VA awards $10.4M contract for mechanical deficiencies project to SPEES-HERNANDEZ JV 2, LLC
Contract Overview
Contract Amount: $10,417,902 ($10.4M)
Contractor: Spees-Hernandez JV 2, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-01-26
End Date: 2027-10-08
Contract Duration: 2,081 days
Daily Burn Rate: $5.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: 636-19-301 CORRECT MECHANICAL DEFICIENCIES PROJECT
Place of Performance
Location: OMAHA, DOUGLAS County, NEBRASKA, 68105
State: Nebraska Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $10.4 million to SPEES-HERNANDEZ JV 2, LLC for work described as: 636-19-301 CORRECT MECHANICAL DEFICIENCIES PROJECT Key points: 1. The contract aims to address mechanical deficiencies, a critical aspect of facility maintenance. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The firm fixed price contract type helps control costs for this long-term project. 4. The project duration of 2081 days indicates a significant scope of work.
Value Assessment
Rating: good
The contract value of $10.4M for a 5-year project appears reasonable given the scope of addressing mechanical deficiencies. Benchmarking against similar VA facility maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The procurement utilized full and open competition after excluding specific sources, indicating a structured approach to ensure fair access while potentially targeting specialized capabilities. This method generally promotes competitive pricing.
Taxpayer Impact: The use of full and open competition is intended to secure the best value for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Improved facility infrastructure at VA medical centers, enhancing patient care environments. Potential for job creation within the construction and mechanical contracting sectors. Ensures operational efficiency and safety of critical building systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in a full and open competition requires careful justification.
- Long project duration increases risk of cost escalation if not managed tightly.
- Lack of specific small business participation noted.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Clear objective to address critical mechanical deficiencies.
- Experienced contractor likely involved given the JV structure.
Sector Analysis
This contract falls within the construction and facilities maintenance sector, specifically focusing on mechanical systems. Spending in this area is crucial for maintaining government infrastructure and ensuring operational continuity.
Small Business Impact
The contract was not awarded to a small business, and there is no indication of specific set-asides or subcontracting goals for small businesses in the provided data. Further review would be needed to assess potential impacts on small business participation.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. Robust oversight will be necessary to ensure timely completion, adherence to specifications, and effective cost management throughout the project's duration.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Potential for cost overruns despite firm fixed price due to long duration.
- Risk of contractor performance issues impacting critical facility functions.
- Lack of explicit small business participation could be a missed opportunity.
- Dependency on a single contractor for a prolonged period.
Tags
plumbing-heating-and-air-conditioning-co, department-of-veterans-affairs, ne, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $10.4 million to SPEES-HERNANDEZ JV 2, LLC. 636-19-301 CORRECT MECHANICAL DEFICIENCIES PROJECT
Who is the contractor on this award?
The obligated recipient is SPEES-HERNANDEZ JV 2, 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 $10.4 million.
What is the period of performance?
Start: 2022-01-26. End: 2027-10-08.
What specific mechanical deficiencies are being addressed, and what is the projected impact on facility operations and maintenance costs?
The specific mechanical deficiencies are not detailed in the provided data. However, addressing such issues typically involves repairs or upgrades to HVAC, plumbing, or electrical systems. The projected impact could include improved energy efficiency, reduced downtime, enhanced occupant comfort, and lower long-term maintenance expenditures for the VA facilities.
What was the rationale for excluding specific sources in a 'full and open competition after exclusion of sources' scenario?
Excluding sources in a full and open competition typically occurs when specific technical requirements, past performance, or unique capabilities are necessary, and only a subset of potential offerors can meet them. The rationale would likely involve ensuring the contractor possesses specialized expertise or equipment critical for addressing the unique mechanical deficiencies, thereby safeguarding project success and value for the government.
How will the VA ensure cost-effectiveness and prevent scope creep over the 2081-day contract duration?
The VA can ensure cost-effectiveness and prevent scope creep through rigorous contract management, including detailed performance monitoring, regular progress reviews, and strict change order control processes. Establishing clear baseline requirements and key performance indicators, alongside proactive communication with the contractor, will be vital to maintaining focus on the original objectives and managing any necessary adjustments within the firm fixed price framework.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C26321R0155
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 625 1ST AVE STE 301, SEATTLE, WA, 98104
Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $10,417,902
Exercised Options: $10,417,902
Current Obligation: $10,417,902
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-01-26
Current End Date: 2027-10-08
Potential End Date: 2027-10-08 00:00:00
Last Modified: 2026-04-03
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