VA awards $17.9M contract for building upgrades to Sergents Mechanical Systems Inc

Contract Overview

Contract Amount: $17,886,622 ($17.9M)

Contractor: Sergents Mechanical Systems Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-07-11

End Date: 2028-02-11

Contract Duration: 945 days

Daily Burn Rate: $18.9K/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: PROJECT #502-17-102 (CONSTRUCTION) REPLACE ROOF AND HVAC OF BLDG 9

Place of Performance

Location: PINEVILLE, RAPIDES County, LOUISIANA, 71360

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.9 million to SERGENTS MECHANICAL SYSTEMS INC for work described as: PROJECT #502-17-102 (CONSTRUCTION) REPLACE ROOF AND HVAC OF BLDG 9 Key points: 1. Contract awarded for essential building infrastructure replacement. 2. Project scope includes roof and HVAC systems for Building 9. 3. Contract duration spans over two years. 4. Fixed-price contract type aims to control costs. 5. Awarded by the Department of Veterans Affairs. 6. Geographic focus on Louisiana.

Value Assessment

Rating: good

The contract value of $17.9 million for roof and HVAC replacement appears reasonable for a project of this scale, considering the complexity of building systems. Benchmarking against similar federal construction projects for institutional buildings of comparable size and scope would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of cost certainty, which is positive for taxpayer value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded. With 5 bidders, the competition level suggests a moderate degree of market interest. This level of competition is generally sufficient to encourage competitive pricing, though a broader competition might have yielded even more aggressive bids.

Taxpayer Impact: The exclusion of some sources could potentially limit the most competitive pricing. However, with five bidders, taxpayers likely benefited from a reasonably competitive process.

Public Impact

Veterans Affairs facilities will receive upgraded and more reliable infrastructure. Improved HVAC systems will enhance the comfort and health of building occupants. The project supports the maintenance and operational integrity of federal buildings. Workforce in Louisiana will be engaged in construction and mechanical services. Ensures continued functionality of essential VA services housed in Building 9.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise.
Dependence on contractor's ability to meet quality and timeline standards.
Risk of delays impacting facility operations if project milestones are missed.

Positive Signals

Firm fixed-price contract provides cost certainty.
Clear scope of work for roof and HVAC replacement.
Awarded to a contractor with experience in mechanical systems.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable projects often involve substantial investment due to the specialized nature of building systems like HVAC and roofing, especially in institutional settings.

Small Business Impact

The contract data does not indicate a small business set-aside. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this project, which could contribute to the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Accountability measures will be tied to the contract's performance clauses, delivery schedules, and quality standards. Transparency is facilitated through federal contract databases, though specific project-level reporting details would require further investigation.

Related Government Programs

Federal Building Maintenance Contracts
VA Capital Asset and Business Management
HVAC System Upgrades
Roofing Replacement Projects

Risk Flags

Potential for scope creep
Contractor performance risk
Unforeseen site conditions
Weather-related delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.9 million to SERGENTS MECHANICAL SYSTEMS INC. PROJECT #502-17-102 (CONSTRUCTION) REPLACE ROOF AND HVAC OF BLDG 9

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 $17.9 million.

What is the period of performance?

Start: 2025-07-11. End: 2028-02-11.

What is the track record of Sergents Mechanical Systems Inc. with federal contracts?

A review of federal contract databases would be necessary to fully assess Sergents Mechanical Systems Inc.'s track record. This would involve examining past performance on similar projects, any history of contract disputes or performance issues, and their overall experience with government agencies. Understanding their past performance is crucial for evaluating their capability to successfully execute this $17.9 million contract for the Department of Veterans Affairs, ensuring timely completion and adherence to quality standards.

How does the awarded price compare to similar federal roof and HVAC replacement projects?

To benchmark the $17.9 million award, one would compare it to the total contract values, scope of work, and geographic location of similar federal roof and HVAC replacement projects awarded over the past 3-5 years. Factors such as building size, age, complexity of systems, and prevailing labor/material costs in the region are critical for a fair comparison. Without access to a detailed database of comparable projects, it's difficult to definitively state if this price is high or low, but the firm fixed-price nature suggests an effort to control costs.

What are the primary risks associated with this specific construction contract?

The primary risks for this contract include potential unforeseen structural issues discovered during roof or HVAC replacement that could increase costs or extend timelines, especially in older buildings. Contractor performance risk is also present, relating to their ability to manage the project effectively, maintain quality, and meet the schedule. Furthermore, weather-related delays in Louisiana could impact the construction timeline. The firm fixed-price contract mitigates some cost risk for the government, but scope creep or significant unforeseen conditions could still pose challenges.

How effective are firm fixed-price contracts in managing costs for construction projects of this nature?

Firm fixed-price (FFP) contracts are generally considered effective for managing costs in construction projects where the scope of work is well-defined and risks are understood. They shift the risk of cost overruns to the contractor, incentivizing them to control expenses and work efficiently. For a project like roof and HVAC replacement, where the requirements are relatively clear, FFP can provide significant cost certainty for the government. However, if unforeseen conditions arise that necessitate significant changes to the scope, the contract may need to be modified, potentially impacting the initial cost certainty.

What is the historical spending pattern for building maintenance and upgrades by the Department of Veterans Affairs?

The Department of Veterans Affairs historically allocates substantial funds towards maintaining and upgrading its vast network of healthcare facilities and administrative buildings. Spending patterns typically reflect a continuous need for infrastructure modernization, repairs, and replacements to ensure patient care environments are safe, functional, and compliant with regulations. Annual budgets often include significant capital investment for projects like HVAC and roofing, driven by the age of many VA facilities and the critical nature of their services. Analyzing past VA budgets and contract awards for similar construction would reveal trends in spending levels and priorities.

What is the significance of the contract being awarded after exclusion of sources?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the VA initially intended to compete the contract broadly but subsequently excluded certain potential offerors. The reasons for exclusion could range from specific technical requirements not met by all potential bidders, to prior performance issues, or even a determination that a limited pool was more appropriate for specific circumstances. While it suggests some level of competition, it raises questions about whether the full breadth of market capabilities was considered, potentially impacting the final price and innovation.

Industry Classification

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

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: 36C25625R0001

Offers Received: 5

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, 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: $17,886,622

Exercised Options: $17,886,622

Current Obligation: $17,886,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline