VA awards $11.4M construction contract to Birmingham Industrial Construction for physical security upgrades

Contract Overview

Contract Amount: $11,403,389 ($11.4M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-03-15

End Date: 2027-05-24

Contract Duration: 1,165 days

Daily Burn Rate: $9.8K/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: CONSTRUCTION PROJECT 619-21-102 CORRECT PHYSICAL SECURITY DEFICIENCIES, RENOVATION BLDG 18 AND SMART KEYING SYSTEM

Place of Performance

Location: TUSKEGEE, MACON County, ALABAMA, 36083

State: Alabama Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: CONSTRUCTION PROJECT 619-21-102 CORRECT PHYSICAL SECURITY DEFICIENCIES, RENOVATION BLDG 18 AND SMART KEYING SYSTEM Key points: 1. Contract addresses critical physical security deficiencies and building renovations. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1165 days indicates a significant, long-term project. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. Project is located in Alabama, potentially impacting local construction workforce. 6. The award value is substantial, requiring careful performance monitoring.

Value Assessment

Rating: good

The contract value of $11.4 million for physical security upgrades and renovations appears reasonable given the project's scope and duration. Benchmarking against similar VA construction projects for building renovations and security enhancements would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive assessment of exceptional value is difficult.

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,' which typically means that all responsible sources were permitted to submit a bid. The presence of 3 bidders indicates a moderate level of competition for this project. While not an exhaustive number, it suggests that multiple firms were interested and capable of performing the work, which generally leads to better price discovery and a more competitive outcome than a sole-source or limited competition scenario.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than if the contract had been awarded without robust competition. This process helps ensure that government funds are used efficiently by leveraging market forces to obtain the best value.

Public Impact

Veterans at the facility will benefit from improved physical security and modernized building infrastructure. The project will deliver essential renovations to Building 18, enhancing its functionality and safety. A smart keying system will be implemented, improving access control and security management. The project's geographic impact is concentrated in Alabama, supporting the local construction economy. The contract is expected to create or sustain jobs within the construction sector in Alabama.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in renovation projects if initial assessments are incomplete.
Ensuring timely completion within the 1165-day duration is crucial for security improvements.
Quality of materials and workmanship must meet stringent VA standards for security infrastructure.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a fair and transparent procurement process.
The project directly addresses identified physical security deficiencies, enhancing facility safety.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Veterans Affairs, like other large federal agencies, frequently procures construction services for its facilities. Spending in this sector is driven by the need to maintain, upgrade, and expand government infrastructure. Comparable spending benchmarks would involve analyzing other VA construction awards for similar-sized renovation and security upgrade projects across different geographic regions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Birmingham Industrial Construction, LLC, is the prime contractor. There is no explicit information provided regarding subcontracting plans or goals for small businesses. The absence of a small business set-aside means that larger businesses were eligible to compete and potentially win the award, which could limit subcontracting opportunities for small businesses on this specific project unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract will primarily 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 financial oversight by locking in costs. 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 is suspected or reported.

Related Government Programs

VA Facilities Renovation Program
Federal Building Security Upgrades
Construction Services for Government Agencies
Smart Building Technology Implementation

Risk Flags

Potential for unforeseen conditions during renovation impacting schedule and cost.
Ensuring integration and compatibility of the smart keying system with existing infrastructure.
Quality control for specialized security installations requires rigorous oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.4 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. CONSTRUCTION PROJECT 619-21-102 CORRECT PHYSICAL SECURITY DEFICIENCIES, RENOVATION BLDG 18 AND SMART KEYING SYSTEM

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL 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 $11.4 million.

What is the period of performance?

Start: 2024-03-15. End: 2027-05-24.

What is the track record of Birmingham Industrial Construction, LLC with the Department of Veterans Affairs?

A review of federal procurement data indicates that Birmingham Industrial Construction, LLC has received multiple contracts from the Department of Veterans Affairs. While specific details on past performance quality, timeliness, and adherence to budget for previous VA contracts are not provided in this summary, the agency's continued awards suggest a satisfactory working relationship. To fully assess their track record, one would need to examine past performance evaluations, any documented disputes or claims, and the overall history of successful project completion with the VA and other federal agencies. This would provide insight into their reliability and capability for executing projects of this magnitude and complexity.

How does the awarded amount compare to similar VA construction projects for physical security and renovations?

The $11.4 million award for physical security deficiencies and renovation of Building 18, including a smart keying system, is a significant investment. To benchmark its value, we would compare it to similar projects undertaken by the VA or other federal agencies. Factors such as square footage renovated, complexity of security upgrades (e.g., type of keying system, surveillance integration), and geographic location (which impacts labor and material costs) are critical. Without access to a database of comparable projects with detailed cost breakdowns, it's challenging to definitively state if this is an exceptional value. However, the firm fixed-price nature and competitive bidding process suggest a reasonable effort to secure good value for the taxpayer.

What are the primary risks associated with this construction contract and how are they mitigated?

Key risks for this construction project include potential delays due to unforeseen site conditions during renovation, material cost fluctuations (though mitigated by fixed-price), and ensuring the quality of specialized security system installations. The firm fixed-price contract is a primary mitigation strategy against cost overruns. The contract duration of 1165 days allows ample time, reducing pressure for rushed work that could compromise quality. The VA's project management and oversight, along with potential performance bonds required from the contractor, further mitigate risks related to completion and quality standards. Thorough initial site assessments and clear specifications are also crucial.

How effective is the 'full and open competition after exclusion of sources' method in ensuring competitive pricing for construction projects?

The 'full and open competition after exclusion of sources' method is designed to maximize competition by allowing all responsible sources to submit offers, while potentially excluding specific sources for justifiable reasons (e.g., national security, prior performance issues). In theory, this method should lead to competitive pricing as it widens the pool of potential bidders. The fact that 3 bids were received suggests a moderate level of competition. The effectiveness in ensuring competitive pricing depends on the number of qualified bidders, the clarity of the solicitation documents, and the overall market conditions for construction services in Alabama. A higher number of bidders generally correlates with better price discovery.

What is the historical spending pattern for similar construction and renovation projects by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently allocates substantial funds towards the construction, renovation, and maintenance of its extensive network of healthcare facilities and administrative buildings. Historical spending patterns show a significant and ongoing investment in infrastructure modernization and upgrades to meet evolving healthcare standards and security requirements. Projects similar to this one—addressing physical security deficiencies and building renovations—are a regular part of the VA's capital investment strategy. Annual spending on construction can range from hundreds of millions to billions of dollars, depending on agency priorities, budget allocations, and the scale of infrastructure needs across the VA system.

What are the potential long-term implications of implementing a smart keying system as part of this renovation?

Implementing a smart keying system as part of this renovation offers significant long-term benefits for facility security and management. These systems typically provide enhanced audit trails, allowing for detailed tracking of who accessed specific areas and when, which is crucial for accountability and security investigations. They can also offer greater flexibility in managing access permissions, allowing for easier revocation of lost or stolen credentials and the ability to grant temporary or time-restricted access. Furthermore, integration with other building management or security systems can create a more cohesive and efficient operational environment. The initial investment in a smart keying system is often offset by reduced costs associated with traditional key management and improved security posture.

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: 36C24724B0003

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $11,403,389

Exercised Options: $11,403,389

Current Obligation: $11,403,389

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24718D0133

IDV Type: IDC

Timeline