VA Awards $34.6M Contract for Boiler Plant Replacement in South Dakota

Contract Overview

Contract Amount: $34,638,080 ($34.6M)

Contractor: SAW Greenland, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-04

End Date: 2028-05-06

Contract Duration: 1,006 days

Daily Burn Rate: $34.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 438-22-900, REPLACE BOILER PLANT

Place of Performance

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

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.6 million to SAW GREENLAND, LLC for work described as: 438-22-900, REPLACE BOILER PLANT Key points: 1. Contract awarded to SAW GREENLAND, LLC for a firm-fixed-price definitive contract. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', indicating a specific but competitive approach. 3. The project duration is 1006 days, with an estimated completion date in May 2028. 4. This contract falls under the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: good

The contract value of $34.6 million for a boiler plant replacement appears reasonable given the project scope and duration. Benchmarking against similar large-scale institutional building construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The competition method, 'Full and Open Competition After Exclusion of Sources', suggests that while the competition was open, certain sources were initially excluded, potentially impacting the breadth of price discovery. However, the 'Full and Open' aspect implies multiple bidders participated.

Taxpayer Impact: The firm-fixed-price contract type helps control costs for taxpayers, as the final price is established upfront, mitigating risks of cost overruns.

Public Impact

Ensures continued operation of essential facilities at a VA medical center. Supports infrastructure modernization within the federal government. Creates construction jobs in the South Dakota region. Improves energy efficiency and reliability of heating systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost increases if unforeseen issues arise during construction.
Dependence on a single contractor for a critical infrastructure project.

Positive Signals

Firm-fixed-price contract limits cost uncertainty.
Defined project scope and duration.
Awarded to a company with experience in commercial construction.

Sector Analysis

This contract is within the Commercial and Institutional Building Construction sector, which involves the building of non-residential structures. Spending in this sector can vary significantly based on infrastructure needs and government investment cycles.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract (ss: false, sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The definitive contract structure with a set duration and completion date allows for clear oversight. The Department of Veterans Affairs is responsible for monitoring progress and ensuring compliance with contract terms.

Related Government Programs

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

Risk Flags

Potential for schedule delays due to complex construction.
Reliance on a single contractor for critical infrastructure.
Unforeseen site conditions impacting cost or schedule.
Availability of specialized labor and materials.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.6 million to SAW GREENLAND, LLC. 438-22-900, REPLACE BOILER PLANT

Who is the contractor on this award?

The obligated recipient is SAW GREENLAND, 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 $34.6 million.

What is the period of performance?

Start: 2025-08-04. End: 2028-05-06.

What is the historical performance of SAW GREENLAND, LLC on similar government contracts?

Information on SAW GREENLAND, LLC's past performance is crucial for assessing reliability and execution capability. Reviewing their track record on previous federal or large-scale construction projects, including any past issues or commendations, would provide insight into their ability to deliver this critical boiler plant replacement on time and within budget.

How does the awarded price compare to independent cost estimates for similar boiler plant replacements?

Comparing the $34.6 million award to independent cost estimates for comparable boiler plant replacement projects is essential for validating value for money. This benchmark analysis helps determine if the contract price is competitive and reflects fair market value, considering the project's complexity, location, and duration.

What are the potential risks associated with the 'Full and Open Competition After Exclusion of Sources' method for this project?

While 'Full and Open' implies broad competition, the 'Exclusion of Sources' element warrants scrutiny. Understanding the rationale behind the exclusion is key. If the exclusion was too narrow, it might have limited the competitive pool, potentially impacting the final price and innovation. Conversely, if justified, it could have focused competition on highly qualified bidders.

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: 36C26324R0136

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 760 LYNNHAVEN PKWY STE 210, VIRGINIA BCH, VA, 23452

Business Categories: Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $34,638,080

Exercised Options: $34,638,080

Current Obligation: $34,638,080

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline