VA awards $4.1M contract for boiler control system upgrades to C&J General Contractors Group Inc

Contract Overview

Contract Amount: $4,108,709 ($4.1M)

Contractor: C&J General Contractors Group Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-30

End Date: 2026-12-31

Contract Duration: 945 days

Daily Burn Rate: $4.3K/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: REPLACE BOILER CONTROL SYSTEM

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to C&J GENERAL CONTRACTORS GROUP INC. for work described as: REPLACE BOILER CONTROL SYSTEM Key points: 1. Contract awarded for essential facility maintenance, ensuring operational efficiency. 2. Competition was full and open after exclusion of sources, suggesting a deliberate selection process. 3. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 4. Performance period spans over two years, indicating a significant scope of work. 5. The North American Industry Classification System (NAICS) code 238220 points to specialized HVAC services. 6. The awardee, C&J General Contractors Group Inc., is based in Michigan. 7. The contract value is within a moderate range for facility modernization projects.

Value Assessment

Rating: good

The contract value of $4.1 million for a boiler control system upgrade appears reasonable given the scope and duration. Benchmarking against similar VA facility modernization projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government. Without specific per-unit cost data or detailed project specifications, a definitive comparison to market rates is challenging, but the overall award seems aligned with typical infrastructure investments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed as 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on predefined criteria, possibly related to specialized capabilities or prior performance. The number of bidders is not specified, but the 'exclusion of sources' suggests a more tailored competition than a completely unrestricted process.

Taxpayer Impact: This competition level aims to balance the need for specialized expertise with taxpayer value. While not fully unrestricted, it likely allowed for competitive pricing among qualified contractors, preventing sole-source awards and ensuring a reasonable price for the services.

Public Impact

Veterans will benefit from improved facility conditions at VA medical centers. Essential services include the upgrade and modernization of critical boiler control systems. The geographic impact is primarily within Michigan, where the contractor is located. The contract supports skilled labor in the construction and HVAC sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen complexities arise during the upgrade.
Dependence on the contractor's ability to meet the firm-fixed-price deadline.
Risk of disruption to facility operations if installation is not managed efficiently.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Contractor is based in the state where services are likely to be performed.
The project addresses critical infrastructure needs for veteran healthcare facilities.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC and plumbing contractors. The market for such services is substantial, driven by ongoing needs for infrastructure upgrades and maintenance across federal agencies. The $4.1 million award is a moderate-sized contract within this sector, comparable to projects involving specialized system replacements in large institutional buildings. The government relies on a competitive market of contractors to ensure efficient delivery of these essential services.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is not explicitly identified as a small business. This suggests that the competition was open to all qualified contractors, including larger firms. There is no information provided regarding subcontracting plans, so the direct impact on the small business ecosystem is unclear. Future analysis could explore subcontracting opportunities to assess broader small business engagement.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The firm-fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is maintained through contract award databases. The Department of Veterans Affairs Office of Inspector General may provide oversight if specific concerns regarding performance or financial impropriety arise during the contract's lifecycle.

Related Government Programs

VA Facilities Management Contracts
HVAC System Modernization Projects
Federal Construction Services
Boiler and Heating System Upgrades

Risk Flags

Competition level requires further scrutiny to ensure maximum taxpayer value.
Potential for performance issues if contractor lacks specific experience with VA systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to C&J GENERAL CONTRACTORS GROUP INC.. REPLACE BOILER CONTROL SYSTEM

Who is the contractor on this award?

The obligated recipient is C&J GENERAL CONTRACTORS GROUP 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 $4.1 million.

What is the period of performance?

Start: 2024-05-30. End: 2026-12-31.

What is the track record of C&J General Contractors Group Inc. with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding the specific track record of C&J General Contractors Group Inc. with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive analysis would require accessing federal procurement databases (like SAM.gov or FPDS) to review past performance ratings, previous contract awards, and any history of disputes or contract terminations. Understanding their experience with similar projects, such as boiler control system upgrades in healthcare facilities, would be crucial for assessing their capability and reliability for this specific contract.

How does the $4.1 million award compare to similar boiler control system upgrade contracts awarded by the VA or other federal agencies?

The $4.1 million award for a boiler control system upgrade is a moderate investment for such a project. To benchmark its value, comparisons should be made with contracts of similar scope, complexity, and duration awarded by the VA or other agencies like the General Services Administration (GSA) or the Department of Defense for facility modernization. Factors such as the size of the facility, the number of boilers, the sophistication of the control system being installed, and the prevailing labor and material costs in the relevant geographic region would influence comparability. Without these specific details, it's difficult to definitively state if this represents excellent or fair value, but it falls within a typical range for significant infrastructure upgrades.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential cost overruns if unforeseen site conditions or technical challenges arise during installation, despite the firm-fixed-price structure. Schedule delays could impact facility operations and the VA's ability to maintain optimal environmental controls. Performance risks involve ensuring the new system meets all specified requirements and integrates seamlessly with existing infrastructure. Mitigation strategies likely include thorough site assessments prior to award, detailed project management plans, contingency planning by the contractor, and active government oversight throughout the performance period. The contract's firm-fixed-price nature inherently shifts some cost risk to the contractor.

How effective is the 'full and open competition after exclusion of sources' approach in ensuring both quality and cost-effectiveness for this contract?

This competition approach aims to strike a balance. 'Full and open' suggests a broad initial solicitation, while 'exclusion of sources' implies that only those meeting specific, pre-defined criteria (e.g., technical expertise, past performance, bonding capacity) were allowed to bid. This can lead to higher quality solutions by ensuring bidders have the necessary qualifications. It also fosters competition among a qualified pool, which should drive competitive pricing. However, if the exclusion criteria are too narrow, it could limit the number of bidders and potentially reduce price competition compared to a completely unrestricted process. The effectiveness hinges on the appropriateness and necessity of the exclusion criteria.

What is the historical spending pattern for boiler control system upgrades at this specific VA facility or similar facilities within the region?

Historical spending data for boiler control system upgrades at this specific VA facility or similar ones in Michigan is not provided. To assess this, one would need to analyze past VA procurement records for maintenance, repair, and alteration projects at the relevant medical center(s). This would involve looking at the frequency of such upgrades, the amounts spent on previous systems or repairs, and the contractors involved. Understanding historical spending helps in evaluating whether the current $4.1 million award is consistent with past investments, potentially indicating a planned lifecycle replacement or a response to emerging needs.

What are the implications of the firm-fixed-price contract type on potential scope creep and contractor incentives?

A firm-fixed-price (FFP) contract type is designed to provide the government with cost certainty. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of the actual costs incurred. This strongly incentivizes the contractor to manage costs efficiently and avoid scope creep, as any increase in expenses beyond the agreed-upon price typically comes out of their profit margin. Conversely, the government bears the risk of paying a potentially higher price if market costs increase significantly during the contract period. For scope changes, a formal modification process is required, which includes negotiation of any price adjustments.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25023B0068

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11840 VISGER ST, DETROIT, MI, 48217

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, 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: $4,108,709

Exercised Options: $4,108,709

Current Obligation: $4,108,709

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline