VA Awards $2.3M Fixed-Price Contract to Alares LLC for EUL Program Implementation

Contract Overview

Contract Amount: $229,524 ($229.5K)

Contractor: Alares LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-02-27

End Date: 2026-04-07

Contract Duration: 2,231 days

Daily Burn Rate: $103/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE SCOPE OF THIS FIRM FIXED PRICE CONTRACT FOR SERVICES IS TO IMMEDIATELY IMPLEMENT THE VA?S EUL PROGRAM SO AS TO ENABLE THE DEPARTMENT TO FORMULATE, EVALUATE, AND EXECUTE AN EUL PROJECT AT THE VAMC.

Place of Performance

Location: QUINCY, NORFOLK County, MASSACHUSETTS, 02169

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $229,523.5 to ALARES LLC for work described as: THE SCOPE OF THIS FIRM FIXED PRICE CONTRACT FOR SERVICES IS TO IMMEDIATELY IMPLEMENT THE VA?S EUL PROGRAM SO AS TO ENABLE THE DEPARTMENT TO FORMULATE, EVALUATE, AND EXECUTE AN EUL PROJECT AT THE VAMC. Key points: 1. Contract aims to enable VA to formulate, evaluate, and execute EUL projects at VAMC. 2. Alares LLC, a small business, secured the contract. 3. The contract is for Administrative Management and General Management Consulting Services. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller procurements.

Value Assessment

Rating: fair

The contract is a firm fixed-price award. Without more data on the specific services and deliverables, it's difficult to definitively assess pricing against similar contracts. However, the value of $2.3M for a multi-year implementation project seems within a reasonable range for consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under SAP, indicating a competitive process likely involving multiple bids. This method generally promotes price discovery and ensures fair market value is obtained for the services rendered.

Taxpayer Impact: The use of a competitive process under SAP is intended to ensure taxpayer funds are used efficiently for necessary services.

Public Impact

Enhances VA's capability to manage energy projects, potentially leading to cost savings and improved facility operations. Supports the implementation of critical programs within the Veterans Affairs system. Alares LLC, as a small business, benefits from this federal contract award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope of 'EUL Program' could be broad; clarity on specific deliverables is needed.
Contract duration is long (over 5 years); performance monitoring is crucial.

Positive Signals

Firm Fixed Price contract type limits cost overrun risk for the government.
Competition under SAP suggests a potentially efficient procurement process.
Alares LLC is a small business, aligning with federal small business goals.

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector is common across federal agencies for program implementation and strategic support. Benchmarks for similar projects would require detailed service descriptions.

Small Business Impact

Alares LLC, identified as a small business, is the awardee. This contract contributes to federal goals of awarding a portion of government contracts to small businesses, fostering economic growth and competition.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs. Oversight would involve monitoring Alares LLC's performance against contract requirements and ensuring timely delivery of program implementation services.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration is lengthy (over 5 years).
Scope of 'EUL Program' requires clear definition and monitoring.
Performance metrics need to be robust to ensure value.
Reliance on a single contractor for program implementation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $229,523.5 to ALARES LLC. THE SCOPE OF THIS FIRM FIXED PRICE CONTRACT FOR SERVICES IS TO IMMEDIATELY IMPLEMENT THE VA?S EUL PROGRAM SO AS TO ENABLE THE DEPARTMENT TO FORMULATE, EVALUATE, AND EXECUTE AN EUL PROJECT AT THE VAMC.

Who is the contractor on this award?

The obligated recipient is ALARES 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 $229,523.5.

What is the period of performance?

Start: 2020-02-27. End: 2026-04-07.

What specific metrics will be used to evaluate the success of the EUL program implementation?

Success metrics for the EUL program implementation should focus on tangible outcomes such as the successful formulation, evaluation, and execution of EUL projects at VAMC. Key Performance Indicators (KPIs) could include the number of projects initiated, project completion rates, adherence to budget, and demonstrated energy savings or operational efficiencies achieved through the program. Clear, measurable KPIs are essential for effective oversight and value assessment.

How does the firm fixed-price structure mitigate risks associated with the long contract duration?

The firm fixed-price (FFP) structure mitigates financial risk for the government by establishing a ceiling on the total cost. Regardless of Alares LLC's actual costs, the VA will pay the agreed-upon price. This incentivizes the contractor to manage their own costs efficiently over the contract's long duration. However, the VA still bears the risk of scope creep if not managed tightly, and the contractor bears the risk if their costs exceed the fixed price.

What is the expected impact of this EUL program implementation on VA's overall energy efficiency and sustainability goals?

The successful implementation of the EUL program is expected to significantly enhance the VA's ability to identify, plan, and execute energy efficiency projects at VAMC facilities. This should directly contribute to the VA's broader sustainability goals by reducing energy consumption, lowering operational costs, and potentially decreasing the environmental footprint of its infrastructure. The program's effectiveness will depend on the quality of services provided by Alares LLC and the VA's commitment to acting on the program's outputs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36E77619Q0133

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 248 COPELAND ST, QUINCY, MA, 02169

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $265,610

Exercised Options: $265,610

Current Obligation: $229,524

Actual Outlays: $93,003

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline