VA awards $15.9M contract for building construction and demolition in North Carolina

Contract Overview

Contract Amount: $15,897,979 ($15.9M)

Contractor: Hicaps Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-05-30

End Date: 2025-07-09

Contract Duration: 2,232 days

Daily Burn Rate: $7.1K/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: REMOVE EXITING BLDG. 16 CONSTRUCT BLDG. 42

Place of Performance

Location: DURHAM, ORANGE County, NORTH CAROLINA, 27705

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.9 million to HICAPS INC for work described as: REMOVE EXITING BLDG. 16 CONSTRUCT BLDG. 42 Key points: 1. The contract focuses on construction and demolition services, a critical but often complex sector. 2. Competition was full and open after exclusion of sources, suggesting a deliberate effort to ensure fair pricing. 3. The fixed-price contract type shifts risk to the contractor, potentially protecting taxpayers from cost overruns. 4. The project duration of 2232 days indicates a significant, long-term undertaking.

Value Assessment

Rating: good

The contract value of $15.9 million for building construction and demolition appears reasonable given the scope and duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment.

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. This method aims to maximize competition and achieve the best possible price discovery, although the specific exclusion criteria warrant review.

Taxpayer Impact: The use of a firm-fixed-price contract and competitive bidding is intended to ensure taxpayer funds are used efficiently and effectively for the required construction and demolition services.

Public Impact

Veterans in North Carolina may benefit from improved facilities or infrastructure resulting from this construction. Local employment opportunities could arise during the construction and demolition phases. The project's success will be visible through the completed or removed structures, impacting the local landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen site conditions impacting cost and schedule.
Contractor performance risk over the extended duration.
Environmental considerations during demolition and construction.

Positive Signals

Clear scope of work for construction and demolition.
Firm-fixed-price contract incentivizes contractor efficiency.
Competitive award process aims for value.

Sector Analysis

The construction sector is characterized by significant capital investment, labor requirements, and potential for cost fluctuations. This contract falls within the Commercial and Institutional Building Construction NAICS code, indicating a focus on non-residential structures.

Small Business Impact

The data indicates that small businesses were not awarded this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses had the opportunity to participate in the bidding process.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reviews, should be in place to ensure compliance and quality.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to unforeseen site conditions.
Risk of delays impacting project completion timeline.
Contractor performance and quality control over a long duration.
Environmental impact and compliance during demolition and construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.9 million to HICAPS INC. REMOVE EXITING BLDG. 16 CONSTRUCT BLDG. 42

Who is the contractor on this award?

The obligated recipient is HICAPS 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 $15.9 million.

What is the period of performance?

Start: 2019-05-30. End: 2025-07-09.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or security requirements are necessary and only a limited number of contractors can meet them. While aiming for competition, such exclusions can sometimes reduce the pool of bidders, potentially influencing the final price. A detailed review of the solicitation documents would clarify the rationale and its pricing implications.

What are the key performance indicators (KPIs) for this contract, and how will the VA measure HICAPS INC's performance in terms of quality, timeliness, and budget adherence?

Key performance indicators for construction contracts often include adherence to project schedules, quality of workmanship, safety compliance, and meeting specified building codes and standards. The VA likely employs contract officers and technical representatives to conduct regular site inspections, review progress reports, and verify deliverables against contract requirements to ensure HICAPS INC meets its obligations effectively.

Beyond the initial construction, what is the long-term plan for the maintenance and operational costs of the new or modified buildings, and how does this contract align with the VA's overall facilitie

This contract focuses on the construction phase, not long-term maintenance. The VA's facilities management strategy would encompass separate planning and budgeting for ongoing operational costs, repairs, and eventual decommissioning. Understanding how these new structures integrate into the VA's existing infrastructure and future needs is crucial for assessing the total lifecycle cost and strategic alignment.

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: SEALED BID

Solicitation ID: VA246-16-B-1152

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 N REGIONAL RD, GREENSBORO, NC, 27409

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,897,979

Exercised Options: $15,897,979

Current Obligation: $15,897,979

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline