VA Awards $4.9M Contract for Hot and Cold Water Project to Daniels Building Co Inc

Contract Overview

Contract Amount: $4,903,162 ($4.9M)

Contractor: Daniels Building CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-31

End Date: 2026-02-24

Contract Duration: 1,212 days

Daily Burn Rate: $4.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE HOT AND COLD WATER PROJECT 506-19-104

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.9 million to DANIELS BUILDING CO INC for work described as: REPLACE HOT AND COLD WATER PROJECT 506-19-104 Key points: 1. The Department of Veterans Affairs (VA) awarded a $4.9 million contract for a hot and cold water project. 2. The contract was awarded to Daniels Building Co Inc. 3. The project falls under the Plumbing, Heating, and Air-Conditioning Contractors NAICS code. 4. The contract type is Firm Fixed Price, indicating a set cost for the work. 5. The contract duration is 1212 days, spanning from October 2022 to February 2026.

Value Assessment

Rating: fair

The contract value of $4.9 million for a 1212-day project appears to be within a reasonable range for infrastructure upgrades of this nature, though specific benchmarks for similar VA water system projects are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where initial sources were excluded before a broader competition was opened. This method can impact price discovery if the initial exclusion was not justified.

Taxpayer Impact: Taxpayer funds are being used for this infrastructure project. The limited competition aspect warrants scrutiny to ensure the best possible price was achieved.

Public Impact

Improved water systems at a VA facility, potentially enhancing services for veterans. The contract supports a construction company, contributing to the local economy. The long duration suggests a significant scope of work impacting facility operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method may not have yielded the lowest price.
Lack of specific details on the 'exclusion of sources' raises transparency concerns.
Long project duration could lead to cost overruns or delays.

Positive Signals

Contract awarded to a specific company for a necessary infrastructure upgrade.
Firm Fixed Price contract provides cost certainty for the government.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically related to building infrastructure. Spending benchmarks for plumbing and HVAC projects can vary widely based on project scope, location, and facility type.

Small Business Impact

The data indicates that small business participation (sb) was false for this contract. Further analysis would be needed to determine if small business set-aside goals were considered or if the nature of the project precluded their involvement.

Oversight & Accountability

The VA is responsible for overseeing this contract. The 'exclusion of sources' clause in the competition method suggests a need for robust oversight to ensure fairness and value for taxpayer money.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition method ('FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES').
Lack of transparency regarding the 'exclusion of sources'.
Long contract duration (1212 days) increases risk of cost escalation and delays.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.9 million to DANIELS BUILDING CO INC. REPLACE HOT AND COLD WATER PROJECT 506-19-104

Who is the contractor on this award?

The obligated recipient is DANIELS BUILDING CO 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 $4.9 million.

What is the period of performance?

Start: 2022-10-31. End: 2026-02-24.

What was the justification for excluding certain sources prior to the full and open competition for this contract?

The justification for excluding specific sources prior to the full and open competition is not detailed in the provided data. Typically, such exclusions are based on factors like specialized capabilities, past performance, or specific technical requirements. A thorough review of the contract's acquisition planning documents would be necessary to understand the rationale and ensure it was appropriate and did not unduly restrict competition.

How does the $4.9 million cost compare to similar VA hot and cold water system upgrade projects?

Without access to a comprehensive database of similar VA projects, a direct cost comparison is difficult. However, $4.9 million for a project spanning over three years (1212 days) suggests a substantial undertaking. Factors like facility size, complexity of existing systems, and specific upgrade requirements heavily influence costs. Benchmarking against projects of similar scale and scope within the VA or other federal agencies would be needed for a precise assessment.

What are the potential risks associated with the long duration (1212 days) of this contract?

The extended duration presents several risks, including potential cost escalation due to inflation or unforeseen material price increases, even with a firm fixed price. There's also a risk of project delays caused by site conditions, contractor performance issues, or changes in requirements. Furthermore, the prolonged disruption to facility operations and the extended period for realizing the benefits of the upgrade are also considerations.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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: SEALED BID

Solicitation ID: 36C25022B0067

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33900 W EIGHT MILE RD STE 161, FARMINGTON HILLS, MI, 48335

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: $4,903,162

Exercised Options: $4,903,162

Current Obligation: $4,903,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline