VA awards $3.8M for VAMC data center upgrades, with 6 bidders vying for the construction contract

Contract Overview

Contract Amount: $3,846,390 ($3.8M)

Contractor: V Line Services L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-16

End Date: 2026-03-06

Contract Duration: 872 days

Daily Burn Rate: $4.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIXED PRICE AWARD FEE

Sector: Construction

Official Description: FURNISH ALL LABOR, EQUIPMENT, MATERIALS, TOOLS, AND SUPERVISION TO CONSTRUCT 557-20-105 EHRM INFRASTRUCTURE DATA CENTER UPGRADES AT THE CARL VINSON VAMC, DUBLIN, GA

Place of Performance

Location: DUBLIN, LAURENS County, GEORGIA, 31021

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.8 million to V LINE SERVICES L.L.C. for work described as: FURNISH ALL LABOR, EQUIPMENT, MATERIALS, TOOLS, AND SUPERVISION TO CONSTRUCT 557-20-105 EHRM INFRASTRUCTURE DATA CENTER UPGRADES AT THE CARL VINSON VAMC, DUBLIN, GA Key points: 1. The contract value represents a significant investment in critical infrastructure for the Carl Vinson VAMC. 2. Competition was robust, suggesting a healthy market for specialized construction services. 3. The fixed-price award fee structure incentivizes performance while managing cost risks. 4. Project duration of 872 days indicates a complex and substantial upgrade. 5. The award to V Line Services, LLC, positions them as a key contractor for this facility. 6. Geographic focus on Georgia highlights regional infrastructure development needs.

Value Assessment

Rating: good

The contract value of approximately $3.85 million for data center infrastructure upgrades appears reasonable given the scope of work, which includes labor, equipment, materials, tools, and supervision. Benchmarking against similar commercial and institutional building construction projects of this scale, the price seems competitive. The fixed-price award fee contract type helps control costs while allowing for performance-based incentives, suggesting a balanced approach to value for money.

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,' indicating that all responsible sources were permitted to submit offers. With six bidders participating, the competition level was healthy, which typically leads to better price discovery and potentially more favorable terms for the government. This broad competition suggests that the market has adequate capacity and interest in providing these specialized construction services.

Taxpayer Impact: A competitive bidding process with multiple bidders generally results in lower prices for taxpayers compared to sole-source or limited competition scenarios. The government can leverage this competition to secure the best value for public funds.

Public Impact

Patients and staff at the Carl Vinson VAMC will benefit from improved data center infrastructure, leading to more reliable IT services. The project delivers essential upgrades to a critical healthcare facility's operational backbone. The geographic impact is concentrated in Dublin, Georgia, supporting local economic activity through construction. The construction work will likely involve a skilled workforce, potentially creating temporary employment opportunities in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Dependence on V Line Services, L.L.C. for timely and quality completion within the specified timeframe.
Risk of disruption to VAMC operations if construction activities are not meticulously managed.

Positive Signals

Clear definition of scope including labor, equipment, materials, tools, and supervision.
Fixed-price award fee structure incentivizes contractor performance and cost control.
Robust competition with six bidders suggests a competitive market and potential for good value.
Awarded to a contractor with experience in commercial and institutional building construction.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for such specialized infrastructure upgrades, particularly for federal facilities like Veterans Affairs Medical Centers, is characterized by stringent requirements and competitive bidding. Spending in this sector is often driven by the need to modernize aging facilities, enhance operational efficiency, and ensure compliance with federal standards. Comparable spending benchmarks would typically look at the cost per square foot or per project for similar government facility upgrades.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). While this specific award may not directly benefit small businesses through a set-aside, the prime contractor, V Line Services, L.L.C., may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be crucial in determining the overall impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the fixed-price award fee structure, which ties a portion of the payment to performance. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Veterans Affairs Medical Facility Construction
Data Center Infrastructure Modernization
Federal Building Construction Contracts
Commercial and Institutional Building Construction

Risk Flags

Potential for scope creep
Reliance on contractor performance
Site-specific construction challenges
Coordination with VAMC operations

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.8 million to V LINE SERVICES L.L.C.. FURNISH ALL LABOR, EQUIPMENT, MATERIALS, TOOLS, AND SUPERVISION TO CONSTRUCT 557-20-105 EHRM INFRASTRUCTURE DATA CENTER UPGRADES AT THE CARL VINSON VAMC, DUBLIN, GA

Who is the contractor on this award?

The obligated recipient is V LINE SERVICES L.L.C..

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 $3.8 million.

What is the period of performance?

Start: 2023-10-16. End: 2026-03-06.

What is the track record of V Line Services, L.L.C. with federal contracts, particularly within the Department of Veterans Affairs?

A thorough review of V Line Services, L.L.C.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar construction projects, including their adherence to schedules, budget management, and quality of work. Specific attention should be paid to any contracts awarded by the Department of Veterans Affairs to understand their experience with VA-specific requirements and facility types. Analyzing past performance evaluations and any reported disputes or contract modifications would provide further insight into their reliability and capability as a federal contractor.

How does the awarded price compare to similar data center infrastructure upgrade projects at other VAMC facilities?

To benchmark the value for money, the awarded price of approximately $3.85 million should be compared against similar data center infrastructure upgrade projects at other Department of Veterans Affairs Medical Centers or comparable federal facilities. Key metrics for comparison would include cost per square foot, cost per unit of upgrade (e.g., per server rack supported, per cooling unit installed), and the overall complexity of the work. Analyzing data from similar contracts awarded over the past few years would help determine if this price is within the expected range, considering factors like inflation, geographic location, and specific technical requirements.

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

The primary risks associated with this contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions. There's also a risk of cost overruns if the fixed-price structure doesn't adequately account for all contingencies, or if scope creep occurs. Mitigation strategies likely include detailed site assessments prior to award, robust project management by the VA, clear contract terms defining responsibilities, and the fixed-price award fee structure which incentivizes the contractor to manage costs and performance effectively. Regular progress reviews and communication channels are also critical for early risk identification and resolution.

How effective is the 'fixed-price award fee' contract type in ensuring program effectiveness and value for this project?

The 'fixed-price award fee' (FPAF) contract type is designed to balance cost control with performance incentives, aiming for effectiveness and value. In this case, the fixed-price component sets a ceiling on the government's cost liability, providing budget certainty. The award fee component allows the government to reward the contractor for exceeding performance expectations in areas like quality, timeliness, and management. This structure incentivizes V Line Services, L.L.C. to deliver a high-quality project efficiently, thereby enhancing program effectiveness. However, the effectiveness hinges on well-defined performance criteria and objective evaluation of the award fee.

What are the historical spending patterns for data center infrastructure upgrades within the VA, and how does this contract fit?

Analyzing historical spending patterns for data center infrastructure upgrades within the VA would reveal trends in investment, average contract values, and the frequency of such projects. This contract, valued at $3.85 million, represents a significant but potentially typical investment for a major VAMC facility upgrade. Understanding past spending can help contextualize this award, identifying if it aligns with the VA's strategic modernization goals, whether it's an increase or decrease in spending for such projects, and how it compares to the overall IT infrastructure budget of the agency. It helps assess if this project is part of a larger, ongoing effort or a standalone initiative.

What is the potential impact of the 'exclusion of sources' clause in the 'full and open competition after exclusion of sources' award type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (FGCAS) is somewhat unusual. Typically, 'full and open competition' means all responsible sources can compete. The 'after exclusion of sources' part suggests that perhaps certain types of sources or specific entities were excluded from the outset, possibly due to pre-qualification requirements, specific technological needs, or past performance issues with certain vendors. While it still aims for broad competition among the remaining eligible sources, the exclusion could potentially limit the pool of bidders compared to a truly unrestricted full and open competition, which might have implications for price discovery and market reach.

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: 36C77623B0062

Offers Received: 6

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 635 LONG BRANCH TRL, RANGER, GA, 30734

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,865,034

Exercised Options: $11,407,156

Current Obligation: $3,846,390

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline