VA awards $3.75M contract for utilities metering to Anchor-41 Construction LLC, a sole-source award

Contract Overview

Contract Amount: $3,753,107 ($3.8M)

Contractor: Anchor-41 Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-25

End Date: 2026-03-04

Contract Duration: 525 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UTILITIES METERING

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to ANCHOR-41 CONSTRUCTION LLC for work described as: UTILITIES METERING Key points: 1. The contract value of $3.75 million for utilities metering appears to be a significant investment for the specified duration. 2. The sole-source nature of this award raises questions about potential cost efficiencies and the availability of competitive pricing. 3. The absence of competition could indicate unique requirements or a lack of market availability for the specific services needed. 4. The contract is for commercial and institutional building construction, suggesting a focus on infrastructure or facility upgrades. 5. The firm-fixed-price contract type shifts cost risk to the contractor, which can be beneficial for budget certainty. 6. The contract duration of 525 days (approximately 1.4 years) provides a clear timeframe for project completion.

Value Assessment

Rating: questionable

Benchmarking the value of this $3.75 million utilities metering contract is challenging without more specific details on the scope of work and the exact services provided. Given it was a sole-source award, a direct comparison to similar competitively bid contracts is not feasible. The firm-fixed-price structure suggests the government has secured a predictable cost, but the lack of competition means there's no market-driven validation of whether this price represents optimal value for money. Further analysis would require understanding the specific metering technology and installation requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one contractor, Anchor-41 Construction LLC, was solicited. The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other responsible sources. Without further details on the specific circumstances leading to this decision, it's difficult to assess the extent of market research conducted or if alternative solutions were considered. The limited competition inherently restricts price discovery and potentially limits the government's ability to secure the most cost-effective solution.

Taxpayer Impact: Taxpayers may not benefit from the most competitive pricing due to the absence of a bidding process. This could result in a higher overall cost compared to what might have been achieved in a fully competed environment.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, likely improving its facility management and energy efficiency through updated utilities metering. The services delivered involve commercial and institutional building construction, specifically related to utilities metering systems. The geographic impact is centered in California, where the contract is being performed. The contract may have implications for the construction workforce in California, potentially creating or sustaining jobs for skilled trades involved in building construction and system installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value assessment.
Lack of transparency in the sole-source justification process.
Potential for higher costs due to absence of market competition.
Limited insight into the specific technological requirements driving the sole-source decision.

Positive Signals

Firm-fixed-price contract provides cost certainty for the VA.
Contract awarded to a specific entity (Anchor-41 Construction LLC) for defined services.
Clear contract duration (525 days) allows for project planning and oversight.

Sector Analysis

The utilities metering sector, particularly within government facilities, is a niche within the broader construction and building management industry. This contract falls under commercial and institutional building construction, focusing on the installation or upgrade of systems that monitor and manage utility consumption (electricity, water, gas). The market for such services can range from specialized technology providers to general contractors with expertise in building systems. Government spending in this area often aims to improve operational efficiency, reduce energy costs, and meet sustainability goals. Benchmarking this $3.75 million award would require comparing it to similar infrastructure projects at federal facilities, considering the scale and complexity of the metering systems installed.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Anchor-41 Construction LLC, without specific size information, suggests it may not be a small business, or if it is, the contract was not specifically competed under small business set-aside provisions. This means the direct impact on the small business ecosystem for this particular award is likely minimal, and opportunities for small business subcontractors are not explicitly mandated.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs (VA). As a definitive contract awarded under the Federal Acquisition Regulation (FAR), it is subject to standard procurement oversight. The firm-fixed-price nature simplifies some aspects of financial oversight by providing cost certainty. However, the sole-source award necessitates careful review of the justification and performance monitoring to ensure the contractor meets all contractual obligations and delivers the required utilities metering services effectively. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Veterans Affairs Facility Management Contracts
Utilities Infrastructure Modernization Programs
Commercial Building Construction Services
Energy Efficiency and Conservation Contracts
Federal Building Systems Installation

Risk Flags

Sole-source award raises concerns about competition and potential value.
Lack of detailed justification for sole-source procurement.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to ANCHOR-41 CONSTRUCTION LLC. UTILITIES METERING

Who is the contractor on this award?

The obligated recipient is ANCHOR-41 CONSTRUCTION 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 $3.8 million.

What is the period of performance?

Start: 2024-09-25. End: 2026-03-04.

What specific utilities metering technology or system is being procured under this contract, and what are its key features?

The provided data indicates the contract is for 'UTILITIES METERING' within the 'Commercial and Institutional Building Construction' NAICS code. However, it does not specify the exact technology or system being procured. This could range from advanced smart metering systems for electricity, water, and gas to simpler monitoring devices. Key features would typically include real-time data collection, remote access capabilities, integration with building management systems, and reporting functionalities for energy consumption analysis. Understanding these specifics is crucial for assessing the contract's value and technical appropriateness, especially given the sole-source award.

What was the justification for awarding this contract on a sole-source basis to Anchor-41 Construction LLC?

The data explicitly states the contract was 'NOT COMPETED UNDER SAP' and implies a sole-source award. The specific justification for this sole-source determination is not provided in the abbreviated data. Typically, sole-source awards require a formal justification, such as the unique capability of the contractor, the unavailability of other sources, or an urgent and compelling need that precludes full and open competition. Without this justification, it is difficult to ascertain if the government adequately explored market options or if this was the only viable path to meet the requirement. This lack of transparency is a common concern with sole-source procurements.

How does the $3.75 million contract value compare to similar utilities metering projects within the VA or other federal agencies?

Direct comparison of the $3.75 million contract value for utilities metering is difficult without more detailed information on the scope of work, the specific systems being installed, and the geographic location's cost factors. Furthermore, since this was a sole-source award, it bypasses the competitive bidding process that typically establishes market-driven pricing benchmarks. To perform a robust comparison, one would need to identify similar projects, ideally competitively awarded, that involve the installation or upgrade of comprehensive utilities metering systems in comparable federal facilities. This would allow for an assessment of whether the $3.75 million represents a fair and reasonable price relative to market rates and the scope of services.

What are the potential risks associated with a sole-source award for this type of construction contract?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competition. Without competing bids, the government may not achieve the best possible price. Other risks include limited innovation, as the contractor may not be incentivized to offer cutting-edge solutions if they are the only option. There's also a risk of contractor complacency or reduced performance standards, as there are no competitors to outperform. Furthermore, the justification for the sole-source award itself could be flawed, leading to inefficient use of taxpayer funds if competition was actually feasible. Ensuring robust oversight and performance management becomes even more critical in sole-source situations.

What is Anchor-41 Construction LLC's track record with the Department of Veterans Affairs or similar federal construction projects?

The provided data identifies Anchor-41 Construction LLC as the contractor but does not offer details on their past performance, track record, or previous contracts with the Department of Veterans Affairs (VA) or other federal agencies. To assess their reliability and capability for this $3.75 million utilities metering project, a review of their contract history, past performance evaluations (e.g., CPARS reports), and any prior experience with similar construction and systems installation would be necessary. This information is crucial for understanding their experience level and likelihood of successful project completion, especially in the context of a sole-source award.

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 UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26224R0095

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2297 KNOWLWOOD DR, HANFORD, CA, 93230

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $3,753,107

Exercised Options: $3,753,107

Current Obligation: $3,753,107

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline