VA Awards $5.26M Audiology/Pharmacy Construction to Senate Builders, Full & Open Competition

Contract Overview

Contract Amount: $5,261,262 ($5.3M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-11-10

End Date: 2026-01-09

Contract Duration: 1,521 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MOVE AUDIOLOGY AND PHARMACY CONSTRUCTION PROJECT 503-18-104

Place of Performance

Location: ALTOONA, BLAIR County, PENNSYLVANIA, 16602

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.3 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: MOVE AUDIOLOGY AND PHARMACY CONSTRUCTION PROJECT 503-18-104 Key points: 1. The contract value of $5.26M is within a reasonable range for a project of this scope. 2. Senate Builders & Construction Managers, Inc. secured the award through full and open competition. 3. The project's duration of 1521 days (approx. 4 years) suggests a complex undertaking with potential for cost overruns. 4. The sector is Commercial and Institutional Building Construction, a competitive but specialized field.

Value Assessment

Rating: good

The award price of $5.26M appears reasonable given the project's scope and duration. Benchmarking against similar VA construction projects would provide a more definitive assessment, but the use of full and open competition suggests a competitive pricing environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while multiple sources were considered, some were excluded. This method, combined with a firm-fixed-price contract, generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this significant construction project.

Public Impact

Veterans in Pennsylvania will benefit from improved audiology and pharmacy facilities. The project supports the Department of Veterans Affairs' infrastructure modernization efforts. Local economic activity may be stimulated through construction jobs and related services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended project duration (1521 days) increases risk of cost escalation and delays.
Potential for scope creep in a multi-year construction project.
Reliance on a single prime contractor for a large project.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition generally leads to better pricing.
Project addresses critical healthcare infrastructure needs for veterans.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project complexity, location, and specific requirements. The $5.26M award is substantial for a single project, suggesting a significant scope.

Small Business Impact

While the award was made through full and open competition, there is no specific indication of small business participation in the provided data. Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The firm-fixed-price structure and the use of full and open competition suggest established oversight mechanisms are in place to manage costs and performance.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Extended project duration increases risk.
Potential for scope creep.
Complexity of construction projects.
Dependence on prime contractor performance.
Inflationary pressures on materials and labor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.3 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. MOVE AUDIOLOGY AND PHARMACY CONSTRUCTION PROJECT 503-18-104

Who is the contractor on this award?

The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, 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 $5.3 million.

What is the period of performance?

Start: 2021-11-10. End: 2026-01-09.

What specific factors contributed to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs due to specific technical requirements, past performance issues, or pre-qualification criteria set by the agency. While this method aims for broad competition, the exclusion of certain bidders could potentially limit the number of competitive offers, possibly influencing the final price. A detailed review of the solicitation documents and award justification would clarify the reasons for exclusion and its pricing impact.

Given the 1521-day duration, what are the primary risks associated with cost escalation and potential delays for this construction project?

The primary risks for a project of this length include inflation impacting material and labor costs, unforeseen site conditions requiring additional work, changes in regulatory requirements, and potential contractor performance issues. Effective risk mitigation strategies, such as robust contingency planning, regular progress monitoring, and clear change order management processes, are crucial to control costs and adhere to the schedule.

How will the successful completion of this construction project directly enhance the quality of audiology and pharmacy services for veterans?

The new or renovated facilities are expected to provide modern, efficient spaces equipped with advanced technology, improving the patient experience and enabling healthcare providers to deliver more effective care. Enhanced accessibility, better workflow for staff, and increased capacity can lead to reduced wait times and improved health outcomes for veterans utilizing these critical services.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PKE, EAST NORRITON, PA, 19401

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

Financial Breakdown

Contract Ceiling: $5,261,262

Exercised Options: $5,261,262

Current Obligation: $5,261,262

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24421D0010

IDV Type: IDC

Timeline