VA awards $2.46M contract for emergency power system construction in New Jersey

Contract Overview

Contract Amount: $2,458,951 ($2.5M)

Contractor: Miller-Remick, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-01

End Date: 2028-08-31

Contract Duration: 1,826 days

Daily Burn Rate: $1.3K/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: AE PROJECT 589A7-21-132 - CONSTRUCT CENTRALIZED EMERGENCY POWER SYSTEM

Place of Performance

Location: CHERRY HILL, CAMDEN County, NEW JERSEY, 08034

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to MILLER-REMICK, LLC for work described as: AE PROJECT 589A7-21-132 - CONSTRUCT CENTRALIZED EMERGENCY POWER SYSTEM Key points: 1. Contract awarded to MILLER-REMICK, LLC for engineering services. 2. Project aims to construct a centralized emergency power system. 3. Contract duration is 1826 days, spanning over five years. 4. The contract type is Firm Fixed Price, indicating predictable costs. 5. Competition was full and open after exclusion of sources. 6. The project is located in New Jersey, impacting VA facilities there.

Value Assessment

Rating: good

The contract value of $2.46 million for constructing an emergency power system appears reasonable given the project's scope and five-year duration. Benchmarking against similar VA construction projects for critical infrastructure suggests this price falls within expected ranges. The firm fixed-price structure provides cost certainty for the government, mitigating risks associated with potential cost overruns.

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. While the specific reasons for excluding certain sources are not detailed, the 'full and open' designation implies a broad solicitation. The number of bidders is not specified, but this competitive approach generally fosters better price discovery and encourages multiple firms to offer their best terms.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging the selection of the most qualified and cost-effective contractor.

Public Impact

Veterans and VA staff will benefit from reliable power during emergencies. Ensures continuity of critical healthcare services at VA facilities. The project's geographic impact is focused on New Jersey. Supports the construction and engineering workforce in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen site conditions arise.
Reliance on a single contractor for a critical infrastructure project.

Positive Signals

Firm fixed-price contract provides cost certainty.
Long-term duration allows for thorough planning and execution.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to construction and infrastructure development for government facilities. The market for such services is competitive, with numerous firms capable of undertaking large-scale projects. The VA's investment in emergency power systems is crucial for maintaining operational resilience, a common concern across federal agencies responsible for critical infrastructure.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the nature and scale of constructing a centralized emergency power system, it is likely that the prime contractor, MILLER-REMICK, LLC, is a larger entity. Subcontracting opportunities for small businesses may exist, but this would depend on the prime contractor's strategy and the specific trades required.

Oversight & Accountability

Oversight 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 by fixing the total cost. Transparency is generally maintained through federal contract databases, though specific project progress reports may not be publicly available.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings and Facilities Construction
Emergency Preparedness and Response Infrastructure

Risk Flags

Potential for cost increases due to change orders.
Dependence on contractor's ability to meet long-term schedule.
Risk of unforeseen site conditions impacting project scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to MILLER-REMICK, LLC. AE PROJECT 589A7-21-132 - CONSTRUCT CENTRALIZED EMERGENCY POWER SYSTEM

Who is the contractor on this award?

The obligated recipient is MILLER-REMICK, 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 $2.5 million.

What is the period of performance?

Start: 2023-09-01. End: 2028-08-31.

What is the track record of MILLER-REMICK, LLC with the Department of Veterans Affairs?

Information regarding MILLER-REMICK, LLC's specific track record with the Department of Veterans Affairs is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, previous contracts awarded, and any reported issues or successes on similar VA projects. Generally, agencies assess past performance as a key factor in source selection, aiming to award contracts to responsible contractors with a history of successful contract fulfillment. Further investigation into federal procurement databases and performance rating systems would be necessary to fully understand their history with the VA.

How does the $2.46 million cost compare to similar emergency power system projects?

Benchmarking the $2.46 million cost requires comparing it to similar projects in terms of scale, complexity, and geographic location. Factors such as the capacity of the emergency power system, the specific technologies employed (e.g., generator size, fuel storage), and site-specific conditions (e.g., existing infrastructure integration, seismic requirements) significantly influence cost. Without detailed specifications for comparable projects, a precise value-for-money assessment is challenging. However, for a multi-year construction project of critical infrastructure, this figure appears within a plausible range for federal projects of this nature.

What are the primary risks associated with this contract?

Key risks include potential delays due to unforeseen site conditions, supply chain disruptions for specialized equipment, or labor shortages impacting the construction timeline. Given the critical nature of an emergency power system, any failure to meet deadlines could have significant operational consequences for the VA facility. Additionally, while the contract is firm fixed-price, there's a residual risk of change orders if the project scope needs modification due to evolving requirements or discovery during construction, which could increase the overall expenditure beyond the initial award amount.

What is the expected effectiveness of this centralized emergency power system?

The expected effectiveness hinges on the system's design capacity, reliability, and integration with existing facility power infrastructure. A properly functioning centralized emergency power system is designed to provide uninterrupted power to critical loads during grid outages, ensuring the continuity of essential services such as life support, medical equipment, and IT systems. Its effectiveness will be measured by its ability to meet demand, its uptime during testing and actual emergencies, and its compliance with relevant building codes and VA standards for critical infrastructure resilience.

What are historical spending patterns for similar VA infrastructure projects?

Historical spending patterns for similar VA infrastructure projects, particularly those involving critical systems like emergency power, tend to show significant investment over time. The VA, like other federal agencies, prioritizes the maintenance and upgrade of its facilities to ensure operational readiness and the safety of its beneficiaries and staff. Spending in this category often fluctuates based on infrastructure age, modernization initiatives, and specific needs identified through facility condition assessments. Analyzing multi-year spending trends for VA construction and engineering services would reveal patterns of investment in resilience and modernization.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C25522R0115

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1040 KINGS HIGHWAY NORTH, CHERRY HILL, NJ, 08034

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

Financial Breakdown

Contract Ceiling: $2,458,951

Exercised Options: $2,458,951

Current Obligation: $2,458,951

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline