VA Awards $26.4M Turn-Key Solar PV System Contract to REC SOLAR, INC

Contract Overview

Contract Amount: $26,358,144 ($26.4M)

Contractor: REC Solar, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-09-21

End Date: 2013-09-10

Contract Duration: 1,085 days

Daily Burn Rate: $24.3K/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 WEST LOS ANGELES VA MEDICAL CENTER.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.4 million to REC SOLAR, INC. for work described as: TAS::36 0162::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE WEST LOS ANGELES VA MEDICAL CENTER. Key points: 1. Contract awarded for a significant solar photovoltaic system installation. 2. REC SOLAR, INC. secured the contract through full and open competition. 3. The project aims to enhance energy sustainability at the West Los Angeles VA Medical Center. 4. Firm Fixed Price contract type suggests defined cost parameters.

Value Assessment

Rating: good

The award amount of $26.4 million for a turn-key solar PV system appears reasonable given the scale and complexity of installing such infrastructure at a major medical center. Benchmarking against similar large-scale renewable energy projects for federal facilities would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method allows multiple qualified vendors to bid, fostering competitive pricing and potentially leading to better value for the government.

Taxpayer Impact: The investment in renewable energy infrastructure is expected to yield long-term cost savings on energy expenses, benefiting taxpayers through reduced operational costs.

Public Impact

Improved energy efficiency and reduced reliance on traditional power sources for a major VA facility. Contribution to federal renewable energy goals and environmental sustainability initiatives. Potential for job creation in the solar installation and maintenance sectors. Demonstrates government commitment to modernizing infrastructure with sustainable technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise.
Dependency on REC SOLAR, INC. for successful project completion and system performance.
Long-term maintenance costs not explicitly detailed in award data.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm Fixed Price contract type provides cost certainty.
Investment in renewable energy aligns with sustainability goals.
Project located at a critical VA facility, ensuring direct benefit to veterans.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to renewable energy infrastructure. Spending benchmarks for large-scale solar installations at federal facilities can vary widely based on system size, location, and technology.

Small Business Impact

While the prime contractor is REC SOLAR, INC., the contract data does not specify the extent of small business participation. Further analysis would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard government oversight mechanisms, including contract performance monitoring and quality assurance, would be applied to ensure successful project delivery.

Related Government Programs

Engineering Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for technology obsolescence over the system's lifespan.
Reliance on specific manufacturer components could limit future upgrade options.
Weather-related performance variability and potential for damage.
Integration challenges with existing building energy management systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.4 million to REC SOLAR, INC.. TAS::36 0162::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE WEST LOS ANGELES VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is REC SOLAR, 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 $26.4 million.

What is the period of performance?

Start: 2010-09-21. End: 2013-09-10.

What is the projected return on investment for this solar PV system, considering energy savings and maintenance costs over its lifespan?

The projected return on investment would depend on detailed energy consumption data, current and future electricity rates, system performance degradation, and estimated maintenance expenses. A comprehensive lifecycle cost analysis is required to accurately quantify the ROI. Without specific projections from the VA or REC SOLAR, it's difficult to provide a precise figure, but such investments typically aim for a payback period of 10-20 years.

What are the key performance indicators (KPIs) used to measure the success of the solar PV system installation and its ongoing energy generation?

Key performance indicators would likely include the total energy generated (kWh) compared to projections, system uptime and availability, reduction in grid electricity consumption, and adherence to environmental compliance standards. Performance monitoring systems would track these metrics, with regular reports submitted by the contractor to the VA to ensure the system meets contractual obligations and performance targets.

How does the cost per watt of this installation compare to similar federal solar projects completed in the last five years?

A direct cost per watt comparison requires detailed system specifications (e.g., panel efficiency, inverter technology, mounting systems) and project scope. However, for large-scale commercial and federal installations, costs have generally been declining. Benchmarking this $26.4 million project against similar VA or GSA solar projects would reveal if the pricing is competitive within the current market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: Mainstream Energy Corporation (UEI: 004944212)

Address: 775 FIERO LN STE 200, SAN LUIS OBISPO, CA, 24

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,175,039

Exercised Options: $26,358,144

Current Obligation: $26,358,144

Parent Contract

Parent Award PIID: GS21F0099V

IDV Type: FSS

Timeline