GSA Awards $21.5M Generator Project to Magnum Inc. for Philadelphia VA Facility
Contract Overview
Contract Amount: $21,519,298 ($21.5M)
Contractor: Magnum Inc
Awarding Agency: General Services Administration
Start Date: 2024-09-24
End Date: 2027-10-12
Contract Duration: 1,113 days
Daily Burn Rate: $19.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, GENERATOR REPLACEMENT CONSTRUCTION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144.
Place of Performance
Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19144
Plain-Language Summary
General Services Administration obligated $21.5 million to MAGNUM INC for work described as: VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, GENERATOR REPLACEMENT CONSTRUCTION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144. Key points: 1. The project involves significant construction for a critical VA facility. 2. Magnum Inc. secured the contract through full and open competition. 3. The firm-fixed-price contract aims to control costs over the project duration. 4. This project falls within the commercial and institutional building construction sector.
Value Assessment
Rating: good
The $21.5 million award appears reasonable for a large-scale generator replacement construction project at a major federal facility. Benchmarking against similar projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and potentially better pricing for the government.
Taxpayer Impact: The competitive award process is expected to yield a fair price, ensuring taxpayer funds are used efficiently for essential infrastructure.
Public Impact
Ensures reliable power for critical Veterans Affairs services. Supports infrastructure modernization at a key federal site. Creates construction jobs in the Philadelphia area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen construction issues arise.
- Dependence on a single contractor for a critical infrastructure project.
Positive Signals
- Competitive bidding process.
- Firm-fixed-price contract type.
- Awarded to a single entity for focused execution.
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a sector vital for maintaining federal facilities. Spending benchmarks for similar construction projects can vary widely based on scope and location.
Small Business Impact
The contract was not awarded to small businesses, as indicated by 'sb': false. Future opportunities may exist for small businesses as subcontractors.
Oversight & Accountability
The General Services Administration (GSA) managed the procurement, indicating established oversight. The Public Buildings Service (PBS) is responsible for managing federal building construction and operations.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Project duration exceeds one year.
- Contract awarded after exclusion of sources.
- No small business participation noted.
- Potential for unforeseen construction challenges.
Tags
commercial-and-institutional-building-co, general-services-administration, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $21.5 million to MAGNUM INC. VETERANS ADMINISTRATION AND PHILADELPHIA INFORMATION TECHNOLOGY CENTER, GENERATOR REPLACEMENT CONSTRUCTION PROJECT, 5000 WISSAHICKON AVENUE, PHILADELPHIA, PA 19144.
Who is the contractor on this award?
The obligated recipient is MAGNUM INC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $21.5 million.
What is the period of performance?
Start: 2024-09-24. End: 2027-10-12.
What is the projected impact of the generator replacement on the operational continuity of the VA facility?
The generator replacement is critical for ensuring uninterrupted power supply to the VA facility, safeguarding essential medical services and administrative functions. This upgrade mitigates risks associated with power outages, thereby maintaining the continuity of care for veterans and the efficiency of facility operations.
Are there any identified risks associated with the firm-fixed-price contract type for this construction project?
While firm-fixed-price contracts aim to control costs, risks can emerge if unforeseen site conditions or scope changes occur. The contractor bears the primary financial risk for cost overruns, but significant change orders could still impact the final price and schedule.
How does this project align with broader federal infrastructure modernization goals?
This generator replacement project directly supports federal infrastructure modernization by upgrading essential, aging equipment at a critical VA facility. It enhances resilience against power disruptions and ensures the facility can continue to meet its mission requirements effectively.
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
Solicitation ID: 47PD0224R0079
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 650 CATHERINE ST, WARMINSTER, PA, 18974
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,498,249
Exercised Options: $21,519,298
Current Obligation: $21,519,298
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47PD0223D0009
IDV Type: IDC
Timeline
Start Date: 2024-09-24
Current End Date: 2027-10-12
Potential End Date: 2028-01-12 00:00:00
Last Modified: 2026-02-03
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