VA Awards $26.6M for New Mexico Healthcare System Energy Plant Upgrades
Contract Overview
Contract Amount: $26,569,264 ($26.6M)
Contractor: AC JV ONE LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2023-09-30
End Date: 2026-12-31
Contract Duration: 1,188 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONSTRUCTION SERVICES FOR UPGRADE ENERGY PLANT EQUIPMENT INFRASTRUCTURE AT VA NEW MEXICO HEALTHCARE SYSTEM, VA ALBUQUERQUE MEDICAL CENTER, ALBUQUERQUE, NM.
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108
Plain-Language Summary
Department of Veterans Affairs obligated $26.6 million to AC JV ONE LLC for work described as: CONSTRUCTION SERVICES FOR UPGRADE ENERGY PLANT EQUIPMENT INFRASTRUCTURE AT VA NEW MEXICO HEALTHCARE SYSTEM, VA ALBUQUERQUE MEDICAL CENTER, ALBUQUERQUE, NM. Key points: 1. Significant investment in critical healthcare infrastructure. 2. Competition method suggests potential for price discovery. 3. Long-term contract duration requires ongoing oversight. 4. Focus on energy efficiency aligns with sustainability goals.
Value Assessment
Rating: good
The contract value of $26.6 million for construction services appears reasonable given the scope of upgrading energy plant equipment infrastructure. Benchmarking against similar large-scale healthcare facility construction projects would provide a more definitive assessment.
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 a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being used for essential upgrades to a VA healthcare facility, aiming to improve operational efficiency and patient care.
Public Impact
Ensures reliable energy for critical VA healthcare services. Modernizes infrastructure, potentially leading to long-term operational cost savings. Supports local economy through construction jobs and services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration extends over multiple years.
- Potential for cost overruns in large infrastructure projects.
Positive Signals
- Investment in critical healthcare infrastructure.
- Competitive award process.
- Focus on energy efficiency.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar VA facility upgrades would be relevant for a precise comparison.
Small Business Impact
The data indicates that small business participation was not a specific requirement or outcome for this contract (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available.
Oversight & Accountability
The long contract duration (nearly 10 years) necessitates robust oversight from the Department of Veterans Affairs to ensure project milestones are met, costs remain controlled, and the final product meets specifications.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long contract duration.
- Large contract value.
- Infrastructure project complexity.
- Potential for cost escalation.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, nm, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $26.6 million to AC JV ONE LLC. CONSTRUCTION SERVICES FOR UPGRADE ENERGY PLANT EQUIPMENT INFRASTRUCTURE AT VA NEW MEXICO HEALTHCARE SYSTEM, VA ALBUQUERQUE MEDICAL CENTER, ALBUQUERQUE, NM.
Who is the contractor on this award?
The obligated recipient is AC JV ONE 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 $26.6 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-12-31.
What is the expected impact of these energy plant upgrades on the VA's operational costs and energy efficiency?
The upgrades are anticipated to improve the reliability and efficiency of the energy plant, potentially leading to reduced maintenance costs and lower energy consumption. This modernization aims to ensure consistent power supply for critical healthcare operations and align with federal energy efficiency mandates, contributing to long-term cost savings and environmental sustainability.
What are the primary risks associated with a long-term construction contract for critical infrastructure like an energy plant?
Key risks include potential cost overruns due to unforeseen site conditions or material price fluctuations, schedule delays caused by weather or labor issues, and the possibility of technological obsolescence during the extended project timeline. Ensuring strong contract management, contingency planning, and regular performance reviews are crucial to mitigate these risks.
How effectively does this contract leverage competition to ensure value for taxpayer money in upgrading essential healthcare infrastructure?
The contract was awarded under 'full and open competition after exclusion of sources,' which generally promotes competitive pricing. The effectiveness in ensuring value depends on the thoroughness of the bidding process, the clarity of the requirements, and the agency's ability to negotiate favorable terms. Regular monitoring of performance and costs throughout the contract's duration is vital.
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: SEALED BID
Solicitation ID: 36C26223B0010
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 837 OAKTON ST, ELK GROVE VILLAGE, IL, 60007
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $26,569,264
Exercised Options: $26,569,264
Current Obligation: $26,569,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-09-30
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-03
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