VA awards $22M for solar energy systems at Houston VAMC, with 5 bids received

Contract Overview

Contract Amount: $22,011,997 ($22.0M)

Contractor: J.R. Conkey & Associates, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-08-26

End Date: 2018-10-29

Contract Duration: 1,160 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ''IGF::OT::IGF'' SOLAR PV AND SOLAR THERMAL SYSTEM FOR THE MICHAEL E. DEBAKEY HOUSTON VAMC.

Place of Performance

Location: HOUSTON, HARRIS County, TEXAS, 77030

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22.0 million to J.R. CONKEY & ASSOCIATES, INC. for work described as: ''IGF::OT::IGF'' SOLAR PV AND SOLAR THERMAL SYSTEM FOR THE MICHAEL E. DEBAKEY HOUSTON VAMC. Key points: 1. The contract aimed to install solar photovoltaic and solar thermal systems, contributing to energy resilience and sustainability. 2. The firm-fixed-price contract structure suggests a clear scope and predictable costs for the government. 3. With 5 bids, the competition level appears adequate, potentially leading to reasonable pricing. 4. The project duration of approximately 3 years aligns with typical infrastructure development timelines. 5. The award was made by the Department of Veterans Affairs, indicating a focus on improving facilities for veterans. 6. The contract was awarded under a full and open competition after exclusion of sources, suggesting a broad outreach for bidders.

Value Assessment

Rating: good

The contract value of $22 million for solar energy systems at a major VA medical center appears within a reasonable range for such infrastructure projects. Benchmarking against similar large-scale solar installations for federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price contract type helps manage cost certainty. Without specific per-unit cost data or detailed project scope, a definitive comparison is challenging, but the overall award size is consistent with the complexity of installing both photovoltaic and thermal solar systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was broadly advertised, and multiple responsible sources were considered. The receipt of 5 bids suggests a healthy level of interest and competition for this project. This level of competition is generally favorable for price discovery and ensures the government receives offers from a range of qualified contractors.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The 5 bids received indicate that the government likely secured a competitive price for the solar energy systems.

Public Impact

Veterans receiving care at the Michael E. DeBakey Houston VAMC will benefit from improved facility sustainability and potentially lower long-term energy costs. The project delivers renewable energy infrastructure, contributing to the federal government's sustainability goals. The geographic impact is localized to Houston, Texas, where the VAMC is situated. The installation of solar systems may have implications for local energy grids and the renewable energy sector in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during installation.
Dependence on weather patterns for energy generation efficiency post-installation.
Long-term maintenance costs for solar systems need to be factored into overall lifecycle cost.

Positive Signals

Investment in renewable energy aligns with federal sustainability mandates.
Firm-fixed-price contract provides cost certainty for the awarded amount.
Competitive bidding process likely resulted in a fair market price.

Sector Analysis

The contract falls within the Construction and Energy sectors, specifically focusing on renewable energy infrastructure. The market for solar installations, both commercial and governmental, has seen significant growth driven by cost reductions in solar technology and increasing demand for sustainable energy solutions. Federal agencies are increasingly investing in solar power to meet energy needs, reduce operational costs, and achieve climate goals. Comparable spending benchmarks for large-scale solar projects on federal facilities can vary widely based on system size, technology, and location.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. The award was made under full and open competition. Therefore, the direct impact on small businesses through set-asides is not evident. However, the prime contractor, J.R. CONKEY & ASSOCIATES, INC., may engage small businesses as subcontractors for various aspects of the installation, which would contribute to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified systems within the agreed-upon price. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Renewable Energy Programs
Department of Veterans Affairs Facility Modernization
Energy Efficiency and Conservation Block Grant Program
GSA Public Buildings Service - Energy Programs

Risk Flags

Potential for cost escalation beyond the fixed price if contract scope changes.
Risk of underperformance if solar technology does not meet expected efficiency.
Dependency on external factors like weather and grid stability.
Long-term maintenance and operational costs not fully captured in initial award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22.0 million to J.R. CONKEY & ASSOCIATES, INC.. ''IGF::OT::IGF'' SOLAR PV AND SOLAR THERMAL SYSTEM FOR THE MICHAEL E. DEBAKEY HOUSTON VAMC.

Who is the contractor on this award?

The obligated recipient is J.R. CONKEY & ASSOCIATES, 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 $22.0 million.

What is the period of performance?

Start: 2015-08-26. End: 2018-10-29.

What is the track record of J.R. CONKEY & ASSOCIATES, INC. with federal contracts, particularly in renewable energy projects?

A review of federal procurement data indicates that J.R. CONKEY & ASSOCIATES, INC. has been awarded multiple federal contracts, primarily in construction and infrastructure. While specific details on their prior experience with large-scale solar installations are not immediately apparent from the summary data, their history suggests a capacity to manage government projects. Further investigation into their past performance, client feedback, and project portfolio would be necessary to fully assess their expertise in renewable energy systems of this magnitude. Understanding their success rate on similar firm-fixed-price contracts and their adherence to schedules and budgets would provide deeper insight into their reliability for this project.

How does the awarded price of $22 million compare to the estimated cost or market rates for similar solar installations of this scale?

Benchmarking the $22 million award requires detailed project specifications, including the total capacity (kW/MW) of the solar photovoltaic and thermal systems, the type of technology used, site preparation requirements, and warranty periods. However, for large-scale commercial or federal solar installations, costs can range significantly. Factors like installation complexity, local labor rates, and specific equipment choices influence the final price. Without these granular details, a precise comparison is difficult. Generally, large solar projects can cost anywhere from $1.50 to $3.00 per watt installed, plus additional costs for thermal systems and integration. This contract's value suggests a substantial system size, and the competitive bidding process is the primary indicator of its market alignment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential delays due to weather, unforeseen site conditions impacting installation, and ensuring the long-term performance and maintenance of the solar systems. The firm-fixed-price contract mitigates financial risk for the government by capping the total cost. Mitigation strategies for other risks would likely involve detailed site assessments prior to construction, robust project management by the VA, clear performance standards in the contract, and potentially performance bonds from the contractor. The contract duration of over three years allows for phased implementation and addresses potential scheduling challenges.

How effective is the Department of Veterans Affairs in managing and overseeing large renewable energy infrastructure projects like this one?

The effectiveness of the VA in managing such projects can be assessed through various indicators, including project completion rates, adherence to budget, and the actual performance of installed systems against their design specifications. The VA has a large portfolio of facilities and a history of undertaking significant infrastructure upgrades. Their success with this solar project would depend on the expertise of their contracting officers, project managers, and technical evaluators. Post-award oversight, including regular site inspections and performance monitoring, is crucial. Examining past VA renewable energy projects for lessons learned and best practices would provide a clearer picture of their management capabilities in this domain.

What has been the historical spending trend for solar energy installations within the Department of Veterans Affairs?

Historical spending data for solar installations within the VA would reveal the agency's commitment to renewable energy over time. Analyzing trends would show whether spending has increased, decreased, or remained steady, potentially indicating shifts in policy, budget priorities, or technological adoption. This specific $22 million contract represents a significant investment. Understanding the VA's broader portfolio of renewable energy projects, including their scale and funding sources, would provide context for this award and help assess its significance within the agency's overall energy strategy.

What are the specific performance metrics or expected energy output from the installed solar systems?

The contract documents would typically outline specific performance metrics, such as the expected annual energy generation in kilowatt-hours (kWh) or megawatt-hours (MWh), system efficiency ratings, and uptime guarantees. For solar thermal systems, metrics might include hot water production capacity. These metrics are crucial for verifying the contractor's performance and ensuring the systems deliver the intended benefits of cost savings and sustainability. The VA would likely have established procedures for monitoring and verifying these performance outputs post-installation.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA701-15-R-0065

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 735 SUNRISE AVE STE 200, ROSEVILLE, CA, 95661

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

Financial Breakdown

Contract Ceiling: $65,516,901

Exercised Options: $65,516,901

Current Obligation: $22,011,997

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline