VA awards $6.1M construction contract for fire protection systems, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $6,128,468 ($6.1M)

Contractor: Hamilton Pacific Chamberlain LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-15

End Date: 2026-05-01

Contract Duration: 624 days

Daily Burn Rate: $9.8K/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: CORRECT ATRIUM FIRE PROTECTION

Place of Performance

Location: DURHAM, DURHAM County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to HAMILTON PACIFIC CHAMBERLAIN LLC for work described as: CORRECT ATRIUM FIRE PROTECTION Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type aims to provide cost certainty for the government. 3. The contract duration of 624 days indicates a significant project timeline. 4. The award was made by the Department of Veterans Affairs, focusing on facility maintenance. 5. The North Carolina location suggests a specific regional need for these services. 6. The absence of small business set-aside flags indicates a focus on larger prime contractors.

Value Assessment

Rating: good

The contract value of $6.1 million for fire protection systems appears reasonable for a project of this scope and duration. Benchmarking against similar construction contracts for institutional buildings in North Carolina would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, which is a positive indicator for value.

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 multiple bids were likely considered. The presence of 3 bidders suggests a moderate level of competition, which generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The competitive bidding process likely resulted in a more cost-effective outcome for taxpayers by encouraging contractors to offer competitive pricing to secure the award.

Public Impact

Veterans receiving services at facilities managed by the Department of Veterans Affairs in North Carolina will benefit from enhanced fire safety. The contract ensures the maintenance and upgrade of critical fire protection systems within VA facilities. The project's geographic impact is concentrated in North Carolina, supporting local infrastructure. The contract is expected to create or sustain jobs within the construction and building trades sector in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, impacting final costs.
Reliance on a single prime contractor for a significant duration could pose performance risks if issues arise.
Ensuring timely completion within the 624-day window is crucial to avoid service disruptions.

Positive Signals

Firm fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition suggests a robust selection process, likely yielding a qualified contractor.
The contract addresses essential safety infrastructure, a critical need for VA facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Spending in this sector is often driven by government infrastructure needs, facility upgrades, and maintenance. Comparable spending benchmarks would involve analyzing other construction contracts awarded by federal agencies for similar types of buildings and services, particularly within the healthcare or institutional facility domain.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contractor is likely a larger entity, and opportunities for small businesses would primarily exist through subcontracting. The extent to which the prime contractor engages small businesses for specialized services or labor will determine the overall impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and program officials. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price and timeframe. Transparency is generally facilitated through contract award databases, though specific performance monitoring details may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facility Maintenance Contracts
Federal Fire Safety Systems Procurement
Construction Services for Government Buildings
Commercial Building Construction Contracts

Risk Flags

Potential for cost overruns if contractor underestimates project complexity.
Risk of delays impacting facility safety and operational continuity.
Ensuring compliance with all relevant fire safety codes and VA standards.
Performance quality of the installed systems over their lifecycle.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to HAMILTON PACIFIC CHAMBERLAIN LLC. CORRECT ATRIUM FIRE PROTECTION

Who is the contractor on this award?

The obligated recipient is HAMILTON PACIFIC CHAMBERLAIN 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 $6.1 million.

What is the period of performance?

Start: 2024-08-15. End: 2026-05-01.

What is the track record of Hamilton Pacific Chamberlain LLC in performing similar construction contracts for the Department of Veterans Affairs?

Hamilton Pacific Chamberlain LLC has been awarded contracts by the Department of Veterans Affairs, as indicated by this award. To assess their track record, a deeper analysis of their past performance on VA projects, particularly those involving fire protection systems or similar construction services, would be necessary. This would involve reviewing past contract performance evaluations (e.g., CPARS reports), identifying any history of delays, cost overruns, or quality issues, and comparing the scope and value of previous contracts to the current award. A positive performance history on comparable projects would suggest a lower risk for this contract.

How does the awarded price of $6.1 million compare to market rates for similar fire protection system installations in North Carolina?

The awarded price of $6.1 million needs to be benchmarked against current market rates for similar fire protection system installations in North Carolina to assess value for money. This comparison would involve analyzing data from recent construction projects of comparable size and complexity, considering factors such as the specific types of systems being installed (e.g., sprinklers, alarms, suppression), the square footage of the facilities, and prevailing labor and material costs in the region. Without access to detailed project specifications and market cost data, it is difficult to definitively state whether this price is high or low. However, the firm fixed-price nature of the contract suggests the government sought to lock in costs.

What are the primary risks associated with the firm fixed-price contract type for this construction project?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor. For this fire protection system project, the primary risk for the contractor is underestimating the costs of labor, materials, or unforeseen site conditions, which could lead to reduced profit margins or even losses if they cannot absorb the extra expenses. For the government, the risk lies in potentially paying a premium upfront to account for the contractor's risk tolerance. Additionally, if the contractor faces significant challenges, they might be less inclined to go above and beyond scope requirements, potentially impacting the quality or timeliness of delivery if not managed closely.

What is the expected effectiveness of the fire protection systems to be installed or maintained under this contract?

The effectiveness of the fire protection systems will depend on the specific requirements outlined in the contract statement of work and the quality of the installation and maintenance performed by Hamilton Pacific Chamberlain LLC. Assuming the contract mandates compliance with relevant building codes, fire safety standards (e.g., NFPA standards), and VA-specific requirements, the systems should significantly enhance the safety of the facilities. The contract's focus on 'Commercial and Institutional Building Construction' and 'fire protection' implies the installation or upgrade of critical safety infrastructure. Regular inspections and testing, as typically required in such contracts, will be key to ensuring ongoing effectiveness.

How does the historical spending on fire protection systems by the Department of Veterans Affairs compare to this award?

To assess how this $6.1 million award compares to historical spending, one would need to analyze the VA's procurement data for fire protection systems over previous fiscal years. This analysis would involve identifying similar contracts awarded for fire protection, suppression, or alarm systems across various VA facilities nationwide. Key metrics to examine would include the average contract value, the number of contracts awarded annually, and the prevailing contract types and competition levels. Without this historical data, it's challenging to determine if this award represents an increase, decrease, or is consistent with the VA's typical investment in fire safety infrastructure.

What are the implications of the contract duration (624 days) on project management and potential disruptions?

A contract duration of 624 days (approximately 20 months) for fire protection systems installation or upgrade signifies a substantial project. This extended timeline allows for thorough planning, execution, and integration of complex systems, potentially reducing the risk of rushed work. However, it also necessitates robust project management to ensure consistent progress, maintain quality, and manage potential delays due to weather, supply chain issues, or unforeseen site conditions. For the VA facilities, a long duration means that parts of the facility might be impacted by construction activities for an extended period, requiring careful coordination to minimize disruption to ongoing operations and patient care.

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: SEALED BID

Solicitation ID: 36C24624B0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14 IRONGATE DR, WALDORF, MD, 20602

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

Financial Breakdown

Contract Ceiling: $6,128,468

Exercised Options: $6,128,468

Current Obligation: $6,128,468

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline