VA awards $4.5M construction contract to Senate Builders & Construction Managers for facility upgrades

Contract Overview

Contract Amount: $4,548,000 ($4.5M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-09

End Date: 2026-04-06

Contract Duration: 879 days

Daily Burn Rate: $5.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WILKES-BARRE MATOC

Place of Performance

Location: WILKES BARRE, LUZERNE County, PENNSYLVANIA, 18711

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: WILKES-BARRE MATOC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the VA. 3. Project duration of 879 days indicates a significant scope of work. 4. The contract falls under commercial and institutional building construction NAICS code. 5. Awarded by the Department of Veterans Affairs, likely supporting healthcare infrastructure. 6. The contract is a delivery order under a larger MATOC (Multiple Award Task Order Contract).

Value Assessment

Rating: good

The contract value of $4.5 million for construction services appears reasonable given the 879-day duration and the nature of facility upgrades. Benchmarking against similar VA construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overrun risks for the government.

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 is a specific type of full and open competition. This indicates that proposals were solicited from all eligible responsible prospective contractors. The presence of 4 bids suggests a healthy level of competition for this specific delivery order.

Taxpayer Impact: A competitive bidding process like this generally leads to better pricing for taxpayers by encouraging contractors to offer their most competitive rates.

Public Impact

Veterans will benefit from improved healthcare facilities. Construction services will be delivered, enhancing the physical infrastructure of VA sites. The geographic impact is focused on Pennsylvania, where the contract is being performed. The project will likely create or sustain jobs within the construction sector in Pennsylvania.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial project requirements are not clearly defined.
Risk of delays due to unforeseen site conditions or material availability.
Ensuring compliance with all VA facility standards and regulations.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded under a MATOC, suggesting pre-qualification of contractors.
Full and open competition generally leads to better value.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The federal government is a major consumer of construction services, particularly for maintaining and upgrading its vast portfolio of facilities, including those managed by the Department of Veterans Affairs. Spending in this sector often reflects infrastructure investment priorities.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While the prime contractor is not identified as a small business, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the nature of the work required.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through federal contract databases where award details are published.

Related Government Programs

Department of Veterans Affairs Medical Facility Construction
Federal Building and Infrastructure Projects
Construction Services for Government Agencies
MATOC Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of schedule delays due to unforeseen circumstances.
Ensuring quality control throughout the construction process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. WILKES-BARRE MATOC

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 $4.5 million.

What is the period of performance?

Start: 2023-11-09. End: 2026-04-06.

What is the specific nature of the facility upgrades being performed under this contract?

The provided data does not specify the exact nature of the facility upgrades. However, given the contractor's specialization in commercial and institutional building construction and the awarding agency being the Department of Veterans Affairs, the upgrades likely pertain to improvements in healthcare facilities, administrative buildings, or supporting infrastructure. This could include renovations, repairs, modernization of systems (HVAC, electrical, plumbing), or construction of new additions to enhance the functionality, safety, and efficiency of VA properties. Further details would typically be found in the contract's statement of work.

How does the $4.5 million award compare to typical construction delivery orders of this duration?

A $4.5 million award for an 879-day (approximately 2.4 year) construction project falls within a moderate range for federal contracts. The average cost per day is roughly $5,175. This figure needs to be benchmarked against similar projects by the VA or other agencies involving facility upgrades or new construction of comparable complexity and scope. Factors such as geographic location, specific construction type (e.g., medical facility vs. administrative building), and prevailing labor/material costs significantly influence project pricing. Without more specific project details and comparable data, it's difficult to definitively state if this represents exceptional value, but the firm-fixed-price nature and competitive award suggest a deliberate effort to achieve fair pricing.

What are the potential risks associated with a firm-fixed-price contract for construction?

While firm-fixed-price (FFP) contracts offer cost certainty to the government, they can introduce risks for the contractor. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences significant material price increases, they may incur losses. For the government, the primary risk with FFP is that the contractor may be incentivized to cut corners on quality to protect their profit margin, especially if the initial price was set too low. Robust government oversight, clear specifications, and thorough inspection processes are crucial to mitigate these risks and ensure the quality of the delivered work meets all requirements.

What does 'Full and Open Competition After Exclusion of Sources' mean in practice?

This contract type, 'Full and Open Competition After Exclusion of Sources,' is a specific method under Federal Acquisition Regulation (FAR) Part 6. It means that the agency intended to conduct full and open competition but excluded certain sources from the competition based on specific justifications (e.g., only one or two sources are capable of performing the work). However, the data indicates 4 bids were received, suggesting that despite any initial exclusions, the competition was ultimately broad enough to allow multiple eligible bidders to participate. This contrasts with sole-source awards where only one contractor is solicited.

What is the significance of this contract being a Delivery Order under a MATOC?

This contract is a Delivery Order issued under a Multiple Award Task Order Contract (MATOC). A MATOC allows an agency to award contracts to multiple sources for similar services or supplies, establishing a pool of pre-qualified contractors. When a specific need arises, the agency can then issue task orders or delivery orders against the MATOC, often through a competitive process among the MATOC holders. This approach streamlines the procurement process for subsequent needs, reduces lead times, and leverages pre-negotiated contract terms and pricing structures, while still allowing for competition on individual task orders.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PIKE, 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: $4,548,000

Exercised Options: $4,548,000

Current Obligation: $4,548,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24423D0036

IDV Type: IDC

Timeline