VA awards $18.6M contract for fire main and water storage replacement to FOX-ESA JV LLC

Contract Overview

Contract Amount: $18,611,888 ($18.6M)

Contractor: Fox-Esa JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-24

End Date: 2027-09-06

Contract Duration: 712 days

Daily Burn Rate: $26.1K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 657A4-22-309, REPLACE FIRE MAIN AND WATER STORAGE

Place of Performance

Location: POPLAR BLUFF, BUTLER County, MISSOURI, 63901

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.6 million to FOX-ESA JV LLC for work described as: 657A4-22-309, REPLACE FIRE MAIN AND WATER STORAGE Key points: 1. Contract awarded to a joint venture, indicating potential for specialized expertise. 2. Fixed-price contract type suggests cost certainty for the government. 3. Contract duration of over two years allows for phased implementation. 4. Awarded by the Department of Veterans Affairs, likely supporting healthcare facilities. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is for essential infrastructure upgrades, crucial for facility operation.

Value Assessment

Rating: good

The contract value of $18.6 million for fire main and water storage replacement appears reasonable for a project of this scope and duration. Benchmarking against similar infrastructure projects for federal agencies, particularly within the Department of Veterans Affairs, would provide a more precise assessment of value. The firm fixed-price structure helps manage cost overruns, but the ultimate value depends on the successful completion of the work and the long-term reliability of the new systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders and is used for acquisitions below a certain threshold. While this method can expedite the procurement process, it may not always yield the most competitive pricing compared to full and open competition. The presence of two bidders suggests some level of competition, but further details on the solicitation process would be needed to fully assess its effectiveness.

Taxpayer Impact: Limited competition under SAP may result in higher prices for taxpayers compared to a broader solicitation. However, the efficiency gains from SAP could offset some of these costs.

Public Impact

Veterans will benefit from improved safety and operational continuity at VA facilities. Essential services such as water supply and fire suppression systems will be upgraded. The project is located in Missouri, impacting local infrastructure and potentially the regional water supply. Construction activities will likely create temporary employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions are encountered during construction.
Ensuring the long-term reliability and maintenance of the new infrastructure post-completion.
Coordination with existing facility operations to minimize disruption during upgrades.

Positive Signals

Firm fixed-price contract provides cost predictability.
Joint venture structure may bring specialized expertise to the project.
Clear project scope focused on critical infrastructure.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on essential utility infrastructure. The market for such services is robust, driven by ongoing needs for maintenance, repair, and upgrades in federal facilities. The Department of Veterans Affairs is a significant investor in construction and renovation projects to ensure its healthcare infrastructure is modern and safe. Comparable spending benchmarks would typically be found in construction contracts for similar utility replacements at other federal or large institutional sites.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of 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. Further review of the contract's specific clauses would be necessary to determine any indirect effects.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. 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 contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Buildings and Facilities Construction
Public Utilities Infrastructure
Department of Veterans Affairs Capital Investments
Emergency Services Infrastructure

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Risk of disruption to ongoing VA facility operations.
Dependency on joint venture partner performance.
Weather-related delays in Missouri.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.6 million to FOX-ESA JV LLC. 657A4-22-309, REPLACE FIRE MAIN AND WATER STORAGE

Who is the contractor on this award?

The obligated recipient is FOX-ESA 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 $18.6 million.

What is the period of performance?

Start: 2025-09-24. End: 2027-09-06.

What is the track record of FOX-ESA JV LLC in performing similar federal construction contracts?

Information regarding the specific track record of FOX-ESA JV LLC in performing similar federal construction contracts is not detailed in the provided data. As a joint venture, its performance history would be a composite of its member companies' experiences or its own operational history if it has been established for some time. A thorough review would require accessing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this entity or its constituent members on comparable projects, particularly those involving fire suppression systems and water storage infrastructure for federal agencies. Understanding their past performance in terms of schedule adherence, quality of work, and cost control is crucial for assessing the risk associated with this current award.

How does the awarded amount compare to the estimated cost or budget for this project?

The provided data indicates an award amount of $18,611,888. However, it does not include information on the government's initial estimate or the allocated budget for this specific project. Without this comparative data, it is difficult to definitively assess whether the contract was awarded at a favorable price point relative to expectations. Typically, a comparison between the award amount and the government estimate, along with the number of bids received, helps determine if the competition was sufficient to drive down costs. If the award is significantly lower than the estimate, it might suggest aggressive bidding or potential underestimation by the government. Conversely, an award close to or exceeding the estimate could warrant further scrutiny.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, given the nature of the work (replacing fire main and water storage), success will likely be measured by the contractor's adherence to the project schedule (712-day duration), the quality of the installed infrastructure meeting all technical specifications and building codes, and the successful commissioning of the new systems. Performance will also be evaluated based on safety compliance during construction and the minimization of disruption to ongoing VA facility operations. The firm fixed-price nature implies that meeting these technical and schedule requirements within the awarded price is a primary measure of success. Final acceptance by the Department of Veterans Affairs will be the ultimate indicator.

What is the historical spending pattern for fire main and water storage replacement projects at the Department of Veterans Affairs?

Historical spending patterns for fire main and water storage replacement projects at the Department of Veterans Affairs (VA) are not detailed in the provided data. To establish such a pattern, one would need to analyze past VA contracts for similar infrastructure upgrades over several fiscal years. This analysis would involve identifying the total expenditure on such projects, the average contract value, the frequency of these types of awards, and the typical contracting mechanisms used (e.g., competed vs. sole-source, fixed-price vs. cost-plus). Understanding historical spending can help benchmark the current $18.6 million award against typical VA investments in critical facility maintenance and identify any trends in cost or project volume.

Are there any specific risks associated with the geographic location (Missouri) or the nature of the work (underground utilities) that could impact project cost or timeline?

The geographic location in Missouri and the nature of replacing underground utilities present several potential risks that could impact project cost and timeline. Missouri experiences a range of weather conditions, including potential for extreme heat, cold, heavy rainfall, or snow, which can cause construction delays. Underground utility work is inherently susceptible to unforeseen site conditions, such as encountering unexpected soil types, buried obstructions, undocumented existing utilities, or groundwater issues, which can lead to scope changes and increased costs. Furthermore, working with fire mains and water storage involves critical infrastructure; any disruption or failure during the replacement process could have significant operational and safety consequences for the VA facility, necessitating stringent safety protocols and contingency planning. The contractor's experience with local conditions and their risk mitigation strategies will be key.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25525R0099

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8685 N PALAFOX ST, PENSACOLA, FL, 32534

Business Categories: Category Business, Limited Liability Corporation, 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: $18,611,888

Exercised Options: $18,611,888

Current Obligation: $18,611,888

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline