VA awards $20.7M solar PV system contract to SunPower Corporation for Sepulveda VA Medical Center

Contract Overview

Contract Amount: $20,687,097 ($20.7M)

Contractor: Sunpower Corporation, Systems

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-09-24

End Date: 2012-09-24

Contract Duration: 731 days

Daily Burn Rate: $28.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: TAS::36 0162::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE SEPULVEDA AMBULATORY CARE CENTER VA MEDICAL.

Place of Performance

Location: NORTH HILLS, LOS ANGELES County, CALIFORNIA, 91343

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.7 million to SUNPOWER CORPORATION, SYSTEMS for work described as: TAS::36 0162::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE SEPULVEDA AMBULATORY CARE CENTER VA MEDICAL. Key points: 1. The contract value is $20.7 million for a turn-key solar photovoltaic system. 2. SunPower Corporation, Systems is the contractor, with the Department of Veterans Affairs as the agency. 3. The contract was awarded under full and open competition. 4. The project aims to install a solar PV system at the Sepulveda Ambulatory Care Center. 5. The contract duration is 731 days.

Value Assessment

Rating: good

The contract value of $20.7 million for a turn-key solar PV system appears reasonable given the scale and complexity of such installations. Benchmarking against similar large-scale solar projects for government facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for price discovery and contractor selection. This method generally leads to competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The installation of a solar PV system is expected to generate long-term energy cost savings for taxpayers by reducing reliance on traditional energy sources.

Public Impact

Improved energy efficiency and reduced operational costs for the VA Medical Center. Contribution to renewable energy goals and environmental sustainability. Potential for job creation in the solar installation and maintenance sectors. Enhanced energy independence for a critical federal facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen installation challenges arise.
Dependency on contractor performance for timely and quality completion.
Long-term maintenance costs not explicitly detailed.

Positive Signals

Awarded under full and open competition, indicating competitive pricing.
Focus on renewable energy aligns with sustainability initiatives.
Turn-key solution simplifies project management for the VA.

Sector Analysis

The contract falls within the renewable energy and construction sectors, specifically focusing on solar photovoltaic systems. Spending benchmarks for similar government solar installations vary widely based on system size, location, and complexity, but large-scale projects often run into millions of dollars.

Small Business Impact

While the primary contractor is SunPower Corporation, Systems, the contract does not explicitly detail provisions for small business subcontracting. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction and technology projects, including progress monitoring and quality assurance, would be expected to be in place.

Related Government Programs

Temporary Help Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost escalation due to unforeseen site conditions.
Reliance on a single primary contractor for a complex, integrated system.
Long-term operational and maintenance costs may exceed initial projections.
Technological obsolescence of solar components over the system's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.7 million to SUNPOWER CORPORATION, SYSTEMS. TAS::36 0162::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE SEPULVEDA AMBULATORY CARE CENTER VA MEDICAL.

Who is the contractor on this award?

The obligated recipient is SUNPOWER CORPORATION, SYSTEMS.

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 $20.7 million.

What is the period of performance?

Start: 2010-09-24. End: 2012-09-24.

What is the projected return on investment (ROI) for this solar PV system, considering installation costs and anticipated energy savings?

The projected ROI would depend on factors such as the system's energy generation capacity, local electricity rates, available tax incentives, and the lifespan of the solar panels. A detailed financial analysis by the VA, comparing the $20.7 million investment against projected energy cost reductions over 20-25 years, would be necessary to quantify the ROI and demonstrate long-term value to taxpayers.

What are the specific performance metrics and warranties associated with the solar PV system to ensure its long-term effectiveness and reliability?

The contract should specify key performance metrics such as expected annual energy output (kWh), degradation rates of solar panels over time, and system efficiency. Comprehensive warranties covering equipment defects, performance guarantees, and installation workmanship are crucial. The VA should ensure these are clearly defined and robust to mitigate risks of underperformance or premature failure.

How does the cost of this turn-key solar PV system compare to similar installations at other federal facilities or large commercial entities?

A direct comparison requires detailed project specifications (e.g., system size in kW/MW, panel efficiency, mounting type, battery storage). However, $20.7 million for a large-scale, turn-key solar installation at a major facility is within the expected range. Benchmarking against publicly available data or industry reports for similar projects would confirm if the pricing is competitive and reflects fair market value.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Employment Services › Temporary Help Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Total GAS & Power USA (UEI: 260153003)

Address: 1414 HARBOUR WAY S, RICHMOND, CA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,777,193

Exercised Options: $20,687,097

Current Obligation: $20,687,097

Parent Contract

Parent Award PIID: GS07F0328T

IDV Type: FSS

Timeline