VA awards $3.38M construction contract for fire alarm replacement at Birmingham VAMC

Contract Overview

Contract Amount: $3,376,781 ($3.4M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-11-30

End Date: 2027-03-31

Contract Duration: 2,312 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION REQUIREMENT TO REPLACE FIRE ALARM AT BIRMINGHAM VAMC.

Place of Performance

Location: BIRMINGHAM, JEFFERSON County, ALABAMA, 35233

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: CONSTRUCTION REQUIREMENT TO REPLACE FIRE ALARM AT BIRMINGHAM VAMC. Key points: 1. Contract awarded to Birmingham Industrial Construction, LLC for a firm-fixed-price delivery order. 2. Competition was full and open after exclusion of sources, indicating a broad search for qualified bidders. 3. The contract duration is over 6 years, suggesting a significant project scope. 4. The project aims to replace the fire alarm system at a key healthcare facility. 5. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $3.38 million for a fire alarm system replacement over a 6-year period appears reasonable for a large-scale facility. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for the government if costs are well-managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' suggesting that while the initial pool of potential bidders might have been narrowed, the final selection was based on a competitive process. The presence of 7 bidders indicates a healthy level of interest and competition for this type of construction work.

Taxpayer Impact: A competitive process generally leads to better pricing for taxpayers by encouraging multiple contractors to offer their best terms.

Public Impact

Veterans receiving care at the Birmingham VAMC will benefit from an upgraded and reliable fire safety system. The project ensures compliance with safety regulations and enhances the overall security of the facility. The construction work will likely involve local skilled labor within Alabama. The Birmingham VAMC, a significant healthcare provider, will maintain operational continuity with improved safety infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays impacting the timeline for system upgrade.
Ensuring the new system integrates seamlessly with existing building infrastructure.
Managing contractor performance over the extended contract duration.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Competitive bidding process likely secured favorable pricing.
Long contract duration allows for thorough implementation and testing.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses a wide range of projects, from office buildings to healthcare facilities. The market for such services is competitive, with numerous firms capable of undertaking significant infrastructure upgrades. The value of this contract is moderate within the context of large federal construction projects.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. Therefore, the direct impact on small business set-asides is likely minimal. However, the prime contractor, Birmingham Industrial Construction, LLC, may engage small businesses as subcontractors, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA Facilities Management
Healthcare Infrastructure Modernization
Federal Building Safety Systems
Construction Services for Government Facilities

Risk Flags

Potential for cost overruns if unforeseen issues arise during construction.
Risk of project delays impacting facility safety upgrades.
Ensuring contractor performance meets quality standards throughout the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. CONSTRUCTION REQUIREMENT TO REPLACE FIRE ALARM AT BIRMINGHAM VAMC.

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL CONSTRUCTION, 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 $3.4 million.

What is the period of performance?

Start: 2020-11-30. End: 2027-03-31.

What is the track record of Birmingham Industrial Construction, LLC with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Birmingham Industrial Construction, LLC's track record. This would involve examining past performance on similar contracts, including on-time delivery, adherence to budget, and quality of work. Specific attention should be paid to their history with the Department of Veterans Affairs to understand their experience with healthcare facility construction and renovation projects. Any past performance issues or commendations would be critical in evaluating their suitability for this fire alarm replacement project.

How does the awarded price compare to similar fire alarm system replacement projects in healthcare facilities?

To benchmark the value, one would compare the $3.38 million contract value against similar fire alarm system replacement projects in other VA medical centers or comparable federal and non-federal healthcare facilities. Key comparison points would include the size and complexity of the facility, the scope of the fire alarm system being installed (e.g., number of devices, integration with other systems), and the duration of the contract. Adjustments for geographic location and inflation would also be necessary. Without specific comparable data, it's difficult to definitively state if the price is high or low, but the firm-fixed-price nature and competitive bidding suggest an effort to achieve fair market value.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks include potential construction delays due to unforeseen site conditions, integration issues with existing building systems, and contractor performance over the extended contract period. Mitigation strategies likely involve detailed site assessments prior to work commencement, robust project management by the VA, clear performance standards in the contract, and the firm-fixed-price structure which incentivizes the contractor to manage costs and timelines effectively. The long duration also presents a risk of material price escalation, which the fixed-price contract places on the contractor.

How effective is the 'full and open competition after exclusion of sources' method in ensuring optimal value for this type of project?

This method aims to balance broad competition with efficiency. By excluding sources initially, the VA might have pre-qualified vendors based on specific criteria, potentially reducing the number of bids but ensuring those received are from capable contractors. The subsequent 'full and open' aspect means all qualified bidders could compete. This approach can lead to good value by attracting competitive bids from a vetted pool, potentially avoiding the lowest-bidder-wins scenario that might compromise quality, while still ensuring taxpayer money is used efficiently.

What is the historical spending pattern for fire alarm system maintenance and replacement at the Birmingham VAMC?

Analyzing historical spending data for the Birmingham VAMC's fire alarm systems would reveal trends in maintenance costs, previous upgrade cycles, and any prior replacement projects. This context is crucial for understanding if the current $3.38 million investment over six years represents a typical expenditure, an increase, or a decrease compared to past spending. It helps determine if the current contract is part of a planned lifecycle replacement strategy or a response to an urgent need, and whether past spending has been efficient.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, 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: $3,376,781

Exercised Options: $3,376,781

Current Obligation: $3,376,781

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24718D0133

IDV Type: IDC

Timeline