VA Awards $25.4M Cogeneration System Contract to McCarthy Building Companies in Texas

Contract Overview

Contract Amount: $25,360,242 ($25.4M)

Contractor: Mccarthy Building Companies, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-09-16

End Date: 2014-09-29

Contract Duration: 1,109 days

Daily Burn Rate: $22.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN AND BUILD A COGENERATION SYSTEM AT VAMC DALLAS, TX.

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75216

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $25.4 million to MCCARTHY BUILDING COMPANIES, INC. for work described as: DESIGN AND BUILD A COGENERATION SYSTEM AT VAMC DALLAS, TX. Key points: 1. Contract awarded for design and build of a cogeneration system at VAMC Dallas. 2. Full and open competition was utilized for this procurement. 3. The contract was a firm fixed price, indicating clear cost expectations. 4. The project duration was 1109 days, suggesting a significant construction undertaking.

Value Assessment

Rating: good

The contract value of $25.4 million for a cogeneration system appears reasonable given the scope of design and build services. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition was employed, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value and price.

Public Impact

Improved energy efficiency and reliability at the VAMC Dallas facility. Potential for long-term cost savings on utility expenses for the VA. Creation of jobs during the design and construction phases. Modernization of critical infrastructure at a major healthcare facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependency on the contractor's expertise for successful system integration.

Positive Signals

Clear contract type (Firm Fixed Price) helps manage budget.
Full and open competition likely yielded competitive pricing.
Project addresses critical infrastructure needs for a VA facility.

Sector Analysis

This contract falls within the construction sector, specifically related to power infrastructure. Spending benchmarks for similar large-scale facility construction projects can vary significantly based on complexity and location.

Small Business Impact

The data indicates the prime contractor is McCarthy Building Companies, Inc. There is no explicit information on small business participation in this award, which warrants further investigation.

Oversight & Accountability

The Department of Veterans Affairs is the contracting agency. Oversight would involve monitoring project progress, adherence to specifications, and budget management throughout the design and build phases.

Related Government Programs

Power and Communication Line and Related Structures Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for construction cost overruns.
Complexity of integrating new cogeneration system with existing infrastructure.
Long-term operational and maintenance costs not detailed.
Reliance on contractor's specialized expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $25.4 million to MCCARTHY BUILDING COMPANIES, INC.. DESIGN AND BUILD A COGENERATION SYSTEM AT VAMC DALLAS, TX.

Who is the contractor on this award?

The obligated recipient is MCCARTHY BUILDING COMPANIES, 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 $25.4 million.

What is the period of performance?

Start: 2011-09-16. End: 2014-09-29.

What was the specific energy savings projected from this cogeneration system, and how does it compare to the initial investment?

The provided data does not include specific energy savings projections or a detailed return on investment analysis. A comprehensive assessment would require access to the project's business case and performance metrics post-completion to evaluate the long-term financial benefits against the $25.4 million expenditure.

Were there any significant delays or cost changes during the 1109-day contract period, and what were the primary drivers?

The available data does not detail project execution specifics like delays or cost changes. Further investigation into contract modifications, performance reports, and agency records would be necessary to identify any deviations from the original plan and understand the underlying causes.

How effectively did the full and open competition process ensure value for money compared to other potential contracting methods?

While full and open competition is generally favored for maximizing value, its effectiveness in this specific case depends on the number and quality of bids received. Without bid data, it's difficult to definitively state the value achieved. However, the method itself provides a strong framework for competitive pricing.

Industry Classification

NAICS: Construction › Utility System Construction › Power and Communication Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA-701-11-RP-0255

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Mccarthy Holdings Inc. (UEI: 088711643)

Address: 1341 N ROCK HILL RD, SAINT LOUIS, MO, 63124

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,360,242

Exercised Options: $25,360,242

Current Obligation: $25,360,242

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $19,606,859

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline