VA Awards $2.5M Hvac Contract to Recon Construction Specialties LLC for System Upgrades

Contract Overview

Contract Amount: $2,526,212 ($2.5M)

Contractor: Recon Construction Specialties LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-30

End Date: 2027-03-12

Contract Duration: 590 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 657-21-114JC CORRECT HVAC SYSTEMS

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63106

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.5 million to RECON CONSTRUCTION SPECIALTIES LLC for work described as: 657-21-114JC CORRECT HVAC SYSTEMS Key points: 1. Contract value appears reasonable for HVAC system upgrades of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, indicating defined scope and cost. 4. Performance period spans over 1.5 years, allowing for structured implementation. 5. The award is for HVAC systems, a critical component of facility maintenance. 6. The contractor, RECON CONSTRUCTION SPECIALTIES LLC, is a new awardee for this type of service.

Value Assessment

Rating: good

The contract value of $2.5 million for HVAC system upgrades seems within a reasonable range for a project of this duration and scope. Benchmarking against similar federal contracts for HVAC modernization in facilities of comparable size would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the absence of detailed cost breakdowns makes a granular price assessment challenging. The award amount is significantly lower than the reported bid range of $4.28 million, which warrants further investigation into the bidding dynamics and potential cost savings achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that the solicitation was broadly advertised, but specific exclusions might have been applied. With three bids received, the competition level appears moderate. A higher number of bidders generally leads to more competitive pricing. The fact that the award amount ($2.5M) is substantially lower than the bid range ($4.28M) suggests that the competition, even with three bidders, was effective in driving down costs.

Taxpayer Impact: The moderate competition level and the significant difference between the bid range and the final award price indicate potential savings for taxpayers. The agency successfully secured services at a price considerably below initial estimates.

Public Impact

Veterans will benefit from improved facility conditions through upgraded HVAC systems. The contract ensures the continued operation and maintenance of essential building systems. The geographic impact is localized to the facility managed by the Department of Veterans Affairs in Missouri. The contract supports the construction and maintenance workforce through employment opportunities for RECON CONSTRUCTION SPECIALTIES LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The specific reasons for excluding sources in a 'full and open competition after exclusion of sources' award are not detailed, which could obscure potential competitive disadvantages.
The track record of RECON CONSTRUCTION SPECIALTIES LLC for delivering similar HVAC projects is not readily available, posing a potential performance risk.
The significant difference between the bid range ($4.28M) and the awarded amount ($2.5M) could indicate an overly broad initial estimate or aggressive bidding, both of which may warrant scrutiny.
The contract duration of 590 days (approx. 1.6 years) is substantial, increasing the potential for unforeseen issues or cost overruns if not managed diligently.

Positive Signals

The use of 'Full and Open Competition' suggests an effort to maximize the pool of potential bidders.
The firm fixed-price contract type provides cost certainty for the government.
The award to RECON CONSTRUCTION SPECIALTIES LLC, if successful, could foster new business relationships and expand the pool of qualified contractors for future VA projects.
The contract is for essential facility maintenance (HVAC), ensuring operational continuity for a critical government function.

Sector Analysis

The HVAC services sector is a vital part of the broader construction and facilities management industry. Federal spending in this area is consistent, driven by the need to maintain aging infrastructure and ensure operational efficiency in government buildings. The North American Industry Classification System (NAICS) code 238220 (Plumbing, Heating, and Air-Conditioning Contractors) represents a large and competitive market. This contract fits within the typical scope of federal spending for facility upgrades and maintenance, aligning with broader government efforts to modernize its real property assets.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award went to RECON CONSTRUCTION SPECIALTIES LLC, whose size status is not provided. Without specific small business set-aside provisions or subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officer and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified HVAC systems. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and oversight reports are not always readily accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Buildings and Facilities Maintenance
Department of Veterans Affairs Capital Asset Management
HVAC System Modernization Projects
Construction and Engineering Services

Risk Flags

Potential performance risk due to limited contractor history.
Unclear reasons for source exclusion in competition.
Significant variance between bid range and award amount warrants scrutiny.
Need for detailed scope of work to fully assess value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.5 million to RECON CONSTRUCTION SPECIALTIES LLC. 657-21-114JC CORRECT HVAC SYSTEMS

Who is the contractor on this award?

The obligated recipient is RECON CONSTRUCTION SPECIALTIES 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: 2025-07-30. End: 2027-03-12.

What is the specific scope of work for the HVAC system upgrades under this contract?

The provided data does not detail the specific scope of work for the HVAC system upgrades. It only indicates the general category of work (Plumbing, Heating, and Air-Conditioning Contractors) and the contract value. To understand the full scope, one would need to review the contract's Statement of Work (SOW) or Performance Work Statement (PWS). This would typically outline the specific systems to be upgraded, the locations within the facility, the required performance standards, and any associated testing or commissioning procedures. Without this detail, it's difficult to fully assess the value and risks associated with the $2.5 million award.

What is the track record of RECON CONSTRUCTION SPECIALTIES LLC in performing similar federal HVAC contracts?

Information regarding the track record of RECON CONSTRUCTION SPECIALTIES LLC for performing similar federal HVAC contracts is not available in the provided data. This contract represents a significant award for the company in this service area. A thorough assessment would require reviewing past performance evaluations, contract history with federal agencies, and client references. The absence of a readily available performance history could introduce a degree of risk, necessitating close monitoring by the Department of Veterans Affairs during contract execution to ensure successful project completion and adherence to quality standards.

How does the awarded amount of $2.5 million compare to the bid range of $4.28 million?

The awarded amount of $2.5 million is substantially lower than the reported bid range of $4.28 million. This significant difference of $1.78 million (approximately 41.6% lower than the high end of the bid range) suggests several possibilities. It could indicate that the initial estimates or the bids submitted by the contractors were considerably higher than the government's target price or the eventual negotiated price. Alternatively, it might reflect highly competitive bidding dynamics among the three offerors, leading to aggressive pricing. The Department of Veterans Affairs likely achieved significant cost savings through this procurement process, but understanding the precise reasons for this large variance would require further analysis of the bidding process and negotiation outcomes.

What are the potential risks associated with a firm fixed-price contract for HVAC upgrades?

Firm fixed-price (FFP) contracts, while offering cost certainty to the government, can introduce risks for the contractor. For HVAC upgrades, potential risks include underestimation of labor or material costs, unforeseen site conditions requiring additional work, or changes in regulatory requirements during the performance period. If the contractor underestimates these factors, they may incur losses. Conversely, for the government, the risk is that the contractor may cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Effective project management, clear specifications, and robust oversight are crucial to mitigate these risks for both parties in an FFP arrangement.

What is the significance of the contract being a 'definitive contract'?

A definitive contract is a contract that is fully funded and has a defined scope, period of performance, and price. In this case, it signifies that the $2.5 million award is the total amount obligated for the HVAC system upgrades, and the project has a set start and end date (July 30, 2025, to March 12, 2027). This contrasts with indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in ordering but may not have a fixed total price or scope upfront. The definitive nature of this contract provides clarity and predictability for both the Department of Veterans Affairs and RECON CONSTRUCTION SPECIALTIES LLC regarding the commitment and deliverables.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25525R0051

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2034 SAINT MARYS RD, VILLA RIDGE, MO, 63089

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

Financial Breakdown

Contract Ceiling: $2,526,212

Exercised Options: $2,526,212

Current Obligation: $2,526,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline