VA awards $738K contract for architectural services to Watson Engineering, PC for facility upgrades

Contract Overview

Contract Amount: $738,498 ($738.5K)

Contractor: Watson Engineering, PC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-11

End Date: 2027-07-06

Contract Duration: 1,272 days

Daily Burn Rate: $581/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AE SERVICES TO FULLY INVESTIGATE, DESIGN AND PROVIDE CONSTRUCTION PERIOD SERVICES TO REPLACE AND INCREASE LOADING CAPABILITIES FOR CHARLIE STREET, DELTA STREET UP TO THE LOBBY CANOPY, THE RAMP UP TO CHARLIE/DELTA STREETS, AND THE ED AMBULANCE PAD.

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $738,497.71 to WATSON ENGINEERING, PC for work described as: AE SERVICES TO FULLY INVESTIGATE, DESIGN AND PROVIDE CONSTRUCTION PERIOD SERVICES TO REPLACE AND INCREASE LOADING CAPABILITIES FOR CHARLIE STREET, DELTA STREET UP TO THE LOBBY CANOPY, THE RAMP UP TO CHARLIE/DELTA STREETS, AND THE ED AMBULANCE PAD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating cost certainty. 3. The project duration is 1272 days, spanning over three years, suggesting a significant scope. 4. The contract is for architectural services, a critical component of infrastructure development. 5. The awardee, Watson Engineering, PC, is a single entity, implying a focused delivery. 6. The contract is not set aside for small businesses, indicating a focus on larger firms or capabilities.

Value Assessment

Rating: good

The contract value of $738,497.71 for architectural services appears reasonable given the extensive scope of work, which includes investigating, designing, and providing construction period services for multiple critical areas of a VA facility. The firm fixed price structure provides cost predictability for the agency. Benchmarking against similar large-scale architectural design contracts for federal facilities would provide further insight into value for money, but the scope suggests a substantial undertaking.

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.' While the 'exclusion of sources' phrasing is unusual and warrants further investigation, the 'full and open' designation implies that the solicitation was made broadly available to all responsible prospective contractors. The presence of two bids (no: 2) suggests some level of competition, though a higher number of bidders would typically indicate more robust price discovery and potentially better value.

Taxpayer Impact: The use of full and open competition aims to ensure that the government receives the best possible value by allowing all qualified vendors to participate, potentially driving down costs through competitive bidding.

Public Impact

Veterans will benefit from improved and increased loading capabilities at the VA facility. The project will deliver essential architectural design and construction oversight services. The geographic impact is localized to the specific VA facility in South Carolina. The contract supports the architecture and engineering sector, potentially involving specialized local subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure no potential bidders were improperly excluded.
A low number of bids (2) might indicate limited market interest or barriers to entry for other firms.

Positive Signals

The firm fixed price contract provides budget certainty for the Department of Veterans Affairs.
The long contract duration allows for comprehensive planning and execution of complex facility upgrades.
The award to a single entity, Watson Engineering, PC, suggests a clear point of accountability for project delivery.

Sector Analysis

This contract falls within the Architectural Services sector (NAICS code 541310), a segment of the broader Architecture, Engineering, and Construction (AEC) industry. The federal government is a significant consumer of these services for infrastructure maintenance, upgrades, and new construction. Spending in this sector is often driven by the need to maintain and modernize aging federal facilities, as is the case with the Department of Veterans Affairs. Comparable spending benchmarks would involve analyzing other VA facility renovation projects or similar architectural design contracts awarded by other federal agencies.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This suggests that the requirement was either not specifically targeted for small business participation or that the competition was open to all qualified firms, including large businesses. There is no explicit mention of subcontracting requirements for small businesses within the provided data, which could be a missed opportunity for small business engagement in this project.

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 cost control. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected during the contract's performance.

Related Government Programs

Department of Veterans Affairs Facility Modernization Projects
Federal Architectural and Engineering Services
Infrastructure Improvement Contracts

Risk Flags

Unclear competition rationale ('exclusion of sources')
Low number of bids received

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $738,497.71 to WATSON ENGINEERING, PC. AE SERVICES TO FULLY INVESTIGATE, DESIGN AND PROVIDE CONSTRUCTION PERIOD SERVICES TO REPLACE AND INCREASE LOADING CAPABILITIES FOR CHARLIE STREET, DELTA STREET UP TO THE LOBBY CANOPY, THE RAMP UP TO CHARLIE/DELTA STREETS, AND THE ED AMBULANCE PAD.

Who is the contractor on this award?

The obligated recipient is WATSON ENGINEERING, PC.

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 $738,497.71.

What is the period of performance?

Start: 2024-01-11. End: 2027-07-06.

What is the specific nature of the 'exclusion of sources' mentioned in the contract's competition type?

The competition type is listed as 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This phrasing is unusual and potentially contradictory. 'Full and open competition' typically implies that all responsible sources are permitted to compete. The 'exclusion of sources' part suggests that certain sources were intentionally excluded from the competition, which would normally necessitate a justification under specific procurement regulations (e.g., sole-sourcing or limited competition justifications). Without further details from the contract award documentation, it is unclear why sources were excluded or if this is a standard clause for a specific type of procurement within the VA. This warrants a deeper dive into the contract's justification and source selection statement to understand the rationale behind this specific wording and ensure fair competition principles were upheld.

How does the awarded price of $738,497.71 compare to similar architectural services contracts for federal facilities?

Benchmarking this $738,497.71 contract requires comparing it to similar architectural services contracts awarded by federal agencies, particularly the Department of Veterans Affairs, for facility upgrades of comparable scope and complexity. Factors such as the size and type of facility, the specific services required (design, investigation, construction oversight), and the geographic location influence pricing. Given the duration of 1272 days and the scope involving multiple critical areas (streets, ramp, ambulance pad), the price appears to be within a reasonable range for a multi-year, comprehensive project. However, a detailed analysis would involve examining the number of bids received, the proposed labor rates, and the specific deliverables outlined in the contract statement of work compared to other similar federal awards.

What are the potential risks associated with a definitive contract type for this project?

Definitive contracts are typically used for fixed-price requirements. For this project, the primary risk associated with a definitive contract, especially a firm fixed price one, is ensuring the scope of work is precisely defined to avoid change orders or disputes. If unforeseen conditions arise during the investigation or design phases that significantly alter the project's requirements, the fixed price could become a point of contention. Another risk is the contractor's ability to manage the project effectively over its 1272-day duration; delays or cost overruns, while ideally borne by the contractor under a fixed price, could still impact the VA if they lead to contract modifications or disputes. The 'exclusion of sources' aspect also introduces a risk related to the fairness and completeness of the competition.

What is the track record of Watson Engineering, PC in performing similar federal contracts?

Information regarding Watson Engineering, PC's track record with federal contracts is not provided in the data. To assess their suitability and past performance, one would need to review their contract history, including the types of services rendered, contract values, performance evaluations (e.g., CPARS reports), and any history of disputes or contract terminations. A positive track record with similar VA projects or complex architectural designs would increase confidence in their ability to successfully execute this contract. Conversely, a history of performance issues could indicate a higher risk for the VA.

How might the limited number of bidders (2) impact the overall value and efficiency of this contract?

A limited number of bidders, such as the two received for this contract, can have several implications for value and efficiency. On one hand, it suggests that the competition was not as broad as it could have been, potentially leading to less aggressive pricing than if more firms had competed. This could mean the VA did not achieve the lowest possible price. On the other hand, if only two firms possessed the highly specialized skills or clearances required for this specific VA project, then two bidders might represent the entirety of the qualified market. The 'exclusion of sources' clause further complicates this, as it's possible more firms *could* have bid if not excluded. A lower number of bidders generally reduces the pressure on pricing and may limit the agency's leverage in negotiations.

What are the implications of this contract being a 'Firm Fixed Price' (FFP) type?

A Firm Fixed Price (FFP) contract type means the price is set and not subject to adjustment based on the contractor's cost experience. This is advantageous for the government as it provides the highest level of cost certainty and predictability. The contractor assumes most of the risk for cost overruns. For this $738,497.71 contract with a duration of over three years, the FFP structure incentivizes Watson Engineering, PC to manage its costs efficiently and complete the work within the agreed-upon budget. The primary risk for the VA lies in ensuring the scope is meticulously defined upfront to prevent costly change orders or disputes if unforeseen issues arise during the extensive project timeline.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24723R0115

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4500 STATE ROUTE 434, APALACHIN, NY, 13732

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

Financial Breakdown

Contract Ceiling: $738,498

Exercised Options: $738,498

Current Obligation: $738,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline