VA awards $17.6M kitchen upgrade to Valiant Construction, highlighting commercial building sector activity

Contract Overview

Contract Amount: $17,636,902 ($17.6M)

Contractor: Valiant Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-26

End Date: 2026-04-22

Contract Duration: 573 days

Daily Burn Rate: $30.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NFS KITCHEN UPGRADE

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.6 million to VALIANT CONSTRUCTION LLC for work described as: NFS KITCHEN UPGRADE Key points: 1. Contract value appears reasonable for a large-scale institutional kitchen renovation. 2. Full and open competition suggests a competitive bidding process was utilized. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 573 days indicates a significant scope of work. 5. The contract is situated within the broader commercial and institutional building construction market. 6. Geographic focus on West Virginia may indicate regional construction market dynamics.

Value Assessment

Rating: good

The contract value of $17.6 million for a kitchen upgrade is substantial, suggesting a comprehensive renovation. Benchmarking against similar large-scale institutional kitchen projects would be necessary for a precise value-for-money assessment. However, the fixed-price nature of the contract generally indicates a commitment to a defined cost, which can be favorable if the scope is well-defined. The award to Valiant Construction LLC, a single entity, implies they were deemed the best value under the competitive process.

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 the agency sought proposals from all responsible sources, but may have excluded certain sources for specific reasons not detailed here. The presence of 9 bidders suggests a healthy level of competition for this project, which typically leads to better pricing and value for the government.

Taxpayer Impact: A competitive process with multiple bidders generally benefits taxpayers by driving down costs and encouraging contractors to offer their best value propositions.

Public Impact

Veterans in West Virginia will benefit from improved dining facilities at the VA facility. The project will deliver a modernized and functional kitchen environment. The geographic impact is concentrated in West Virginia, supporting local economic activity. The construction project will likely create temporary jobs for skilled tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined, impacting cost and schedule.
Ensuring the quality of materials and workmanship meets VA standards throughout the renovation.
Coordination challenges between the contractor, VA facility staff, and any third-party inspectors.
Potential delays due to unforeseen site conditions common in renovation projects.

Positive Signals

Fixed-price contract structure incentivizes contractor efficiency and cost control.
Multiple bidders indicate a competitive market, likely resulting in a fair price.
The project addresses a critical need for facility upgrades at a VA medical center.
The contractor, Valiant Construction LLC, will be held accountable for project delivery.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the U.S. economy. This sector encompasses a wide range of construction activities, from new builds to renovations of facilities like hospitals, schools, and government buildings. The value of this contract, $17.6 million, is substantial for a single project within this sector. Comparable spending benchmarks would involve looking at other large-scale renovation or construction projects for federal agencies, particularly within the healthcare or institutional facilities domain.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Valiant Construction LLC is the prime contractor, there is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Valiant Construction actively seeks small business subcontractors for specialized work or materials.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified renovation within the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building Renovations
Commercial Kitchen Construction
Institutional Building Upgrades
Department of Veterans Affairs Procurement

Risk Flags

Potential for schedule delays due to renovation complexities.
Risk of cost escalation if scope is not tightly managed.
Ensuring compliance with VA facility standards and regulations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.6 million to VALIANT CONSTRUCTION LLC. NFS KITCHEN UPGRADE

Who is the contractor on this award?

The obligated recipient is VALIANT CONSTRUCTION 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 $17.6 million.

What is the period of performance?

Start: 2024-09-26. End: 2026-04-22.

What is Valiant Construction LLC's track record with the Department of Veterans Affairs and similar federal agencies?

A review of federal procurement data would be necessary to fully assess Valiant Construction LLC's track record. This would involve examining past contracts awarded to the company, their performance history (including any past performance evaluations or disputes), and their experience with projects of similar scope and value, particularly for the Department of Veterans Affairs. Understanding their history with federal agencies can provide insights into their reliability, efficiency, and ability to meet government requirements. Without specific historical data, it's difficult to definitively gauge their past performance.

How does the awarded price of $17.6 million compare to similar kitchen renovation projects at federal facilities?

Benchmarking this $17.6 million contract against similar projects requires access to a database of comparable federal construction contracts. Factors such as the size of the kitchen, the extent of the renovation (e.g., equipment replacement, structural changes, system upgrades), the geographic location (which affects labor and material costs), and the specific requirements of the VA facility would need to be considered. If data shows that similar large-scale renovations at federal institutions typically range from $15 million to $20 million, then this award could be considered within a reasonable market range. Conversely, if comparable projects are significantly less expensive, it might warrant further investigation into the value proposition.

What are the primary risk indicators associated with this specific contract award?

Key risk indicators for this contract include the inherent complexities of renovation projects, such as unforeseen site conditions that could lead to cost overruns or schedule delays. The firm-fixed-price contract type, while beneficial for cost certainty, places the risk of cost increases due to contractor inefficiencies or poor planning squarely on Valiant Construction LLC. Another potential risk is ensuring the contractor's adherence to stringent VA facility standards and timelines. The duration of the project (573 days) also presents a longer window for potential disruptions or performance issues to arise.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring optimal value for taxpayers in this case?

The 'Full and Open Competition After Exclusion of Sources' method aims to balance broad competition with specific agency needs. By allowing all responsible sources to bid while potentially excluding others based on defined criteria, the VA sought to maximize competition while ensuring bidders met specific prerequisites. With 9 bidders, the competition level appears robust, which generally supports price discovery and value for taxpayers. The effectiveness hinges on whether the exclusions were justified and did not unduly limit the pool of qualified bidders, thereby potentially impacting the final price achieved.

What are the historical spending patterns for kitchen upgrades or similar facility renovations at this specific VA facility or within the VA system?

Analyzing historical spending patterns for kitchen upgrades or facility renovations at this VA facility and across the VA system is crucial for context. This would involve reviewing past contracts for similar work, noting the frequency, scale, and cost of previous projects. If this $17.6 million contract represents a significant increase over historical spending for comparable upgrades, it might suggest rising costs, a more extensive scope, or potentially a less competitive outcome. Conversely, if it aligns with or is lower than previous large-scale renovations, it could indicate efficient procurement or favorable market conditions.

What are the implications of the 573-day duration on the project's overall cost and potential disruption to VA operations?

A project duration of 573 days (approximately 1.5 years) for a kitchen upgrade is substantial and carries several implications. For the contractor, it means a longer period of resource allocation and potential exposure to market fluctuations in material costs. For the VA, it signifies a prolonged period during which normal kitchen operations might be significantly impacted, potentially requiring temporary food service arrangements, which could incur additional costs. The extended timeline also increases the risk of unforeseen issues arising over its course. Efficient project management and clear phasing will be critical to mitigate disruption and control costs.

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

Solicitation ID: 36C24523R0093

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4124 WAHL STREET BLVD, LOUISVILLE, KY, 40218

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $17,636,902

Exercised Options: $17,636,902

Current Obligation: $17,636,902

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24523D0048

IDV Type: IDC

Timeline