VA awards $241K contract for generator switch gear upgrades, highlighting critical infrastructure maintenance needs

Contract Overview

Contract Amount: $241,112 ($241.1K)

Contractor: Spees LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-20

End Date: 2026-10-19

Contract Duration: 182 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: Other

Official Description: UPGRADE UNSUPPORTED SWITCH GEAR FOR GENERATORS

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $241,112.1 to SPEES LLC for work described as: UPGRADE UNSUPPORTED SWITCH GEAR FOR GENERATORS Key points: 1. Contract addresses essential operational resilience for VA facilities. 2. Focus on maintaining critical power infrastructure ensures continuity of services. 3. The contract value appears modest, suggesting a targeted scope of work. 4. Engineering services are crucial for complex infrastructure projects. 5. The fixed-price nature of the contract provides cost certainty. 6. Long-term maintenance of such systems is vital for operational readiness.

Value Assessment

Rating: good

The contract value of $241,112.10 for upgrading generator switch gear is within a reasonable range for specialized engineering services. While direct comparisons are difficult without specific project details, the cost appears aligned with the critical nature of maintaining power infrastructure for a federal agency. The firm fixed-price structure suggests that the contractor has assessed the risks and costs associated with the scope of work, providing a benchmark for this type of upgrade.

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,' indicating that while initial solicitations may have been limited, the final award was made through a competitive process. The specific details of how sources were excluded and then reopened for competition are not provided, but the 'full and open' designation suggests multiple bidders were considered. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Veterans receiving care at the VA facility will benefit from uninterrupted power supply. Essential medical services will be maintained during power outages. The contract supports the operational readiness of a key federal healthcare infrastructure. The work is located in Illinois, potentially impacting local engineering and technical workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the upgrade.
Dependence on contractor expertise for critical infrastructure maintenance.
Ensuring timely completion within the 182-day duration is crucial.

Positive Signals

Addresses a critical need for infrastructure resilience.
Utilizes a competitive bidding process for cost efficiency.
Firm fixed-price contract provides budget certainty.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a significant part of federal spending on infrastructure and operational support. The market for specialized electrical engineering and maintenance services is robust, with numerous firms capable of undertaking such projects. Federal agencies frequently contract for upgrades and maintenance of critical systems like power generation and distribution to ensure operational continuity, especially in facilities providing essential services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While SPEES LLC's size is not detailed here, the lack of a set-aside suggests that the competition was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist, but are not explicitly mandated by this award notice.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial oversight by establishing a clear ceiling. The Department of Veterans Affairs is responsible for monitoring contract performance and ensuring compliance with terms and conditions. Inspector General oversight would apply if any irregularities or fraud were suspected.

Related Government Programs

Federal Buildings Fund
VA Capital Asset and Business Operations Management
Critical Infrastructure Maintenance Contracts
Generator and Power Systems Maintenance

Risk Flags

Potential for schedule delays impacting critical operations.
Risk of unforeseen technical complexities requiring scope adjustments.
Dependence on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $241,112.1 to SPEES LLC. UPGRADE UNSUPPORTED SWITCH GEAR FOR GENERATORS

Who is the contractor on this award?

The obligated recipient is SPEES 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 $241,112.1.

What is the period of performance?

Start: 2026-04-20. End: 2026-10-19.

What is the track record of SPEES LLC in performing similar generator switch gear upgrade contracts for federal agencies?

Information regarding SPEES LLC's specific track record with generator switch gear upgrades for federal agencies is not detailed in this award notice. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Federal procurement databases and past performance questionnaires are typically used to evaluate a contractor's experience and reliability. Without this data, it's difficult to definitively assess their suitability beyond the fact that they were selected through a competitive process for this specific task.

How does the awarded amount compare to typical costs for similar generator switch gear upgrade projects in the federal sector?

The awarded amount of $241,112.10 for upgrading generator switch gear is a moderate figure for specialized engineering services. Benchmarking requires comparing it against contracts with similar scope, complexity, and location. Factors influencing cost include the size and type of generators, the age and condition of existing switch gear, the required upgrades (e.g., automation, safety features), and the specific engineering requirements. While this notice doesn't provide granular detail for a precise comparison, it appears to be a targeted project rather than a large-scale infrastructure overhaul, suggesting the cost is commensurate with a defined scope of work.

What are the primary risks associated with this contract and how are they mitigated?

Key risks include potential technical challenges during the upgrade, such as unforeseen compatibility issues or the need for more extensive repairs than initially scoped. Schedule delays are also a risk, particularly given the critical nature of the power systems. Mitigation strategies likely involve thorough site assessments prior to the award, detailed engineering plans, and the firm fixed-price contract structure which incentivizes the contractor to manage costs and timelines effectively. The relatively short performance period (182 days) also suggests a well-defined and manageable scope, reducing the likelihood of significant unforeseen issues.

What is the expected impact of this contract on the VA's operational effectiveness and service delivery?

This contract is expected to significantly enhance the VA's operational effectiveness by ensuring the reliability and resilience of its backup power systems. Upgraded switch gear is crucial for the seamless transition to generator power during outages, preventing disruptions to critical medical equipment and patient care. This directly supports the VA's mission to provide uninterrupted healthcare services to veterans, thereby improving patient safety and satisfaction. The investment in maintaining this essential infrastructure demonstrates a commitment to operational continuity and readiness.

What has been the historical spending pattern for generator switch gear upgrades at this specific VA facility or within the VA system?

Historical spending data for generator switch gear upgrades at this specific VA facility or across the VA system is not provided in this award notice. Analyzing past spending would involve examining previous contracts for similar maintenance, upgrades, or replacements of power generation and distribution equipment. Such an analysis could reveal trends in contract values, frequency of upgrades, and the types of contractors utilized. Without this historical context, it is challenging to determine if this $241K award represents a typical investment, an increase, or a decrease in spending for such services.

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: 36C25526R0040

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Spees-Hernandez JV LLC

Address: 23830 PACIFIC HWY S STE 300, KENT, WA, 98032

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: $241,112

Exercised Options: $241,112

Current Obligation: $241,112

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline