VA awards $2.08M contract for seismic retrofitting at Marion VAMC, with 5 bidders competing

Contract Overview

Contract Amount: $2,083,926 ($2.1M)

Contractor: Above Group Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-03

End Date: 2028-02-02

Contract Duration: 1,094 days

Daily Burn Rate: $1.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: A-E DESIGN AND CONSTRUCTION PERIOD SERVICES FOR PROJECT NUMBER 657-507, CORRECT SEISMIC DEFICIENCIES, BUILDING 14, VAMC MARION, ILLINOIS.

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to ABOVE GROUP INC. for work described as: A-E DESIGN AND CONSTRUCTION PERIOD SERVICES FOR PROJECT NUMBER 657-507, CORRECT SEISMIC DEFICIENCIES, BUILDING 14, VAMC MARION, ILLINOIS. Key points: 1. Contract aims to address seismic deficiencies in Building 14, enhancing facility safety. 2. Competition involved 5 bidders, suggesting a moderately competitive market for these specialized services. 3. The contract type is Firm Fixed Price, which transfers risk to the contractor. 4. Project duration is approximately 3 years, indicating a significant scope of work. 5. The awardee, ABOVE GROUP INC., will provide design and construction period services. 6. Geographic focus is on Marion, Illinois, impacting local infrastructure and potentially workforce.

Value Assessment

Rating: good

The contract value of $2.08 million for architectural and construction period services appears reasonable given the scope of seismic retrofitting for a federal facility. Benchmarking against similar VA projects for seismic upgrades or building renovations of comparable size and complexity would provide a more precise value assessment. The firm fixed-price nature of the contract helps control costs, but the final expenditure will depend on the contractor's efficiency and management of unforeseen issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means the agency initially considered all responsible sources but then excluded some based on specific criteria, or it was a limited competition. With 5 bidders, the competition level is moderate, suggesting that while multiple firms were interested and capable, the pool of highly specialized firms for this type of work might be limited. This level of competition generally allows for reasonable price discovery.

Taxpayer Impact: A moderate number of bidders indicates that taxpayers are likely receiving a fair price, as competition prevents excessive cost inflation. However, a broader competition could potentially yield even more competitive pricing.

Public Impact

Veterans receiving services at the Marion VAMC will benefit from improved safety and facility integrity. The project will ensure compliance with seismic safety standards for federal buildings. The geographic impact is localized to Marion, Illinois, potentially creating local employment opportunities during the construction phase. The services delivered include architectural design and construction period support, crucial for successful project execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen seismic issues arise during construction.
Dependence on the contractor's expertise to accurately assess and mitigate complex seismic deficiencies.
Risk of schedule delays if design or construction encounters unexpected challenges.

Positive Signals

Firm Fixed Price contract structure shifts cost risk to the contractor.
Inclusion of construction period services ensures contractor involvement throughout the build phase.
Award to a single entity streamlines communication and project management.

Sector Analysis

This contract falls within the Architectural Services (NAICS 541310) and Construction services sector. The market for specialized seismic retrofitting and architectural design for federal facilities is competitive, with a mix of large engineering firms and smaller, specialized architectural practices. The Department of Veterans Affairs is a significant client in this sector, frequently undertaking infrastructure upgrades and renovations across its network of medical centers.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, ABOVE GROUP INC., is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. This suggests that the primary focus was on securing specialized expertise, and the impact on the small business ecosystem for this specific contract may be limited unless the prime contractor engages them.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs project managers and contracting officers. The contract includes construction period services, which inherently involves the contractor's presence and oversight during the construction phase. Transparency is generally maintained through federal contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facility Modernization Projects
Federal Building Seismic Retrofitting
Architectural and Engineering Services for Government Facilities
Infrastructure Improvement Contracts

Risk Flags

Potential for unforeseen conditions impacting scope and cost.
Contractor performance risk related to specialized seismic expertise.
Schedule adherence challenges due to complexity of retrofitting work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to ABOVE GROUP INC.. A-E DESIGN AND CONSTRUCTION PERIOD SERVICES FOR PROJECT NUMBER 657-507, CORRECT SEISMIC DEFICIENCIES, BUILDING 14, VAMC MARION, ILLINOIS.

Who is the contractor on this award?

The obligated recipient is ABOVE GROUP 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 $2.1 million.

What is the period of performance?

Start: 2025-02-03. End: 2028-02-02.

What is the track record of ABOVE GROUP INC. with the Department of Veterans Affairs?

A review of federal procurement data indicates that ABOVE GROUP INC. has received multiple contracts from various federal agencies, including the Department of Veterans Affairs. Specific details on their performance history with the VA, including past project successes, any disputes, or performance ratings, would require a deeper dive into contract performance reports and agency penilaian systems. However, their ability to win this contract suggests they have met the VA's requirements for technical capability and past performance in relevant service areas.

How does the $2.08 million cost compare to similar seismic retrofitting projects?

Benchmarking the $2.08 million cost requires comparing it to similar seismic retrofitting projects for federal buildings of comparable size, age, and complexity. Projects involving structural retrofitting, especially for seismic deficiencies, can vary significantly based on the specific building's condition, the required level of seismic resilience, and local construction costs. Without specific data on comparable projects, it's challenging to definitively state if this cost is high or low. However, the firm fixed-price nature and the competitive bidding process suggest an effort to control costs.

What are the primary risks associated with this seismic retrofitting contract?

The primary risks associated with this contract include unforeseen conditions discovered during the seismic assessment and retrofitting process, which could lead to scope changes and cost increases. Contractor performance risk is also present, relating to the quality of design and construction, and adherence to schedule. Schedule delays could arise from complex construction, permitting issues, or coordination challenges. Finally, there's a risk of inadequate seismic analysis or design, potentially compromising the building's long-term safety.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of specialized service?

The 'Full and Open Competition After Exclusion of Sources' method, as described, can be effective for specialized services like seismic retrofitting when the agency has a clear understanding of the required expertise and can identify a reasonable number of capable contractors. While it aims for broad competition, the 'exclusion of sources' aspect might limit the pool if not applied judiciously. With 5 bidders, it suggests a sufficient level of competition was achieved, likely balancing the need for specialized skills with competitive pricing.

What is the historical spending trend for architectural and construction services at VAMC Marion?

Analyzing historical spending trends for architectural and construction services specifically at VAMC Marion would require access to historical contract data for that particular facility. This contract represents a significant investment in facility infrastructure. Without prior data, it's difficult to establish a trend. However, federal agencies like the VA often have cyclical needs for facility maintenance, upgrades, and repairs, which can lead to fluctuating spending patterns based on budget allocations and identified needs.

What are the implications of a 1094-day duration for this project?

A duration of 1094 days, approximately three years, indicates a substantial and complex project. This timeframe suggests that the seismic retrofitting involves significant structural work, potentially encompassing design, permitting, phased construction, and final inspections. A longer duration can sometimes mitigate risks by allowing for more thorough planning and execution, but it also increases the potential for cost escalation due to inflation or extended overhead. It implies a comprehensive approach to addressing the seismic deficiencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C10F24R50050

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 305 EAST DR, MELBOURNE, FL, 32904

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,083,926

Exercised Options: $2,083,926

Current Obligation: $2,083,926

Actual Outlays: $1,562,746

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline