VA awards $9.8M contract for Lebanon VAMC construction to Senate Builders & Construction Managers, Inc

Contract Overview

Contract Amount: $9,841,928 ($9.8M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-15

End Date: 2027-01-20

Contract Duration: 827 days

Daily Burn Rate: $11.9K/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: PAVE AND MODIFY LOOP PHASE I, LEBANON VAMC

Place of Performance

Location: LEBANON, LEBANON County, PENNSYLVANIA, 17042

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: PAVE AND MODIFY LOOP PHASE I, LEBANON VAMC 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 827 days indicates a significant construction undertaking. 4. The award is for construction services within the Commercial and Institutional Building Construction sector. 5. The contractor, Senate Builders & Construction Managers, Inc., is based in Pennsylvania, the project location. 6. The contract value is substantial, reflecting the scope of the PAVE AND MODIFY LOOP PHASE I project.

Value Assessment

Rating: good

The contract value of $9.8 million for a construction project of this scope appears reasonable. Without specific benchmarks for similar VAMC loop modifications, a direct comparison is difficult. However, the firm-fixed-price structure helps mitigate cost overruns for the government. The duration of over two years suggests a complex project, and the price should be evaluated against the detailed scope of work and market rates for similar construction services in the region.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the VA sought proposals from all responsible sources after an initial exclusion period. The presence of 6 bidders suggests a healthy level of competition for this project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The competitive bidding process likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. Multiple bidders help drive down costs and ensure the government is not overpaying for the construction services.

Public Impact

Veterans receiving services at the Lebanon VA Medical Center will benefit from improved infrastructure. The project will enhance the functionality and accessibility of the VAMC's loop system. Construction activities will likely create temporary employment opportunities in the Lebanon, Pennsylvania area. The improved facility will support the efficient delivery of healthcare services to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting project completion and veteran access to improved facilities.
Risk of unforeseen site conditions requiring change orders and potentially increasing costs.
Ensuring quality of construction meets VA standards and long-term durability requirements.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost overruns.
Award to a contractor with experience in commercial and institutional building construction.
Competitive bidding process likely secured a fair market price for the services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses a wide range of projects, from office buildings to healthcare facilities. The market for construction services is often cyclical and influenced by economic conditions, government spending priorities, and private sector investment. The VA's consistent need for facility maintenance and upgrades represents a stable demand within this sector.

Small Business Impact

The data indicates this contract was awarded through full and open competition and does not specify any small business set-aside. While the prime contractor is not explicitly identified as a small business, the contract does not preclude subcontracting opportunities. The impact on the small business ecosystem will depend on whether Senate Builders & Construction Managers, Inc. utilizes small businesses for any subcontracted portions of the work.

Oversight & Accountability

Oversight for this contract 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 the project within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting. The VA's Office of Inspector General may conduct audits or investigations if any concerns regarding performance or financial integrity arise.

Related Government Programs

VA Medical Facility Construction
Infrastructure Improvement Projects
Commercial Building Construction Contracts
Federal Construction Awards

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Quality control during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. PAVE AND MODIFY LOOP PHASE I, LEBANON VAMC

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 $9.8 million.

What is the period of performance?

Start: 2024-10-15. End: 2027-01-20.

What is the track record of Senate Builders & Construction Managers, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal contract databases would be necessary to fully assess the track record of Senate Builders & Construction Managers, Inc. This would involve examining past performance on similar construction projects, including contract values, completion timeliness, and any reported performance issues or disputes. Specifically, looking at their history with the Department of Veterans Affairs would provide insight into their experience with government healthcare facility construction and adherence to VA standards. Without specific historical data, it's difficult to definitively gauge their reliability and past performance on federal projects.

How does the awarded price of $9.8 million compare to similar VAMC loop modification projects or general construction projects of this scale?

Benchmarking this $9.8 million contract requires access to detailed cost data for comparable projects. Factors such as geographic location, specific scope of work (e.g., materials, complexity, duration), and prevailing labor and material costs significantly influence project pricing. A comprehensive comparison would involve analyzing the cost per square foot, cost per linear foot of loop modified, or other relevant metrics against similar VA or other federal agency construction projects. Given the firm-fixed-price nature, the VA likely conducted its own cost analysis to ensure the price was fair and reasonable before award, but external benchmarks are crucial for independent validation.

What are the primary risks associated with this specific construction project, and how are they being mitigated?

Key risks for this 'PAVE AND MODIFY LOOP PHASE I' project at the Lebanon VAMC likely include unforeseen subsurface conditions (e.g., utilities, soil stability), weather delays impacting the construction schedule, and potential material or labor shortages affecting costs and timelines. Mitigation strategies typically involve thorough site investigations prior to construction, contingency planning for weather disruptions, and robust contract management to address any necessary change orders. The firm-fixed-price contract itself acts as a risk mitigation tool by capping the government's financial exposure, shifting some of the cost-related risks to the contractor.

What is the expected impact of this project on the operational efficiency and patient experience at the Lebanon VAMC?

The 'PAVE AND MODIFY LOOP PHASE I' project is intended to improve the infrastructure surrounding the Lebanon VAMC, specifically focusing on the loop system. This could translate to enhanced traffic flow, better accessibility for patients and visitors, and potentially improved safety and emergency vehicle access. By modernizing or repairing these critical access routes, the project aims to streamline operations within the medical center, reduce congestion, and contribute to a more positive and efficient experience for veterans seeking care. The specific benefits will depend on the exact nature of the 'paving and modification' work.

How has federal spending on commercial and institutional building construction by the Department of Veterans Affairs trended in recent years?

Federal spending on commercial and institutional building construction by the Department of Veterans Affairs has historically been substantial, driven by the need to maintain, upgrade, and expand its extensive network of medical facilities. In recent years, VA construction spending has been influenced by factors such as aging infrastructure, the demand for modernized healthcare capabilities, and specific legislative initiatives aimed at facility improvements. Analyzing historical spending data would reveal trends in contract awards, average project values, and the types of construction services most frequently procured by the VA, providing context for the current $9.8 million award.

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: 6

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: $9,841,928

Exercised Options: $9,841,928

Current Obligation: $9,841,928

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