VA awards $11.7M contract for site preparation and sewer infrastructure replacement in South Carolina

Contract Overview

Contract Amount: $11,740,000 ($11.7M)

Contractor: Boyer Commercial Construction Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-04

End Date: 2027-03-24

Contract Duration: 566 days

Daily Burn Rate: $20.7K/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: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK TO REPLACE THE EXISTING SITE SANITARY SEWER INFRASTRUCTURE AND GREASE TRAPS.

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29209

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.7 million to BOYER COMMERCIAL CONSTRUCTION INC for work described as: CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK TO REPLACE THE EXISTING SITE SANITARY SEWER INFRASTRUCTURE AND GREASE TRAPS. Key points: 1. Contract focuses on essential site preparation and utility upgrades, crucial for facility readiness. 2. The firm-fixed-price structure aims to control costs for the government. 3. Competition was conducted after excluding specific sources, warranting a review of the rationale. 4. The project duration of approximately 1.5 years suggests a significant scope of work. 5. This contract supports the Department of Veterans Affairs' infrastructure modernization efforts. 6. The North American Industry Classification System (NAICS) code 237110 indicates a focus on heavy civil construction.

Value Assessment

Rating: good

The contract value of $11.7 million for site preparation and sewer infrastructure replacement appears reasonable given the scope of demolition, removal, and new installation. Benchmarking against similar VA projects for site work and utility upgrades would provide a more precise assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if the initial pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be broad, certain sources were excluded. Understanding the specific reasons for exclusion is critical to assessing whether this approach maximized competition and achieved the best value. The presence of 3 bidders suggests some level of competition, but the exclusion of sources may have limited the pool.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, raises questions about whether taxpayers received the most competitive pricing possible. A thorough review of the justification for exclusion is needed to ensure fair market value was obtained.

Public Impact

Veterans in South Carolina will benefit from improved facilities and infrastructure at the VA site. The contract delivers essential site preparation, demolition, and replacement of sanitary sewer infrastructure. The project's geographic impact is localized to the specific VA facility in South Carolina. The contract will likely create or sustain jobs in the construction sector within South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The rationale for excluding certain sources in the full and open competition needs to be clearly documented and justified to ensure fairness and optimal value.
The firm-fixed-price contract, while beneficial for cost control, requires careful initial pricing to avoid contractor underbidding leading to potential quality issues or change orders.

Positive Signals

The contract is awarded to Boyer Commercial Construction Inc., a known entity in the construction space.
The firm-fixed-price contract type provides cost certainty for the government.
The project addresses critical infrastructure needs, ensuring the long-term functionality of the VA facility.

Sector Analysis

This contract falls within the heavy civil construction sector, specifically focusing on utility infrastructure. The market for such services is driven by government and private sector investments in infrastructure upgrades and new development. Comparable spending benchmarks would typically involve analyzing costs for similar demolition, site preparation, and sewer line construction projects in the region and nationally, considering factors like labor costs, material prices, and regulatory compliance.

Small Business Impact

The contract data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific award. While there is no explicit small business set-aside, the prime contractor, Boyer Commercial Construction Inc., may engage small businesses as subcontractors. The extent of subcontracting to small businesses will be a key factor in assessing the broader impact on the small business ecosystem for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency can be assessed through publicly available contract data and reports. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facility Modernization Projects
Federal Infrastructure Construction Contracts
Water and Sewer System Construction
Site Preparation Services

Risk Flags

Potential for cost overruns due to unforeseen site conditions under FFP contract.
Limited competition due to source exclusion may impact price discovery.
Contractor's past performance on similar complex infrastructure projects needs verification.
Adequacy of the initial pricing to cover all project requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.7 million to BOYER COMMERCIAL CONSTRUCTION INC. CONTRACTOR SHALL COMPLETELY PREPARE SITE FOR BUILDING OPERATIONS, INCLUDING DEMOLITION AND REMOVAL OF EXISTING STRUCTURES, AND FURNISH LABOR AND MATERIALS AND PERFORM WORK TO REPLACE THE EXISTING SITE SANITARY SEWER INFRASTRUCTURE AND GREASE TRAPS.

Who is the contractor on this award?

The obligated recipient is BOYER COMMERCIAL CONSTRUCTION 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 $11.7 million.

What is the period of performance?

Start: 2025-09-04. End: 2027-03-24.

What is the track record of Boyer Commercial Construction Inc. on similar federal contracts, particularly with the Department of Veterans Affairs?

A review of Boyer Commercial Construction Inc.'s past performance on federal contracts, especially those with the Department of Veterans Affairs, is crucial. This would involve examining contract completion records, past performance evaluations (e.g., CPARS), and any history of disputes or claims. Understanding their experience with similar scope projects, such as site preparation, demolition, and utility infrastructure replacement, will provide insight into their capability to successfully execute this $11.7 million contract. Specific attention should be paid to their performance on firm-fixed-price contracts and their ability to manage costs and schedules effectively within the federal contracting environment.

How does the awarded price of $11.7 million compare to market rates for similar site preparation and sewer infrastructure projects in South Carolina?

To benchmark the $11.7 million award, a comparative analysis against market rates for similar projects in South Carolina is necessary. This involves researching publicly available data on construction costs for projects of comparable size and scope, including demolition, earthwork, and sanitary sewer system installation. Factors such as prevailing wage rates, material costs specific to the region, and typical contractor overhead and profit margins should be considered. If detailed cost breakdowns are available, they can be compared to industry cost estimating guides. Without specific cost data, a general assessment suggests the price is substantial, reflecting the complexity and scope of replacing existing infrastructure.

What are the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while the competition was not sole-source, a deliberate decision was made to exclude specific potential bidders. The justification for such exclusions must be documented and legally defensible, often related to specific technical requirements, past performance issues, or unique capabilities not widely available. Understanding these reasons is critical for assessing whether the exclusion limited competition unnecessarily and potentially impacted the final price. The presence of three bidders suggests some level of competition was maintained, but the rationale behind the exclusions needs scrutiny to ensure taxpayer value was maximized.

What are the potential risks associated with the firm-fixed-price contract type for this specific project?

While firm-fixed-price (FFP) contracts are generally favored by the government for cost control, they carry inherent risks, especially for complex projects like infrastructure replacement. For this $11.7 million contract, the primary risk is that the initial price may not adequately account for unforeseen site conditions, material cost fluctuations, or labor challenges during the 566-day performance period. If the contractor underestimated costs, they might seek to recoup losses through change orders, potentially increasing the overall project cost. Conversely, if the price is too high, taxpayers may have overpaid. Effective oversight and a robust baseline estimate are crucial to mitigate these risks.

How does this contract align with the Department of Veterans Affairs' broader infrastructure improvement goals and historical spending patterns in South Carolina?

This contract for site preparation and sewer infrastructure replacement directly supports the VA's ongoing efforts to modernize and maintain its facilities, ensuring they are functional and capable of supporting veteran healthcare services. Its alignment with broader goals can be assessed by examining the VA's strategic infrastructure plans and capital investment strategies. Historically, the VA has invested significantly in facility upgrades across the country, including in South Carolina. Analyzing past VA spending on similar construction and utility projects in the region would provide context for the $11.7 million award, indicating whether it represents a typical investment or a deviation from historical patterns.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24725R0085

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2122 S BELTLINE BLVD, COLUMBIA, SC, 29201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, 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: $11,740,000

Exercised Options: $11,740,000

Current Obligation: $11,740,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline