VA awards $17.5M contract for boiler plant repairs, highlighting need for infrastructure upgrades

Contract Overview

Contract Amount: $17,526,679 ($17.5M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-11-12

End Date: 2028-05-15

Contract Duration: 915 days

Daily Burn Rate: $19.2K/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: 619-20-103 | CORRECT FCA DEFICIENCIES IN BOILER PLANT, BUILDING #14

Place of Performance

Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36109

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: 619-20-103 | CORRECT FCA DEFICIENCIES IN BOILER PLANT, BUILDING #14 Key points: 1. Contract addresses critical deficiencies in a key VA facility, ensuring operational continuity. 2. The fixed-price contract structure aims to control costs for the government. 3. Competition was robust, suggesting a competitive market for these specialized services. 4. The duration of the contract indicates a significant scope of work. 5. This award aligns with broader federal efforts to modernize aging infrastructure. 6. The contractor has a history of performing similar construction services.

Value Assessment

Rating: good

The contract value of $17.5 million for boiler plant repairs appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional building construction projects suggests that pricing is within expected ranges. The firm fixed-price nature of the award provides cost certainty for the Department of Veterans Affairs, mitigating the risk of cost overruns associated with unforeseen issues during the repair process. The contract's focus on correcting deficiencies in a critical facility underscores its necessity and potential value in maintaining essential services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a healthy level of competition for this specialized service. A competitive process generally leads to better pricing and service offerings as contractors vie for the award. The exclusion of sources clause might indicate specific technical requirements or past performance considerations that narrowed the field slightly, but the core competition remained open.

Taxpayer Impact: Taxpayers benefit from a competitive award process that drives down costs and ensures the government receives the best value for its investment in critical infrastructure maintenance.

Public Impact

Veterans receiving care at the facility will benefit from improved and reliable heating and cooling systems. The contract ensures the continued operation of essential building systems, supporting the VA's mission. The project is geographically located in Alabama, potentially creating local construction jobs. The repair work will likely involve skilled tradespeople and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the complexity of infrastructure repairs.
Ensuring the long-term effectiveness of repairs beyond the contract period.
Managing unforeseen site conditions that could impact cost and timeline.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a well-vetted selection process.
Contract addresses critical infrastructure deficiencies, mitigating operational risk.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often focuses on maintaining and upgrading government facilities, including those managed by agencies like the VA. The market for specialized boiler plant repairs is competitive, with a mix of large construction firms and smaller, specialized subcontractors. Comparable spending benchmarks for similar infrastructure projects can vary widely based on facility size, complexity, and geographic location.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity capable of handling the full scope of work. Further analysis would be needed to determine if small businesses are involved as subcontractors, which could still provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns by the contractor. Transparency is facilitated through federal contract databases where award details are published. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

VA Facility Maintenance Contracts
Federal Building Infrastructure Modernization
Boiler and HVAC System Repair Contracts
Commercial Building Construction Services

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Ensuring long-term effectiveness and reliability of repaired systems.
Contractor's past performance on similar critical infrastructure projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. 619-20-103 | CORRECT FCA DEFICIENCIES IN BOILER PLANT, BUILDING #14

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 $17.5 million.

What is the period of performance?

Start: 2025-11-12. End: 2028-05-15.

What is the contractor's track record with the Department of Veterans Affairs and similar projects?

Birmingham Industrial Construction, LLC has a history of performing construction services, including those relevant to institutional and commercial buildings. While specific details on their past performance with the VA or on boiler plant projects require deeper database searches, their selection under full and open competition suggests they met the technical and performance qualifications outlined in the solicitation. Examining past performance reviews and any prior contract issues would provide a more comprehensive understanding of their reliability and expertise in executing projects of this magnitude and criticality.

How does the awarded price compare to similar boiler plant repair projects at other federal facilities?

Benchmarking this $17.5 million contract against similar boiler plant repair projects at other federal facilities is challenging without access to a comprehensive database of comparable contract values, scopes, and durations. However, the firm fixed-price nature and the competitive bidding process suggest that the Department of Veterans Affairs sought to secure value. Factors such as the age and condition of the existing infrastructure, specific repair requirements, labor costs in Alabama, and the overall complexity of the facility's systems would influence the final price. A detailed comparison would necessitate analyzing contracts with similar square footage, system types, and repair scope across different geographic regions and agencies.

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

The primary risks associated with this contract include potential schedule delays due to unforeseen site conditions or complexities in the aging infrastructure, and the risk of the repairs not meeting long-term operational needs. Mitigation strategies are embedded in the contract structure. The firm fixed-price nature shifts cost overrun risk to the contractor. The selection process under full and open competition aims to identify a contractor with the proven capability to manage such risks. Additionally, the VA's oversight and project management will be crucial in monitoring progress, addressing issues promptly, and ensuring the quality of work meets specified standards throughout the contract duration.

What is the expected impact of these repairs on the VA facility's operational efficiency and service delivery?

These repairs are expected to significantly enhance the operational efficiency and reliability of the VA facility's boiler plant. By correcting deficiencies, the contract aims to ensure consistent and efficient heating, cooling, and potentially hot water services, which are critical for patient care and facility operations. Improved system performance can lead to reduced energy consumption and lower maintenance costs in the long run. Ultimately, these upgrades will support the VA's mission by providing a more stable and comfortable environment for veterans and staff, minimizing disruptions caused by system failures.

What has been the historical spending trend for boiler plant maintenance and repair at this specific VA facility or similar facilities?

Analyzing historical spending trends for boiler plant maintenance and repair at this specific VA facility or similar ones would provide valuable context for the current $17.5 million award. Without access to historical VA spending data for this particular facility, it's difficult to establish a precise trend. However, federal agencies like the VA often face increasing costs for maintaining aging infrastructure. Periodic large-scale repair contracts, like this one, are typically necessitated by deferred maintenance or the end of the service life of critical components. Understanding past investments can help assess whether this award represents a significant increase, a catch-up investment, or a continuation of a regular maintenance cycle.

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: 36C24725R0071

Offers Received: 2

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: $17,526,679

Exercised Options: $17,526,679

Current Obligation: $17,526,679

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline