VA awards $15M parking structure contract to FDCD Joint Venture, with 6 bidders competing

Contract Overview

Contract Amount: $14,975,103 ($15.0M)

Contractor: Fdcd Joint Venture

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-23

End Date: 2025-10-31

Contract Duration: 1,561 days

Daily Burn Rate: $9.6K/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: CONSTRUCT PARKING STRUCTURE AT THE WILKES-BARRE, PA VA MEDICAL CENTER.

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.0 million to FDCD JOINT VENTURE for work described as: CONSTRUCT PARKING STRUCTURE AT THE WILKES-BARRE, PA VA MEDICAL CENTER. Key points: 1. The contract value appears reasonable for a construction project of this scale and complexity. 2. Full and open competition after exclusion of sources suggests a deliberate effort to ensure broad market engagement. 3. The number of bidders (6) indicates a healthy level of interest and potential for competitive pricing. 4. The project's performance context is tied to improving infrastructure at the Wilkes-Barre VA Medical Center. 5. This contract falls within the broader sector of commercial and institutional building construction. 6. The firm-fixed-price contract type shifts risk to the contractor, which can be beneficial for budget certainty.

Value Assessment

Rating: good

The contract value of approximately $15 million for constructing a parking structure at a VA medical center is within a typical range for such projects. Benchmarking against similar federal or commercial construction projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract suggests that the pricing was determined upfront, with the contractor bearing the cost overruns. This structure, when well-defined, can lead to predictable costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This solicitation method indicates that while the competition was intended to be broad, certain pre-qualification criteria or specific exclusions were applied, potentially narrowing the field of eligible bidders. With 6 bidders participating, the competition level appears adequate, suggesting that multiple firms were capable of undertaking the project and that price discovery was likely influenced by these bids. However, the 'exclusion of sources' aspect warrants further examination to understand its rationale and potential impact on the breadth of competition.

Taxpayer Impact: The level of competition, with 6 bidders, suggests that taxpayers likely benefited from competitive pricing. The exclusion of certain sources, if justified and not overly restrictive, should not significantly disadvantage taxpayers. However, a more open competition might have yielded even more competitive bids.

Public Impact

Veterans and staff at the Wilkes-Barre VA Medical Center will benefit from improved parking facilities. The project delivers essential infrastructure development for a key healthcare facility. The geographic impact is localized to Wilkes-Barre, Pennsylvania. The construction phase will likely create temporary employment opportunities in the local area. The completed parking structure will enhance the operational efficiency of the medical center.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'exclusion of sources' limited the most competitive bidders.
Scope creep could increase costs beyond the initial $15 million if not managed tightly.
Delays in construction could impact the operational readiness of the VA facility.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Multiple bidders (6) indicate a competitive environment for this project.
Project addresses a clear infrastructure need at a VA medical center.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area often supports critical infrastructure for government facilities, including healthcare, education, and administrative buildings. The market for such construction is characterized by a mix of large general contractors and specialized subcontractors. The value of this contract, approximately $15 million, is moderate for a federal construction project, fitting within the typical range for specialized facility improvements.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'small business set-aside' field is false. There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or reporting requirements, the direct impact on the small business ecosystem for this particular project is likely limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring the contractor meets the defined scope, schedule, and quality standards. Transparency is generally maintained through contract award databases and reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Department of Veterans Affairs Capital Investments
Commercial Construction Contracts
Parking Facility Development

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of construction delays impacting facility operations.
Ensuring quality of materials and workmanship under a fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.0 million to FDCD JOINT VENTURE. CONSTRUCT PARKING STRUCTURE AT THE WILKES-BARRE, PA VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is FDCD JOINT VENTURE.

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 $15.0 million.

What is the period of performance?

Start: 2021-07-23. End: 2025-10-31.

What is the track record of FDCD JOINT VENTURE in completing federal construction projects of similar scope and value?

Information on the specific track record of 'FDCD JOINT VENTURE' for federal projects of similar scope and value is not directly provided in the data. A thorough assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for this entity on previous government contracts. This would include examining their history of on-time delivery, adherence to budget, quality of work, and overall client satisfaction. Without this specific performance data, it is difficult to definitively assess their capability and reliability for this $15 million parking structure project.

How does the awarded price of $15 million compare to industry benchmarks for constructing parking structures of this size?

The awarded price of $15 million for a parking structure at a VA medical center requires comparison with industry benchmarks based on factors like square footage, number of parking spaces, materials used, and site complexity. General industry data suggests that parking structure construction costs can range significantly, often from $20,000 to $50,000 per parking space, or by square foot costs from $30 to $70+. To accurately benchmark this $15 million contract, one would need to know the specific capacity and dimensions of the structure. If this structure accommodates, for example, 300-500 vehicles, the per-space cost would fall within or potentially slightly above the mid-range of typical estimates, suggesting a fair, but not necessarily exceptionally low, price point, especially considering potential site-specific challenges at a medical center.

What are the primary risks associated with this firm-fixed-price contract, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to protect their profit margin if costs exceed estimates. For this parking structure project, risks include potential delays impacting VA operations, subpar construction materials or techniques, and unforeseen site conditions not fully accounted for in the initial bid. Mitigation strategies employed by the government typically involve rigorous contract oversight, detailed specifications, quality assurance inspections throughout the construction process, and clear performance milestones. The government also relies on the contractor's reputation and the competitive bidding process to ensure they have priced the contract realistically and intend to deliver quality work to secure future business.

What is the expected impact of this parking structure on the operational effectiveness of the Wilkes-Barre VA Medical Center?

The construction of a new parking structure is expected to significantly enhance the operational effectiveness of the Wilkes-Barre VA Medical Center by alleviating current parking shortages. Improved accessibility for veterans seeking appointments, easier access for staff, and potentially dedicated spaces for emergency vehicles or specific patient needs can streamline daily operations. Reduced time spent searching for parking can improve patient satisfaction and punctuality for appointments. Furthermore, a well-designed and adequate parking facility contributes to the overall professional image and functionality of the medical center, supporting its mission to provide timely and efficient healthcare services.

How does historical spending on similar construction projects by the Department of Veterans Affairs compare to this contract's value?

Historical spending data on similar construction projects by the Department of Veterans Affairs (VA) is crucial for context. The VA frequently undertakes infrastructure projects, including facility expansions and renovations. While the $15 million value of this parking structure contract is substantial, it is not uncommon for the VA's capital construction budget. For instance, major hospital wing constructions or new medical facility builds can range from tens to hundreds of millions of dollars. Smaller projects like parking garages, clinics, or specialized building upgrades typically fall within the multi-million dollar range. Comparing this $15 million award to the VA's portfolio of past parking structure or similar-sized building projects would reveal if it aligns with historical spending patterns for comparable undertakings.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: 36C24420R0075

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 E 4TH ST STE 308, BRIDGEPORT, PA, 19405

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: $14,975,103

Exercised Options: $14,975,103

Current Obligation: $14,975,103

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $8,289,007

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline