VA awards $8.5M contract for Amarillo clinic renovation to Energy EPC Solutions, LLC

Contract Overview

Contract Amount: $8,513,558 ($8.5M)

Contractor: Energy EPC Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-07-10

End Date: 2026-03-16

Contract Duration: 980 days

Daily Burn Rate: $8.7K/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: RENOVATE EYE CLINIC AND ACS PRIMARY CARE AT AMARILLO

Place of Performance

Location: AMARILLO, POTTER County, TEXAS, 79106

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.5 million to ENERGY EPC SOLUTIONS, LLC for work described as: RENOVATE EYE CLINIC AND ACS PRIMARY CARE AT AMARILLO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a Definitive Contract, indicating a long-term agreement. 3. The fixed-price nature of the contract shifts cost risk to the contractor. 4. The project aims to renovate an eye clinic and primary care facility. 5. The contract duration is 980 days, spanning over two years. 6. The award was made by the Department of Veterans Affairs. 7. The contractor, Energy EPC Solutions, LLC, is responsible for the execution. 8. The project is located in Amarillo, Texas.

Value Assessment

Rating: good

The contract value of $8.5 million for renovating a clinic and primary care facility appears reasonable given the scope of construction and renovation services. Benchmarking against similar VA facility renovation projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has a clear understanding of the costs involved, and the VA is protected from cost overruns.

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.' While this indicates an initial intent for broad competition, the 'after exclusion of sources' clause suggests that some potential bidders may have been excluded prior to the final solicitation. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better pricing for the government.

Taxpayer Impact: The competitive nature of the award process, even with potential exclusions, is beneficial for taxpayers as it encourages multiple firms to offer their best pricing and technical solutions to secure the contract.

Public Impact

Veterans in the Amarillo, Texas area will benefit from improved and potentially expanded eye clinic and primary care services. The renovation will modernize healthcare facilities, potentially leading to better patient care experiences and outcomes. The project will likely create or sustain jobs in the construction and related trades sector in the Amarillo region. The Department of Veterans Affairs will gain updated infrastructure to support its healthcare mission for veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation requirements are not precisely defined.
Risk of delays due to unforeseen site conditions during construction.
Dependence on contractor's ability to manage subcontractors effectively.
Ensuring compliance with all VA facility standards and regulations.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Award to a single contractor streamlines project management and accountability.
Project addresses critical healthcare infrastructure needs for veterans.
Defined contract duration provides a clear timeline for completion.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the U.S. economy, encompassing a wide range of projects from small renovations to large-scale new builds. Federal spending in this sector, particularly for healthcare facilities, is crucial for maintaining and upgrading infrastructure that serves public needs. This contract fits within the broader category of government construction projects aimed at improving public services and facilities, with spending benchmarks varying widely based on project size, complexity, and location.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Energy EPC Solutions, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem will depend on whether the prime contractor actively seeks to engage small businesses for specialized services or materials, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting and project management officials. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified renovations within the agreed-upon price and timeline. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight mechanisms like regular site inspections or progress reports are internal VA procedures.

Related Government Programs

VA Healthcare Facility Construction
Federal Building Renovations
Department of Veterans Affairs Medical Infrastructure
Commercial Construction Contracts
Energy EPC Solutions Projects

Risk Flags

Potential for delays
Contractor performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.5 million to ENERGY EPC SOLUTIONS, LLC. RENOVATE EYE CLINIC AND ACS PRIMARY CARE AT AMARILLO

Who is the contractor on this award?

The obligated recipient is ENERGY EPC SOLUTIONS, 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 $8.5 million.

What is the period of performance?

Start: 2023-07-10. End: 2026-03-16.

What is the track record of Energy EPC Solutions, LLC with the Department of Veterans Affairs and similar federal agencies?

A review of federal contract databases would be necessary to fully assess Energy EPC Solutions, LLC's track record. Information on past performance, including successful completion of similar renovation projects, adherence to schedules and budgets, and any history of disputes or contract terminations, is crucial. For this specific contract, the VA's source selection process would have included an evaluation of the contractor's past performance. Without access to detailed performance reviews or award histories, it's difficult to provide a definitive assessment, but the award itself suggests they met the VA's criteria for this project.

How does the awarded amount of $8.5 million compare to similar VA clinic renovation projects in terms of value for money?

Comparing the $8.5 million award to similar VA clinic renovation projects requires access to a database of comparable contracts, including their scope, size, location, and specific renovation details. Factors such as square footage, complexity of systems being upgraded (e.g., HVAC, electrical, medical gas), and the age and condition of the existing facility significantly influence cost. While $8.5 million is a substantial sum, it could represent excellent value if the scope of work is extensive and the contractor's bid was highly competitive. A detailed benchmark analysis would involve identifying projects with similar characteristics and comparing their cost per square foot or per major system upgrade.

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

Key risks for this contract include potential construction delays due to unforeseen site conditions, material cost fluctuations (though mitigated by firm fixed-price), and contractor performance issues. Mitigation strategies likely involve the VA's project management oversight, including regular site inspections, adherence to detailed project schedules, and performance bonds from the contractor. The firm fixed-price contract shifts significant cost risk to Energy EPC Solutions, LLC. The VA's pre-award evaluation of the contractor's capabilities and past performance also serves as a risk mitigation measure.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for taxpayer dollars in this case?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the VA might be targeting firms with specialized capabilities or those who have previously demonstrated success on similar projects. While this can lead to a more focused competition among qualified bidders, it inherently reduces the number of potential offerors compared to unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on how many qualified bidders remained after exclusions and the rigor of the VA's evaluation process. If a sufficient number of capable firms competed, it likely yielded competitive pricing; however, fewer bidders could potentially lead to less aggressive pricing.

What is the historical spending pattern of the Department of Veterans Affairs on healthcare facility renovations, and how does this contract fit?

The Department of Veterans Affairs historically spends billions of dollars annually on the construction, renovation, and maintenance of its vast network of healthcare facilities across the country. This spending is driven by the need to modernize aging infrastructure, expand capacity, and adopt new medical technologies. This $8.5 million contract for the Amarillo clinic renovation fits within this pattern as a specific project aimed at upgrading a critical component of the VA's healthcare delivery system. It represents a localized investment contributing to the VA's overall objective of providing state-of-the-art care to veterans.

What are the potential long-term implications of this renovation for veteran healthcare access and quality in the Amarillo region?

This renovation is expected to have positive long-term implications for veteran healthcare access and quality in the Amarillo region. By modernizing the eye clinic and primary care facilities, the VA can potentially increase patient throughput, improve the efficiency of services, and enhance the overall patient experience. Updated facilities often incorporate better technology and design, leading to improved diagnostic capabilities and treatment outcomes. Furthermore, improved facilities can aid in recruiting and retaining high-quality medical staff, further bolstering the quality of care provided to local veterans.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25723B0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7 SUMMIT DR, CANYON, TX, 79015

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: $8,513,558

Exercised Options: $8,513,558

Current Obligation: $8,513,558

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline