VA awards $6.2M for building renovations, with 8 bidders vying for the contract

Contract Overview

Contract Amount: $6,208,787 ($6.2M)

Contractor: Veteran Design & Construction Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-04-17

End Date: 2026-09-30

Contract Duration: 2,723 days

Daily Burn Rate: $2.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RENOVATE BUILDING 1 GROUND FLOOR EAST AND 3RD FLOOR

Place of Performance

Location: COATESVILLE, CHESTER County, PENNSYLVANIA, 19320

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.2 million to VETERAN DESIGN & CONSTRUCTION INC for work described as: IGF::OT::IGF RENOVATE BUILDING 1 GROUND FLOOR EAST AND 3RD FLOOR Key points: 1. The contract value appears reasonable given the scope of building renovations. 2. Strong competition suggests potential for competitive pricing. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. The contract duration is substantial, indicating a complex project. 5. This contract falls within the broad category of commercial and institutional building construction. 6. The award to Veteran Design & Construction Inc. warrants a review of their past performance.

Value Assessment

Rating: good

The contract value of $6.2 million for building renovations seems within a reasonable range for a project of this nature, especially considering the multi-year duration. Benchmarking against similar renovation projects for federal facilities would provide a more precise assessment of value for money. The firm fixed-price structure is generally favorable for the government, as it shifts cost overrun risks to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. With 8 bidders participating, there was a healthy level of competition, which typically drives down prices and encourages better quality. This suggests the government had a good opportunity to secure a competitive price.

Taxpayer Impact: The high number of bidders for this contract is beneficial for taxpayers, as it increases the likelihood of receiving the best possible value and encourages contractors to submit competitive offers.

Public Impact

Veterans and staff at the Department of Veterans Affairs facility in Pennsylvania will benefit from improved infrastructure. The contract will deliver essential renovations to the ground floor east and third floor of a VA building. The geographic impact is localized to the specific VA facility in Pennsylvania. The contract will likely support jobs in the construction sector within Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the long contract duration and complexity of renovations.
Ensuring the quality of work meets VA standards throughout the project lifecycle.

Positive Signals

Firm fixed-price contract limits financial risk for the government.
Strong competition among 8 bidders suggests a competitive market for this type of work.
The contract is awarded to a company with 'Veteran' in its name, potentially aligning with VA's mission.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. Federal spending in this area supports infrastructure improvements across various agencies. Comparable spending benchmarks would involve analyzing other large-scale renovation or construction contracts awarded by the VA or other federal agencies for similar facility types.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While there is no explicit mention of subcontracting goals, large construction contracts often include provisions for small business participation. Further investigation into the subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed budget. Transparency can be assessed through publicly available contract award data and performance reports, if published.

Related Government Programs

VA Facility Renovations
Federal Building Construction
Commercial Construction Contracts
Infrastructure Improvement Projects

Risk Flags

Contract Duration
Scope Management
Quality Assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.2 million to VETERAN DESIGN & CONSTRUCTION INC. IGF::OT::IGF RENOVATE BUILDING 1 GROUND FLOOR EAST AND 3RD FLOOR

Who is the contractor on this award?

The obligated recipient is VETERAN DESIGN & CONSTRUCTION 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 $6.2 million.

What is the period of performance?

Start: 2019-04-17. End: 2026-09-30.

What is the track record of Veteran Design & Construction Inc. on similar federal contracts?

A review of Veteran Design & Construction Inc.'s past performance on federal contracts is crucial to assess their capability and reliability for this project. This would involve examining contract completion history, any past performance issues or disputes, and client feedback. Understanding their experience with similar-sized renovation projects, particularly within government facilities, would provide valuable insight into their suitability. Data on their on-time and on-budget performance for previous contracts would also be a key indicator of their track record.

How does the awarded price compare to similar VA building renovation projects?

To benchmark the value for money, the awarded price of $6.2 million should be compared against similar building renovation contracts undertaken by the Department of Veterans Affairs or other federal agencies. Factors to consider in the comparison include the square footage renovated, the complexity of the work (e.g., structural, MEP, finishes), the location, and the time of award. Without specific comparable data, it is difficult to definitively state if this contract represents excellent or fair value, but the competitive bidding process suggests a reasonable outcome.

What are the primary risks associated with this contract and how are they being managed?

The primary risks associated with this contract include potential project delays due to unforeseen site conditions or contractor performance issues, and the risk of scope creep if not managed tightly. The firm fixed-price contract structure mitigates financial risk for the government regarding cost overruns. Management of these risks likely involves robust project oversight by the VA, clear communication channels with the contractor, and adherence to the contract's defined scope and schedule. The long duration also presents a risk of material price fluctuations, though the fixed price contract places this burden on the contractor.

How effective is the firm fixed-price contract type in ensuring project success for this renovation?

The firm fixed-price (FFP) contract type is generally effective in ensuring project success for renovations like this by providing cost certainty to the government. It incentivizes the contractor to manage costs efficiently and complete the work within the agreed budget. However, FFP contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen, or may result in higher initial bids to account for contractor risk. For this VA renovation, the FFP structure is a positive indicator for taxpayer protection against cost overruns, provided that quality assurance measures are rigorously applied.

What is the historical spending pattern for building renovations at this specific VA facility or within this region?

Analyzing historical spending patterns for building renovations at this specific VA facility or within the Pennsylvania region would provide context for the $6.2 million award. This involves examining past contracts for similar work, their values, durations, and the contractors involved. Understanding if this represents a typical investment, a significant increase, or a decrease in renovation spending can help assess the current contract's scale and necessity. It also helps identify any trends in contracting or potential areas for cost savings in future projects.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24419B0007

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5523 RESEARCH PARK DR STE 110, BALTIMORE, MD, 21228

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: $6,208,787

Exercised Options: $6,208,787

Current Obligation: $6,208,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline