VA awards $36M boiler plant construction contract to SAW GREENLAND, LLC in Texas

Contract Overview

Contract Amount: $35,995,000 ($36.0M)

Contractor: SAW Greenland, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-03-01

End Date: 2026-06-26

Contract Duration: 482 days

Daily Burn Rate: $74.7K/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: BOILER PLANT CONSTRUCTION

Place of Performance

Location: TEMPLE, BELL County, TEXAS, 76504

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.0 million to SAW GREENLAND, LLC for work described as: BOILER PLANT CONSTRUCTION Key points: 1. Contract awarded for boiler plant construction services. 2. Firm Fixed Price contract type suggests predictable costs. 3. Contract duration of 482 days. 4. Awarded by the Department of Veterans Affairs. 5. Small business set-aside was not utilized. 6. Competition level was 'Full and Open Competition After Exclusion of Sources'.

Value Assessment

Rating: fair

The contract value of $35,995,000 for boiler plant construction appears to be within a reasonable range for a project of this scope. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government, but the initial pricing accuracy is key. Without specific cost breakdowns or comparisons to industry standards for similar boiler plant construction, a definitive 'excellent' rating is not yet possible.

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,' indicating that multiple sources were considered after an initial exclusion. The presence of 5 bidders suggests a moderate level of competition. While not a completely unrestricted open competition, it allowed for a range of potential contractors to participate, which generally aids in price discovery and achieving a competitive market rate.

Taxpayer Impact: The competitive process, even with an initial exclusion, likely resulted in a more favorable price for taxpayers compared to a sole-source award. The participation of multiple bidders helps ensure that the awarded price reflects market conditions.

Public Impact

Veterans will benefit from improved healthcare infrastructure through the upgraded boiler plant. The contract delivers essential construction services for a critical VA facility. The project is geographically located in Texas, supporting the local economy. Construction activities will likely create temporary jobs for skilled tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed price does not account for all contingencies.
Dependence on contractor performance for timely completion within the 482-day duration.
Risk associated with the 'After Exclusion of Sources' aspect of competition, requiring scrutiny of the exclusion criteria.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Award to a single contractor (SAW GREENLAND, LLC) can streamline project management.
The Department of Veterans Affairs has a vested interest in successful project delivery for veteran care.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). Boiler plant construction is a specialized area requiring significant engineering and construction expertise. The market for such projects is often characterized by a mix of large, established construction firms and specialized subcontractors. The value of this contract is substantial, indicating a significant infrastructure investment by the VA, likely benchmarked against similar large-scale federal or institutional building projects.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This means that larger firms were likely the primary participants and beneficiaries. Further analysis would be needed to determine if SAW GREENLAND, LLC has a history of subcontracting with small businesses on similar projects, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight will be primarily managed by the Department of Veterans Affairs contracting and project management teams. Accountability measures are inherent in the firm fixed-price contract, with penalties or incentives potentially tied to performance and completion. Transparency is facilitated by the public nature of federal contract awards, though detailed project oversight reports are not publicly available in this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Capital Asset and Business Process Realignment
Federal Buildings and Facilities Construction
Department of Defense Construction Contracts
Public Works and Infrastructure Projects

Risk Flags

Competition level requires scrutiny of exclusion criteria.
Potential for cost escalation if fixed price is not robust.
Contractor performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.0 million to SAW GREENLAND, LLC. BOILER PLANT CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is SAW GREENLAND, 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 $36.0 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-06-26.

What is the track record of SAW GREENLAND, LLC in performing similar large-scale boiler plant construction projects for federal agencies?

Information regarding SAW GREENLAND, LLC's specific track record on similar large-scale boiler plant construction projects for federal agencies is not detailed in the provided data. A comprehensive review would require examining past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Federal procurement databases and past performance questionnaires would be the primary sources for this analysis. Understanding their experience with projects of comparable size, complexity, and regulatory requirements is crucial for assessing their capability to successfully execute this $36 million contract.

How does the awarded price of $35,995,000 compare to industry benchmarks for similar boiler plant construction projects?

Direct comparison to industry benchmarks for this specific boiler plant construction project is challenging without detailed cost breakdowns and project specifications. However, the value of $35,995,000 suggests a significant undertaking. Industry benchmarks for large institutional boiler plant construction can vary widely based on size, technology, location, and specific requirements (e.g., fuel type, capacity, environmental controls). A thorough benchmark analysis would involve comparing the cost per square foot, cost per unit of capacity (e.g., BTU/hr), or cost per installed horsepower against recent, comparable projects in the public and private sectors. The firm fixed-price nature implies the contractor has factored in market rates and their own cost structure.

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

Key risks include potential construction delays, cost overruns (despite the fixed-price nature, unforeseen issues can arise), contractor performance issues, and material or labor shortages. Mitigation strategies are embedded in the contract terms: the firm fixed-price structure caps the government's financial exposure for base costs, the defined duration (482 days) sets a timeline, and the Department of Veterans Affairs' oversight will monitor progress. The 'Full and Open Competition After Exclusion of Sources' process aims to select a capable contractor, and performance bonds are typically required for such projects. Specific risk mitigation plans would be detailed in the contract's statement of work and associated documentation.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayer dollars in this context?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific requirements. By excluding certain sources, the agency might be targeting contractors with particular capabilities or certifications deemed essential for this specialized boiler plant construction. While it allows multiple bidders to compete, the initial exclusion limits the pool. Its effectiveness in ensuring optimal value depends on the justification for the exclusion and the competitiveness among the remaining bidders. If the exclusion was narrowly defined and a sufficient number of qualified bidders remained, it can lead to competitive pricing. However, a less restrictive 'full and open' competition might yield even better value if feasible.

What is the historical spending pattern for boiler plant construction by the Department of Veterans Affairs?

Historical spending patterns for boiler plant construction by the Department of Veterans Affairs (VA) would reveal trends in investment in healthcare facility infrastructure. Analyzing past VA contracts for similar projects would indicate the frequency, average contract values, and typical durations. This data can highlight whether this $36 million award represents a typical investment, an increase, or a decrease in spending for such infrastructure. Understanding historical spending also helps in assessing the VA's long-term strategy for maintaining and upgrading its facilities and identifying any recurring issues or successful approaches in past projects.

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: 36C25724R0077

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 760 LYNNHAVEN PKWY STE 210, VIRGINIA BCH, VA, 23452

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $35,995,000

Exercised Options: $35,995,000

Current Obligation: $35,995,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline