VA Awards $3.86M Contract for Termo Storage Tank to CAVU Consulting LLC

Contract Overview

Contract Amount: $3,860,206 ($3.9M)

Contractor: Cavu Consulting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-19

End Date: 2026-11-30

Contract Duration: 649 days

Daily Burn Rate: $5.9K/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: 553-23-100 TERMO STORAGE TANK

Place of Performance

Location: DETROIT, WAYNE County, MICHIGAN, 48201

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.9 million to CAVU CONSULTING LLC for work described as: 553-23-100 TERMO STORAGE TANK Key points: 1. Contract awarded for a Termo Storage Tank, a critical infrastructure component. 2. Full and open competition was conducted after excluding sources, suggesting a potentially competitive process. 3. The contract value of $3.86M falls within typical ranges for specialized construction services. 4. The Department of Veterans Affairs is the procuring agency, indicating a focus on healthcare infrastructure.

Value Assessment

Rating: good

The contract value of $3.86M appears reasonable for a specialized storage tank project. Benchmarking against similar infrastructure contracts would provide further validation.

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.' This method implies that while the competition was broad, certain sources were initially excluded, which could impact the final price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure, with the competition method aiming for a fair price.

Public Impact

Ensures operational readiness for VA facilities by providing necessary storage infrastructure. Supports the VA's mission to provide healthcare services to veterans. Creates economic activity through the award to CAVU Consulting LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price escalation if excluded sources were highly competitive.
Contract duration of 649 days requires careful monitoring of project progress.

Positive Signals

Awarded by a major federal agency (VA).
Utilizes a competitive bidding process.
Firm Fixed Price contract type limits cost overruns.

Sector Analysis

The construction sector, particularly for specialized infrastructure like storage tanks, often involves significant capital investment. Spending benchmarks vary widely based on project scope and materials.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms should be in place to ensure timely completion and quality.

Related Government Programs

Structural Steel and Precast Concrete Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential impact of source exclusion on competition.
Long contract duration requires diligent oversight.
Lack of small business participation.
No explicit mention of performance or material risk mitigation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.9 million to CAVU CONSULTING LLC. 553-23-100 TERMO STORAGE TANK

Who is the contractor on this award?

The obligated recipient is CAVU CONSULTING 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 $3.9 million.

What is the period of performance?

Start: 2025-02-19. End: 2026-11-30.

What was the rationale for excluding specific sources prior to the full and open competition?

The rationale for excluding specific sources prior to the full and open competition is not detailed in the provided data. Typically, such exclusions might be based on past performance, specific technical capabilities, or pre-qualification requirements. Understanding this rationale is crucial for assessing whether the competition was truly optimized for value and innovation.

Are there any identified risks associated with the materials or installation of this Termo Storage Tank?

The provided data does not explicitly detail risks associated with the materials or installation of the Termo Storage Tank. However, any large-scale construction project carries inherent risks such as material defects, unforeseen site conditions, or installation challenges. The firm fixed price contract type aims to mitigate financial risk for the government, but performance risks remain.

How does the awarded price compare to industry benchmarks for similar storage tank projects?

The provided data does not include specific industry benchmarks for comparison. The awarded price of $3.86M for the Termo Storage Tank needs to be evaluated against comparable projects in terms of size, material, complexity, and geographic location to determine its cost-effectiveness and value for taxpayer money.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Structural Steel and Precast Concrete 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: 36C25024B0064

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2117 MCCOMAS WAY, VIRGINIA BEACH, VA, 23456

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,860,206

Exercised Options: $3,860,206

Current Obligation: $3,860,206

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline