VA awards $11.9M contract for fire suppression system, highlighting construction needs in California

Contract Overview

Contract Amount: $11,941,323 ($11.9M)

Contractor: Talion Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-27

End Date: 2025-10-08

Contract Duration: 742 days

Daily Burn Rate: $16.1K/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: A REQUIREMENT IS TO PROVIDE ALL LABOR, MATERIALS, TOOLS AND EQUIPMENT, AND CONSTRUCTION SERVICES NECESSARY FOR INSTALL DEDICATED FIRE SUPPRESSION WATER DISTRIBUTION SYSTEM FOR NORTH CAMPUS LOWER ZONE.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92161

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.9 million to TALION CONSTRUCTION, LLC for work described as: A REQUIREMENT IS TO PROVIDE ALL LABOR, MATERIALS, TOOLS AND EQUIPMENT, AND CONSTRUCTION SERVICES NECESSARY FOR INSTALL DEDICATED FIRE SUPPRESSION WATER DISTRIBUTION SYSTEM FOR NORTH CAMPUS LOWER ZONE. Key points: 1. Contract addresses critical infrastructure upgrade for enhanced safety. 2. Competition was open, suggesting a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of over two years indicates a significant scope of work. 5. The award to Talion Construction, LLC warrants a review of their past performance. 6. Geographic focus on California may indicate regional infrastructure priorities.

Value Assessment

Rating: good

The contract value of $11.9 million for a dedicated fire suppression water distribution system appears reasonable given the scope of work, which includes labor, materials, tools, equipment, and construction services. Benchmarking against similar large-scale construction projects for institutional buildings would provide a more precise value assessment. The firm-fixed-price structure is a positive indicator for cost control, assuming the initial scope is well-defined and unlikely to incur significant change orders.

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,' which typically means that all responsible sources were permitted to submit a bid. With 5 bidders identified, this suggests a moderate level of competition. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: The open competition indicates that taxpayers benefited from a process designed to solicit the best value from a range of qualified contractors, likely resulting in a more cost-effective outcome compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the personnel and visitors at the North Campus of the Department of Veterans Affairs facility in California, who will experience enhanced fire safety. The services delivered include the complete installation of a dedicated fire suppression water distribution system. The geographic impact is localized to the VA's North Campus in California. Workforce implications include the employment of construction labor, skilled trades, and project management personnel for the duration of the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work is not precisely defined, given the complexity of fire suppression systems.
Risk of delays due to unforeseen site conditions or material availability, impacting the project timeline.
Ensuring the long-term reliability and maintenance effectiveness of the installed system requires robust quality control.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
The use of 'Full and Open Competition' suggests a robust selection process that likely yielded a qualified contractor.
The contract specifies comprehensive requirements, including labor, materials, tools, and equipment, indicating a clear expectation of contractor responsibility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building and renovation of facilities such as hospitals, government buildings, and educational institutions. The market size for such construction is substantial, driven by ongoing infrastructure needs and modernization efforts across public and private sectors. This specific project addresses a critical safety infrastructure requirement within a government facility, aligning with broader trends of facility upgrades and maintenance.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While this contract was competed fully and openly, there is no explicit information on subcontracting plans with small businesses. Further analysis would be needed to determine if the prime contractor, Talion Construction, LLC, has a history of engaging small businesses in their supply chain or if there are opportunities for small businesses to participate in the subcontracting ecosystem for this project.

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 the contractor to deliver the specified system within the agreed-upon price. Transparency is generally maintained through federal contract databases, though specific details on ongoing progress reports or site inspections would require further inquiry. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings and Facilities Construction
Public Safety Infrastructure Projects
Department of Veterans Affairs Construction Contracts

Risk Flags

Potential for cost overruns due to scope changes.
Risk of project delays impacting facility operations.
Ensuring compliance with stringent fire safety codes.
Contractor's past performance on similar projects needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.9 million to TALION CONSTRUCTION, LLC. A REQUIREMENT IS TO PROVIDE ALL LABOR, MATERIALS, TOOLS AND EQUIPMENT, AND CONSTRUCTION SERVICES NECESSARY FOR INSTALL DEDICATED FIRE SUPPRESSION WATER DISTRIBUTION SYSTEM FOR NORTH CAMPUS LOWER ZONE.

Who is the contractor on this award?

The obligated recipient is TALION CONSTRUCTION, 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 $11.9 million.

What is the period of performance?

Start: 2023-09-27. End: 2025-10-08.

What is Talion Construction, LLC's track record with the Department of Veterans Affairs and similar federal agencies?

A review of Talion Construction, LLC's contract history with the Department of Veterans Affairs and other federal agencies is crucial to assess their performance on similar projects. This includes examining past project completion times, adherence to budget, quality of work, and any history of disputes or contract modifications. Information from sources like the Federal Procurement Data System (FPDS) or agency performance evaluation systems (e.g., Contractor Performance Assessment Reporting System - CPARS) would be essential. Understanding their experience with large-scale construction, particularly in specialized areas like fire suppression systems, will provide context for their capability to successfully execute this $11.9 million contract.

How does the $11.9 million cost compare to similar fire suppression system installations in institutional buildings?

Benchmarking the $11.9 million cost against similar fire suppression system installations in institutional buildings requires access to detailed cost data from comparable projects. Factors such as building size, complexity of the system, specific fire codes, and geographic location significantly influence project costs. Without specific comparable project data, it's challenging to definitively state if this contract represents excellent, good, or fair value. However, the firm-fixed-price nature suggests an effort to contain costs. A detailed cost breakdown from the contractor, if available, and comparison with industry cost indices for construction services would be necessary for a thorough value assessment.

What are the primary risks associated with this fire suppression system installation contract?

The primary risks associated with this contract include potential scope creep, where unforeseen issues necessitate changes to the original plan, leading to cost overruns and schedule delays. Site-specific challenges, such as existing infrastructure conflicts or environmental considerations, could also pose risks. Furthermore, the availability and cost of specialized materials and skilled labor for fire suppression systems can fluctuate, impacting project timelines and budgets. Ensuring the system meets all stringent fire safety codes and regulations is paramount, and any failure in this regard represents a significant risk to both safety and project success. The contractor's ability to manage these risks effectively will be key.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring competitive pricing for construction projects of this scale?

The 'Full and Open Competition After Exclusion of Sources' method is generally considered effective in ensuring competitive pricing for construction projects of this scale. This approach allows all responsible contractors to submit proposals, fostering a competitive environment that drives down prices and encourages innovation. The fact that five bids were received suggests sufficient market interest. However, the effectiveness can be influenced by the complexity of the solicitation, the clarity of requirements, and the number of truly capable bidders in the market. If the exclusion of certain sources was based on specific qualifications, it might limit the pool but could also ensure that only highly relevant and capable firms compete, potentially leading to better technical solutions.

What is the historical spending trend for fire suppression systems or similar infrastructure upgrades at this VA facility or region?

Analyzing historical spending trends for fire suppression systems or similar infrastructure upgrades at this specific VA facility or within the broader California region would provide valuable context for the $11.9 million award. This involves examining past VA budgets and contract awards related to facility maintenance, safety upgrades, and construction. Understanding whether this represents a significant increase or a typical investment in infrastructure renewal can help assess the contract's financial significance. A review of prior capital improvement plans or facility condition assessments by the VA could also shed light on the necessity and scale of such projects over time.

What are the implications of the 742-day duration for the project's impact on VA operations and the local economy?

A project duration of 742 days (approximately two years) for a fire suppression system installation implies a substantial commitment of resources and potential disruption to normal VA operations at the North Campus. This extended timeline necessitates careful planning to minimize impact on patient care and administrative functions. From an economic perspective, the duration suggests consistent employment opportunities for construction workers, material suppliers, and related services in the California region over a significant period. It also indicates a considerable investment in the facility's long-term safety and operational integrity.

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: 36C26223B0013

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 30850 WEALTH STREET, MURRIETA, CA, 92563

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, 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: $11,941,323

Exercised Options: $11,941,323

Current Obligation: $11,941,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline