VA awards $7.35M contract for HVAC upgrades at VA facility, highlighting construction needs

Contract Overview

Contract Amount: $7,352,529 ($7.4M)

Contractor: Rock JV, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-23

End Date: 2026-07-31

Contract Duration: 1,012 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 657-18-115JC REPLACE AIR HANDLING UNITS AND VARIABLE AIR VOLUME UNITS.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63106

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.4 million to ROCK JV, LLC for work described as: PROJECT 657-18-115JC REPLACE AIR HANDLING UNITS AND VARIABLE AIR VOLUME UNITS. Key points: 1. Contract addresses critical infrastructure maintenance for a key VA facility. 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 over 1000 days indicates a significant scope of work. 5. The contractor, ROCK JV, LLC, is responsible for delivering these essential upgrades.

Value Assessment

Rating: good

The contract value of $7.35 million for HVAC upgrades appears reasonable given the scope of replacing air handling and VAV units. Benchmarking against similar large-scale facility maintenance projects within the federal government would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of cost control by the agency.

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 multiple vendors were likely solicited and allowed to bid. The presence of two bids suggests a moderate level of competition for this project. While not a large number of bidders, it still provides a basis for price discovery and ensures the government is not limited to a single source.

Taxpayer Impact: The competitive nature of this award, despite a limited number of bids, likely resulted in a more favorable price for taxpayers compared to a sole-source procurement. It ensures that the selected contractor's pricing was vetted against at least one other offer.

Public Impact

Veterans receiving care at the VA facility will benefit from improved environmental controls and comfort. The project ensures the continued operational efficiency and reliability of essential building systems. The construction work will likely involve local skilled labor, providing economic stimulus in the Missouri region. Upgraded HVAC systems contribute to a healthier and safer environment for patients and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays impacting facility operations if unforeseen issues arise during construction.
Ensuring the selected contractor has the capacity and expertise for a project of this scale and duration.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, indicating a vetted selection process.
Project addresses critical infrastructure needs for a government facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Veterans Affairs, like other agencies, frequently procures construction and renovation services to maintain its extensive portfolio of healthcare facilities. Spending in this sector is driven by infrastructure modernization, repair, and new construction needs across government agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting and project management officials. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon budget. Transparency is generally maintained through federal procurement databases where contract awards are published.

Related Government Programs

VA Facility Maintenance Contracts
Federal Building Construction Projects
HVAC System Upgrades
Commercial Building Renovation

Risk Flags

Potential for cost overruns due to extended project duration.
Risk of operational disruption at the VA facility during construction.
Ensuring contractor's long-term capacity and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.4 million to ROCK JV, LLC. PROJECT 657-18-115JC REPLACE AIR HANDLING UNITS AND VARIABLE AIR VOLUME UNITS.

Who is the contractor on this award?

The obligated recipient is ROCK 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 $7.4 million.

What is the period of performance?

Start: 2023-10-23. End: 2026-07-31.

What is the track record of ROCK JV, LLC in performing similar federal construction contracts?

Assessing the track record of ROCK JV, LLC requires a review of their past performance on federal contracts, particularly those involving HVAC systems and large-scale building construction. Information on contract completion timeliness, quality of work, and any past disputes or performance issues would be crucial. Databases like the Federal Procurement Data System (FPDS) and Contractor Performance Assessment Reporting System (CPARS) are primary sources for this data. A history of successful, on-time, and within-budget project completion would indicate a lower risk for this current project. Conversely, a pattern of delays, cost overruns, or quality issues would raise concerns about the contractor's capability to execute this $7.35 million project effectively over its 1012-day duration.

How does the awarded price compare to similar HVAC upgrade projects at VA facilities?

To benchmark the value for money, the awarded price of $7.35 million needs to be compared against similar HVAC upgrade projects undertaken by the Department of Veterans Affairs or other federal agencies. Key comparison points include the square footage of the facility, the scope of work (e.g., number of units replaced, complexity of systems), and the geographic location, as construction costs vary regionally. Analyzing data from recently awarded contracts for similar services can reveal if this price is within the expected range. If this contract's cost per square foot or per unit replaced is significantly higher than comparable projects, it might indicate potential overpricing or a more complex scope than initially apparent.

What are the primary risks associated with the long duration of this contract?

The 1012-day duration (approximately 2.7 years) for this HVAC upgrade project presents several risks. Firstly, there's an increased risk of material cost escalation over such an extended period, although the firm fixed-price contract aims to mitigate this for the government. Secondly, the prolonged construction timeline could lead to disruptions in the daily operations of the VA facility, potentially impacting patient care or staff efficiency. Thirdly, the longer the project, the greater the chance of unforeseen site conditions or design changes being required, which could lead to change orders and potential cost increases if not managed meticulously. Finally, maintaining consistent oversight and quality control over an extended period requires sustained effort from the agency.

What is the expected impact of these HVAC upgrades on the VA facility's energy efficiency?

While the provided data focuses on the contract award and scope, the primary goal of replacing air handling and VAV units is typically to improve operational efficiency, which often includes energy efficiency. Modern HVAC systems are designed to be more energy-efficient than older models, utilizing better insulation, more efficient motors, and advanced controls. The specific energy savings would depend on the exact models chosen and the system's integration. A detailed project scope or post-completion report would quantify the expected energy savings, which could translate into reduced utility costs for the VA facility over the lifespan of the new equipment.

How does this contract fit into the VA's broader strategy for facility modernization?

This contract for HVAC upgrades is likely a component of the Department of Veterans Affairs' ongoing strategy to modernize its aging infrastructure and ensure healthcare facilities are equipped with reliable and efficient systems. The VA manages a vast network of hospitals and clinics, many of which require significant capital investment for repairs, upgrades, and replacements. Projects like this address critical building systems that are essential for maintaining a safe and functional environment for veterans. Consistent investment in such infrastructure projects is crucial for the VA to meet its healthcare mission effectively and provide high-quality care.

What is the significance of the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' contract type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is a specific method used in federal contracting. It implies that the agency initially intended to use full and open competition but then excluded certain sources for reasons specified in the Federal Acquisition Regulation (FAR). This could happen if, for example, only a limited number of contractors possessed the necessary capabilities or if specific justifications were made. While it still aims for competition, the exclusion of sources means it's not as broad as a pure 'full and open' competition. The fact that two bids were received suggests that despite exclusions, a competitive environment was maintained, allowing the agency to select the best value offer.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25523R0095

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 34911 S BRAMBLIN RD, GARDEN CITY, MO, 64747

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $7,352,529

Exercised Options: $7,352,529

Current Obligation: $7,352,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline