VA awards $2M contract for HVAC services in Lebanon, PA, to Senate Builders & Construction Managers

Contract Overview

Contract Amount: $2,009,757 ($2.0M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-20

End Date: 2026-11-18

Contract Duration: 608 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CORRECT HVAC SPS - LEBANON

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: CORRECT HVAC SPS - LEBANON Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 608 days indicates a medium-term project. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 5. The award was made by the Department of Veterans Affairs, aligning with its mission to support veterans. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of approximately $2 million for HVAC services appears reasonable for a project of this scope and duration. Benchmarking against similar VA contracts for building maintenance and construction in the region would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government.

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 the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 4 bids suggests a healthy level of competition for this requirement, which typically leads to better pricing and service options for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Veterans receiving services at VA facilities in Lebanon, Pennsylvania, will benefit from improved and reliable HVAC systems. The contract ensures the continued operation and maintenance of critical infrastructure at a VA facility. Local and regional construction and HVAC service providers had the opportunity to bid on this work. The project will likely support skilled labor jobs in the construction and maintenance sectors within Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial HVAC assessments are incomplete.
Reliance on a single contractor for a critical building system introduces operational risk.
Ensuring timely completion within the 608-day period is crucial for facility operations.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the VA.
Full and open competition suggests a competitive price was likely secured.
The contract is a delivery order, implying it may be part of a pre-vetted IDIQ vehicle, potentially streamlining future needs.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on HVAC systems. This sector is vital for maintaining operational facilities across government agencies. The value of this contract is modest within the broader construction market, but significant for the specific facility it serves. Comparable spending benchmarks for HVAC maintenance and upgrades in federal buildings of similar size and complexity would provide further context.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, nor is there information on subcontracting plans. Given the 'full and open competition' award, it's possible that larger firms were the primary bidders. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its contracts, including potential reviews by the VA Office of Inspector General. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver services within the agreed-upon budget. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

VA Facilities Maintenance Contracts
Federal HVAC Service Contracts
Commercial Building Construction Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for performance issues impacting facility operations.
Risk of cost overruns if the fixed price was based on inaccurate estimates.
Dependence on a single contractor for critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. CORRECT HVAC SPS - LEBANON

Who is the contractor on this award?

The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, INC..

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 $2.0 million.

What is the period of performance?

Start: 2025-03-20. End: 2026-11-18.

What is the track record of Senate Builders & Construction Managers, Inc. with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess the track record of Senate Builders & Construction Managers, Inc. with the Department of Veterans Affairs. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract modifications. Understanding their past performance on similar VA projects, particularly those involving HVAC systems or facility maintenance, would provide insight into their reliability and capability to execute this current contract successfully. Without specific past performance data, it is difficult to definitively assess their suitability beyond the fact that they were selected through a competitive process.

How does the $2,007,957.41 award compare to similar HVAC contracts awarded by the VA?

To benchmark this $2,007,957.41 award, one would compare it to similar HVAC installation, maintenance, or repair contracts awarded by the Department of Veterans Affairs over the past 3-5 years. Key comparison points would include contract value, duration, scope of work (e.g., system type, facility size), and geographic location. For instance, if similar-sized VA facilities in the Northeast region have recently undergone comparable HVAC upgrades or maintenance contracts valued between $1.5 million and $2.5 million with similar durations, this award would appear to be within a reasonable market range. Conversely, if comparable contracts are significantly lower or higher, it might warrant further investigation into the specifics of this particular requirement or the pricing strategy employed.

What are the primary risks associated with this firm-fixed-price contract for HVAC services?

The primary risks associated with this firm-fixed-price contract, while generally favorable for the government by capping costs, lie in potential contractor performance issues. If Senate Builders & Construction Managers, Inc. underestimated the complexity or labor required for the HVAC work, they might face financial strain, potentially leading to delays, reduced quality, or even default. Another risk is ensuring the contractor possesses the necessary technical expertise and qualified personnel for the specific HVAC systems involved. The government's risk is mitigated by the contract's fixed price, but ensuring the contractor's capability and monitoring performance closely are crucial to avoid disruptions in facility operations and ensure the delivered system meets specifications.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for taxpayer money in this case?

The 'full and open competition after exclusion of sources' method is generally considered highly effective in ensuring value for taxpayer money, especially when multiple bids are received, as in this case (4 bids). This approach maximizes the pool of potential bidders, fostering robust competition that typically drives down prices and encourages innovation. By allowing all responsible sources to compete, the government increases the likelihood of obtaining the best possible price and quality for the required HVAC services. The fact that the VA utilized this method and received multiple offers suggests a strong effort to secure a cost-effective solution, benefiting taxpayers by preventing inflated pricing that might occur under less competitive procurement strategies.

What are the historical spending patterns for HVAC services by the Department of Veterans Affairs?

Historical spending patterns for HVAC services by the Department of Veterans Affairs reveal a consistent and significant investment in maintaining and upgrading the climate control systems across its extensive network of medical centers and facilities. The VA regularly procures contracts for HVAC maintenance, repair, and replacement, often utilizing both firm-fixed-price and cost-plus contract types depending on the scope and predictability of the work. Spending can fluctuate based on infrastructure modernization initiatives, aging equipment replacement cycles, and emergency repair needs. Analyzing aggregated VA spending data for NAICS code 236220 (Commercial and Institutional Building Construction) or specific HVAC-related service codes would show a substantial annual outlay, underscoring the importance of competitive bidding and effective contract management to ensure fiscal responsibility.

What is the significance of the contract being a 'Delivery Order'?

The designation of this contract as a 'Delivery Order' is significant because it implies that this award is likely a task order issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. IDIQ contracts allow agencies to procure supplies or services over a set period, with specific quantities and prices defined by individual orders. This approach streamlines the procurement process for recurring needs, as the foundational contract terms, conditions, and often the contractor pool have already been established. For the VA, using a delivery order under an IDIQ for HVAC services suggests a potentially ongoing need for such support, allowing for quicker acquisition while still maintaining some level of competition or pre-qualification among awardees of the parent IDIQ contract.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PKE, EAST NORRITON, PA, 19401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,009,757

Exercised Options: $2,009,757

Current Obligation: $2,009,757

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24421D0010

IDV Type: IDC

Timeline