VA Awards $6.4M Contract for Sioux Falls Research Building HVAC Upgrade to Industrial Maintenance Services Inc

Contract Overview

Contract Amount: $6,425,979 ($6.4M)

Contractor: Industrial Maintenance Services Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-01-11

End Date: 2026-08-14

Contract Duration: 1,676 days

Daily Burn Rate: $3.8K/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: ND/SD CONSTRUCTION MATOC, PROJECT: 438-20-600, CONSTRUCT RENOVATE RESEARCH BUILDING HVAC, SIOUX FALLS, SD

Place of Performance

Location: SIOUX FALLS, MINNEHAHA County, SOUTH DAKOTA, 57105

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.4 million to INDUSTRIAL MAINTENANCE SERVICES INC for work described as: ND/SD CONSTRUCTION MATOC, PROJECT: 438-20-600, CONSTRUCT RENOVATE RESEARCH BUILDING HVAC, SIOUX FALLS, SD Key points: 1. The contract is for a significant HVAC renovation project at a research building. 2. Industrial Maintenance Services Inc. secured the award. 3. The Department of Veterans Affairs is the contracting agency. 4. The project is located in Sioux Falls, South Dakota. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: good

The award amount of $6.4M for a research building HVAC renovation appears reasonable given the scope. Benchmarking against similar large-scale institutional building construction projects would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited competition. This method may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades at a federal research facility.

Public Impact

Ensures continued operation and modernization of critical VA research facilities. Supports local economy in Sioux Falls, South Dakota, through construction services. Improves energy efficiency and environmental controls within the research building. Potential for enhanced research capabilities due to upgraded infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have reduced price competitiveness.
Contract duration is substantial (over 3 years).

Positive Signals

Addresses critical infrastructure needs.
Clear project scope for HVAC renovation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure modernization and facility upgrades across government agencies.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the 'sb' field is false. Further analysis would be needed to determine if this aligns with overall VA small business goals for construction.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be maintained through standard contract management processes, including progress reports and final inspections.

Related Government Programs

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

Risk Flags

Limited competition may have resulted in a higher price.
Long contract duration increases risk of cost escalation.
Potential for disruption to research activities during renovation.
Dependence on a single contractor for a critical facility upgrade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.4 million to INDUSTRIAL MAINTENANCE SERVICES INC. ND/SD CONSTRUCTION MATOC, PROJECT: 438-20-600, CONSTRUCT RENOVATE RESEARCH BUILDING HVAC, SIOUX FALLS, SD

Who is the contractor on this award?

The obligated recipient is INDUSTRIAL MAINTENANCE SERVICES INC.

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 $6.4 million.

What is the period of performance?

Start: 2022-01-11. End: 2026-08-14.

What specific factors led to the exclusion of sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did this impact the final price?

The specific reasons for excluding certain sources are not detailed in the provided data. Typically, such exclusions might be due to specialized capabilities, prior performance on related projects, or specific security requirements. This limited competition could potentially lead to higher prices than if a broader range of contractors were allowed to bid, as it reduces the pool of potential offerors and the intensity of competitive pressure.

What are the key performance indicators (KPIs) for this HVAC renovation project, and how will their achievement be measured to ensure effectiveness?

Key performance indicators would likely include adherence to project timelines, budget compliance, successful system testing and commissioning, and achievement of specified energy efficiency targets. Effectiveness will be measured through post-renovation performance data, such as reduced energy consumption, improved climate control within research spaces, and minimal disruption to ongoing research activities. Regular site inspections and final acceptance testing by the VA will also be crucial.

Are there any potential risks associated with the long contract duration (over 3 years) for this construction project, particularly concerning material cost fluctuations or technological obsolescence?

A contract duration exceeding three years for a construction project does carry risks. Material costs can fluctuate significantly over such a period, potentially impacting the contractor's profitability if not adequately addressed in the contract's pricing structure (e.g., through escalation clauses). Furthermore, while HVAC technology is relatively stable, there's a minor risk of emerging, more efficient technologies becoming available during the project, though this is less likely to render the chosen systems obsolete.

Industry Classification

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

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1920 20TH AVE N, ESCANABA, MI, 49829

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,425,979

Exercised Options: $6,425,979

Current Obligation: $6,425,979

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26319D0067

IDV Type: IDC

Timeline