VA awards $4.39M contract for welcome center renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $4,387,831 ($4.4M)

Contractor: Hamilton Pacific Chamberlain LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-18

End Date: 2026-06-11

Contract Duration: 875 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF WELCOME CENTER

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.4 million to HAMILTON PACIFIC CHAMBERLAIN LLC for work described as: RENOVATION OF WELCOME CENTER Key points: 1. Contract value appears reasonable for a commercial building renovation project of this scope. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The definitive contract type indicates a single award for a defined scope of work. 4. Project duration of 875 days suggests a complex renovation requiring significant time. 5. The fixed-price contract type shifts cost risk to the contractor. 6. Awarded by the VA, this contract supports infrastructure improvements within the healthcare sector.

Value Assessment

Rating: good

The contract value of $4.39 million for the renovation of a welcome center is within a typical range for commercial and institutional building construction. Benchmarking against similar projects would require more detailed scope information, but the price appears fair given the project's duration and the firm fixed-price nature, which includes contractor overhead and profit. The absence of specific cost breakdowns makes a precise value-for-money assessment challenging, but the competitive award process provides some assurance of reasonable pricing.

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,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. With 8 bidders participating, the level of competition was robust. This suggests that the agency received a good range of proposals, which typically helps in achieving competitive pricing and selecting the best value offer.

Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government secures services at a competitive rate.

Public Impact

Veterans and visitors to the VA facility will benefit from an improved welcome center experience. The contract delivers essential renovation and construction services for a government facility. The project's geographic impact is localized to the facility in North Carolina. The construction workforce in the region will be engaged through this project. The renovation aims to modernize facilities and enhance operational efficiency for the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if renovation needs exceed initial assessments.
Contractor performance risk associated with a single definitive contract award.
Ensuring compliance with all building codes and accessibility standards during renovation.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Robust competition with 8 bidders suggests a well-defined scope and fair market interest.
Award to Hamilton Pacific Chamberlain LLC, a contractor with experience in this sector.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The market for government facility renovations is substantial, driven by the need to maintain and modernize aging infrastructure. This project represents a typical investment in facility upgrades, aligning with broader government spending trends on infrastructure maintenance and improvement. Comparable spending benchmarks would depend on the specific size and complexity of the renovation, but the $4.39 million award is a moderate-sized project within this sector.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the prime contractor, Hamilton Pacific Chamberlain LLC, may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a definitive contract with a fixed price, the primary accountability measure is the successful completion of the renovation according to the specified scope and quality standards. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

VA Facility Maintenance and Repair
Federal Building Construction Contracts
Commercial Renovation Projects
Infrastructure Modernization Programs

Risk Flags

Potential for unforeseen conditions during renovation impacting cost and schedule.
Ensuring contractor compliance with all federal building and safety standards.
Managing disruption to ongoing VA operations during construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.4 million to HAMILTON PACIFIC CHAMBERLAIN LLC. RENOVATION OF WELCOME CENTER

Who is the contractor on this award?

The obligated recipient is HAMILTON PACIFIC CHAMBERLAIN 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 $4.4 million.

What is the period of performance?

Start: 2024-01-18. End: 2026-06-11.

What is the track record of Hamilton Pacific Chamberlain LLC in performing similar government renovation contracts?

Hamilton Pacific Chamberlain LLC has a history of performing construction and renovation services for government agencies. While specific details on past welcome center renovations are not provided in this data, their experience in commercial and institutional building construction suggests a capability to handle projects of this nature. A deeper dive into their contract performance history, including past performance evaluations and any reported issues on previous federal contracts, would provide a more comprehensive understanding of their reliability and expertise. Reviewing their portfolio of completed projects for the VA or other federal entities would offer further insight into their capacity to deliver on this $4.39 million award.

How does the awarded price compare to similar VA welcome center renovation projects?

Benchmarking the $4.39 million award against similar VA welcome center renovations is challenging without access to a database of comparable projects with detailed scope and cost information. However, the contract's firm fixed-price nature and the 875-day duration suggest a significant undertaking. The fact that it was awarded under full and open competition with 8 bidders implies that the pricing was likely competitive within the market for such services. To provide a more precise comparison, one would need to analyze projects of similar size, complexity, and location, considering factors like square footage, types of renovations (e.g., structural, cosmetic, systems upgrades), and prevailing labor and material costs in the specific geographic region.

What are the primary risks associated with this definitive contract for renovation?

The primary risks associated with this definitive contract for renovation include potential scope creep, where unforeseen issues during the renovation process necessitate additional work and costs beyond the initial agreement. Although it's a firm fixed-price contract, which shifts cost risk to the contractor, significant unforeseen conditions could still lead to disputes or contractor performance issues. Another risk is ensuring the contractor adheres to all relevant building codes, safety regulations, and accessibility standards throughout the project lifecycle. Contractor performance risk, related to timely completion and quality of work, is also a factor, though mitigated by the competitive bidding process and the contract's defined terms. Finally, managing the impact of the renovation on ongoing VA operations presents an logistical challenge.

How effective is the firm fixed-price contract type in managing costs for this renovation project?

The firm fixed-price (FFP) contract type is generally considered effective in managing costs for projects with a well-defined scope, such as this renovation. Under an FFP agreement, the contractor assumes the majority of the cost risk, meaning they are obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to control expenses and work efficiently. For the government, this provides cost certainty and predictability, as the total expenditure is fixed upfront. However, the effectiveness relies heavily on the accuracy and completeness of the initial scope definition; if significant unforeseen issues arise, the government might face pressure to approve change orders, potentially increasing the total cost.

What is the historical spending pattern for welcome center renovations by the Department of Veterans Affairs?

Historical spending patterns for welcome center renovations by the Department of Veterans Affairs (VA) are not detailed in the provided data. However, the VA, like other large federal agencies, regularly invests in maintaining and upgrading its facilities to ensure they meet the needs of veterans and staff. This includes renovations of administrative buildings, medical centers, and support facilities like welcome centers. Annual budgets for facilities management and capital improvements dictate the scale and frequency of such projects. Analyzing past VA budget allocations for infrastructure and specific renovation projects would reveal trends in spending, project types, and average contract values over time.

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: SEALED BID

Solicitation ID: 36C24623B0061

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 14 IRONGATE DR, WALDORF, MD, 20602

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

Financial Breakdown

Contract Ceiling: $4,388,200

Exercised Options: $4,388,200

Current Obligation: $4,387,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline