VA Awards $8.3M Clinic Addition Contract to Edgewater Construction Services in West Virginia
Contract Overview
Contract Amount: $8,332,957 ($8.3M)
Contractor: Edgewater Construction Services, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2018-09-26
End Date: 2026-01-12
Contract Duration: 2,665 days
Daily Burn Rate: $3.1K/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: PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION
Place of Performance
Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405
Plain-Language Summary
Department of Veterans Affairs obligated $8.3 million to EDGEWATER CONSTRUCTION SERVICES, LLC for work described as: PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION Key points: 1. Contract awarded for construction of a clinic and administrative addition. 2. Edgewater Construction Services, LLC is the prime contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project is located in West Virginia and is a firm fixed price contract. 5. The contract duration is 2665 days.
Value Assessment
Rating: fair
The contract value of $8.3M for a clinic and administrative addition appears reasonable for a project of this scope and duration. Benchmarking against similar construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for this construction project. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Veterans in West Virginia will benefit from expanded clinic and administrative facilities. The project supports local construction jobs and economic activity in the region. The construction will modernize and improve healthcare infrastructure for the VA.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Long contract duration (2665 days) could introduce cost escalation risks.
- Exclusion of sources in competition needs further justification.
Positive Signals
- Addresses a clear need for facility expansion.
- Firm fixed price contract provides cost certainty.
- Awarded to a single, presumably qualified, contractor.
Sector Analysis
This project falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on project size, location, and complexity. The $8.3M value is moderate for a government construction project of this nature.
Small Business Impact
The data indicates that small business participation was not a stated requirement or outcome for this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of Veterans Affairs is responsible for overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrants scrutiny to ensure fairness and prevent potential impropriety.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition raises concerns about best value.
- Long contract duration increases risk of cost escalation.
- Potential for price inflation over the contract period.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, wv, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $8.3 million to EDGEWATER CONSTRUCTION SERVICES, LLC. PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION
Who is the contractor on this award?
The obligated recipient is EDGEWATER CONSTRUCTION SERVICES, 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 $8.3 million.
What is the period of performance?
Start: 2018-09-26. End: 2026-01-12.
What was the specific justification for excluding certain sources from the competition, and how did this impact the final price?
The justification for excluding sources is critical for understanding the procurement strategy. If the exclusion was based on specific capabilities or past performance, it might be warranted. However, if it unduly limited competition, it could have led to a higher price than achievable through broader bidding. A review of the solicitation documents and award justification would clarify the rationale and its potential financial implications for taxpayers.
Given the 2665-day duration, what mechanisms are in place to manage potential cost overruns or scope creep?
A contract spanning over 7 years presents significant risks for cost escalation due to inflation, material price fluctuations, and potential changes in requirements. Robust contract management, including regular performance reviews, change order controls, and clear milestones, is essential. The firm fixed price nature offers some protection, but the agency must actively monitor for any conditions that might necessitate contract modifications or claims.
How does the final award price compare to independent cost estimates or benchmarks for similar VA clinic construction projects?
Comparing the $8.3M award to benchmarks is crucial for assessing value. If similar projects in comparable regions cost significantly less, it raises concerns about the pricing. Conversely, if it aligns with or is below market rates, it suggests a reasonable outcome. The VA should have conducted an independent government cost estimate (IGCE) prior to award to validate the contractor's proposal.
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: SEALED BID
Solicitation ID: 36C24518B0233
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 123 BRUTON CT STE 100, CHESAPEAKE, VA, 23322
Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $8,332,957
Exercised Options: $8,332,957
Current Obligation: $8,332,957
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-26
Current End Date: 2026-01-12
Potential End Date: 2026-01-12 00:00:00
Last Modified: 2026-01-12
Other Department of Veterans Affairs Contracts
- CCN Region 3 Express Report — $5.2B (Optum Public Sector Solutions, Inc.)
- Express Report for FY22 Region 2 — $5.1B (Optum Public Sector Solutions, Inc.)
- Fiscal Year 2022 Express Report for Region 1 — $4.2B (Optum Public Sector Solutions, Inc.)
- Express Report for the Patient Centered Community Care (PC3) Contract — $3.3B (Triwest Healthcare Alliance Corp)
- CCN Region Three FY21 Express Report — $3.1B (Optum Public Sector Solutions, Inc.)