VA Awards $6M HVAC Upgrade to ACIERTO LLC, Lacking Competition

Contract Overview

Contract Amount: $6,052,614 ($6.1M)

Contractor: Acierto LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-10

End Date: 2026-06-12

Contract Duration: 1,341 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE OR HVAC 605-19-401

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to ACIERTO LLC for work described as: UPGRADE OR HVAC 605-19-401 Key points: 1. Significant contract value for a single HVAC upgrade. 2. Lack of competition raises concerns about price discovery. 3. Potential for higher costs due to sole-source award. 4. Construction sector contract with a long performance period.

Value Assessment

Rating: questionable

The contract value of $6.05M for an HVAC upgrade appears high without competitive bidding to establish a benchmark. Pricing assessment is difficult without comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed under SAP, indicating a limited competition approach. This method may not yield the best possible price for the government.

Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for this essential building infrastructure upgrade.

Public Impact

Veterans may experience improved facility conditions due to the HVAC upgrade. Local jobs may be supported through the construction contract. Potential for service disruptions during the upgrade period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark
Long performance period

Positive Signals

Essential facility upgrade
Definitive contract award

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar HVAC upgrades vary widely based on facility size and complexity.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. Further analysis would be needed to determine if small businesses were considered or had the capability to perform.

Oversight & Accountability

Oversight is crucial for this contract, especially given the limited competition. The VA should ensure rigorous monitoring of performance and costs to protect taxpayer interests.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of competition
Potential for overpricing
Limited transparency
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to ACIERTO LLC. UPGRADE OR HVAC 605-19-401

Who is the contractor on this award?

The obligated recipient is ACIERTO 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 $6.1 million.

What is the period of performance?

Start: 2022-10-10. End: 2026-06-12.

What was the justification for not competing this contract under SAP?

The justification for not competing this contract under SAP is not provided in the data. Typically, agencies must document reasons such as urgency, sole capability, or specific regulatory exceptions to limit competition. Without this documentation, it's difficult to assess the validity of the limited competition approach.

What are the risks associated with a sole-source award for HVAC upgrades?

Sole-source awards for HVAC upgrades carry risks of inflated pricing due to the absence of competitive pressure. There's also a risk of lower quality if the contractor is not incentivized to excel. Furthermore, it limits opportunities for other qualified contractors and can set a precedent for future non-competitive awards.

How will the effectiveness of this HVAC upgrade be measured?

The effectiveness of this HVAC upgrade will likely be measured through post-installation performance testing, energy efficiency metrics, and occupant comfort surveys. The contract's performance work statement should detail specific acceptance criteria and key performance indicators that the Department of Veterans Affairs will use to determine successful completion and operational effectiveness.

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: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C26222B0002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2053 NORTH 2000 WEST, FARR WEST, UT, 84404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $6,052,614

Exercised Options: $6,052,614

Current Obligation: $6,052,614

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline