Talion Construction awarded $12.2M for VA Palo Alto emergency power upgrades

Contract Overview

Contract Amount: $12,230,368 ($12.2M)

Contractor: Talion Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-18

End Date: 2026-07-25

Contract Duration: 3,232 days

Daily Burn Rate: $3.8K/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: IGF::OT::IGF PROVIDE EMERGENCY POWER UPGRADE FOR BUILDINGS 100 AND 101 AT VA PALO ALTO MEDICAL CAMPUS.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.2 million to TALION CONSTRUCTION, LLC for work described as: IGF::OT::IGF PROVIDE EMERGENCY POWER UPGRADE FOR BUILDINGS 100 AND 101 AT VA PALO ALTO MEDICAL CAMPUS. Key points: 1. Contract addresses critical infrastructure needs for veteran healthcare facilities. 2. Project scope includes essential upgrades to building power systems. 3. Fixed-price contract type aims to control costs. 4. Competition was full and open after exclusion of sources, suggesting a deliberate process. 5. Contract duration extends over several years, indicating a phased approach to upgrades. 6. Geographic focus on California highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $12.2 million for emergency power upgrades appears reasonable given the critical nature of the work and the extended performance period. Benchmarking against similar infrastructure projects for federal facilities would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, assuming the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be open, specific sources may have been excluded for reasons not immediately apparent from the data. The presence of two bidders suggests a moderate level of competition, which can influence price discovery.

Taxpayer Impact: The exclusion of sources, even if justified, could potentially limit the number of competitive bids and may impact the final price achieved for taxpayers.

Public Impact

Veterans receiving care at the Palo Alto Medical Campus will benefit from reliable power infrastructure. Essential healthcare services will be supported by upgraded and dependable power systems. The project impacts the Palo Alto, California region through infrastructure development. Local construction workforce may be engaged for the duration of the project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope is not precisely managed due to the extended duration.
Reliance on a single contractor for critical infrastructure upgrades carries inherent risk.
The 'exclusion of sources' aspect of the competition warrants further investigation to ensure fairness and optimal pricing.

Positive Signals

Addresses a critical need for reliable power at a major VA medical facility.
Firm fixed-price contract provides cost certainty.
Long-term contract allows for phased implementation of complex upgrades.

Sector Analysis

This contract falls within the Construction sector, specifically related to power infrastructure. The market for federal construction, particularly for essential services like healthcare facilities, is substantial. Projects involving upgrades to critical infrastructure like emergency power systems are common across various federal agencies, with spending often benchmarked against similar facility types and project scopes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Further review of the contract details would be needed to determine any indirect impact or opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse. Transparency is generally maintained through contract databases, though specific project oversight details are not provided.

Related Government Programs

VA Facility Upgrades
Federal Infrastructure Projects
Emergency Power Systems
Medical Facility Construction

Risk Flags

Potential for limited competition due to source exclusion.
Extended contract duration may increase risk of scope creep or cost escalation if not managed tightly.
Critical infrastructure project requires robust oversight to ensure quality and timely completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.2 million to TALION CONSTRUCTION, LLC. IGF::OT::IGF PROVIDE EMERGENCY POWER UPGRADE FOR BUILDINGS 100 AND 101 AT VA PALO ALTO MEDICAL CAMPUS.

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 $12.2 million.

What is the period of performance?

Start: 2017-09-18. End: 2026-07-25.

What is the track record of Talion Construction, LLC with the Department of Veterans Affairs and other federal agencies?

A review of federal procurement data indicates that Talion Construction, LLC has been awarded multiple contracts across various federal agencies, including the Department of Veterans Affairs. Their contract history spans a range of construction services, from facility repairs to more specialized infrastructure projects. Analyzing the performance ratings and any past performance issues associated with their previous federal contracts would provide insight into their reliability and capability for executing projects of this magnitude and criticality. Specific details on past project successes or failures, including any disputes or claims, would be valuable for a comprehensive assessment.

How does the awarded amount compare to similar emergency power upgrade projects at other VA medical campuses?

Benchmarking this $12.2 million contract against similar emergency power upgrade projects at other VA medical campuses requires access to comparable contract data. Factors such as facility size, existing infrastructure complexity, specific upgrade requirements (e.g., generator capacity, distribution systems), and regional labor costs significantly influence project pricing. Without direct comparisons, it's challenging to definitively assess if this contract represents superior or inferior value. However, the firm fixed-price nature suggests an effort to contain costs, and the multi-year duration implies a substantial scope of work that justifies the investment.

What are the specific risks associated with the 'Full and Open Competition After Exclusion of Sources' procurement method used for this contract?

The 'Full and Open Competition After Exclusion of Sources' method, while intended to be competitive, introduces specific risks. The 'exclusion of sources' implies that certain potential bidders were deliberately not considered, potentially due to pre-qualification requirements, specific technical needs, or other factors. The primary risk is that this exclusion might have limited the competitive pool, potentially leading to a higher price than if all qualified sources had been allowed to bid. It also raises questions about the justification for exclusion and whether it was truly necessary for project success or if it inadvertently favored certain contractors. Ensuring the exclusion criteria were objective and well-documented is crucial for mitigating these risks.

What is the projected impact of these power upgrades on the operational effectiveness of the VA Palo Alto Medical Campus?

These emergency power upgrades are critical for ensuring the uninterrupted operation of the VA Palo Alto Medical Campus, especially during power outages or emergencies. Reliable power is fundamental to maintaining critical medical equipment, life support systems, electronic health records, and overall facility functions. By upgrading the emergency power systems, the VA aims to enhance patient safety, prevent disruptions to essential medical services, and protect sensitive equipment and data. This investment directly supports the campus's mission to provide continuous and high-quality healthcare to veterans, reducing the risk of service interruptions that could have severe consequences.

What has been the historical spending trend for power infrastructure upgrades at VA facilities over the past five years?

Analyzing historical spending trends for power infrastructure upgrades at VA facilities over the past five years would reveal patterns in investment and identify any significant shifts in budget allocation. Such an analysis could indicate whether spending in this area is increasing, decreasing, or remaining stable. It would also highlight which types of power upgrades (e.g., generators, distribution systems, renewable energy integration) have received the most funding. Understanding these trends provides context for the current $12.2 million award, helping to determine if it aligns with historical investment levels or represents a notable increase or decrease in focus on this critical infrastructure component.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures 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: VA261-17-B-0655

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 819 MOOWAA ST STE 106, HONOLULU, HI, 96817

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, DoT Certified Disadvantaged Business Enterprise, 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: $12,230,368

Exercised Options: $12,230,368

Current Obligation: $12,230,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline