VA Awards $18.7M for Research Building Renovation to VENERGY GROUP LLC

Contract Overview

Contract Amount: $18,721,685 ($18.7M)

Contractor: Venergy Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-30

End Date: 2025-09-30

Contract Duration: 2,192 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF RESEARCH BUILDING 2

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.7 million to VENERGY GROUP LLC for work described as: RENOVATION OF RESEARCH BUILDING 2 Key points: 1. The contract is for renovation of a research building, a common need in government facilities. 2. VENERGY GROUP LLC is the sole awardee, raising questions about competition. 3. The project spans nearly six years, indicating a significant scope and potential for cost overruns. 4. Commercial and Institutional Building Construction is a broad sector with varying cost drivers.

Value Assessment

Rating: fair

The award amount of $18.7 million for a multi-year renovation project appears within a reasonable range for large-scale construction. However, without specific details on the scope of work and comparable project costs, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition. This method may have restricted the pool of potential bidders, potentially impacting price discovery and overall value.

Taxpayer Impact: The significant investment of $18.7 million represents taxpayer funds. The limited competition raises concerns about whether the best possible price was secured for the public.

Public Impact

Improved research facilities can lead to advancements in scientific understanding and public health. The long duration of the project could cause disruptions to ongoing research activities. Investment in infrastructure projects like this can stimulate local economies through job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Long project duration
Potential for scope creep

Positive Signals

Investment in critical research infrastructure
Potential for long-term facility improvement

Sector Analysis

The Commercial and Institutional Building Construction sector is diverse, with costs heavily influenced by project complexity, location, and material prices. Government projects often face additional compliance and oversight requirements that can affect overall cost.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Larger construction projects often favor established firms with extensive experience and bonding capacity, potentially excluding smaller entities.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The long duration and significant value necessitate robust oversight to ensure adherence to scope, budget, and timeline, and to mitigate risks.

Related Government Programs

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

Risk Flags

Limited competition may have led to a higher price.
Long project duration increases risk of cost escalation and delays.
Potential for scope creep over the multi-year project.
Lack of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.7 million to VENERGY GROUP LLC. RENOVATION OF RESEARCH BUILDING 2

Who is the contractor on this award?

The obligated recipient is VENERGY GROUP 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 $18.7 million.

What is the period of performance?

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

What specific factors contributed to the exclusion of other sources, and how did this impact the final price?

The exclusion of sources suggests specific requirements or limitations were imposed, potentially narrowing the field of eligible contractors. Understanding these criteria is crucial to assessing if the competition was truly maximized. If the exclusion was based on unique capabilities or past performance, it might justify a higher price. However, if it was arbitrary, it could indicate a missed opportunity for better pricing through broader competition.

What are the key performance indicators (KPIs) for this renovation, and how will their achievement be measured over the project's duration?

Key performance indicators for a research building renovation would likely include adherence to the project schedule, staying within budget, meeting quality standards for construction and materials, and ensuring the facility meets all safety and functional requirements for research. Measurement would involve regular site inspections, progress reports, milestone reviews, and post-completion assessments to verify that the renovated spaces are fit for purpose and meet the VA's operational needs.

How will the VA ensure that the long project duration does not lead to significant cost increases due to inflation or changes in material costs?

The VA can mitigate cost increases due to inflation and material costs through several strategies. A firm fixed-price contract, as indicated, shifts some of this risk to the contractor. However, the VA can also incorporate mechanisms for price adjustments based on established indices for labor and materials, or require the contractor to secure materials early. Robust contract management and proactive monitoring of market trends are essential to manage these risks effectively.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2552 PETERS ROAD STE A, FORT PIERCE, FL, 34945

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: $18,721,685

Exercised Options: $18,721,685

Current Obligation: $18,721,685

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24818D0112

IDV Type: IDC

Timeline