VA awards $9.1M contract for fire alarm and pump replacements, highlighting construction needs

Contract Overview

Contract Amount: $9,124,574 ($9.1M)

Contractor: BKM Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-25

End Date: 2027-02-17

Contract Duration: 814 days

Daily Burn Rate: $11.2K/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: PM: 636-22-111, FIRE ALARM SYSTEM & FIRE PUMP REPLACEMENTS

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.1 million to BKM CONSTRUCTION LLC for work described as: PM: 636-22-111, FIRE ALARM SYSTEM & FIRE PUMP REPLACEMENTS Key points: 1. Contract addresses critical infrastructure upgrades for veteran facilities. 2. Competition was open, suggesting potential for competitive pricing. 3. Fixed-price contract type aims to control costs. 4. Project duration of 814 days indicates a significant scope of work. 5. Contractor has a history of federal awards, requiring performance review. 6. Geographic focus on Nebraska may indicate regional facility needs.

Value Assessment

Rating: good

The contract value of $9.1 million for fire alarm and fire pump replacements appears reasonable given the scope and duration. Benchmarking against similar VA facility upgrade projects would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined. The contractor, BKM CONSTRUCTION LLC, has prior federal experience, which can be a positive signal for execution capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The number of bids received (2) is on the lower side for a full and open competition, which could suggest potential limitations in the market reach or the specificity of the requirements. This level of competition may not have fully leveraged market dynamics to achieve the lowest possible price.

Taxpayer Impact: While the competition was open, the limited number of bidders suggests taxpayers may not have benefited from the most aggressive pricing achievable through broader market engagement.

Public Impact

Veterans utilizing VA facilities in Nebraska will benefit from enhanced safety and operational reliability. The contract ensures the continued functionality and compliance of critical life safety systems. The project will likely involve local construction workforce in Nebraska. Improved fire safety infrastructure contributes to a more secure environment for patients and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have impacted price discovery.
Contractor's track record needs thorough review to ensure successful project completion.
Potential for scope creep in construction projects of this duration.

Positive Signals

Firm fixed-price contract type helps manage cost overruns.
Contractor has prior federal award experience.
Focus on critical safety infrastructure addresses essential needs.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing facility maintenance and upgrades. The federal government is a significant consumer of construction services, with spending often driven by infrastructure modernization needs, safety compliance, and facility lifecycle management. Comparable spending benchmarks would typically involve analyzing the cost per square foot for similar renovation or replacement projects in institutional settings.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and opportunities for small business participation may be limited unless BKM CONSTRUCTION LLC voluntarily engages them as subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency is generally facilitated through federal contract databases, though detailed project progress reports may not be publicly available.

Related Government Programs

VA Facility Modernization Projects
Federal Fire Safety System Contracts
Construction Services for Government Buildings

Risk Flags

Limited competition
Potential for scope creep
Contractor performance history requires verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.1 million to BKM CONSTRUCTION LLC. PM: 636-22-111, FIRE ALARM SYSTEM & FIRE PUMP REPLACEMENTS

Who is the contractor on this award?

The obligated recipient is BKM 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 $9.1 million.

What is the period of performance?

Start: 2024-11-25. End: 2027-02-17.

What is the track record of BKM CONSTRUCTION LLC with the federal government, particularly on similar projects?

BKM CONSTRUCTION LLC has a history of federal contract awards, though the specifics of their past performance on fire alarm and fire pump replacement projects require detailed review. Analyzing past contract performance ratings, any instances of contract modifications, disputes, or terminations would provide insight into their reliability and capability. Understanding their experience with projects of similar scale and complexity, especially within VA facilities, is crucial for assessing the risk associated with this award. A review of their past performance would help determine if they have consistently met deadlines, stayed within budget, and adhered to quality standards on previous federal engagements.

How does the awarded price compare to market rates for similar fire alarm and fire pump replacement projects?

A direct comparison of the $9.1 million award to market rates for similar projects is challenging without detailed project specifications and geographic cost variations. However, the number of bidders (2) in a full and open competition suggests that the pricing may not have been as competitive as it could have been with more offers. To benchmark effectively, one would need to analyze the cost per square foot, the complexity of the systems being replaced, and prevailing labor and material costs in Nebraska. Comparing this contract's unit costs (if identifiable) to industry cost estimating guides or recent public solicitations for comparable work would provide a more robust value assessment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the scope is not fully defined, delays in project completion due to unforeseen site conditions or supply chain issues, and contractor performance deficiencies. The firm fixed-price contract mitigates cost overrun risk for the government, provided the scope is well-defined. Mitigation for delays and performance issues relies on robust project management, clear communication channels, and the contract's performance clauses. The limited competition (2 bidders) also presents a risk of not achieving optimal value. The VA's oversight and BKM CONSTRUCTION LLC's prior federal experience are intended to mitigate performance risks.

How effective are the chosen contract type and competition level in ensuring value for taxpayers?

The firm fixed-price contract type is generally effective in ensuring value for taxpayers by capping the government's financial liability, assuming the scope is accurately defined. However, the competition level, with only two bidders, raises concerns about whether the government secured the best possible price. A higher number of bidders typically fosters greater price competition, leading to potentially lower costs for taxpayers. While the competition was 'full and open,' the limited number of participants suggests that the market may not have been fully engaged, potentially resulting in a higher-than-optimal price.

What is the historical spending pattern for fire alarm and fire pump replacements at this specific VA facility or region?

Analyzing historical spending patterns for similar projects at this VA facility or within the Nebraska region would provide crucial context for the $9.1 million award. Understanding the frequency and cost of past replacements or upgrades can reveal trends in maintenance needs, capital investment cycles, and potential cost inflation. If this is a one-time major replacement, historical data might be less relevant than if it's part of a recurring maintenance or upgrade program. Comparing this contract's value to the total budget allocated for facility maintenance and upgrades over several years would also offer perspective on its significance.

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: 501 S 5TH ST, LEAVENWORTH, KS, 66048

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: $9,124,574

Exercised Options: $9,124,574

Current Obligation: $9,124,574

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26320D0027

IDV Type: IDC

Timeline