VA awards $13.9M contract for Legionella prevention in Minnesota, with full and open competition

Contract Overview

Contract Amount: $13,914,867 ($13.9M)

Contractor: Dax/Gbab JV 3, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-12

End Date: 2026-01-20

Contract Duration: 861 days

Daily Burn Rate: $16.2K/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: 618-18-108 PREVENT LEGIONELLA PH3 - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55417

State: Minnesota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to DAX/GBAB JV 3, LLC for work described as: 618-18-108 PREVENT LEGIONELLA PH3 - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS. Key points: 1. The contract focuses on preventing Legionella bacteria, a significant public health concern, particularly in healthcare settings. 2. Awarded to DAX/GBAB JV 3, LLC, the contract value is substantial at $13.9 million. 3. Competition was conducted under 'full and open competition after exclusion of sources', suggesting a specific justification for initial source exclusion. 4. The sector is Commercial and Institutional Building Construction, with a specific focus on facility maintenance and upgrades. 5. The contract duration extends to January 2026, indicating a multi-year project.

Value Assessment

Rating: good

The contract value of $13.9 million for Legionella prevention work appears reasonable given the scope and duration. Benchmarking against similar large-scale facility maintenance or construction projects would provide further context on pricing.

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'. This method implies that while the competition was ultimately open, there was an initial phase where certain sources were excluded, potentially impacting the breadth of initial price discovery.

Taxpayer Impact: The use of full and open competition, even with initial source exclusion, aims to secure competitive pricing and ensure taxpayer funds are used efficiently for essential health and safety infrastructure.

Public Impact

Improved public health and safety within VA facilities by mitigating Legionella risks. Potential for job creation and economic activity in Minnesota through construction and labor services. Ensures compliance with health regulations and standards for waterborne pathogens. Demonstrates VA's commitment to maintaining safe and healthy environments for veterans and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Risk of delays impacting the timely completion of health and safety measures.
Dependence on a single contractor for a critical health-related project.

Positive Signals

Clear objective to address a significant public health risk (Legionella).
Utilizes a competitive bidding process to ensure value.
Long-term contract duration allows for project continuity.
Specific focus on a critical infrastructure need within the VA.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing facility maintenance and upgrades related to public health. Spending benchmarks in this area vary widely based on project scope, but large-scale infrastructure improvements often represent significant investments.

Small Business Impact

The contract was awarded to DAX/GBAB JV 3, LLC. Information regarding the small business status or participation of this joint venture is not provided, making it difficult to assess the impact on small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction and maintenance contracts, including progress monitoring and quality assurance, should be in place to ensure compliance and taxpayer value.

Related Government Programs

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

Risk Flags

Potential for scope creep leading to increased costs.
Risk of contractor performance issues impacting project timeline.
Dependence on a joint venture for critical health infrastructure.
Lack of transparency regarding initial source exclusion rationale.
Uncertainty regarding small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to DAX/GBAB JV 3, LLC. 618-18-108 PREVENT LEGIONELLA PH3 - PROVIDE A LABOR AND MATERIALS TO COMPLETE WORK PER CONTRACT DOCUMENTS.

Who is the contractor on this award?

The obligated recipient is DAX/GBAB JV 3, 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 $13.9 million.

What is the period of performance?

Start: 2023-09-12. End: 2026-01-20.

What specific factors led to the exclusion of sources before the full and open competition phase, and how did this impact the final price?

The justification for excluding sources prior to full and open competition is not detailed in the provided data. Typically, such exclusions are based on factors like unique capabilities, urgent needs, or specific security requirements. Understanding these initial exclusions is crucial to assessing whether the subsequent full and open competition truly maximized price discovery or if potential competition was inadvertently limited.

What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness in preventing Legionella?

The provided data does not specify the key performance indicators (KPIs) for this contract. Effective Legionella prevention relies on measurable outcomes such as water quality testing results, system maintenance logs, and adherence to established protocols. Robust oversight should include regular reporting and verification of these KPIs to ensure the contractor's work effectively mitigates the risk.

How does the $13.9 million cost compare to industry standards for similar Legionella prevention projects in large institutional buildings?

Without specific details on the scope of work, building size, and geographical location, a precise cost comparison is challenging. However, $13.9 million for a multi-year project involving labor and materials for Legionella prevention in potentially large VA facilities suggests a significant undertaking. Benchmarking against similar projects would require access to detailed project specifications and cost data from comparable contracts.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26323R0042

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2158 SPRING COVE RD, SUNRISE BEACH, MO, 65079

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,914,867

Exercised Options: $13,914,867

Current Obligation: $13,914,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline