VA Awards $6.9M Contract for Building 19 HVAC Remodel to Talion Construction
Contract Overview
Contract Amount: $6,940,679 ($6.9M)
Contractor: Talion Construction, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2022-10-12
End Date: 2025-06-06
Contract Duration: 968 days
Daily Burn Rate: $7.2K/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: REMODEL SPECIALTY CARE AND CORRECT HVAC IN BUILDING 19 (NRM)
Place of Performance
Location: MARTINEZ, CONTRA COSTA County, CALIFORNIA, 94553
Plain-Language Summary
Department of Veterans Affairs obligated $6.9 million to TALION CONSTRUCTION, LLC for work described as: REMODEL SPECIALTY CARE AND CORRECT HVAC IN BUILDING 19 (NRM) Key points: 1. Contract awarded for essential building infrastructure upgrades. 2. Competition method indicates potential for price discovery. 3. Firm Fixed Price contract type mitigates cost overrun risk. 4. Construction sector spending is significant for facility maintenance.
Value Assessment
Rating: good
The contract value of $6.9M for a building remodel and HVAC correction appears reasonable given the scope. Benchmarking against similar large-scale institutional building construction projects would provide a more precise assessment.
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 might impact the extent of price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayers benefit from necessary infrastructure improvements, but the limited competition warrants scrutiny to ensure optimal value.
Public Impact
Ensures operational continuity for VA medical facilities. Improves patient and staff environment through HVAC upgrades. Supports local economy through construction services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the lowest possible price.
- Contract duration is substantial, requiring ongoing monitoring.
Positive Signals
- Addresses critical infrastructure needs.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by government facility maintenance, upgrades, and new construction needs, with significant annual outlays.
Small Business Impact
The contract was awarded to Talion Construction, LLC. Analysis is needed to determine if this is a small business and if subcontracting opportunities were maximized.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. Monitoring contract performance and adherence to specifications is crucial for ensuring successful project completion and taxpayer value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may lead to higher costs.
- Contract duration is long, increasing risk of unforeseen issues.
- Potential for scope creep if not managed tightly.
- Dependence on a single contractor for critical infrastructure.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ca, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $6.9 million to TALION CONSTRUCTION, LLC. REMODEL SPECIALTY CARE AND CORRECT HVAC IN BUILDING 19 (NRM)
Who is the contractor on this award?
The obligated recipient is TALION 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 $6.9 million.
What is the period of performance?
Start: 2022-10-12. End: 2025-06-06.
What is the specific justification for excluding other sources in the competition?
The justification for excluding other sources needs to be clearly documented and publicly available. Typically, such exclusions are based on specific technical requirements, urgent needs, or unique capabilities that only a limited number of contractors possess. Without this documentation, it's difficult to assess if the limited competition truly served the government's best interest or if it restricted potential cost savings.
How does the per-square-foot cost compare to similar VA facility renovation projects?
Comparing the per-square-foot cost to similar VA facility renovation projects is essential for value assessment. Factors like building age, complexity of HVAC systems, and specific renovation requirements influence costs. A benchmark analysis would reveal if this contract's pricing is within an acceptable range or if it suggests potential overpricing, warranting further investigation into the contractor's cost structure and the project's specific demands.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
Key performance indicators (KPIs) for this contract should focus on project completion within schedule, adherence to budget, quality of work, and minimal disruption to facility operations. Success measurement will likely involve regular site inspections, progress reports, and final acceptance testing of the HVAC systems. Clear KPIs and a robust measurement framework are vital for ensuring accountability and the effective use of taxpayer funds.
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: SEALED BID
Solicitation ID: 36C77621B0021
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 43397 BUSINESS PARK DR, TEMECULA, CA, 92590
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, 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: $6,940,679
Exercised Options: $6,940,679
Current Obligation: $6,940,679
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-10-12
Current End Date: 2025-06-06
Potential End Date: 2025-06-06 00:00:00
Last Modified: 2025-12-11
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