VA Hospital Steam Pipe Replacement Project Awarded to Blue Pacific JV LLC for $33.6M

Contract Overview

Contract Amount: $33,555,834 ($33.6M)

Contractor: Blue Pacific JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-16

End Date: 2026-01-30

Contract Duration: 837 days

Daily Burn Rate: $40.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 578-17-027: REPLACE EXISTING STEAM PIPE FROM VAULT 9 TO VAULT 7 STEAM TUNNEL AND REPLACE STEAM PIPE BETWEEN VAULT 9 AND PIT 5 AT THE HINES VA HOSPITAL.

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.6 million to BLUE PACIFIC JV LLC for work described as: PROJECT 578-17-027: REPLACE EXISTING STEAM PIPE FROM VAULT 9 TO VAULT 7 STEAM TUNNEL AND REPLACE STEAM PIPE BETWEEN VAULT 9 AND PIT 5 AT THE HINES VA HOSPITAL. Key points: 1. The project aims to replace critical steam piping infrastructure at the Hines VA Hospital. 2. The contract was awarded to Blue Pacific JV LLC. 3. The total contract value is $33.6 million. 4. The project duration is 837 days, indicating a significant undertaking. 5. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The contract value of $33.6 million for replacing steam pipes at a hospital appears reasonable given the scope and duration. Benchmarking against similar infrastructure projects would provide a more precise assessment.

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 scenario. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a VA hospital, ensuring continued service delivery.

Public Impact

Ensures continued operational capacity for the Hines VA Hospital by replacing aging infrastructure. Supports the Department of Veterans Affairs' mission to provide healthcare services. The project involves significant construction and utility work, potentially impacting local traffic or noise levels. The contract award to a joint venture highlights collaboration in the contracting space.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than if fully open.
Contract duration is substantial, requiring close monitoring for potential delays or cost overruns.

Positive Signals

Firm Fixed Price contract provides cost certainty for taxpayers.
Project addresses critical infrastructure needs for a vital healthcare facility.

Sector Analysis

This project falls within the construction and utilities sector, specifically focusing on facility maintenance and upgrades. Spending benchmarks for similar hospital infrastructure projects vary widely based on size and complexity.

Small Business Impact

The data indicates the award was made to 'BLUE PACIFIC JV LLC,' a joint venture. Further analysis is needed to determine the extent of small business participation within this joint venture or as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be crucial to ensure project completion on time, within budget, and to the required quality standards.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to long project duration.
Risk of schedule delays from unforeseen site conditions.
Limited competition may have inflated the contract price.
Ensuring quality of work on critical infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.6 million to BLUE PACIFIC JV LLC. PROJECT 578-17-027: REPLACE EXISTING STEAM PIPE FROM VAULT 9 TO VAULT 7 STEAM TUNNEL AND REPLACE STEAM PIPE BETWEEN VAULT 9 AND PIT 5 AT THE HINES VA HOSPITAL.

Who is the contractor on this award?

The obligated recipient is BLUE PACIFIC JV 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 $33.6 million.

What is the period of performance?

Start: 2023-10-16. End: 2026-01-30.

What is the specific justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' and how did it impact the final price?

The justification for excluding sources needs to be thoroughly reviewed to understand if it was based on technical requirements, past performance, or other factors. If the exclusion limited the pool of qualified bidders, it could have led to a less competitive pricing environment, potentially increasing the cost to taxpayers compared to a scenario with broader competition.

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

Key performance indicators should include adherence to the project schedule, quality of materials and installation, and minimal disruption to hospital operations. The VA should establish clear metrics for pipe longevity, leak prevention, and energy efficiency post-replacement. Regular site inspections and performance reviews will be essential to track progress and ensure the project's long-term effectiveness.

What is the risk assessment for potential cost overruns or schedule delays given the project's duration and the nature of underground utility work?

The 837-day duration presents inherent risks of cost overruns and delays due to unforeseen site conditions, weather, or material availability. A comprehensive risk management plan should be in place, including contingency funds and detailed mitigation strategies for potential issues like soil instability or existing utility conflicts. Proactive monitoring and adaptive management will be critical.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25223R0026

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1730 PARK STREET, NAPERVILLE, IL, 60563

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $33,555,834

Exercised Options: $33,555,834

Current Obligation: $33,555,834

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline