VA awards $4.76M contract for COVID-19 generator at Memphis VAMC, completed by Paramount Construction Group

Contract Overview

Contract Amount: $4,758,435 ($4.8M)

Contractor: Paramount Construction Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2025-01-21

Contract Duration: 1,209 days

Daily Burn Rate: $3.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE FOLLOWING IS TO INSTALL A COVID 19 EMERGENCY GENERATOR AT THE MEMPHIS VAMC.

Place of Performance

Location: MEMPHIS, SHELBY County, TENNESSEE, 38104

State: Tennessee Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to PARAMOUNT CONSTRUCTION GROUP, LLC for work described as: THE FOLLOWING IS TO INSTALL A COVID 19 EMERGENCY GENERATOR AT THE MEMPHIS VAMC. Key points: 1. The contract aims to ensure critical power during emergencies, specifically for COVID-19 response. 2. Paramount Construction Group, LLC secured the award. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project is located in Tennessee and has a duration of 1209 days.

Value Assessment

Rating: fair

The total award amount is $4,758,435.07. Without specific benchmarks for emergency generator installations of this scale and complexity, a precise value assessment is difficult. However, the duration suggests a significant project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources. This method generally promotes competitive pricing by allowing all eligible sources to submit offers, leading to potentially better price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure to support healthcare services during a public health emergency.

Public Impact

Ensures critical power supply for the Memphis VAMC during emergencies, enhancing patient care. Supports the ongoing COVID-19 response by providing necessary infrastructure. The project contributes to the local economy through construction activities. The long duration indicates a substantial and potentially complex installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1209 days) may indicate potential for cost overruns or scope creep.
Fixed price contract with a long duration could pose risks if material costs fluctuate significantly.
Emergency nature of the project might have led to less rigorous cost scrutiny.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Addresses a critical need for emergency power in a healthcare facility.
Firm fixed price contract provides cost certainty if scope is well-defined.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector for federal facilities can vary widely based on project size, complexity, and specific requirements like emergency power systems.

Small Business Impact

The awardee is Paramount Construction Group, LLC. Information on whether this is a small business is not provided in the data, and the contract was not set aside for small businesses.

Oversight & Accountability

The contract is a definitive contract awarded by the Department of Veterans Affairs. Oversight would typically involve project management, quality assurance, and financial monitoring by the VA contracting officer and technical representatives.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to long contract duration.
Risk of price escalation for materials in a firm fixed-price contract over an extended period.
Adequacy of competition if sources were excluded.
Ensuring effective project management and oversight for a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to PARAMOUNT CONSTRUCTION GROUP, LLC. THE FOLLOWING IS TO INSTALL A COVID 19 EMERGENCY GENERATOR AT THE MEMPHIS VAMC.

Who is the contractor on this award?

The obligated recipient is PARAMOUNT CONSTRUCTION GROUP, 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 $4.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2025-01-21.

What is the specific justification for excluding other sources if the competition was 'full and open after exclusion of sources'?

The term 'full and open competition after exclusion of sources' typically refers to a process where initial solicitations are broad, but certain sources are later excluded based on specific criteria or performance issues. Understanding the exact reasons for exclusion is crucial to determine if the competition was truly maximized or if it inadvertently limited potential bidders and potentially impacted price.

How does the $4.76 million cost compare to similar emergency generator installations in VA facilities or other large institutions?

Benchmarking this cost requires comparing it against similar projects in terms of generator capacity (kW), installation complexity, site preparation needs, and the specific requirements of a healthcare environment. Without these comparable data points, it's difficult to definitively assess if the price represents good value for the taxpayer. Further research into industry cost data for hospital-grade emergency power systems is needed.

What are the key performance indicators and oversight mechanisms in place to ensure the generator is installed correctly and on time, given the long duration?

Effective oversight for a project of this duration and value would involve regular progress reviews, milestone tracking, quality control inspections, and clear communication channels between the VA and Paramount Construction Group. Key performance indicators should focus on adherence to schedule, budget, technical specifications, and safety standards to ensure the successful and timely completion of the generator installation.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24921R0091

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 HIGHPOINT DR, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,758,435

Exercised Options: $4,758,435

Current Obligation: $4,758,435

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline