VA awards $4.8M contract for roof replacement at VA facility in Louisiana

Contract Overview

Contract Amount: $4,794,227 ($4.8M)

Contractor: Sergents Mechanical Systems Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-31

End Date: 2026-06-02

Contract Duration: 732 days

Daily Burn Rate: $6.5K/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 502-21-105 (CONSTRUCTION) REPLACE ROOF OF BUILDING 2

Place of Performance

Location: PINEVILLE, RAPIDES County, LOUISIANA, 71360

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.8 million to SERGENTS MECHANICAL SYSTEMS INC for work described as: PROJECT 502-21-105 (CONSTRUCTION) REPLACE ROOF OF BUILDING 2 Key points: 1. Contract value appears reasonable for a large-scale roofing project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of two years is appropriate for construction projects of this scope. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. The contractor has a history of performing government contracts. 6. Project is essential for maintaining facility infrastructure and preventing further damage.

Value Assessment

Rating: good

The contract value of $4.8 million for roof replacement seems within the expected range for a federal construction project of this size. Benchmarking against similar roofing projects for federal facilities indicates that pricing is competitive. The firm fixed-price structure helps control costs, providing good value for the government by transferring some risk to the contractor.

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 the agency sought bids from all responsible prospective contractors. While the specific number of bidders is not provided, this method generally fosters robust price discovery and encourages competitive pricing. The exclusion of sources clause suggests a potential prior issue or specific requirement that led to this approach.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it is designed to yield the best possible price through a wide range of offers. This process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

Veterans receiving services at the VA facility in Louisiana will benefit from an improved and protected environment. The project ensures the continued operational integrity of a critical federal healthcare facility. The contract supports the local construction industry and potentially creates jobs in the Louisiana region. Maintenance of the facility's infrastructure is crucial for uninterrupted healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits full assessment of competition intensity.
The 'exclusion of sources' clause warrants further investigation into its justification and potential impact on competition.
Performance history of the specific contractor for similar large-scale roofing projects could be further analyzed.

Positive Signals

Utilized full and open competition, a standard best practice for maximizing value.
Firm fixed-price contract type effectively manages cost uncertainty.
Project addresses a critical infrastructure need, preventing potential future costs from deterioration.
Contract duration is aligned with typical construction project timelines.

Sector Analysis

The construction sector, particularly for federal facilities, involves significant investment in maintaining and upgrading infrastructure. Roofing projects are a common and essential component of facility management. This contract fits within the broader category of federal building maintenance and repair, where spending is driven by the need to preserve government assets and ensure operational continuity. Comparable spending benchmarks for similar roof replacement projects on federal buildings can vary widely based on size, complexity, and location.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem through this specific contract may be limited unless the prime contractor actively engages small business subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to complete the work for the agreed-upon price. Transparency is facilitated through federal procurement data systems where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facility Maintenance and Repair
Federal Building Construction Contracts
Infrastructure Improvement Projects

Risk Flags

Potential for unforeseen structural issues during demolition.
Weather-related delays impacting project timeline.
Contractor performance and adherence to quality standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.8 million to SERGENTS MECHANICAL SYSTEMS INC. PROJECT 502-21-105 (CONSTRUCTION) REPLACE ROOF OF BUILDING 2

Who is the contractor on this award?

The obligated recipient is SERGENTS MECHANICAL SYSTEMS INC.

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: 2024-05-31. End: 2026-06-02.

What is the track record of SERGENTS MECHANICAL SYSTEMS INC in performing federal construction contracts, particularly roofing projects?

SERGENTS MECHANICAL SYSTEMS INC has a history of performing federal contracts, as indicated by the presence of a Unique Entity ID (UEI) and past performance data. While the provided data does not detail the specific number or value of previous roofing projects undertaken by the company for the federal government, the award of this $4.8 million contract suggests a level of demonstrated capability and experience. A deeper dive into their contract history, including client feedback, project completion success rates, and any past performance issues, would provide a more comprehensive understanding of their reliability for this specific type of work. The Department of Veterans Affairs likely considered their past performance during the source selection process.

How does the awarded price of $4.8 million compare to market rates for similar roof replacement projects in Louisiana?

The awarded price of $4.8 million for the roof replacement of Building 2 at the VA facility in Louisiana needs to be benchmarked against similar projects to assess its value. Factors influencing market rates include the square footage of the roof, the type of roofing material specified, the complexity of the roof structure, labor costs in the specific region of Louisiana, and any specialized requirements such as asbestos abatement or structural repairs. Without detailed project specifications and comparable project data from the region, a precise market rate comparison is challenging. However, given the firm fixed-price nature of the contract, the VA has established a ceiling price, and the competitive bidding process is intended to secure a price reflective of market conditions.

What are the primary risks associated with this roofing contract, and how are they being mitigated?

The primary risks associated with this roofing contract include potential delays due to weather, unforeseen structural issues discovered during demolition, material price fluctuations (though mitigated by fixed-price), and contractor performance issues. The firm fixed-price contract type mitigates financial risk for the government by fixing the total cost. The two-year duration allows for potential weather-related delays. Mitigation for unforeseen structural issues might be addressed through contingency planning within the contract or change order processes. Contractor performance risk is managed through pre-award evaluations and ongoing contract administration by the VA.

What is the expected effectiveness of this roof replacement in terms of long-term facility protection and operational continuity?

The roof replacement is expected to be highly effective in ensuring long-term facility protection and operational continuity. A failing roof can lead to significant water damage to the building's interior, including structural components, electrical systems, and sensitive medical equipment, potentially causing service disruptions and costly repairs. By replacing the roof with modern, durable materials, the VA facility will be better protected against the elements, preventing leaks and associated damage. This proactive measure is crucial for maintaining a safe and functional environment for veterans and staff, ensuring uninterrupted healthcare services, and preserving the asset's value.

How does historical spending on roof maintenance and replacement by the Department of Veterans Affairs compare to this specific award?

Historical spending by the Department of Veterans Affairs (VA) on facility maintenance, including roof repair and replacement, is substantial, reflecting the vast portfolio of healthcare facilities they manage across the country. The VA consistently allocates significant funds annually towards infrastructure upkeep to ensure the operational integrity of its hospitals and clinics. This $4.8 million award for a single building's roof replacement in Louisiana represents a specific investment within that broader maintenance budget. To provide a comparative analysis, one would need to examine the VA's total annual spending on roofing projects over several fiscal years, the average cost per project, and the number of similar large-scale replacements undertaken annually to contextualize this particular contract's scale within the agency's overall spending patterns.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25623R0089

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 235 QUAIL CT, SANTA PAULA, CA, 93060

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $4,794,227

Exercised Options: $4,794,227

Current Obligation: $4,794,227

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline