VA Awards $26.2M Boiler Plant Project to SGJV, LLC in Louisiana
Contract Overview
Contract Amount: $26,217,971 ($26.2M)
Contractor: Sgjv, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2020-08-19
End Date: 2025-01-08
Contract Duration: 1,603 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BOILER PLANT AND STEAM DISTRIBUTION SYSTEM PROJECT ALEXANDRIA VAHCS PINEVILLE, LA
Place of Performance
Location: PINEVILLE, RAPIDES County, LOUISIANA, 71360
Plain-Language Summary
Department of Veterans Affairs obligated $26.2 million to SGJV, LLC for work described as: BOILER PLANT AND STEAM DISTRIBUTION SYSTEM PROJECT ALEXANDRIA VAHCS PINEVILLE, LA Key points: 1. The contract value of $26.2M is significant for a single boiler plant project. 2. SGJV, LLC is the sole awardee, raising questions about competition. 3. The project falls under Commercial and Institutional Building Construction, a broad sector. 4. The firm fixed-price contract type aims to control costs.
Value Assessment
Rating: fair
The contract value of $26.2M appears substantial for a boiler plant and steam distribution system. Benchmarking against similar VA or federal projects of this nature would be necessary to determine if the pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which suggests a limited competition approach. This method may have restricted the pool of potential bidders and could impact price discovery.
Taxpayer Impact: The final cost to taxpayers will depend on whether the limited competition resulted in a fair market price for the services rendered.
Public Impact
Veterans in Alexandria, LA, will benefit from improved facility infrastructure. The project supports local construction jobs in Louisiana. Modernized systems could lead to long-term operational cost savings for the VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of small business participation noted.
Positive Signals
- Firm fixed-price contract helps manage cost certainty.
- Project addresses critical infrastructure needs for a VA facility.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope, location, and complexity. Federal construction projects often involve significant capital investment.
Small Business Impact
The data indicates that small businesses were not involved in this contract (ss: false, sb: false). Further investigation is needed to understand why small businesses were not a part of this significant award.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight procedures for construction projects should be in place to ensure quality, timeliness, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may have inflated costs.
- No small business participation.
- Contract duration is substantial (1603 days).
- Lack of detailed justification for source exclusion.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, la, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $26.2 million to SGJV, LLC. BOILER PLANT AND STEAM DISTRIBUTION SYSTEM PROJECT ALEXANDRIA VAHCS PINEVILLE, LA
Who is the contractor on this award?
The obligated recipient is SGJV, 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 $26.2 million.
What is the period of performance?
Start: 2020-08-19. End: 2025-01-08.
What specific factors led to the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award method, and how did this impact the final price?
The exclusion of sources typically occurs when specific technical requirements, past performance, or unique circumstances limit the eligible pool of contractors. Understanding these specific factors is crucial. If the exclusion was not fully justified by technical necessity, it could have artificially limited competition, potentially leading to a higher price than what might have been achieved in a truly open market.
What is the projected long-term cost savings or operational efficiency gain expected from the new boiler plant and steam distribution system?
The primary goal of such infrastructure upgrades is usually to improve energy efficiency, reduce maintenance costs, and ensure reliable operation. Quantifying these benefits requires a detailed analysis of the existing system's inefficiencies and the projected performance of the new system. This information is critical for assessing the overall value proposition of the $26.2M investment beyond just the initial construction cost.
Are there any performance metrics or key performance indicators (KPIs) established for SGJV, LLC to ensure the successful and efficient operation of the new boiler plant post-completion?
Effective oversight requires clear performance metrics. For a boiler plant project, these might include energy efficiency targets, uptime guarantees, response times for maintenance, and adherence to environmental regulations. Establishing and monitoring these KPIs is essential for holding the contractor accountable and ensuring the long-term effectiveness and value of the investment for the VA.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C10F19R0086
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2876 GUARDIAN LN STE 200, VIRGINIA BEACH, VA, 23452
Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $26,217,971
Exercised Options: $26,217,971
Current Obligation: $26,217,971
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-08-19
Current End Date: 2025-01-08
Potential End Date: 2025-01-08 00:00:00
Last Modified: 2025-12-02
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- Boiler and Controls — $19.4M (Department of Veterans Affairs)
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