VA awards $34.6M for Atlanta VA Medical Center's combined heat and power plant construction

Contract Overview

Contract Amount: $34,594,830 ($34.6M)

Contractor: Copper Construction Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-30

End Date: 2018-05-05

Contract Duration: 1,313 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF - CONTRACT IS TO PROVIDE ALL OF THE WORK NECESSARY TO CONSTRUCT A NEW COMBINED HEAT AND POWER PLANT AT THE ATLANTA VA MEDICAL CENTER.

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30305

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.6 million to COPPER CONSTRUCTION COMPANY, INC. for work described as: IGF::OT::IGF - CONTRACT IS TO PROVIDE ALL OF THE WORK NECESSARY TO CONSTRUCT A NEW COMBINED HEAT AND POWER PLANT AT THE ATLANTA VA MEDICAL CENTER. Key points: 1. Contract value represents a significant investment in critical infrastructure for veteran healthcare. 2. Construction services for power and communication lines indicate a focus on essential facility support. 3. The project duration of over three years suggests a complex and substantial undertaking. 4. Firm-fixed-price contract type aims to provide cost certainty for the government. 5. The project's completion in 2018 suggests a focus on past performance and project execution. 6. Geographic location in Georgia highlights regional infrastructure development within the VA system.

Value Assessment

Rating: good

The contract value of $34.6 million for constructing a combined heat and power plant is substantial, reflecting the scale and complexity of such infrastructure projects. Benchmarking against similar large-scale federal construction projects for medical facilities would provide a clearer picture of value for money. The firm-fixed-price nature of the contract suggests an effort to control costs, but the final cost relative to initial estimates and market rates for comparable projects is key to a full value assessment. Without specific cost breakdowns or comparisons to similar projects, a definitive value judgment is challenging, but the scale of the award indicates a significant commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 7 bids suggests a reasonably competitive environment for this type of specialized construction. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards. The number of bidders provides a positive signal regarding the accessibility of this contract opportunity to qualified firms.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible price and quality for the construction of essential VA infrastructure.

Public Impact

Veterans receiving care at the Atlanta VA Medical Center will benefit from improved and reliable power and heating systems. The construction project supports the operational continuity and resilience of a key healthcare facility. The project's geographic impact is centered on Atlanta, Georgia, enhancing local infrastructure. The construction activities likely created temporary employment opportunities for skilled trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise, despite the firm-fixed-price structure.
Ensuring long-term operational efficiency and maintenance costs of the new plant are managed effectively.
Dependency on the contractor's ability to meet stringent construction timelines and quality standards.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Project addresses critical infrastructure needs for a major VA medical center.
Contract completion within the specified period suggests successful project execution.

Sector Analysis

The construction of a combined heat and power (CHP) plant falls within the broader construction and engineering services sector, specifically related to industrial and utility infrastructure. This contract represents a significant investment in energy resilience and operational efficiency for a critical federal facility. The market for such specialized construction services is competitive, involving firms with expertise in power generation and large-scale building projects. Comparable spending benchmarks would typically involve analyzing other federal or large institutional investments in similar CHP or power plant construction projects.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business capable of undertaking a project of this magnitude. Further analysis would be needed to determine if any small business subcontracting opportunities were pursued or mandated post-award, which could impact the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Given the nature of construction, regular site inspections, progress reports, and quality assurance checks are standard oversight mechanisms. Accountability is ensured through the firm-fixed-price contract terms and performance requirements. Transparency is generally maintained through federal contract databases, though detailed project-specific oversight reports may not always be publicly accessible.

Related Government Programs

VA Medical Facility Construction
Federal Energy Infrastructure Projects
Power Generation Construction Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for construction delays
Cost overruns on fixed-price contracts
Ensuring compliance with environmental regulations
Long-term operational and maintenance costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.6 million to COPPER CONSTRUCTION COMPANY, INC.. IGF::OT::IGF - CONTRACT IS TO PROVIDE ALL OF THE WORK NECESSARY TO CONSTRUCT A NEW COMBINED HEAT AND POWER PLANT AT THE ATLANTA VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is COPPER CONSTRUCTION COMPANY, INC..

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 $34.6 million.

What is the period of performance?

Start: 2014-09-30. End: 2018-05-05.

What was the final cost of the project compared to the initial awarded amount, and were there any significant change orders?

The initial contract award was $34,594,829.84. Without access to the contract's final delivery or modification history, it is impossible to determine the final cost or the extent of any change orders. Firm-fixed-price contracts aim to limit cost increases, but significant unforeseen issues during construction can lead to modifications. A review of the contract's modification history in a federal procurement database would be necessary to ascertain if the final cost deviated substantially from the initial award and the reasons for any such deviations.

How does the cost per square foot or per megawatt capacity of this CHP plant compare to similar federal or commercial projects?

Benchmarking the cost per unit (e.g., per square foot or per megawatt capacity) is crucial for assessing value. However, the provided data lacks details on the plant's size (square footage) or its power generation capacity (megawatts). To perform this comparison, one would need to obtain these specifications from the contract documentation or related project reports. Once available, this data could be compared against industry cost databases or publicly available information on similar CHP plant constructions to determine if the $34.6 million award was within market norms for the scale and type of facility.

What specific performance metrics were used to evaluate the contractor's success upon project completion?

Performance metrics for construction contracts typically include adherence to schedule, quality of workmanship, compliance with specifications and building codes, safety record, and overall project management. For a CHP plant, specific performance metrics might also relate to the efficiency and reliability of the installed systems post-construction. While the contract was completed, the specific metrics used for final acceptance and contractor performance evaluation are not detailed in the provided summary. A review of the contract's performance clauses and final inspection reports would be required to identify these metrics.

What is the track record of Copper Construction Company, Inc. on similar large-scale federal infrastructure projects?

Copper Construction Company, Inc. was the awardee for this $34.6 million contract. To assess their track record, one would need to examine their past performance on similar federal projects, particularly those involving power generation, industrial construction, or large-scale facility infrastructure. Databases like the Federal Procurement Data System (FPDS) or Contractor Performance Assessment Reporting System (CPARS) could provide insights into their history, including past performance ratings, any disputes, or contract terminations. A positive performance history on comparable projects would increase confidence in their capability to execute such work.

Were there any identified risks during the contract lifecycle, and how were they mitigated?

Large construction projects inherently carry risks such as unforeseen site conditions, material cost fluctuations, labor availability issues, and design challenges. For this firm-fixed-price contract, risks related to cost overruns due to these factors would be a primary concern for the contractor. The government's mitigation strategies would involve thorough pre-bid site assessments, clear contract specifications, robust project oversight, and potentially contingency planning. Specific risks encountered and their mitigation strategies during the execution of this particular contract would likely be documented in project management records or modification histories.

How does this spending compare to other VA infrastructure investments in the same fiscal year or surrounding years?

This $34.6 million contract for a CHP plant represents a significant capital investment in a specific VA facility's infrastructure. To contextualize this spending, it should be compared against the VA's overall capital budget and other infrastructure projects undertaken during FY2014-2018. Analyzing VA's historical spending patterns on facilities, energy systems, and construction projects would reveal whether this award was typical, unusually large, or small relative to other similar investments. This comparison helps assess resource allocation priorities within the VA's infrastructure modernization efforts.

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

Solicitation Procedures: SEALED BID

Solicitation ID: VA701-14-B-0154

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 410 MCINTOSH ST, VIDALIA, GA, 30474

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $34,594,830

Exercised Options: $34,594,830

Current Obligation: $34,594,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline