VA awards $2.59M contract for water efficiency upgrades at Middleton VA Hospital

Contract Overview

Contract Amount: $2,585,591 ($2.6M)

Contractor: Progressive Construction Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-30

End Date: 2026-05-01

Contract Duration: 548 days

Daily Burn Rate: $4.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PCS TO #4 FOR IMPROVE WATER EFFICIENCIES UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN.

Place of Performance

Location: MADISON, DANE County, WISCONSIN, 53705

State: Wisconsin Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to PROGRESSIVE CONSTRUCTION SERVICES LLC for work described as: PCS TO #4 FOR IMPROVE WATER EFFICIENCIES UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN. Key points: 1. Contract focuses on improving water efficiency, a key sustainability goal. 2. The award was made under a multiple award task order contract (MATOC), suggesting pre-competed terms. 3. The fixed-price contract type aims to control costs for the government. 4. The project duration of 548 days indicates a substantial scope of work. 5. The contractor, Progressive Construction Services LLC, is relatively new to federal contracting based on available data. 6. The contract was awarded by the Department of Veterans Affairs, aligning with its mission to support veterans. 7. The project is located in Wisconsin, potentially impacting local employment and businesses.

Value Assessment

Rating: good

The contract value of $2.59 million for water efficiency upgrades appears reasonable for a project of this scope and duration. While direct comparisons are difficult without more specific project details, similar construction projects for facility upgrades within the VA system can range from hundreds of thousands to several million dollars depending on complexity. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. Benchmarking against similar water efficiency projects in institutional settings would provide further insight into the value proposition.

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,' which typically means that the initial solicitation was broad, but specific sources were later excluded, or it refers to a specific type of competitive procedure within a larger IDIQ. Given the award is a Delivery Order under a MATOC, the underlying MATOC itself was likely competed full and open. The number of bidders for the specific delivery order is not provided, but the MATOC structure implies a competitive environment for task orders among the awardees.

Taxpayer Impact: A full and open competition for the underlying MATOC ensures that a wide range of qualified contractors had the opportunity to bid, leading to potentially better pricing and a wider selection of capable firms for the government. This approach generally benefits taxpayers by fostering competition and driving down costs.

Public Impact

Veterans receiving care at the WM S. Middleton VA Hospital in Madison, Wisconsin, will benefit from improved facility infrastructure. The project will deliver enhanced water efficiency measures, contributing to environmental sustainability goals. The geographic impact is localized to Madison, Wisconsin, potentially creating temporary construction jobs. The services delivered include construction and installation of water-saving technologies and infrastructure modifications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The contractor, Progressive Construction Services LLC, has limited federal contracting history, which can sometimes indicate higher performance risk.
The specific details of the water efficiency technologies to be implemented are not fully elaborated in the award notice, making it difficult to assess the technological innovation or long-term impact.
The duration of the project (548 days) suggests a potentially complex undertaking, increasing the possibility of unforeseen challenges or delays.

Positive Signals

The contract is firm fixed-price, which shifts cost overrun risk to the contractor and provides budget certainty for the government.
The award is made under a MATOC, indicating that the contractor has already been vetted and qualified through a prior competitive process.
The project directly addresses water efficiency, aligning with federal sustainability mandates and potentially leading to long-term operational cost savings for the facility.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The federal government is a significant spender in construction, with a substantial portion allocated to facility maintenance, upgrades, and new builds across various agencies. Projects like this, focused on specific improvements such as water efficiency, are common as agencies work to modernize infrastructure and meet environmental standards. Benchmarks for similar projects would depend heavily on the scale and specific technologies employed, but the overall construction market for institutional buildings is robust.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor is likely not a small business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The impact on the small business ecosystem would depend on whether Progressive Construction Services LLC intends to utilize small business subcontractors for any portion of the work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officer and project managers. As a delivery order under a MATOC, the underlying MATOC likely has established oversight mechanisms. Transparency is facilitated through public award notices like this one. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Hospital Construction and Renovation
Federal Building Efficiency Programs
Water Conservation Initiatives
MATOC Contracts
Construction Services

Risk Flags

Contractor Performance Risk (Potential due to limited federal history)
Scope Definition Risk (Specific technologies not detailed)
Schedule Delay Risk (Long project duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to PROGRESSIVE CONSTRUCTION SERVICES LLC. PCS TO #4 FOR IMPROVE WATER EFFICIENCIES UNDER THE CONSTRUCTION MULTIPLE AWARD TASK ORDER CONTRACT (MATOC) FOR THE WM S. MIDDLETON VA HOSPITAL, MADISON WISCONSIN.

Who is the contractor on this award?

The obligated recipient is PROGRESSIVE CONSTRUCTION SERVICES 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 $2.6 million.

What is the period of performance?

Start: 2024-10-30. End: 2026-05-01.

What is the track record of Progressive Construction Services LLC in completing federal construction projects, particularly those involving water efficiency?

Based on the provided data, Progressive Construction Services LLC is listed as the contractor. A preliminary review suggests this entity may have a limited federal contracting history. Further investigation into the Federal Procurement Data System (FPDS) or other contract databases would be necessary to ascertain the full extent of their federal contract awards, past performance, and experience specifically with water efficiency projects. A limited track record can sometimes correlate with higher performance risk, although it does not preclude successful project completion. Assessing past performance reviews and any debriefings from previous awards would be crucial for a comprehensive understanding of their capabilities and reliability.

How does the awarded amount of $2.59 million compare to similar water efficiency upgrade projects in federal facilities?

Directly comparing the $2.59 million award for water efficiency upgrades at the Middleton VA Hospital requires detailed project specifications. However, the value appears within a reasonable range for significant facility improvements. Similar projects in federal institutions can vary widely based on the size of the facility, the scope of work (e.g., replacing fixtures, upgrading plumbing infrastructure, implementing smart water management systems), and the specific technologies deployed. For context, smaller-scale fixture replacements might cost tens to hundreds of thousands of dollars, while comprehensive system overhauls in large hospitals could easily reach several million. The firm fixed-price nature of this contract provides cost certainty, which is a positive indicator for value, assuming the scope is adequately defined.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this contract include performance issues from the contractor, Progressive Construction Services LLC, given a potentially limited federal contracting history. Schedule delays are also a risk, given the 548-day duration and the complexity inherent in construction projects. Unforeseen site conditions or technical challenges related to integrating new water efficiency systems could arise. Mitigation strategies likely include robust project management by the VA, clear performance standards outlined in the contract, regular progress reviews, and the firm fixed-price structure which incentivizes the contractor to manage costs and timelines effectively. The MATOC structure may also imply that the contractor has already demonstrated a baseline capability.

How effective are MATOCs and Delivery Orders in ensuring value for money in construction projects?

Multiple Award Task Order Contracts (MATOCs) and subsequent Delivery Orders can be effective tools for ensuring value for money, particularly for projects with similar scopes of work anticipated over time. The initial competition for the MATOC itself allows multiple contractors to be pre-qualified, establishing a competitive baseline. When a specific need arises, task orders can be issued competitively among these pre-qualified contractors, or through streamlined processes if pre-negotiated terms exist. This approach reduces the time and cost associated with full and open competition for each individual requirement. However, the value realized depends on the quality of the initial MATOC competition and the subsequent competition or negotiation for each task order. Ensuring fair pricing and adequate competition at the task order level is critical.

What is the historical spending pattern for water efficiency upgrades or similar facility improvement projects at the WM S. Middleton VA Hospital?

The provided data does not include historical spending patterns for the WM S. Middleton VA Hospital specifically for water efficiency upgrades or similar facility improvement projects. To analyze historical spending, one would need to access and review past contract awards for this specific facility over several fiscal years. This would involve searching federal procurement databases for contracts awarded to the Middleton VA Hospital, categorizing them by project type (e.g., construction, renovation, sustainability initiatives, water systems), and examining the associated dollar values and durations. Understanding past spending can help contextualize the current $2.59 million award and identify trends or significant shifts in investment.

What are the specific water efficiency technologies or measures included in this $2.59 million contract?

The award notice specifies the objective as 'IMPROVE WATER EFFICIENCIES' but does not detail the specific technologies or measures to be implemented. This level of detail is typically found within the Performance Work Statement (PWS) or Statement of Work (SOW) associated with the contract, which is not provided here. Common water efficiency upgrades in institutional settings can include low-flow fixtures (toilets, urinals, faucets, showerheads), high-efficiency irrigation systems, leak detection and repair programs, water-efficient landscaping, and potentially more advanced systems like greywater recycling or rainwater harvesting. The exact scope will determine the project's complexity, cost, and ultimate environmental impact.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 944 N PARKER DR, JANESVILLE, WI, 53545

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

Financial Breakdown

Contract Ceiling: $2,585,591

Exercised Options: $2,585,591

Current Obligation: $2,585,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25222D0025

IDV Type: IDC

Timeline