VA Awards $8.3M for Building 1 Emergency Power Deficiencies to Structural Builders, Inc

Contract Overview

Contract Amount: $8,295,354 ($8.3M)

Contractor: Structural Builders, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-21

End Date: 2026-09-05

Contract Duration: 1,111 days

Daily Burn Rate: $7.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NO. 619-21-101CONSTRUCTION CORRECT BUILDING 1 EMERGENCY POWER DEFICIENCIES.

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36109

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.3 million to STRUCTURAL BUILDERS, INC. for work described as: PROJECT NO. 619-21-101CONSTRUCTION CORRECT BUILDING 1 EMERGENCY POWER DEFICIENCIES. Key points: 1. Contract awarded for critical infrastructure repair at VA facility. 2. Competition method indicates a potentially competitive bidding process. 3. Firm fixed price contract type suggests cost certainty. 4. Project duration of over 3 years highlights complexity and scale.

Value Assessment

Rating: good

The contract value of $8.3M for emergency power deficiencies appears reasonable given the scope of construction and the firm fixed price. Benchmarking against similar VA construction projects for emergency power upgrades would provide further validation.

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 intended to be broad, certain sources were excluded, potentially impacting the full breadth of price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades to ensure reliable power at a VA facility, which is a necessary expenditure for operational continuity.

Public Impact

Ensures reliable power for veterans' healthcare services. Supports critical infrastructure maintenance at a federal facility. Addresses safety and operational continuity concerns.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition
Long project duration

Positive Signals

Firm fixed price contract
Essential infrastructure upgrade

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure needs, facility maintenance, and upgrades, with significant federal investment in maintaining aging government buildings.

Small Business Impact

The provided data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality assurance, should be in place to ensure taxpayer value.

Related Government Programs

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

Risk Flags

Potential for cost escalation due to long duration
Unclear impact of source exclusion on competition
Dependency on contractor performance for critical infrastructure
Need for robust oversight to ensure quality and timeliness

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.3 million to STRUCTURAL BUILDERS, INC.. PROJECT NO. 619-21-101CONSTRUCTION CORRECT BUILDING 1 EMERGENCY POWER DEFICIENCIES.

Who is the contractor on this award?

The obligated recipient is STRUCTURAL BUILDERS, 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 $8.3 million.

What is the period of performance?

Start: 2023-08-21. End: 2026-09-05.

What was the rationale for excluding specific sources in the full and open competition?

The rationale for excluding specific sources in the full and open competition needs further investigation. Typically, such exclusions are based on specific technical requirements, past performance issues, or security concerns. Understanding the justification is crucial for assessing the fairness and effectiveness of the procurement process and ensuring no potential cost savings were foregone.

What are the specific risks associated with the long project duration of over three years?

The long project duration of over three years presents several risks, including potential cost overruns due to inflation or unforeseen site conditions, delays in project completion impacting facility operations, and potential for scope creep. Managing these risks requires robust project management, contingency planning, and clear communication channels between the VA and Structural Builders, Inc.

How will the effectiveness of the emergency power system upgrade be measured post-completion?

The effectiveness of the emergency power system upgrade will likely be measured through rigorous testing and commissioning protocols, including load testing, failover simulations, and compliance with relevant building codes and VA standards. Performance metrics should be established to ensure the system reliably provides emergency power during outages.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1478 CENTRAL AVE, ATLANTA, GA, 30344

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: $8,295,354

Exercised Options: $8,295,354

Current Obligation: $8,295,354

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24719D0018

IDV Type: IDC

Timeline