VA Awards $7.8M Contract to RBVETCO for Steam System Upgrades in Pennsylvania

Contract Overview

Contract Amount: $7,829,597 ($7.8M)

Contractor: Rbvetco, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-14

End Date: 2026-05-04

Contract Duration: 902 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE STEAM TRAPS AND UNDERGROUND STEAM LINES

Place of Performance

Location: ALTOONA, BLAIR County, PENNSYLVANIA, 16602

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.8 million to RBVETCO, LLC for work described as: REPLACE STEAM TRAPS AND UNDERGROUND STEAM LINES Key points: 1. Contract awarded to RBVETCO, LLC for steam trap and line replacement. 2. The contract value is $7.8 million with a duration of 902 days. 3. Competition was 'Full and Open' after exclusion of sources, suggesting a specific reason for initial exclusion. 4. The sector is Commercial and Institutional Building Construction. 5. This is a Firm Fixed Price contract, indicating price certainty for the government.

Value Assessment

Rating: good

The contract value of $7.8M for steam system upgrades appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This suggests that while the competition was ultimately broad, there was an initial phase where certain sources were excluded, potentially impacting the full breadth of price discovery.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the 'after exclusion of sources' clause warrants scrutiny to ensure optimal taxpayer value was achieved.

Public Impact

Improved energy efficiency and reduced steam loss at VA facilities. Enhanced reliability of essential building systems for veterans. Potential for job creation within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reason for exclusion of sources needs clarification.
Small business participation not indicated.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Long-term infrastructure improvement.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, focusing on essential infrastructure maintenance. Spending benchmarks for similar HVAC and steam system upgrades vary significantly based on facility size and complexity.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this construction project.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and awarding agency. Standard oversight for construction contracts would apply, focusing on project milestones, quality control, and adherence to the firm fixed price.

Related Government Programs

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

Risk Flags

Lack of clarity on 'exclusion of sources' rationale.
No indication of small business participation.
Unquantified expected benefits (cost savings, efficiency).
Potential for cost overruns if unforeseen issues arise in underground lines.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.8 million to RBVETCO, LLC. REPLACE STEAM TRAPS AND UNDERGROUND STEAM LINES

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 $7.8 million.

What is the period of performance?

Start: 2023-11-14. End: 2026-05-04.

What was the specific reason for excluding sources initially before opening to full and open competition?

The reason for excluding sources prior to the 'Full and Open Competition After Exclusion of Sources' award is not detailed in the provided data. This could stem from various factors, such as a prior unsatisfactory performance, a need for specialized capabilities that only a limited pool possessed initially, or a misunderstanding of the market. Clarification from the agency would be necessary to understand the rationale and its potential impact on competition and pricing.

What is the estimated cost savings or efficiency gain expected from replacing steam traps and underground lines?

The provided data does not quantify the expected cost savings or efficiency gains from this steam system upgrade. Typically, such projects aim to reduce energy waste, improve system reliability, and lower maintenance costs. A detailed cost-benefit analysis or engineering report would usually accompany such a contract to project these benefits, which are crucial for assessing the overall value of the $7.8M investment.

How does the $7.8M contract value compare to industry benchmarks for similar VA facility infrastructure projects?

Without specific details on the scope of work (e.g., square footage of facilities, length of steam lines, complexity of repairs), it's challenging to provide a precise benchmark comparison for the $7.8M contract. However, for large-scale infrastructure upgrades in institutional settings, this value is within a plausible range. A more accurate assessment would require comparing it to similar VA projects or other government/commercial steam system replacement contracts of comparable scale and technical requirements.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24423R0005

Offers Received: 2

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, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $7,829,597

Exercised Options: $7,829,597

Current Obligation: $7,829,597

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline