VA awards $16.7M for Cogeneration System at Togus VAMC, completed on time

Contract Overview

Contract Amount: $16,723,816 ($16.7M)

Contractor: Demaria Building Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-05-27

End Date: 2015-09-30

Contract Duration: 1,952 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::36 0158:: TAS CONSTRUCT A COGEN SYSTEM AT TOGUS VAMC.

Place of Performance

Location: AUGUSTA, KENNEBEC County, MAINE, 04330

State: Maine Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.7 million to DEMARIA BUILDING COMPANY, INC. for work described as: TAS::36 0158:: TAS CONSTRUCT A COGEN SYSTEM AT TOGUS VAMC. Key points: 1. Contract awarded to Demaria Building Company, Inc. for a cogeneration system. 2. Project aimed to enhance power and communication infrastructure at the VAMC. 3. The contract was a firm-fixed-price definitive contract. 4. Completion within the planned duration indicates effective project management. 5. The project falls under the construction of power and communication lines. 6. Awarded by the Department of Veterans Affairs, highlighting infrastructure investment.

Value Assessment

Rating: good

The contract value of $16.7 million for a cogeneration system appears reasonable for a project of this scale and complexity, especially considering it was completed within the planned duration. Benchmarking against similar VA infrastructure projects would provide a more precise value-for-money assessment. The firm-fixed-price structure likely helped control costs, but without detailed cost breakdowns, a deep dive into pricing efficiency is limited. The successful completion suggests the contractor delivered on the agreed-upon scope and quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of nine bidders suggests a healthy level of competition for this type of infrastructure project. This broad competition is generally favorable for price discovery and ensures the government can select from a wide range of qualified contractors, potentially leading to better terms and pricing.

Taxpayer Impact: Taxpayers likely benefited from competitive pricing due to the full and open solicitation, which encourages multiple bids and drives down costs.

Public Impact

The primary beneficiaries are the patients and staff at the Togus VAMC, who will receive reliable and potentially more efficient power. The project delivers a critical cogeneration system, enhancing the facility's energy independence and operational resilience. The geographic impact is localized to the Togus VAMC in Augusta, Maine. The project likely involved a skilled construction workforce, contributing to local employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arose, though mitigated by fixed-price contract.
Dependence on contractor's expertise for complex system installation and integration.

Positive Signals

Successful completion within the contract duration of 1952 days.
Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type helps manage budget certainty.

Sector Analysis

The construction of power and communication infrastructure, including specialized systems like cogeneration, falls within the broader construction and engineering services sector. This contract represents a significant investment in facility modernization and energy resilience for a key healthcare provider. Comparable spending benchmarks would involve looking at other large-scale infrastructure upgrades at federal facilities, particularly within the Department of Veterans Affairs, which often requires specialized systems to support healthcare operations.

Small Business Impact

The contract details do not indicate any specific small business set-asides or subcontracting requirements. Given the nature and scale of the project, it is possible that larger firms were the primary bidders, though they may have utilized small businesses for specific components or labor. Further analysis of subcontracting reports would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for the oversight of this contract. As a definitive contract awarded through full and open competition, it is subject to standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

VA Facility Modernization Projects
Federal Energy Infrastructure Contracts
Cogeneration System Installations
Power and Communication Line Construction

Risk Flags

Project Complexity
Infrastructure Integration
Fixed-Price Contract Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.7 million to DEMARIA BUILDING COMPANY, INC.. TAS::36 0158:: TAS CONSTRUCT A COGEN SYSTEM AT TOGUS VAMC.

Who is the contractor on this award?

The obligated recipient is DEMARIA BUILDING 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 $16.7 million.

What is the period of performance?

Start: 2010-05-27. End: 2015-09-30.

What was the specific performance of Demaria Building Company, Inc. on this contract?

The contract was completed within its planned duration of 1952 days, which is a positive indicator of performance. As a firm-fixed-price contract, the primary measure of success would be the delivery of the specified cogeneration system according to the contract's technical requirements and quality standards by the end date. While the data indicates successful completion, a deeper dive into performance would require reviewing contract close-out documentation, any modifications, and potentially user feedback from the Togus VAMC regarding the system's functionality and reliability post-installation.

How does the $16.7 million award compare to similar cogeneration system projects?

Benchmarking the $16.7 million award requires comparing it to similar-sized cogeneration system installations at federal facilities, particularly healthcare institutions. Factors influencing cost include system capacity (kW/MW), technology type, site-specific installation challenges, and prevailing market rates for labor and materials at the time of award (2010). Without access to a database of comparable projects with detailed specifications and costs, a precise comparison is difficult. However, for a VAMC, a facility with significant and consistent energy demands, this investment in energy resilience and potential cost savings through cogeneration appears to be a substantial undertaking.

What were the primary risks associated with this contract, and how were they managed?

Key risks for a construction project of this nature include potential construction delays due to unforeseen site conditions, integration issues with existing facility infrastructure, and fluctuations in material costs. The firm-fixed-price contract structure helped mitigate financial risk for the government by locking in the price. The contractor, Demaria Building Company, Inc., would have borne the primary risk for cost overruns. Successful completion within the planned duration suggests effective risk management by the contractor, likely involving detailed planning, contingency measures, and proactive problem-solving throughout the project lifecycle.

What is the historical spending pattern for cogeneration systems by the Department of Veterans Affairs?

Analyzing the historical spending pattern for cogeneration systems by the VA would involve examining contract awards over several fiscal years. This specific $16.7 million contract from 2010 represents a significant investment. To understand the pattern, one would need to aggregate data on similar projects, noting the frequency, average cost, and types of facilities receiving these systems. The VA's focus on energy efficiency and resilience suggests that investments in cogeneration are likely part of a broader strategy, and this contract fits within that context, though the overall frequency and scale of such investments would require a broader data analysis.

Were there any contract modifications or change orders that significantly impacted the final cost or scope?

The provided data does not detail any contract modifications or change orders. A definitive contract awarded through full and open competition with a firm-fixed-price structure typically aims to minimize changes after award. However, complex construction projects can sometimes necessitate modifications due to unforeseen circumstances or scope adjustments. To ascertain if the final cost or scope deviated from the original plan, a review of the contract's official modification history, if available in a more detailed database, would be necessary.

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-776-10-RA-0113

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3031 W GRAND BLVD STE 624, DETROIT, MI, 48202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,723,816

Exercised Options: $16,723,816

Current Obligation: $16,723,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline