VA Awards $8.1M Contract for Cooling Towers to Sapper West, Inc

Contract Overview

Contract Amount: $8,081,975 ($8.1M)

Contractor: Sapper West, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-23

End Date: 2026-12-31

Contract Duration: 1,560 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: COOLING TOWERS

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.1 million to SAPPER WEST, INC. for work described as: COOLING TOWERS Key points: 1. Contract awarded for cooling towers to Sapper West, Inc. 2. Total contract value is $8.1 million. 3. The contract is for the Department of Veterans Affairs. 4. The period of performance spans from September 2022 to December 2026.

Value Assessment

Rating: fair

The contract value of $8.1 million for cooling towers appears to be within a reasonable range for a multi-year project of this nature. However, without specific details on the scope of work and the number of units, a precise comparison is difficult. Benchmarking against similar VA or other federal cooling tower replacement projects would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method of procurement may limit price discovery and potentially lead to higher costs for taxpayers compared to a fully competitive process. The rationale for not competing the award needs further investigation.

Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these cooling towers, potentially impacting taxpayer value.

Public Impact

Ensures operational continuity for VA facilities by maintaining essential cooling systems. Supports infrastructure maintenance critical for healthcare services provided by the VA. Potential for increased costs due to non-competitive award impacting taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment due to sole-source award

Positive Signals

Addresses critical infrastructure need
Long-term contract provides stability

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is crucial for maintaining federal infrastructure, including healthcare facilities. Benchmarks for cooling tower systems can vary significantly based on size, complexity, and location.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities for small business participation were overlooked.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny from oversight bodies to ensure the VA obtained fair value and followed appropriate procurement regulations. Documentation justifying the sole-source award is essential.

Related Government Programs

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

Risk Flags

Sole-source award lacks transparency
Potential for inflated pricing
Limited small business participation
Need for detailed justification of non-competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.1 million to SAPPER WEST, INC.. COOLING TOWERS

Who is the contractor on this award?

The obligated recipient is SAPPER WEST, 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 $8.1 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-12-31.

What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific compatibility requirements. Without the official justification document, it's impossible to confirm the exact reasons, but it's a critical piece of information for assessing the procurement's validity and potential impact on cost.

How does the $8.1 million contract value compare to industry benchmarks for similar cooling tower installations or replacements?

Benchmarking the $8.1 million contract value requires detailed specifications of the cooling towers, installation scope, and location. However, for large-scale institutional or commercial projects, this figure could be reasonable. Comparing it against publicly available data for similar government or private sector projects, considering factors like capacity (tons of cooling), system type (open vs. closed loop), and warranty, would be necessary for a definitive assessment of value for money.

What is the expected impact on VA facility operations and patient care during the contract performance period?

The successful execution of this cooling tower contract is expected to ensure the reliable operation of critical HVAC systems within VA facilities, directly supporting patient care environments. Timely maintenance and potential upgrades provided under this contract will prevent disruptions to essential services, maintain comfortable and safe conditions for patients and staff, and contribute to the overall efficiency of healthcare delivery.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26222R0098

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Sapper West Inc.

Address: 8201 POLLARD AVE, FAIR OAKS, CA, 95628

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,081,975

Exercised Options: $8,081,975

Current Obligation: $8,081,975

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline