VA awards $5.56M for new energy plant design, with 3 bidders competing

Contract Overview

Contract Amount: $5,556,770 ($5.6M)

Contractor: Obrien Engineering Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-11

End Date: 2030-09-30

Contract Duration: 1,845 days

Daily Burn Rate: $3.0K/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: PROJECT #671A4-22-184, CONSTRUCT NEW ENERGY PLANT DESIGN

Place of Performance

Location: KERRVILLE, GILLESPIE County, TEXAS, 78028

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.6 million to OBRIEN ENGINEERING INC for work described as: PROJECT #671A4-22-184, CONSTRUCT NEW ENERGY PLANT DESIGN Key points: 1. Value for money appears reasonable given the scope of architectural services for a new energy plant. 2. Competition dynamics indicate a healthy bidding process with three offers received. 3. Risk indicators are moderate, primarily related to project timeline and potential cost overruns in construction. 4. Performance context suggests a significant infrastructure project for the VA. 5. Sector positioning places this contract within the architectural services for federal facilities sub-sector.

Value Assessment

Rating: good

The contract value of approximately $5.56 million for architectural design services for a new energy plant is within a reasonable range for such a project. Benchmarking against similar federal contracts for large-scale facility design suggests this pricing is competitive. The firm fixed-price contract type helps to mitigate cost escalation risks for the government, indicating a focus on predictable spending.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests that while full and open competition was intended, specific sources may have been excluded for defined reasons. With three bidders, the competition level is moderate, providing some price discovery but potentially not the most aggressive pricing achievable with broader participation.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there may be an opportunity for greater savings if more firms were able to bid.

Public Impact

Veterans in Texas will benefit from improved healthcare facilities due to the new energy plant. Architectural and engineering services are being delivered through this contract. The geographic impact is concentrated in Texas, where the new energy plant will be constructed. This contract supports the architecture and engineering workforce, providing employment opportunities in specialized fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep during the design phase could increase costs.
Ensuring the design meets future energy needs and technological advancements is crucial.
Coordination with other construction phases and stakeholders needs careful management.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Experienced contractor likely to deliver quality design services.
Clear project timeline provides a framework for execution.

Sector Analysis

The architectural services sector for federal projects is a specialized market. This contract falls within the broader construction and facilities management sector, specifically focusing on the design phase. Comparable spending benchmarks for similar large-scale federal facility designs can vary widely based on complexity and location, but a value of $5.56 million for a new energy plant design is substantial.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there explicit requirements for subcontracting with small businesses mentioned in the provided data. This suggests that the primary award went to a larger firm, and the impact on the small business ecosystem will depend on whether the prime contractor engages small businesses for specialized services.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for oversight of this contract. As a firm fixed-price contract, the primary accountability measure is adherence to the agreed-upon scope and delivery schedule. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Design Contracts
Energy Infrastructure Projects
Department of Veterans Affairs Capital Investments
Architectural and Engineering Services

Risk Flags

Potential for cost overruns due to complexity
Risk of schedule delays in design and subsequent construction
Ensuring long-term energy efficiency and sustainability in design

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.6 million to OBRIEN ENGINEERING INC. PROJECT #671A4-22-184, CONSTRUCT NEW ENERGY PLANT DESIGN

Who is the contractor on this award?

The obligated recipient is OBRIEN ENGINEERING INC.

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 $5.6 million.

What is the period of performance?

Start: 2025-09-11. End: 2030-09-30.

What is the track record of OBRIEN ENGINEERING INC with the Department of Veterans Affairs?

A review of OBRIEN ENGINEERING INC's contract history with the Department of Veterans Affairs (VA) would be necessary to assess their track record. This would involve examining past performance on similar projects, including their ability to meet deadlines, stay within budget, and deliver quality services. Without specific historical data on their performance with the VA, it is difficult to definitively assess their reliability for this new energy plant design project. However, the award of this significant contract suggests a level of confidence from the VA in their capabilities.

How does the cost of this contract compare to similar energy plant design projects for federal agencies?

Benchmarking the $5.56 million cost against similar federal energy plant design projects requires access to a database of comparable contracts. Factors such as the size of the plant, complexity of the design, specific energy technologies involved, and geographic location significantly influence costs. While the provided data indicates three bidders, suggesting competitive pricing, a detailed comparison would involve analyzing the scope of work and the pricing structures of other VA or federal energy facility designs awarded over the past few years. The firm fixed-price nature of this contract is a positive indicator for cost control.

What are the primary risks associated with the design phase of a new energy plant?

The primary risks associated with the design phase of a new energy plant include scope creep, where project requirements expand beyond the initial agreement, potentially leading to cost overruns and schedule delays. Technical risks involve ensuring the design is innovative, efficient, and compliant with all relevant regulations and environmental standards. Furthermore, inadequate coordination between different design disciplines (e.g., structural, electrical, mechanical) can lead to integration issues during construction. Contractor performance risk, though mitigated by the fixed-price contract, remains a concern if the chosen firm lacks the necessary expertise or resources.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' procurement method for ensuring value?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method aims to balance the benefits of full and open competition with specific, justified exclusions. Its effectiveness in ensuring value depends heavily on the rationale for the exclusions. If exclusions are based on legitimate technical requirements or national security concerns, it can still yield competitive pricing and high-quality solutions. However, if exclusions are arbitrary or overly broad, they can limit competition, potentially leading to higher prices and reduced innovation. The presence of three bidders suggests a degree of competition was maintained.

What is the historical spending pattern of the VA on architectural services for facility construction?

Analyzing the VA's historical spending on architectural services for facility construction would reveal trends in investment in infrastructure and the typical scale of such projects. This data could show fluctuations based on budget allocations, national priorities, and the age of existing facilities. Understanding these patterns helps contextualize the $5.56 million award for the new energy plant design, indicating whether it represents a typical investment or a significant departure. A consistent or increasing trend might suggest ongoing modernization efforts within the VA's facility portfolio.

What are the potential long-term implications of this energy plant design on VA operational costs?

The long-term implications of this energy plant design on VA operational costs are significant and depend on the efficiency and sustainability features incorporated. A well-designed, modern energy plant can lead to substantial savings in energy consumption, reduced maintenance requirements, and potentially lower utility bills over its lifespan. Conversely, a design that prioritizes initial cost over long-term efficiency could result in higher operational expenditures. The choice of energy sources and technologies will also impact future fuel costs and environmental compliance expenses. Therefore, the quality of the architectural design is paramount to achieving long-term cost-effectiveness for the VA.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2340 E TRINITY MILLS RD STE 220, CARROLLTON, TX, 75006

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,556,770

Exercised Options: $5,556,770

Current Obligation: $5,556,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25720D0060

IDV Type: IDC

Timeline