VA Awards $23.5M ESPC to TLS-CES Services for Hudson Valley Facility

Contract Overview

Contract Amount: $23,541,995 ($23.5M)

Contractor: Tls-Ces Services I, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-02

End Date: 2027-01-19

Contract Duration: 1,327 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO FOR HUDSON VALLEY ESPC

Place of Performance

Location: MONTROSE, WESTCHESTER County, NEW YORK, 10548

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.5 million to TLS-CES SERVICES I, LLC for work described as: TO FOR HUDSON VALLEY ESPC Key points: 1. Significant investment in energy efficiency for a VA facility. 2. Competition method suggests potential for good pricing. 3. Long contract duration (over 3 years) warrants monitoring. 4. Construction sector spending, requires careful cost oversight.

Value Assessment

Rating: good

The award amount of $23.5M for an ESPC is substantial. Benchmarking against similar energy performance contracts for institutional buildings is necessary to confirm value, but the firm-fixed-price structure suggests defined costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method, while competitive, may limit the pool of bidders compared to unrestricted full and open competition, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being invested in energy efficiency upgrades, which should lead to long-term cost savings for the VA, offsetting the initial expenditure.

Public Impact

Improved energy efficiency at a VA facility, potentially reducing operational costs. Supports the government's goals for energy conservation and sustainability. Contracting with a private entity for specialized energy services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method could impact final price.
Long-term contract requires ongoing performance monitoring.
Potential for scope creep in ESPC projects.

Positive Signals

Focus on energy efficiency aligns with sustainability goals.
Firm-fixed-price contract provides cost certainty.
Award to a single vendor for a specific project.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on energy performance contracting. Spending benchmarks for similar ESPC projects with the VA or other federal agencies would be relevant for comparison.

Small Business Impact

The data does not indicate whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to assess small business participation.

Oversight & Accountability

The VA is responsible for overseeing this contract to ensure performance goals are met and taxpayer funds are used efficiently. Regular performance reviews and audits are crucial for accountability.

Related Government Programs

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

Risk Flags

Limited competition may reduce price competitiveness.
Long contract duration increases risk of performance issues.
ESPC projects can be complex to manage and oversee.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.5 million to TLS-CES SERVICES I, LLC. TO FOR HUDSON VALLEY ESPC

Who is the contractor on this award?

The obligated recipient is TLS-CES SERVICES I, 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 $23.5 million.

What is the period of performance?

Start: 2023-06-02. End: 2027-01-19.

What is the projected energy savings and payback period for this ESPC?

The projected energy savings and payback period are critical metrics for evaluating the value of an ESPC. Without this information, it's difficult to definitively assess if the $23.5 million investment will yield sufficient long-term cost reductions to justify the upfront expenditure and meet federal energy efficiency mandates.

How does the 'exclusion of sources' in the competition method affect the final price compared to unrestricted full and open competition?

Excluding sources, even after initial full and open competition, can limit the bidder pool. This may reduce competitive pressure, potentially leading to higher prices than if all eligible vendors had been allowed to compete. A thorough price analysis is essential to confirm fair and reasonable pricing.

What are the key performance indicators (KPIs) and monitoring mechanisms in place to ensure the effectiveness of the energy efficiency upgrades?

Effective oversight requires clearly defined KPIs for energy savings, system performance, and maintenance. Robust monitoring mechanisms, including regular reporting and site inspections by the VA, are necessary to track progress, identify issues early, and ensure the contractor meets all contractual obligations and achieves the intended energy efficiency improvements.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4733 KIBLER RD, VAN BUREN, AR, 72956

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: $33,305,232

Exercised Options: $33,276,145

Current Obligation: $23,541,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36E77620D0004

IDV Type: IDC

Timeline