VA Boiler Plant Replacement in Battle Creek Costs $20.7M, Awarded to Demaria Building Company

Contract Overview

Contract Amount: $20,695,841 ($20.7M)

Contractor: Demaria Building Company, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-09-16

End Date: 2014-08-30

Contract Duration: 1,809 days

Daily Burn Rate: $11.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN

Place of Performance

Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $20.7 million to DEMARIA BUILDING COMPANY, INC. for work described as: BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN Key points: 1. The project, valued at $20.7 million, involved replacing a boiler plant at the Battle Creek VA Medical Center. 2. Awarded to Demaria Building Company, Inc., the contract was secured through full and open competition. 3. The project duration was 1809 days, indicating a significant, long-term infrastructure undertaking. 4. The contract type was Firm Fixed Price, providing cost certainty for the government.

Value Assessment

Rating: fair

The final cost of $20.7 million appears reasonable for a major infrastructure project of this scale. Benchmarking against similar VA medical center infrastructure upgrades 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 price discovery process. This method typically yields competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes market competition and can lead to lower overall costs.

Public Impact

Ensures continued operation of essential medical services by maintaining critical infrastructure. Supports local employment and economic activity in Battle Creek, Michigan, through construction and related services. Addresses aging infrastructure needs within the VA system, potentially improving energy efficiency and reliability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This project falls within the construction and facilities maintenance sector, specifically related to industrial building systems. Spending benchmarks for similar VA infrastructure projects would be relevant for comparison.

Small Business Impact

The provided data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Further investigation would be needed to determine if subcontracting opportunities were offered or utilized.

Oversight & Accountability

The Department of Defense, through the Department of the Army, managed this contract. Standard oversight procedures for federal construction projects would apply, including monitoring progress, quality, and adherence to contract terms.

Related Government Programs

Risk Flags

Tags

plumbing-heating-and-air-conditioning-co, department-of-defense, mi, dca, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.7 million to DEMARIA BUILDING COMPANY, INC.. BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN

Who is the contractor on this award?

The obligated recipient is DEMARIA BUILDING COMPANY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.7 million.

What is the period of performance?

Start: 2009-09-16. End: 2014-08-30.

What was the primary driver for the extended project duration of 1809 days?

The extended duration of 1809 days (nearly 5 years) for the boiler plant replacement project is a significant factor. Potential reasons could include unforeseen site conditions, design changes, contractor performance issues, or phased implementation to maintain facility operations. A detailed review of project milestones and change orders would be necessary to pinpoint the exact causes.

Were there any specific challenges or risks encountered during the project that impacted cost or schedule?

Given the project's scale and duration, it's probable that challenges such as unexpected structural issues, material availability delays, or coordination with ongoing medical center operations arose. The firm fixed price contract suggests the contractor bore the risk of cost overruns, but significant delays could still impact the government's operational continuity and potentially lead to change requests if scope was affected.

How does the final cost compare to the initial bid or estimated cost for this type of project?

The final cost of $20.7 million needs to be compared against the initial bid or government estimate to assess value. While the 'br' (bid range) is listed as 11440, this likely represents a different metric. A direct comparison of the awarded amount to pre-bid estimates or the number of bids received would clarify if the final price was competitive and represented good value for the taxpayer.

Industry Classification

NAICS: ConstructionBuilding Equipment ContractorsPlumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W911XK09R0010

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45500 GRAND RIVER AVE, NOVI, MI, 06

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

Financial Breakdown

Contract Ceiling: $20,695,841

Exercised Options: $20,695,841

Current Obligation: $20,695,841

Contract Characteristics

Cost or Pricing Data: NO

Timeline

Start Date: 2009-09-16

Current End Date: 2014-08-30

Potential End Date: 2014-08-30 00:00:00

Last Modified: 2014-09-16

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