VA Awards $19.4M for Solar PV System at Albuquerque Healthcare System

Contract Overview

Contract Amount: $19,401,536 ($19.4M)

Contractor: Eaton Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-05-05

End Date: 2013-09-02

Contract Duration: 1,216 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Energy

Official Description: TAS::36 0158::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE ALBUQUEQUE VA HEALTHCARE SYSTEM LOCATED IN ALBUQUERQUE, NM.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.4 million to EATON CORPORATION for work described as: TAS::36 0158::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE ALBUQUEQUE VA HEALTHCARE SYSTEM LOCATED IN ALBUQUERQUE, NM. Key points: 1. Significant investment in renewable energy infrastructure for a major healthcare facility. 2. Eaton Corporation secured the contract, indicating potential consolidation or specialization in this sector. 3. The project's success hinges on reliable installation and long-term performance of the PV system. 4. Focus on energy independence and sustainability within the VA healthcare network.

Value Assessment

Rating: good

The contract value of $19.4 million for a turn-key solar PV system appears reasonable given the scale and complexity of installing such infrastructure at a large healthcare facility. Benchmarking against similar large-scale government solar installations 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, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are encouraged to bid.

Taxpayer Impact: The investment aims to reduce long-term energy costs for the VA and promote sustainable energy, potentially leading to taxpayer savings through reduced reliance on traditional energy sources.

Public Impact

Improved energy resilience and reduced operational costs for the Albuquerque VA Healthcare System. Contribution to the VA's sustainability goals and reduction of its carbon footprint. Potential for replication of similar renewable energy projects across other VA facilities nationwide. Creation of jobs related to the installation and maintenance of solar energy systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for performance issues if system is not optimally installed or maintained.
Dependency on a single contractor (Eaton Corporation) for the turn-key solution.
Long-term operational and maintenance costs not fully detailed in the provided data.

Positive Signals

Significant investment in renewable energy aligns with federal sustainability mandates.
Awarded through full and open competition, suggesting competitive pricing.
Project aims to enhance energy independence for a critical healthcare facility.

Sector Analysis

The installation of a solar photovoltaic system falls within the broader energy and construction sectors, with specific ties to electrical equipment manufacturing (NAICS 335313). Spending on renewable energy infrastructure by government agencies is increasing as part of broader climate and energy independence initiatives.

Small Business Impact

While the prime contractor is Eaton Corporation, the data does not indicate the extent of small business participation in the subcontracting process. Further analysis would be needed to determine the impact on small businesses.

Oversight & Accountability

The Department of Veterans Affairs managed this procurement. Oversight would typically involve ensuring project milestones are met, quality standards are upheld, and the system operates as intended throughout its lifecycle.

Related Government Programs

Switchgear and Switchboard Apparatus Manufacturing
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for underperformance if installation or maintenance is suboptimal.
Long-term operational costs may exceed initial estimates.
Dependency on specific technology and manufacturer (Eaton Corporation).
Effectiveness relies on consistent solar irradiance and system durability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.4 million to EATON CORPORATION. TAS::36 0158::TAS INSTALLATION OF A TURN-KEY SOLAR PHOTOVOLTAIC (PV) SYSTEM AT THE ALBUQUEQUE VA HEALTHCARE SYSTEM LOCATED IN ALBUQUERQUE, NM.

Who is the contractor on this award?

The obligated recipient is EATON CORPORATION.

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 $19.4 million.

What is the period of performance?

Start: 2010-05-05. End: 2013-09-02.

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

The provided data does not include specific financial projections for return on investment or payback period. A comprehensive analysis would require detailed energy consumption data, current electricity rates, projected system output, and ongoing maintenance costs. However, the $19.4 million investment suggests a significant scale, implying a long-term strategy for cost reduction and energy security.

What are the key performance indicators (KPIs) used to measure the success and efficiency of the installed solar PV system?

Key performance indicators for such a system would typically include energy generation (kilowatt-hours produced), system uptime and reliability, reduction in grid electricity consumption, and adherence to safety standards. The contract likely specifies performance guarantees and monitoring protocols to ensure the system meets its intended output and operational efficiency targets.

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

Without specific cost breakdowns per watt or per square foot, direct comparison is difficult. However, the $19.4 million award for a 'turn-key' system at a large healthcare facility suggests a comprehensive solution. Benchmarking against other large-scale government solar projects or commercial installations of similar capacity would be necessary to assess cost-effectiveness.

Industry Classification

NAICS: Manufacturing › Electrical Equipment Manufacturing › Switchgear and Switchboard Apparatus Manufacturing

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

Solicitation ID: VA-776-10-RA-0148

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8609 SIX FORKS RD, RALEIGH, NC, 27615

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

Financial Breakdown

Contract Ceiling: $32,270,988

Exercised Options: $19,401,536

Current Obligation: $19,401,536

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS07F9460G

IDV Type: FSS

Timeline