VA awards $4.8M contract for fiberglass piping replacement, highlighting construction sector activity

Contract Overview

Contract Amount: $4,819,129 ($4.8M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-30

End Date: 2026-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $2.9K/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: IGF: REPLACEMENT OF FIBERGLASS PIPING

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to VENERGY GROUP LLC for work described as: IGF: REPLACEMENT OF FIBERGLASS PIPING Key points: 1. Contract value appears reasonable for a multi-year construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over 5 years indicates a long-term need for the services. 4. The project falls within the broader commercial and institutional building construction sector. 5. Performance risk appears moderate, typical for construction projects involving infrastructure upgrades.

Value Assessment

Rating: good

The contract value of approximately $4.8 million for replacing fiberglass piping over more than five years seems within a reasonable range for such infrastructure work. Benchmarking against similar projects for institutional building construction would provide a more precise value-for-money assessment. However, given the scope and duration, the pricing does not immediately raise significant concerns.

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 initial solicitation may have had some exclusions, the final award was made through a broad competitive process. The presence of 4 bids suggests a healthy level of competition, which typically leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

Veterans Affairs facilities will benefit from improved and reliable piping systems. The services delivered include the replacement of aging or deteriorating fiberglass piping. The geographic impact is primarily within Arkansas, where the contractor is based. The project will likely involve skilled construction labor, supporting jobs in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for project delays common in construction, impacting service delivery timelines.
Ensuring adherence to strict quality standards for piping materials and installation is crucial.

Positive Signals

Use of full and open competition suggests a commitment to achieving best value.
The firm-fixed-price contract type provides cost certainty for the government.
The contractor, VENERGY GROUP LLC, has been awarded this contract, implying they met the necessary qualifications.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Spending in this area often involves upgrades, maintenance, and new construction for government facilities, healthcare institutions, and educational buildings. The market size for construction services is substantial, and this contract represents a specific need within the VA's infrastructure maintenance portfolio.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor may engage small businesses as subcontractors, which would be a positive indirect impact on the small business ecosystem, though this information is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight mechanisms for this particular project are not detailed here.

Related Government Programs

VA Facility Maintenance Contracts
Building Infrastructure Upgrades
Commercial Construction Services
Piping System Replacements

Risk Flags

Potential for construction delays
Ensuring material quality and installation standards

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to VENERGY GROUP LLC. IGF: REPLACEMENT OF FIBERGLASS PIPING

Who is the contractor on this award?

The obligated recipient is VENERGY GROUP 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 $4.8 million.

What is the period of performance?

Start: 2021-09-30. End: 2026-03-31.

What is the track record of VENERGY GROUP LLC in performing similar government contracts?

Information regarding VENERGY GROUP LLC's specific track record on similar government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous projects. This would help determine their experience with fiberglass piping replacement and large-scale construction projects for federal agencies. Without this historical data, it's difficult to definitively assess their capability and reliability for this specific contract.

How does the awarded amount compare to the estimated cost or independent government cost estimate?

The provided data does not include the estimated cost or an independent government cost estimate (IGCE) for this contract. To assess value for money, this contract's awarded amount of $4,819,128.62 should be compared against such estimates. If the awarded amount is significantly below the IGCE, it suggests strong competition and good negotiation. Conversely, if it's close to or exceeds the estimate, further scrutiny of the pricing and scope might be warranted. Without the estimate, a definitive value comparison is challenging.

What are the key performance indicators (KPIs) and quality assurance measures for this contract?

The provided data does not specify the key performance indicators (KPIs) or quality assurance (QA) measures for this contract. Typically, for construction projects involving piping replacement, KPIs would include adherence to project schedules, compliance with building codes and material specifications, defect-free installation, and successful system testing. QA measures would involve regular inspections, material testing, and progress reviews by the contracting officer's representative (COR) to ensure the work meets the required standards and specifications outlined in the contract.

What is the historical spending trend for fiberglass piping replacement at the Department of Veterans Affairs?

The provided data focuses on a single contract award and does not offer historical spending trends for fiberglass piping replacement at the Department of Veterans Affairs (VA). To establish a trend, one would need to analyze VA's procurement data over several fiscal years, identifying all contracts related to piping systems, material types (including fiberglass), and replacement projects. This analysis would reveal if spending in this area is increasing, decreasing, or stable, and whether this $4.8 million contract is an outlier or part of a consistent investment pattern.

Are there any specific risks associated with using VENERGY GROUP LLC for this project?

The provided data does not explicitly list any specific risks associated with VENERGY GROUP LLC for this project. Risk assessment typically involves reviewing past performance, financial stability, and any history of disputes or contract failures. Without access to contractor performance evaluations or other risk-related information, it's impossible to identify unique risks tied to this specific vendor. General construction risks, such as delays, cost overruns, or quality issues, are inherent but not necessarily specific to the contractor without further data.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25621R0123

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3130 SEMINOLE RD, FORT PIERCE, FL, 34951

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: $4,819,129

Exercised Options: $4,819,129

Current Obligation: $4,819,129

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline