VA Awards $42.9M Contract for Boiler Replacement at Providence VA Medical Center

Contract Overview

Contract Amount: $42,910,144 ($42.9M)

Contractor: Sgjv2, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-01-06

End Date: 2025-04-13

Contract Duration: 828 days

Daily Burn Rate: $51.8K/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: CONSTRUCTION OF PROJECT 650-19-100 REPLACE BOILERS IN BLDG. 10, PROVIDENCE VA MEDICAL CENTER, PROVIDENCE RI.

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $42.9 million to SGJV2, LLC for work described as: CONSTRUCTION OF PROJECT 650-19-100 REPLACE BOILERS IN BLDG. 10, PROVIDENCE VA MEDICAL CENTER, PROVIDENCE RI. Key points: 1. The contract focuses on essential infrastructure upgrades for a key VA facility. 2. Competition was full and open after exclusion of sources, suggesting a structured procurement process. 3. The project's success hinges on timely completion and adherence to quality standards. 4. The sector is construction, specifically power and communication line and related structures, though the core is building infrastructure.

Value Assessment

Rating: good

The contract value of $42.9 million for boiler replacement appears reasonable for a medical center project of this scope. Benchmarking against similar VA facility infrastructure upgrades would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The procurement utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process where specific sources were initially considered but ultimately opened. This method aims to ensure fair pricing and access to qualified contractors.

Taxpayer Impact: The investment aims to improve facility reliability and reduce long-term operational costs, ultimately benefiting taxpayers through efficient service delivery.

Public Impact

Ensures continued operational capacity for the Providence VA Medical Center. Improves energy efficiency and reliability of critical building systems. Supports local employment and economic activity through construction services. Enhances the healthcare environment for veterans receiving care at the facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting facility operations.
Risk of cost overruns if unforeseen issues arise during renovation.
Ensuring minimal disruption to ongoing medical services.

Positive Signals

Clear contract type (Firm Fixed Price) limits cost uncertainty.
Defined performance period (828 days) provides a timeline for completion.
Awarded by the Department of Veterans Affairs, a major federal agency.

Sector Analysis

This contract falls within the construction sector, specifically related to building infrastructure and power systems. Federal spending in this area is crucial for maintaining and upgrading government facilities, with benchmarks varying significantly based on project complexity and location.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as the awardee is SGJV2, LLC. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be critical to ensure adherence to schedule, budget, and quality standards throughout the project lifecycle.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for schedule slippage impacting facility operations.
Risk of unforeseen site conditions leading to cost increases.
Ensuring minimal disruption to ongoing patient care.
Verification of contractor's capacity for large-scale infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $42.9 million to SGJV2, LLC. CONSTRUCTION OF PROJECT 650-19-100 REPLACE BOILERS IN BLDG. 10, PROVIDENCE VA MEDICAL CENTER, PROVIDENCE RI.

Who is the contractor on this award?

The obligated recipient is SGJV2, 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 $42.9 million.

What is the period of performance?

Start: 2023-01-06. End: 2025-04-13.

What is the projected impact of these new boilers on the facility's energy efficiency and operational costs?

The primary goal of replacing aging boilers is to enhance energy efficiency and reduce long-term operational expenditures. While the contract value is $42.9 million, the specific energy savings and cost-reduction projections are not detailed in the provided data. A thorough analysis would require reviewing the project's technical specifications and expected performance metrics post-installation.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured?

Key performance indicators for this construction contract likely include adherence to the project schedule (828 days), meeting quality standards for boiler installation and building systems, and maintaining a safe work environment. Measurement will involve regular site inspections, progress reports from the contractor, and final acceptance testing of the new boiler systems by the VA.

How does the 'Full and Open Competition After Exclusion of Sources' procurement method balance competition with specialized needs?

This method allows the agency to initially identify and solicit proposals from a specific set of qualified sources believed to possess unique capabilities. However, it then opens the competition to all responsible sources, ensuring broader market participation and potentially better pricing. This approach balances the need for specialized expertise with the principle of maximizing competition.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: 36C24122R0084

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, 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: $42,910,144

Exercised Options: $42,910,144

Current Obligation: $42,910,144

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline