VA Boiler Plant Replacement in Battle Creek Costs $20.7M, Awarded to Demaria Building Company
Contract Overview
Contract Amount: $20,695,841 ($20.7M)
Contractor: Demaria Building Company, Inc.
Awarding Agency: Department of Defense
Start Date: 2009-09-16
End Date: 2014-08-30
Contract Duration: 1,809 days
Daily Burn Rate: $11.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN
Place of Performance
Location: BATTLE CREEK, CALHOUN County, MICHIGAN, 49037
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $20.7 million to DEMARIA BUILDING COMPANY, INC. for work described as: BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN Key points: 1. The project, valued at $20.7 million, involved replacing a boiler plant at the Battle Creek VA Medical Center. 2. Awarded to Demaria Building Company, Inc., the contract was secured through full and open competition. 3. The project duration was 1809 days, indicating a significant, long-term infrastructure undertaking. 4. The contract type was Firm Fixed Price, providing cost certainty for the government.
Value Assessment
Rating: fair
The final cost of $20.7 million appears reasonable for a major infrastructure project of this scale. Benchmarking against similar VA medical center infrastructure upgrades would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields 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 promotes market competition and can lead to lower overall costs.
Public Impact
Ensures continued operation of essential medical services by maintaining critical infrastructure. Supports local employment and economic activity in Battle Creek, Michigan, through construction and related services. Addresses aging infrastructure needs within the VA system, potentially improving energy efficiency and reliability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration significantly exceeded typical construction timelines.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
This project falls within the construction and facilities maintenance sector, specifically related to industrial building systems. Spending benchmarks for similar VA infrastructure projects would be relevant for comparison.
Small Business Impact
The provided data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Further investigation would be needed to determine if subcontracting opportunities were offered or utilized.
Oversight & Accountability
The Department of Defense, through the Department of the Army, managed this contract. Standard oversight procedures for federal construction projects would apply, including monitoring progress, quality, and adherence to contract terms.
Related Government Programs
- Plumbing, Heating, and Air-Conditioning Contractors
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended project duration.
- No apparent small business participation.
- Potential for unforeseen site conditions in aging facilities.
- Coordination challenges with an active medical center.
Tags
plumbing-heating-and-air-conditioning-co, department-of-defense, mi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.7 million to DEMARIA BUILDING COMPANY, INC.. BOILER PLANT REPLACEMENT PROJECT, VETERANS ADMINISTRATION MEDICAL CENTER IN BATTLE CREEK, MICHIGAN
Who is the contractor on this award?
The obligated recipient is DEMARIA BUILDING COMPANY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2009-09-16. End: 2014-08-30.
What was the primary driver for the extended project duration of 1809 days?
The extended duration of 1809 days (nearly 5 years) for the boiler plant replacement project is a significant factor. Potential reasons could include unforeseen site conditions, design changes, contractor performance issues, or phased implementation to maintain facility operations. A detailed review of project milestones and change orders would be necessary to pinpoint the exact causes.
Were there any specific challenges or risks encountered during the project that impacted cost or schedule?
Given the project's scale and duration, it's probable that challenges such as unexpected structural issues, material availability delays, or coordination with ongoing medical center operations arose. The firm fixed price contract suggests the contractor bore the risk of cost overruns, but significant delays could still impact the government's operational continuity and potentially lead to change requests if scope was affected.
How does the final cost compare to the initial bid or estimated cost for this type of project?
The final cost of $20.7 million needs to be compared against the initial bid or government estimate to assess value. While the 'br' (bid range) is listed as 11440, this likely represents a different metric. A direct comparison of the awarded amount to pre-bid estimates or the number of bids received would clarify if the final price was competitive and represented good value for the taxpayer.
Industry Classification
NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911XK09R0010
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 45500 GRAND RIVER AVE, NOVI, MI, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $20,695,841
Exercised Options: $20,695,841
Current Obligation: $20,695,841
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-16
Current End Date: 2014-08-30
Potential End Date: 2014-08-30 00:00:00
Last Modified: 2014-09-16
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