VA Awards $4.7M Contract for Boiler Plant Upgrades to LEO A. DALY LLC

Contract Overview

Contract Amount: $4,734,157 ($4.7M)

Contractor: LEO a. Daly LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-08-14

End Date: 2027-01-07

Contract Duration: 2,337 days

Daily Burn Rate: $2.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AE BOILER PLAT

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90071

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to LEO A. DALY LLC for work described as: AE BOILER PLAT Key points: 1. Contract awarded for essential infrastructure maintenance at a VA facility. 2. LEO A. DALY LLC, a large business, secured the contract. 3. The contract spans nearly seven years, indicating a long-term need. 4. Construction sector spending is significant, with this contract contributing to it.

Value Assessment

Rating: fair

The contract value of $4.7M over 2337 days suggests a moderate annual spend. Without specific benchmarks for similar VA boiler plant upgrades, a precise value assessment is difficult, but it appears to be within a reasonable range for a project of this duration and scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a firm fixed price contract further incentivizes cost control by the contractor.

Taxpayer Impact: Taxpayer funds are being used for necessary infrastructure improvements, ensuring the continued operation of VA facilities.

Public Impact

Ensures continued operation of critical VA facilities. Supports the construction sector and associated jobs. Provides necessary upgrades to aging infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost overruns if not managed effectively.
Potential for scope creep over the multi-year period.
Reliance on a single large business contractor.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract structure.
Addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is substantial, driven by government and private sector needs for facility maintenance and upgrades. Benchmarks for similar projects would typically consider factors like building size, complexity of systems, and regional labor costs.

Small Business Impact

The contract was awarded to LEO A. DALY LLC, identified as a large business. There is no indication of specific small business subcontracting goals or participation in this award, suggesting limited direct impact on small businesses for this prime contract.

Oversight & Accountability

The contract's long duration necessitates robust oversight from the Department of Veterans Affairs to ensure project milestones are met, costs remain controlled, and the final product meets specifications. Regular performance reviews and audits will be crucial.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration increases risk of cost escalation and scope creep.
Potential for contractor performance issues over an extended period.
Lack of explicit small business participation noted.
Dependence on a single large business entity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to LEO A. DALY LLC. AE BOILER PLAT

Who is the contractor on this award?

The obligated recipient is LEO A. DALY LLC.

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 $4.7 million.

What is the period of performance?

Start: 2020-08-14. End: 2027-01-07.

What is the expected impact of these boiler plant upgrades on energy efficiency and operational costs for the VA facility?

The primary goal of boiler plant upgrades is typically to improve energy efficiency, reduce fuel consumption, and lower long-term operational and maintenance costs. While the contract value reflects the capital investment, the specific energy savings and payback period would depend on the technology implemented and the facility's usage patterns. A detailed post-award analysis of the implemented solutions would be needed to quantify the exact impact.

How will the VA ensure that the firm fixed price contract remains cost-effective over its 2337-day duration, given potential market fluctuations?

The VA will likely employ stringent contract management practices, including regular progress reviews, performance monitoring, and change order control. While a firm fixed price contract shifts much of the risk to the contractor, the VA must remain vigilant against scope creep and ensure that any necessary modifications are justified and priced competitively. Establishing clear performance metrics and milestones will be key to managing cost-effectiveness.

What are the key performance indicators (KPIs) the VA will use to measure the success of this contract and the contractor's performance?

Key performance indicators will likely include adherence to the project schedule, quality of workmanship, compliance with safety regulations, and achievement of specified performance standards for the new boiler system (e.g., efficiency ratings, reliability). The VA will also monitor the contractor's responsiveness to issues, effectiveness of communication, and overall project management. Successful completion of all contract deliverables within the agreed-upon price and timeframe will be the ultimate measure.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C10F20R0030

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 550 S HOPE ST STE 2700, LOS ANGELES, CA, 90071

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

Financial Breakdown

Contract Ceiling: $4,734,157

Exercised Options: $4,734,157

Current Obligation: $4,734,157

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline