VA awards $12.1M contract for Fort Thomas boiler replacement, highlighting infrastructure needs

Contract Overview

Contract Amount: $12,089,489 ($12.1M)

Contractor: Veterans Contracting, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-04-07

End Date: 2027-11-18

Contract Duration: 955 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT NO. 539-20-101 - REPLACE FORT THOMAS BOILERS.

Place of Performance

Location: FORT THOMAS, CAMPBELL County, KENTUCKY, 41075

State: Kentucky Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.1 million to VETERANS CONTRACTING, INC. for work described as: PROJECT NO. 539-20-101 - REPLACE FORT THOMAS BOILERS. Key points: 1. Contract addresses critical infrastructure at Fort Thomas, ensuring operational continuity. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The project duration of 955 days indicates a significant scope of work. 5. The contractor, Veterans Contracting, Inc., will be responsible for a key facility upgrade.

Value Assessment

Rating: good

The contract value of $12.1 million for boiler replacement appears reasonable given the project's scope and duration. Benchmarking against similar large-scale HVAC replacement projects in federal facilities suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would require detailed cost breakdowns and comparison to specific project requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that while the competition was broad, specific sources may have been excluded for defined reasons. The presence of multiple bidders (4 indicated) suggests a healthy level of competition, which typically drives better pricing and value for the government. The specific exclusion of sources warrants further investigation to understand its impact on the competitive landscape and final pricing.

Taxpayer Impact: The broad competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. Ensuring that the exclusion of sources did not unduly restrict competition is key to maximizing taxpayer value.

Public Impact

Veterans at the Fort Thomas facility will benefit from improved heating and cooling systems. The project will ensure the continued reliable operation of essential building systems. The geographic impact is localized to Fort Thomas, Kentucky. The contract supports the construction and maintenance workforce through the awarded firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive renovation.
Dependence on contractor performance for timely completion and quality of work.
The 'exclusion of sources' clause requires scrutiny to ensure it did not limit competition unfairly.

Positive Signals

Firm fixed-price contract provides cost certainty.
Award to a contractor with relevant experience in federal contracting.
Project addresses critical infrastructure, ensuring long-term facility viability.

Sector Analysis

The federal government is a significant investor in infrastructure maintenance and upgrades across its vast portfolio of facilities. This contract falls within the broader construction and facilities maintenance sector, which is crucial for ensuring the operational readiness and safety of government installations. Spending in this area is often driven by the age of existing infrastructure and the need to comply with modern building codes and energy efficiency standards. Comparable spending benchmarks for large-scale HVAC replacements in federal buildings can vary widely based on facility size, complexity, and geographic location.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The primary contractor, Veterans Contracting, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is limited to the prime contractor's discretion.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of financial oversight by limiting potential cost increases. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Infrastructure Modernization
VA Facility Maintenance and Repair
HVAC System Upgrades in Government Buildings
Public Works Construction Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk (delays, quality issues).
Adequacy of competition despite 'exclusion of sources'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.1 million to VETERANS CONTRACTING, INC.. PROJECT NO. 539-20-101 - REPLACE FORT THOMAS BOILERS.

Who is the contractor on this award?

The obligated recipient is VETERANS 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 $12.1 million.

What is the period of performance?

Start: 2025-04-07. End: 2027-11-18.

What is the track record of Veterans Contracting, Inc. with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data would be necessary to fully assess Veterans Contracting, Inc.'s track record. This would involve examining past performance on similar contracts, including their size, scope, and success rate. Specifically, looking at their history with the VA for boiler replacement or HVAC projects would provide direct insight into their capabilities and reliability. Analyzing past contract awards, modifications, and any reported disputes or terminations would offer a comprehensive view of their performance and suitability for this significant project. Without access to detailed past performance information, it is difficult to definitively assess their track record beyond the fact that they were selected for this award.

How does the $12.1 million cost compare to similar boiler replacement projects at other VA facilities or federal installations?

Benchmarking this $12.1 million contract against similar projects requires access to a database of comparable federal contracts. Factors such as the size and age of the facility, the complexity of the existing boiler system, the scope of work (e.g., full replacement vs. partial upgrade, inclusion of related piping or controls), and the geographic location (which affects labor and material costs) are critical for a fair comparison. Generally, large-scale boiler replacements in institutional settings can range from several million to tens of millions of dollars. The firm fixed-price nature of this contract suggests the VA sought cost certainty. A detailed comparison would involve analyzing the square footage of the facility, the tonnage of the boilers being replaced, and the specific technical requirements outlined in the contract solicitation.

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

Key risks for this contract include potential cost overruns due to unforeseen site conditions during demolition and installation, contractor performance issues leading to delays, and the possibility of the 'exclusion of sources' impacting the overall value obtained. Mitigation strategies likely include the firm fixed-price contract type, which shifts cost overrun risk to the contractor. The VA's project management team will oversee performance and adherence to schedule. The 'full and open competition after exclusion of sources' clause suggests that the VA has specific justifications for excluding certain bidders, which should be documented and reviewed to ensure fairness and prevent potential bid protests or challenges. Robust contract administration and regular progress reviews are essential for managing these risks.

What is the expected impact of this contract on the operational effectiveness and energy efficiency of the Fort Thomas facility?

The primary goal of replacing aging boilers is to ensure the reliable and efficient operation of the facility's heating and cooling systems. Modern boilers are typically significantly more energy-efficient than older models, which should lead to reduced fuel consumption and lower utility costs for the VA over the lifespan of the new equipment. Improved system reliability will minimize the risk of heating failures, which is critical for maintaining a safe and comfortable environment for personnel and operations at Fort Thomas. This upgrade is an investment in the facility's long-term infrastructure, enhancing its operational readiness and potentially reducing future maintenance expenditures.

How has federal spending on facility infrastructure upgrades, particularly HVAC systems, trended over the past five years?

Federal spending on facility infrastructure upgrades, including HVAC systems, has generally been a consistent priority, often driven by aging infrastructure across government agencies. While specific figures fluctuate annually based on budget appropriations and identified needs, there has been a sustained focus on modernizing federal buildings to improve energy efficiency, enhance security, and ensure operational continuity. Agencies like the VA, GSA, and DoD consistently allocate significant portions of their budgets to capital improvements and major repairs. Trends often reflect a push towards 'green' initiatives, incorporating more sustainable and energy-efficient technologies, as well as addressing deferred maintenance backlogs that have accumulated over decades. The COVID-19 pandemic may have temporarily impacted some project timelines but did not diminish the underlying need for infrastructure investment.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25024B0075

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4770 W 139TH ST, CLEVELAND, OH, 44135

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $12,089,489

Exercised Options: $12,089,489

Current Obligation: $12,089,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline