging to definitively state if the price is above or below market, but the competitive award process is a positive indicator.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential performance failures by the contractor, leading to HVAC system downtime and impacting facility operations, and the risk of cost increases if the firm fixed-price contract is not managed effectively or if unforeseen issues arise. Mitigation strategies are embedded within the contract structure and oversight. The firm fixed-price nature limits the government's exposure to cost overruns. The competitive award process helps select a capable vendor. The Department of Veterans Affairs' contracting officer and technical representatives will provide oversight, monitoring performance against contract requirements and addressing any issues promptly. Clear performance standards and remedies for non-performance are crucial mitigation elements. The duration of the contract also allows for building a working relationship, but necessitates vigilant oversight.

How effective is the current contract in ensuring the optimal performance and longevity of the VA's HVAC systems in Florida?

The effectiveness of this contract in ensuring optimal performance and longevity of the VA's HVAC systems hinges on the quality of services delivered by Radice Enterprises, LLC and the rigor of the VA's oversight. The contract's scope, covering quarterly and annual inspections, and chiller overhauls, is designed to maintain system efficiency and prevent major failures, thus contributing to longevity. However, 'effectiveness' is best measured by key performance indicators (KPIs) such as system uptime, energy efficiency improvements, response times to service calls, and the reduction in emergency repairs over time. Without access to performance data and post-award evaluations, a definitive assessment of effectiveness is not possible. The competitive nature of the award and the fixed-price structure provide a foundation for effectiveness, but ongoing monitoring and performance management are critical.

What has been the historical spending pattern for HVAC services by the Department of Veterans Affairs in Florida over the past five years?

Analyzing historical spending patterns for HVAC services by the Department of Veterans Affairs (VA) in Florida over the past five years would provide valuable context for this $2.6 million award. This would involve examining procurement data to identify the total amount spent annually on similar services, the number and types of contracts awarded (e.g., IDIQ, fixed-price, cost-plus), and the primary contractors utilized. Understanding this history can reveal trends in spending, identify potential areas of cost savings or increases, and highlight any shifts in contracting strategies. For instance, a consistent high level of spending might indicate a growing need or aging infrastructure, while a sudden increase could signal new projects or a change in maintenance philosophy. This $2.6 million contract appears to be a significant, multi-year commitment, suggesting it aligns with or represents a continuation of substantial investment in maintaining VA facilities in Florida.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9810 CARTER RD, BETHESDA, MD, 20817

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $2,639,151

Exercised Options: $2,639,151

Current Obligation: $2,639,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS21F0084W

IDV Type: FSS

Timeline