VA awards $3.8M contract for electrical distribution upgrades in Utah, aiming for improved facility resilience

Contract Overview

Contract Amount: $3,823,900 ($3.8M)

Contractor: RHI LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-12-19

End Date: 2026-05-25

Contract Duration: 1,253 days

Daily Burn Rate: $3.1K/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: SLC ELECTRICAL DISTRIBUTION PHASE I

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to RHI LLC for work described as: SLC ELECTRICAL DISTRIBUTION PHASE I Key points: 1. Contract focuses on essential infrastructure upgrades, enhancing operational continuity for VA facilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. Project duration of over 3 years indicates a significant scope of work. 5. Geographic focus on Utah suggests localized benefits and potential workforce impact.

Value Assessment

Rating: good

The contract value of $3.8 million for electrical distribution upgrades appears reasonable given the multi-year duration and the critical nature of the work. Benchmarking against similar infrastructure projects within the VA or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific details on the scope of work (e.g., square footage, number of buildings), a direct per-unit cost comparison is challenging.

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,' which typically means that after an initial exclusion of certain sources, the remaining opportunities were competed openly. The presence of two bidders suggests a moderate level of competition. While more bidders would generally lead to better price discovery, the open competition framework is a positive sign for achieving a fair market price.

Taxpayer Impact: The open competition, even with two bidders, provides a reasonable assurance that taxpayer funds are being used efficiently by preventing sole-source awards and encouraging competitive pricing.

Public Impact

Veterans in Utah will benefit from improved reliability of VA healthcare facilities. The contract delivers essential electrical infrastructure upgrades, ensuring continuity of services. The project's geographic impact is concentrated in Utah, supporting local economic activity. Construction and electrical trades workforce in Utah may see employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during the multi-year upgrade process.
Dependence on the contractor's ability to manage complex electrical systems installation.
Risk of delays due to supply chain issues for specialized electrical components.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Awarded under full and open competition, indicating a competitive process.
Project addresses critical infrastructure needs, enhancing facility resilience.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on electrical systems. The market for such upgrades is substantial, driven by the need to modernize aging infrastructure and comply with current standards. Comparable spending benchmarks would involve analyzing other federal contracts for similar electrical system overhauls in institutional settings, considering factors like building size and complexity.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any 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 businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal contract databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facility Modernization Projects
Federal Electrical Infrastructure Upgrades
Department of Veterans Affairs Construction Contracts

Risk Flags

Potential for cost increases due to unforeseen site conditions.
Risk of project delays impacting facility operations.
Contractor performance and quality assurance concerns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to RHI LLC. SLC ELECTRICAL DISTRIBUTION PHASE I

Who is the contractor on this award?

The obligated recipient is RHI 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 $3.8 million.

What is the period of performance?

Start: 2022-12-19. End: 2026-05-25.

What is the specific scope of electrical distribution upgrades included in this contract?

The provided data indicates the contract is for 'SLC ELECTRICAL DISTRIBUTION PHASE I' with a duration of 1253 days. While the specific scope isn't detailed, it likely involves the replacement, upgrade, or modernization of key electrical distribution systems within a VA facility in Salt Lake City, Utah. This could encompass switchgear, transformers, distribution panels, wiring, and control systems to ensure reliable power delivery and meet current safety and operational standards. Phase I suggests this is the initial part of a larger planned upgrade effort.

How does the awarded amount of $3.8 million compare to similar VA electrical infrastructure projects?

A direct comparison of the $3.8 million award for 'SLC ELECTRICAL DISTRIBUTION PHASE I' to similar VA projects requires access to a broader dataset of comparable contracts. Factors such as the size and age of the facility, the specific systems being upgraded (e.g., medium-voltage distribution, emergency power), and the complexity of the work significantly influence cost. Generally, multi-year, firm-fixed-price contracts for critical infrastructure upgrades in federal facilities can range from hundreds of thousands to several million dollars. This award appears to be within a moderate range for a significant phase of electrical system modernization.

What are the key risks associated with this firm-fixed-price contract for electrical distribution?

While firm-fixed-price contracts are advantageous for cost certainty, risks can still exist. For electrical distribution upgrades, potential risks include unforeseen site conditions (e.g., asbestos, structural issues) that could necessitate change orders, impacting cost and schedule. Contractor performance risk is also present; if the contractor lacks expertise or resources, delays and quality issues may arise. Furthermore, supply chain disruptions for specialized electrical components could lead to extended lead times and project delays, even under a fixed-price agreement. The multi-year duration increases the exposure to these risks.

What is the track record of RHI LLC in performing similar federal construction contracts?

Information regarding RHI LLC's specific track record on federal construction contracts, particularly those involving electrical distribution systems of this scale, is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history, and any reported disputes or claims. Understanding their experience with VA projects and similar infrastructure work would be crucial for evaluating their capability to successfully execute this contract.

How does the competition level (2 bidders) impact the value for taxpayers on this contract?

Having two bidders in a 'Full and Open Competition After Exclusion of Sources' scenario suggests a moderate level of competition. While more bidders generally lead to more competitive pricing and potentially better value for taxpayers, two bidders still provide a basis for price comparison and negotiation. It indicates that at least two firms were capable and interested in undertaking the work. The absence of a sole-source award is a positive indicator. However, a deeper analysis of the bids received would be necessary to definitively assess if the price achieved represents optimal value.

What are the potential long-term benefits of these electrical distribution upgrades for the VA facility?

The long-term benefits of upgrading electrical distribution systems are significant for a VA facility. Primarily, it enhances the reliability and resilience of power supply, crucial for uninterrupted healthcare services, especially during emergencies or grid outages. Modernized systems often improve energy efficiency, potentially leading to reduced operational costs over time. Enhanced safety features can minimize risks of electrical fires or equipment failure. Furthermore, updated infrastructure supports the integration of new medical technologies and equipment that may have higher power demands, ensuring the facility remains capable of meeting future healthcare needs.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25922R0084

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2050 PAINTER LN, OGDEN, UT, 84401

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: $3,823,900

Exercised Options: $3,823,900

Current Obligation: $3,823,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline