VA awards $13.9M construction contract to RBVETCO, LLC for facility upgrades

Contract Overview

Contract Amount: $13,921,617 ($13.9M)

Contractor: Rbvetco, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-06-07

End Date: 2026-02-27

Contract Duration: 996 days

Daily Burn Rate: $14.0K/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: EO14042 ONE OF 8 PARENT MATOCS ADDING COVID 19 VACCINE MANDATE

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15215

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.9 million to RBVETCO, LLC for work described as: EO14042 ONE OF 8 PARENT MATOCS ADDING COVID 19 VACCINE MANDATE Key points: 1. Contract value of $13.9 million for construction services. 2. RBVETCO, LLC, a relatively new entity, secured this significant award. 3. The contract is for facility upgrades, indicating a need for infrastructure improvement. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The contract duration extends into early 2026, implying a multi-year project. 6. The fixed-price nature of the contract aims to control costs. 7. This award represents a notable investment in the VA's infrastructure.

Value Assessment

Rating: fair

The contract value of $13.9 million for construction services appears within a reasonable range for facility upgrades of this nature. However, without specific details on the scope of work, a precise value-for-money assessment is challenging. Benchmarking against similar VA construction projects would provide better context. The fixed-price contract type is generally favorable for cost control, but the ultimate value will depend on the contractor's efficiency and the accuracy of the initial cost estimates.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this contract. While more bidders could potentially drive prices lower, three bids generally indicate that the market was sufficiently engaged to provide a basis for price discovery.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best pricing. The fact that multiple companies vied for this contract suggests that the government received competitive offers, potentially leading to a more favorable price than if it were a sole-source award.

Public Impact

Veterans will benefit from improved healthcare facilities and infrastructure. The contract will deliver essential construction and renovation services for VA properties. The geographic impact is focused on Pennsylvania, where the work will be performed. The project will likely create or sustain jobs in the construction sector within Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

RBVETCO, LLC is a relatively new entity, raising questions about its long-term track record and capacity for large-scale projects.
The specific scope of work and detailed project plan are not fully elaborated in the provided data, making it difficult to assess potential execution risks.
The 'exclusion of sources' clause in the competition type warrants further investigation to understand if any qualified bidders were inadvertently or intentionally excluded.

Positive Signals

The contract was awarded through full and open competition, indicating a robust and transparent procurement process.
The firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs for the Department of Veterans Affairs, directly benefiting veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of companies, from large general contractors to specialized subcontractors. The market size for federal construction projects is substantial, with agencies like the VA consistently investing in maintaining and upgrading their facilities. This contract represents a typical award for facility modernization or repair within the federal government's real estate portfolio.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While RBVETCO, LLC's size as a small business is not specified, the lack of a set-aside suggests it was competed broadly. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem in this project.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and project managers. The contract's fixed-price nature provides a degree of accountability for cost overruns. Transparency regarding project progress and any potential issues would typically be managed through regular reporting requirements stipulated in the contract. The Inspector General's office for the VA would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this award.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings Fund
Military Construction Program
General Services Administration (GSA) Public Buildings Service

Risk Flags

Contractor Experience
Scope Definition
Potential for Change Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.9 million to RBVETCO, LLC. EO14042 ONE OF 8 PARENT MATOCS ADDING COVID 19 VACCINE MANDATE

Who is the contractor on this award?

The obligated recipient is RBVETCO, 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 $13.9 million.

What is the period of performance?

Start: 2023-06-07. End: 2026-02-27.

What is the track record of RBVETCO, LLC in completing federal construction projects of similar size and scope?

As of the data provided, RBVETCO, LLC appears to be a relatively new entity, with this $13.9 million contract being a significant award. Detailed information on their past performance, particularly on projects of comparable scale and complexity within the federal sector, is not readily available. Further investigation into their project history, client references, and any past performance evaluations would be necessary to fully assess their capabilities and reliability. The VA's source selection process would have included a review of their past performance, but public access to this detailed assessment is limited. Understanding their experience with similar construction types (e.g., healthcare facilities, institutional buildings) and their ability to manage large budgets and timelines is crucial for evaluating the risk associated with this contract.

How does the awarded price of $13.9 million compare to similar VA facility upgrade contracts?

A direct comparison of the $13.9 million award to similar VA facility upgrade contracts requires access to a database of comparable projects with detailed scope and cost information. Without such data, it's difficult to definitively state whether this price is high, low, or average. Factors influencing cost include the specific type of upgrades (e.g., HVAC, structural, electrical), the size and condition of the facility, geographic location (labor and material costs vary significantly), and the complexity of the work. The fact that it was awarded under full and open competition with three bidders suggests that the price was considered competitive by the agency at the time of award. However, a deeper analysis involving benchmarking against projects with similar square footage, renovation types, and regional cost indices would be needed for a more precise valuation.

What are the primary risks associated with this contract, given RBVETCO, LLC's potential limited track record?

The primary risk associated with this contract, particularly given RBVETCO, LLC's potential limited track record, is performance risk. This encompasses the possibility of delays in project completion, cost overruns (despite the firm-fixed-price structure, change orders can occur), quality issues, or failure to meet contract specifications. A less experienced contractor might struggle with project management, resource allocation, or navigating complex regulatory requirements common in federal construction. Another risk could be financial stability, ensuring the contractor has the necessary capital and bonding to sustain a project of this magnitude over its duration. The VA's source selection process should have mitigated these risks through thorough vetting, but ongoing monitoring and proactive risk management by the contracting officer's representative (COR) will be essential throughout the contract's lifecycle.

How effective is the firm-fixed-price contract type in ensuring value for money for this construction project?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for construction projects, as it places the primary risk of cost overruns on the contractor. This incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon price. For the government, it provides budget certainty. However, the effectiveness hinges on the accuracy of the initial cost estimate and the clarity of the contract's scope of work. If the scope is poorly defined or unforeseen issues arise, contractors may seek change orders, which can increase the total cost. In this case, the VA benefits from a predictable ceiling price, but vigilance in scope management and change order negotiation is crucial to realize the full value-for-money potential of the FFP structure.

What is the historical spending pattern for similar construction services at the Department of Veterans Affairs?

The Department of Veterans Affairs consistently allocates significant funds towards the construction, renovation, and maintenance of its vast network of healthcare facilities and administrative buildings. Historical spending patterns reveal a continuous need for infrastructure upgrades to modernize facilities, comply with evolving healthcare standards, and ensure operational efficiency. The VA's capital asset and business management initiatives often drive these expenditures. Annual spending on construction can fluctuate based on budget appropriations, specific program needs (like expanding capacity or addressing deferred maintenance), and major construction projects. While the exact historical figures for 'Commercial and Institutional Building Construction' for the VA are not provided here, it is a substantial and recurring category within their overall procurement budget, reflecting the ongoing commitment to maintaining and improving the physical infrastructure that supports veteran healthcare.

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: 100 W MAIN ST STE 100, CARNEGIE, PA, 15106

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

Financial Breakdown

Contract Ceiling: $13,921,617

Exercised Options: $13,921,617

Current Obligation: $13,921,617

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24420D0026

IDV Type: IDC

Timeline