VA awards $6.36M for boiler controls, with 3 bidders competing for this firm-fixed-price delivery order

Contract Overview

Contract Amount: $6,362,003 ($6.4M)

Contractor: Rbvetco, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-20

End Date: 2026-02-28

Contract Duration: 1,045 days

Daily Burn Rate: $6.1K/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 CONTROLS PHASE II - UD

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15240

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.4 million to RBVETCO, LLC for work described as: BOILER CONTROLS PHASE II - UD Key points: 1. The contract value of $6.36 million appears reasonable given the project scope and duration. 2. Full and open competition was utilized, suggesting a healthy bidding environment. 3. The fixed-price contract type shifts performance risk to the contractor. 4. This project supports facility maintenance and modernization within the VA. 5. The contractor, RBVETCO, LLC, is responsible for delivering these critical building systems. 6. The project duration of 1045 days indicates a significant, multi-year undertaking.

Value Assessment

Rating: good

The contract value of $6.36 million for boiler controls over approximately three years seems within a reasonable range for commercial and institutional building construction. Benchmarking against similar VA or other federal projects for boiler system upgrades would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the initial pricing was deemed acceptable by the government, with the contractor bearing the cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while initial solicitations may have had restrictions, the final award was made after a broad competitive process. Three bidders participated, which suggests a moderate level of competition. A higher number of bidders typically leads to more aggressive pricing and better value for the government.

Taxpayer Impact: The presence of three bidders indicates that taxpayers benefited from some level of price competition, though more bidders could have potentially driven costs lower.

Public Impact

Veterans receiving care at VA facilities will benefit from improved and reliable heating and cooling systems. The project ensures the continued operation and modernization of essential building infrastructure at a VA site. The geographic impact is localized to the specific VA facility where the boiler controls are being installed, likely in Pennsylvania. The contract supports jobs in the construction and building systems installation sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during installation, though mitigated by fixed-price contract.
Dependence on contractor performance for timely completion and quality of installation.
Risk of supply chain disruptions affecting component availability.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a robust bidding process.
Contractor RBVETCO, LLC is responsible for delivery, ensuring clear accountability.
Project addresses critical infrastructure needs for the VA.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on mechanical systems. The market for building controls and HVAC systems is substantial, with significant government spending allocated to maintaining and upgrading federal facilities. This project represents a typical investment in maintaining operational readiness and energy efficiency for government buildings.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if RBVETCO, LLC engages them. Without specific subcontracting plans detailed, it's difficult to assess the direct impact on the small business ecosystem from this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officers and project managers. Accountability is established through the firm-fixed-price contract terms, requiring delivery of specified boiler controls. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight mechanisms are not explicitly stated in this summary data.

Related Government Programs

VA Facility Maintenance Contracts
Federal Building Modernization Projects
HVAC System Upgrades
Commercial Boiler Installation

Risk Flags

Potential for cost overruns if unforeseen issues arise.
Dependence on contractor for timely and quality delivery.
Supply chain disruptions impacting component availability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.4 million to RBVETCO, LLC. BOILER CONTROLS PHASE II - UD

Who is the contractor on this award?

The obligated recipient is RBVETCO, 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 $6.4 million.

What is the period of performance?

Start: 2023-04-20. End: 2026-02-28.

What is the track record of RBVETCO, LLC with the Department of Veterans Affairs and in similar federal construction projects?

Information regarding RBVETCO, LLC's specific track record with the Department of Veterans Affairs (VA) and other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported disputes or awards. Understanding their experience with similar boiler control systems and large-scale construction projects is crucial for evaluating their capability to successfully execute this contract. Federal procurement databases and past performance reviews would be the primary sources for this information.

How does the awarded price of $6.36 million compare to industry benchmarks for similar boiler control system installations?

The awarded price of $6.36 million for boiler controls over a 1045-day period needs to be benchmarked against industry standards for similar projects. Factors such as the size and complexity of the VA facility, the specific type and capacity of the boiler systems, and the scope of work (installation, integration, testing, commissioning) significantly influence costs. Comparing this contract's value to publicly available data on commercial and institutional building construction costs, particularly for HVAC and boiler systems, or to similar VA contracts, would help determine if it represents good value for money. The firm-fixed-price nature suggests the government accepted this price as fair at the time of award.

What are the primary performance risks associated with this contract, and how are they being managed?

The primary performance risks for this contract revolve around the successful installation, integration, and functionality of the boiler control systems within the specified timeframe and budget. Given the firm-fixed-price nature, the contractor, RBVETCO, LLC, bears the financial risk of cost overruns. Performance risks include potential delays due to supply chain issues, unforeseen site conditions, or technical integration challenges. The VA's management of these risks would involve diligent project oversight, clear communication channels, adherence to project milestones, and potentially performance bonds. The contract's duration suggests a phased approach to installation and testing, allowing for risk mitigation throughout the project lifecycle.

What is the expected impact of this contract on the operational efficiency and energy consumption of the VA facility?

The installation of new boiler controls is expected to significantly improve the operational efficiency and potentially reduce energy consumption at the VA facility. Modern boiler control systems offer enhanced precision in temperature regulation, optimized fuel usage, and better system diagnostics, leading to more reliable heating and cooling. This can translate into reduced maintenance costs, fewer system failures, and a more comfortable environment for patients and staff. The specific energy savings would depend on the efficiency gains of the new technology compared to the existing system and the operational patterns of the facility.

How has federal spending on boiler controls and related HVAC infrastructure evolved over the past five years?

Federal spending on boiler controls and related HVAC infrastructure has likely remained a consistent priority for agencies like the Department of Veterans Affairs, focused on maintaining aging facilities and improving energy efficiency. While specific figures for 'boiler controls' alone are hard to isolate, overall spending on facility maintenance, repair, and modernization across the federal government is substantial. Trends may show an increased emphasis on smart building technologies and energy-saving upgrades, driven by sustainability goals and lifecycle cost reduction initiatives. Analyzing broader categories like 'Building and Facilities Maintenance' or 'HVAC Systems' within federal procurement data would reveal spending patterns.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 W MAIN ST STE 100, CARNEGIE, PA, 15106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, 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: $6,362,003

Exercised Options: $6,362,003

Current Obligation: $6,362,003

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24420D0026

IDV Type: IDC

Timeline