VA awards $6.1M lab construction contract to Ameritech Contracting LLC, emphasizing firm fixed price

Contract Overview

Contract Amount: $6,132,526 ($6.1M)

Contractor: Ameritech Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-05

End Date: 2026-04-18

Contract Duration: 529 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 603-23-133 THIRD FLOOR LAB CONSTRUCTION

Place of Performance

Location: MANCHESTER, HILLSBOROUGH County, NEW HAMPSHIRE, 03104

State: New Hampshire Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.1 million to AMERITECH CONTRACTING LLC for work described as: 603-23-133 THIRD FLOOR LAB CONSTRUCTION Key points: 1. Contract awarded using full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The firm-fixed-price structure shifts cost risk to the contractor, potentially stabilizing project expenses. 3. A 529-day performance period suggests a moderately complex construction project. 4. The contract is for third-floor lab construction, a specialized facility requiring specific expertise. 5. Ameritech Contracting LLC is the sole awardee, highlighting their specific qualifications for this project. 6. The project is located in New Hampshire, potentially benefiting the local construction economy.

Value Assessment

Rating: good

The contract value of $6.1 million for third-floor lab construction appears reasonable given the 529-day performance period. Without specific benchmarks for similar lab construction projects within the VA or comparable agencies, a precise value-for-money assessment is challenging. However, the firm-fixed-price (FFP) contract type is generally favorable for cost control, as it places the financial risk on the contractor. The absence of small business set-aside indicates the competition was likely focused on technical capability and price from a broader pool of eligible contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'full and open competition after exclusion of sources.' This implies that while the competition was intended to be broad, certain sources were excluded, possibly due to specific pre-qualification requirements or a previous limited solicitation. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a more targeted approach than a completely unrestricted full and open competition. This method aims to balance competition with ensuring the most qualified contractors are considered.

Taxpayer Impact: The 'exclusion of sources' approach, while still competitive, may limit the number of potential bidders compared to a completely open solicitation. This could potentially impact the aggressiveness of pricing, though the firm-fixed-price structure should still incentivize cost efficiency from the selected contractor.

Public Impact

The Department of Veterans Affairs will benefit from the upgraded laboratory facilities, potentially improving research or diagnostic capabilities. The contract delivers construction services for a specialized third-floor laboratory space. The project's geographic impact is concentrated in New Hampshire, supporting local construction jobs and businesses. The construction workforce in New Hampshire will be engaged for the duration of the 529-day project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction complexities arise, despite the FFP structure.
Dependence on a single contractor (Ameritech Contracting LLC) for a critical facility upgrade.
The 'exclusion of sources' aspect warrants scrutiny to ensure it did not unduly limit competition.
Project timeline could be impacted by supply chain issues or labor availability in the construction sector.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
The contract is for a specific, specialized need (lab construction), suggesting a well-defined scope.
Awarded by the Department of Veterans Affairs, indicating a focus on supporting veteran healthcare infrastructure.
The project duration of 529 days allows for a structured and thorough construction process.

Sector Analysis

The commercial and institutional building construction sector is a significant part of the U.S. economy. This contract falls within the specialized niche of constructing or renovating laboratory spaces, which often require specific environmental controls, safety features, and utility infrastructure. Comparable spending benchmarks for laboratory construction can vary widely based on size, complexity, and location. The $6.1 million award for a third-floor lab suggests a mid-sized project within this specialized construction domain.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'ss': false and 'sb': false. The award to Ameritech Contracting LLC, without specific size information provided, suggests it may be a larger entity or that the competition was not restricted by size. There is no explicit mention of subcontracting requirements for small businesses within the provided data, which could mean opportunities for small businesses are limited or not mandated by this specific contract. Further analysis would be needed to determine if subcontracting plans are part of the award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and project management officials. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is facilitated by the contract's public availability through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance or closeout.

Related Government Programs

VA Facilities Construction
Medical Facility Renovation
Laboratory Infrastructure Projects
General Building Construction Services

Risk Flags

Limited Competition Potential
Contractor Performance History Unknown
Scope Creep Risk
Supply Chain Disruptions

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.1 million to AMERITECH CONTRACTING LLC. 603-23-133 THIRD FLOOR LAB CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is AMERITECH CONTRACTING 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 $6.1 million.

What is the period of performance?

Start: 2024-11-05. End: 2026-04-18.

What is the track record of Ameritech Contracting LLC with the Department of Veterans Affairs and in similar lab construction projects?

Assessing the track record of Ameritech Contracting LLC is crucial for understanding their reliability and past performance. A review of federal procurement databases (like SAM.gov or FPDS) would reveal their contract history with the VA and other agencies. Specifically, looking for prior awards for laboratory construction, renovations, or projects of similar scale and complexity would provide insight into their capabilities. Performance evaluations from previous contracts, if available, would highlight their adherence to schedule, budget, quality standards, and overall client satisfaction. Without this specific historical data, it's difficult to definitively assess their suitability beyond the current award.

How does the $6.1 million cost compare to similar third-floor lab construction projects within the VA or other federal agencies?

Benchmarking the $6.1 million cost against similar projects is essential for evaluating value for money. This would involve identifying comparable VA or other federal agency contracts for laboratory construction, particularly those involving renovations or additions to existing facilities, and considering factors like square footage, complexity of required systems (e.g., HVAC, specialized plumbing, electrical), and geographic location. Data from sources like the General Services Administration (GSA) or construction industry cost databases could provide market rates. A higher cost relative to benchmarks might indicate potential overpricing or unique project challenges, while a lower cost could suggest favorable pricing or efficient execution.

What are the specific risks associated with constructing a third-floor laboratory, and how are they mitigated by this contract?

Constructing a third-floor laboratory presents several risks, including structural integrity concerns, logistical challenges of material transport to an upper floor, potential disruption to existing operations on other floors, and the need for specialized environmental and safety systems. The firm-fixed-price (FFP) contract structure mitigates financial risk for the VA by capping the total cost, shifting cost overrun responsibility to Ameritech Contracting LLC. However, risks related to quality, schedule delays, or unforeseen site conditions remain. The VA's oversight, detailed project specifications, and Ameritech's own risk management protocols are key to mitigating these non-financial risks.

What is the expected impact of this lab construction on the VA's research or healthcare delivery capabilities?

The impact of this lab construction on the VA's capabilities depends heavily on the intended function of the new laboratory space. If it's for research, it could lead to advancements in medical understanding, development of new treatments, or improved diagnostic techniques for veterans. If it's for clinical diagnostics, it could enhance the speed and accuracy of tests, leading to quicker diagnoses and more effective patient care. The specific type of lab (e.g., pathology, microbiology, genetics) will determine the precise benefits. Ultimately, this investment aims to bolster the VA's capacity to serve veterans' health needs through improved infrastructure.

How has federal spending on laboratory construction and renovation evolved over the past five years, and where does this contract fit in?

Analyzing federal spending trends in laboratory construction and renovation over the past five years would provide context for this $6.1 million award. This would involve examining aggregate spending data from agencies like the VA, NIH, DoD, and others involved in scientific research and healthcare. An increasing trend might indicate a strategic focus on upgrading aging facilities or expanding research capacity. A decreasing trend could suggest budget constraints or shifting priorities. This specific contract represents a single project within that broader landscape, and its significance would be assessed relative to the overall historical spending patterns and the VA's specific capital investment strategies.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24124B0052

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 151 BROAD ST, MIDDLETOWN, CT, 06457

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $6,132,526

Exercised Options: $6,132,526

Current Obligation: $6,132,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline