VA awards $29M design-build construction contract to G&C FAB-CON, LLC in Florida

Contract Overview

Contract Amount: $28,968,180 ($29.0M)

Contractor: G&C Fab-Con, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-13

End Date: 2024-12-11

Contract Duration: 2,281 days

Daily Burn Rate: $12.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SOUTH FLORIDA DESIGN-BUILD CONSTRUCTION

Place of Performance

Location: LAKE WORTH, PALM BEACH County, FLORIDA, 33467

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.0 million to G&C FAB-CON, LLC for work described as: SOUTH FLORIDA DESIGN-BUILD CONSTRUCTION Key points: 1. Contract value of $29M for design-build construction services. 2. Awarded by the Department of Veterans Affairs. 3. Contract duration extends over 2281 days. 4. Firm Fixed Price contract type indicates cost certainty. 5. Competition was full and open after exclusion of sources. 6. Performance is located in Florida. 7. The contract falls under 'Other Heavy and Civil Engineering Construction'.

Value Assessment

Rating: fair

The contract value of $29 million for heavy and civil engineering construction appears to be within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale federal construction projects would provide a more precise value-for-money assessment. The firm fixed price contract type suggests that the government has secured a predictable cost, which is a positive indicator for financial management. However, without detailed cost breakdowns or comparisons to private sector projects of equivalent complexity, a definitive assessment of exceptional value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while the competition was intended to be broad, certain sources were initially excluded before the final award. The presence of 7 bidders suggests a healthy level of interest and competition for this project. This competitive process is generally expected to drive prices towards market rates and encourage efficient service delivery.

Taxpayer Impact: The competitive bidding process, even with initial source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. Multiple bidders increase the likelihood of obtaining a fair market price.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive design-build construction services. The services delivered will involve heavy and civil engineering construction, likely for infrastructure improvements or new facilities. The geographic impact is concentrated in Florida, specifically within the state. The contract may have implications for the construction workforce in Florida, potentially creating jobs and demand for skilled labor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended contract duration.
Risk associated with the 'exclusion of sources' clause, which could limit the pool of qualified bidders.
Ensuring timely completion and quality of work over a multi-year project requires robust oversight.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Multiple bidders (7) indicate a competitive environment.
The contract is for a critical need within the VA's infrastructure.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, which encompasses a wide range of infrastructure projects such as roads, bridges, utilities, and other large-scale public works. The federal government is a significant investor in this sector, often awarding large contracts for facility construction and maintenance. Comparable spending benchmarks would involve analyzing other large federal construction contracts awarded by agencies like the Army Corps of Engineers or the General Services Administration for similar types of projects.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the contract was not specifically targeted towards small businesses, and their involvement would likely depend on G&C FAB-CON, LLC's subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures would be tied to the contract's performance clauses, milestones, and final delivery. Transparency is generally facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings Fund
Military Construction

Risk Flags

Long contract duration may increase risk of cost escalation and scope creep.
Competition method ('after exclusion of sources') warrants scrutiny to ensure fairness and breadth.
Performance history of the contractor needs to be thoroughly vetted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.0 million to G&C FAB-CON, LLC. SOUTH FLORIDA DESIGN-BUILD CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is G&C FAB-CON, 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 $29.0 million.

What is the period of performance?

Start: 2018-09-13. End: 2024-12-11.

What is the track record of G&C FAB-CON, LLC with federal contracts, particularly with the Department of Veterans Affairs?

A thorough review of G&C FAB-CON, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance on similar construction projects, including their timeliness, adherence to budget, and quality of work. Specifically, looking at their history with the Department of Veterans Affairs would reveal their experience with the agency's specific requirements and processes. Data from contract databases can highlight any past issues, awards for exceptional performance, or patterns of delays and cost overruns. Understanding their past performance is crucial for evaluating the risk associated with this current $29 million award.

How does the $29 million contract value compare to similar heavy and civil engineering construction projects awarded by the VA or other federal agencies?

To benchmark the $29 million contract value, one would compare it against similar heavy and civil engineering construction projects awarded by the Department of Veterans Affairs and other federal agencies over the past few years. This comparison should consider project scope, complexity, location, and duration. For instance, projects involving hospital expansions, new facility construction, or significant infrastructure upgrades would be relevant. Analyzing the average cost per square foot or per unit of work (e.g., per mile of road, per bridge span) for comparable projects can reveal whether this contract represents a fair market price or if it appears unusually high or low. This analysis helps determine the value for money received by the government.

What are the primary risks associated with a definitive contract of this duration (2281 days)?

A definitive contract spanning 2281 days (over 6 years) carries several inherent risks. Firstly, the extended timeline increases the potential for scope creep, where project requirements may evolve, leading to change orders and cost increases. Secondly, market conditions, such as material costs and labor availability, can fluctuate significantly over such a long period, potentially impacting the contractor's profitability and the government's final cost if not adequately managed through contract clauses. Thirdly, maintaining consistent oversight and quality control over an extended duration requires sustained effort and resources from the contracting agency. Finally, there's a risk of contractor performance degradation or key personnel turnover, which could affect project continuity and success.

What is the expected effectiveness of this contract in meeting the VA's infrastructure needs in Florida?

The effectiveness of this contract hinges on several factors, including the clarity of the design-build specifications, the contractor's ability to execute the project efficiently, and the VA's oversight. If the project successfully delivers the intended infrastructure improvements or facilities on time and within budget, it will be highly effective in meeting the VA's needs. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' with 7 bidders suggests a competitive environment that should drive quality and efficiency. However, the long duration necessitates robust project management to ensure the final product aligns with the VA's evolving operational requirements and standards.

How has federal spending in 'Other Heavy and Civil Engineering Construction' by the Department of Veterans Affairs trended in recent years?

Analyzing recent federal spending trends in 'Other Heavy and Civil Engineering Construction' by the Department of Veterans Affairs would provide context for this $29 million award. This would involve examining historical data to identify patterns in contract awards, total spending, and the types of projects undertaken. For example, has the VA increased or decreased its investment in infrastructure projects? Are there specific regions or types of construction that have seen more significant funding? Understanding these trends can help assess whether this contract is part of a larger strategic investment or an isolated initiative, and it can inform future budget planning and resource allocation for the VA's capital infrastructure.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering 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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA101-17-R-0255

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5 FOSTER LANE, FLEMINGTON, NJ, 08822

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, 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: $28,968,180

Exercised Options: $28,968,180

Current Obligation: $28,968,180

Actual Outlays: $6,621,272

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline