VA awards $3M contract for COVID ward upgrades to Sergents Mechanical Systems Inc

Contract Overview

Contract Amount: $3,005,871 ($3.0M)

Contractor: Sergents Mechanical Systems Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-15

End Date: 2025-07-07

Contract Duration: 935 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACE AHUS COVID WARDS 6J-6K TEMPLE

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to SERGENTS MECHANICAL SYSTEMS INC for work described as: REPLACE AHUS COVID WARDS 6J-6K TEMPLE Key points: 1. Contract awarded for critical facility upgrades to support COVID-19 response. 2. Competition was full and open after exclusion of sources, suggesting a deliberate sourcing strategy. 3. The contract duration of 935 days indicates a significant project timeline. 4. The firm fixed-price structure aims to control costs for the government. 5. The awardee, Sergents Mechanical Systems Inc., is a specialized contractor in HVAC. 6. The project is located in Texas, impacting regional healthcare infrastructure.

Value Assessment

Rating: good

The contract value of $3,005,871.38 for facility upgrades appears reasonable given the scope of work involving COVID-19 ward modifications. Benchmarking against similar VA facility renovation projects would provide a more precise value-for-money assessment. The firm fixed-price type suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control. However, without specific details on the scope of work (e.g., square footage, specific systems upgraded), a definitive comparison to market rates is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, certain sources were initially excluded, possibly due to specific pre-qualification requirements or a previous limited solicitation. The number of bidders is not specified, but the 'full and open' designation generally implies multiple interested parties were considered. This level of competition is expected to drive competitive pricing.

Taxpayer Impact: The use of full and open competition, even with initial source exclusions, is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures a wider pool of qualified contractors can bid, potentially leading to better value.

Public Impact

The primary beneficiaries are patients requiring care in upgraded COVID-19 wards at the VA facility. The contract delivers essential infrastructure improvements to enhance healthcare delivery and safety. The geographic impact is localized to the VA facility in Texas. The project supports the healthcare workforce by providing improved working conditions and facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not fully defined.
Reliance on a single contractor for a critical infrastructure project carries inherent risks.
The 'after exclusion of sources' clause warrants further investigation into the rationale for exclusion.

Positive Signals

Firm fixed-price contract helps mitigate cost uncertainty for the government.
The contract is awarded to a specialized mechanical systems contractor, indicating relevant expertise.
The project addresses a critical need related to public health infrastructure.

Sector Analysis

This contract falls within the Construction and Facilities Maintenance sector, specifically focusing on HVAC and related systems for healthcare facilities. The market for specialized mechanical contractors serving federal agencies, particularly the VA, is competitive. Spending on healthcare infrastructure upgrades is a significant component of federal agency budgets, driven by the need to maintain aging facilities and adapt to evolving healthcare requirements, such as those highlighted by the COVID-19 pandemic.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific award, as the 'small business set-aside' field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the prime contractor may not be obligated to subcontract to small businesses, potentially limiting opportunities for the small business ecosystem on this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract structure, which penalizes the contractor for cost overruns. Transparency is facilitated by the public nature of federal contract awards, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
COVID-19 Response Infrastructure
HVAC System Upgrades
Federal Healthcare Facility Maintenance

Risk Flags

Potential for limited competition due to source exclusion.
Extended contract duration may increase risk of cost escalation or delays.
Lack of detailed scope in provided data hinders precise value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to SERGENTS MECHANICAL SYSTEMS INC. REPLACE AHUS COVID WARDS 6J-6K TEMPLE

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 $3.0 million.

What is the period of performance?

Start: 2022-12-15. End: 2025-07-07.

What specific upgrades are included in the "REPLACE AHUS COVID WARDS 6J-6K TEMPLE" scope of work?

The provided data does not detail the specific upgrades encompassed by "REPLACE AHUS COVID WARDS 6J-6K TEMPLE." AHUs typically refer to Air Handling Units, suggesting the project involves significant HVAC system modifications. Given the context of COVID wards, these upgrades likely include enhancements to ventilation, air filtration, and potentially isolation capabilities to mitigate airborne transmission of the virus. Further details would be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included in the provided data.

How does the $3,005,871.38 contract value compare to similar VA COVID ward upgrade projects?

Direct comparison of the $3,005,871.38 contract value to similar VA COVID ward upgrade projects is difficult without access to a comprehensive database of comparable contracts with detailed scope and location information. However, for context, major renovations or new construction of specialized healthcare units within the VA can range from hundreds of thousands to several million dollars, depending on the scale, complexity, and specific technological requirements. The value appears within a plausible range for significant HVAC and facility modifications in a healthcare setting, especially those addressing pandemic-related needs.

What is the track record of SERGENTS MECHANICAL SYSTEMS INC. with the Department of Veterans Affairs?

Information regarding the specific track record of SERGENTS MECHANICAL SYSTEMS INC. with the Department of Veterans Affairs is not provided in the initial data. To assess their past performance, one would typically review contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or claims. A positive performance history with the VA would indicate reliability and capability in executing similar projects, reducing perceived risk for this current contract.

What are the potential risks associated with a "FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES" contract type?

The "FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES" contract type presents a nuanced risk profile. While aiming for broad competition, the initial exclusion of sources suggests a pre-selection process that could limit the pool of potential bidders and potentially overlook highly qualified or cost-effective contractors. The risk lies in whether the exclusion criteria were justified and if they inadvertently restricted competition to a point where optimal value was not achieved. Transparency regarding the reasons for exclusion is crucial for assessing this risk. If the exclusions were arbitrary, it could lead to higher costs or less innovation.

What are the implications of the "DEFINITIVE CONTRACT" award type for project management and flexibility?

A "DEFINITIVE CONTRACT" is a fully warranted contract that is considered binding and does not contain any contingencies or uncertainties regarding the government's obligation to pay. For project management, this means the contract is established and the contractor is expected to perform according to its terms. In terms of flexibility, definitive contracts can be modified, but significant changes might require formal contract modifications, which can be time-consuming. The firm fixed-price nature of this specific definitive contract implies that the scope and price are largely set, offering cost certainty but potentially less flexibility for unforeseen changes compared to cost-reimbursement contracts.

How does the contract duration of 935 days impact the overall cost and project risk?

A contract duration of 935 days (approximately 2.5 years) for facility upgrades indicates a substantial and potentially complex project. This extended timeline can increase overall project costs due to prolonged labor, material escalation, and potential overhead. From a risk perspective, a longer duration heightens the exposure to external factors such as changes in regulations, technological advancements, or unforeseen site conditions. It also requires sustained project oversight to ensure progress and prevent delays. However, for large-scale infrastructure projects, a longer duration might be necessary to ensure thorough execution and minimize disruption.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C25722B0029

Offers Received: 3

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: $3,005,871

Exercised Options: $3,005,871

Current Obligation: $3,005,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline