VA Awards $26.15M Chiller Plant Construction to Calvary Contracting Inc. in Ohio

Contract Overview

Contract Amount: $26,150,290 ($26.2M)

Contractor: Calvary Contracting Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-16

End Date: 2027-03-12

Contract Duration: 1,151 days

Daily Burn Rate: $22.7K/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: CONSTRUCT CHILLER PLANT 757-15-102 - VAACC COLUMBUS

Place of Performance

Location: COLUMBUS, FRANKLIN County, OHIO, 43219

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $26.2 million to CALVARY CONTRACTING INC for work described as: CONSTRUCT CHILLER PLANT 757-15-102 - VAACC COLUMBUS Key points: 1. The contract is for constructing a chiller plant for the VAACC Columbus facility. 2. Calvary Contracting Inc. secured the award, with the specific contract type being a Definitive Contract. 3. The project duration is 1151 days, indicating a significant construction timeline. 4. The award value of $26.15 million represents a substantial investment in facility infrastructure.

Value Assessment

Rating: fair

The contract value of $26.15 million for a chiller plant construction project appears within a reasonable range for large-scale infrastructure. Benchmarking against similar VA or federal construction projects of comparable size and complexity would be necessary for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the competition was intended to be broad, certain sources were excluded, potentially limiting price discovery and competition. This method warrants further investigation into the justification for source exclusion.

Taxpayer Impact: The use of full and open competition, even with exclusions, aims to achieve fair pricing. However, the exclusion of sources could potentially lead to higher costs than a truly unrestricted competition.

Public Impact

Improved facility infrastructure at VAACC Columbus, potentially enhancing operational efficiency. Job creation in the construction sector within Ohio. Long-term operational cost savings through a new, potentially more efficient chiller plant.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Long project duration (1151 days)

Positive Signals

Firm Fixed Price contract type
Awarded by Department of Veterans Affairs

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Federal spending in this sector is often driven by infrastructure upgrades and maintenance for government facilities. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were explicitly met or prioritized in this award, as 'sb' is false. Further analysis would be needed to determine if small businesses had a meaningful opportunity to participate.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for large construction projects, including progress monitoring and quality control, should be in place to ensure taxpayer funds are used effectively and the project meets specifications.

Related Government Programs

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

Risk Flags

Potential for inflated costs due to limited competition.
Risk of project delays given the long duration.
Lack of explicit small business participation noted.
Need for clear justification for source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $26.2 million to CALVARY CONTRACTING INC. CONSTRUCT CHILLER PLANT 757-15-102 - VAACC COLUMBUS

Who is the contractor on this award?

The obligated recipient is CALVARY CONTRACTING 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 $26.2 million.

What is the period of performance?

Start: 2024-01-16. End: 2027-03-12.

What was the specific justification for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method, and how did this impact the final price?

The justification for excluding sources typically relates to specific technical requirements, past performance, or unique capabilities needed for the project. Without access to the detailed justification documents, it's impossible to definitively state the impact on price. However, excluding potential bidders generally reduces competition, which can lead to higher prices compared to a scenario with broader participation.

What are the key performance indicators (KPIs) for this chiller plant project, and how will their achievement be measured to ensure effectiveness and value for money?

Key performance indicators for a chiller plant project often include energy efficiency ratings (e.g., kW/ton), system reliability (uptime percentage), maintenance costs, and compliance with environmental regulations. Effectiveness will be measured by the plant's ability to meet the cooling demands of the VAACC Columbus facility consistently and efficiently throughout its operational lifespan. The contract should outline specific metrics and testing protocols.

Given the $26.15 million award and a 1151-day duration, what is the projected return on investment (ROI) or long-term cost savings anticipated from this new chiller plant?

The projected ROI or long-term cost savings would be calculated by comparing the operational and maintenance costs of the new chiller plant against those of the existing system (if any) or alternative solutions. Factors like energy efficiency improvements, reduced repair needs, and extended equipment lifespan contribute to the ROI. A detailed cost-benefit analysis should have been conducted prior to award.

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: 36C25023B0049

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4125 GIBSON DR, TIPP CITY, OH, 45371

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Other Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $26,150,290

Exercised Options: $26,150,290

Current Obligation: $26,150,290

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline