VA Awards $4.25M Air Handler Upgrade to Advanced Technology Construction Corp in Seattle

Contract Overview

Contract Amount: $4,246,746 ($4.2M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-18

End Date: 2025-12-31

Contract Duration: 1,323 days

Daily Burn Rate: $3.2K/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: PROJECT 663-19-101 UPGRADE AIR HANDLER UNITS, SEATTLE, PUGET SOUND HEALTH CARE SYSTEM, SEATTLE, WA.

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: PROJECT 663-19-101 UPGRADE AIR HANDLER UNITS, SEATTLE, PUGET SOUND HEALTH CARE SYSTEM, SEATTLE, WA. Key points: 1. Contract awarded to Advanced Technology Construction Corporation for HVAC upgrades. 2. Project falls under Commercial and Institutional Building Construction NAICS code. 3. Full and open competition was conducted after exclusion of sources. 4. Significant taxpayer investment in healthcare infrastructure maintenance.

Value Assessment

Rating: good

The contract value of $4.25M for air handler unit upgrades appears reasonable for a project of this scope and duration. Benchmarking against similar VA healthcare system HVAC projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayers are funding essential upgrades to healthcare facilities, ensuring operational efficiency and patient comfort.

Public Impact

Ensures improved air quality and HVAC system reliability at the Seattle Puget Sound Health Care System. Supports the operational readiness of a key VA healthcare facility. Investment in infrastructure maintenance contributes to long-term cost savings by preventing major system failures.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully open bid.
Contract duration is substantial, requiring ongoing monitoring.

Positive Signals

Addresses critical infrastructure needs for a healthcare system.
Awarded to a single contractor, potentially streamlining project execution.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. Spending on HVAC upgrades in healthcare facilities is common to maintain operational standards and patient environments.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses had an opportunity to compete or subcontract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The contract type (Firm Fixed Price) and delivery order structure suggest defined deliverables and payment terms, aiding accountability.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Long contract duration
No small business award

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. PROJECT 663-19-101 UPGRADE AIR HANDLER UNITS, SEATTLE, PUGET SOUND HEALTH CARE SYSTEM, SEATTLE, WA.

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION.

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 $4.2 million.

What is the period of performance?

Start: 2022-05-18. End: 2025-12-31.

What was the rationale for excluding sources in the 'full and open competition after exclusion of sources' method?

The rationale for excluding sources in this procurement method typically involves specific technical requirements, past performance, or unique capabilities that only a limited number of contractors can meet. This approach aims to ensure the best value for the government by focusing on qualified vendors, but it necessitates clear justification to avoid limiting competition unnecessarily and potentially increasing costs.

How does the cost of this air handler upgrade compare to similar projects in other VA facilities?

A comparative cost analysis against similar air handler unit upgrade projects at other VA facilities is crucial for assessing value. Factors like regional labor costs, specific unit requirements, and project complexity can influence pricing. Without this benchmark, it's difficult to definitively state if this $4.25M award represents optimal use of funds.

What are the potential risks associated with a 1323-day contract duration for HVAC upgrades?

A long contract duration of 1323 days for HVAC upgrades presents risks such as potential cost overruns due to inflation, material price fluctuations, and unforeseen site conditions. It also increases the chance of contractor performance issues or changes in technology rendering the upgrades less effective over time. Robust project management and contingency planning are vital.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3828 E PORTLAND AVE, TACOMA, WA, 98404

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,246,746

Exercised Options: $4,246,746

Current Obligation: $4,246,746

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26018D0006

IDV Type: IDC

Timeline