VA awards $12.8M contract for clinical lab renovations, with ADVON CORPORATION selected

Contract Overview

Contract Amount: $12,874,440 ($12.9M)

Contractor: Advon Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-10

End Date: 2026-04-16

Contract Duration: 1,588 days

Daily Burn Rate: $8.1K/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: RENOVATE CLINICAL RESEARCH LABORATORIES

Place of Performance

Location: GAINESVILLE, ALACHUA County, FLORIDA, 32608

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.9 million to ADVON CORPORATION for work described as: RENOVATE CLINICAL RESEARCH LABORATORIES Key points: 1. Contract value appears reasonable for a large-scale laboratory renovation project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract, indicating a long-term agreement. 4. Project duration is substantial, spanning over 1500 days. 5. The fixed-price nature of the contract shifts risk to the contractor. 6. This project falls within the broader category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of approximately $12.8 million for renovating clinical research laboratories seems within a reasonable range for a project of this scope and duration. Benchmarking against similar large-scale construction and renovation projects for federal agencies, particularly within healthcare or research facilities, would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can be beneficial for the government if managed effectively. However, without specific details on the scope of work and materials, a definitive comparison to market rates is challenging.

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,' indicating that while the competition was broad, certain sources were initially excluded before the final award. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider selection of qualified contractors. The fact that it was competed broadly is a positive sign for price discovery, though the exclusion of sources warrants further investigation into the rationale.

Taxpayer Impact: The use of full and open competition generally benefits taxpayers by promoting a competitive environment that can drive down costs and encourage innovation. While the exclusion of sources needs scrutiny, the broad competition framework aims to ensure the government receives the best value.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and the researchers and medical staff who will utilize the renovated clinical research laboratories. The services delivered include the construction and renovation of specialized laboratory spaces, likely enhancing the VA's research capabilities. The geographic impact is focused on Florida, where the project is located. Workforce implications include employment opportunities for construction workers, project managers, and potentially specialized trades involved in laboratory construction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition requires clarification to ensure no potential bidders were unfairly disadvantaged.
The long project duration (1588 days) could introduce risks related to material cost fluctuations or changes in research needs.
The specific scope of renovation and the complexity of the clinical research labs are not detailed, making a precise risk assessment difficult.

Positive Signals

The use of a firm fixed-price contract effectively transfers cost overrun risks to the contractor.
The award to ADVON CORPORATION, a single entity, suggests a clear line of accountability for project completion.
The project is managed by the Department of Veterans Affairs, an agency with established procurement and oversight processes.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for renovating and constructing specialized research facilities, particularly for government agencies like the VA, is significant. Such projects often require adherence to stringent building codes, specialized equipment installation, and compliance with health and safety regulations. Comparable spending benchmarks would involve looking at other federal or state-funded laboratory construction and renovation projects, considering factors like square footage, complexity of systems (e.g., HVAC, specialized plumbing, electrical), and location.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the contract was not specifically targeted towards small businesses. Consequently, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The impact on the small business ecosystem would be indirect, primarily through potential opportunities with the prime contractor, ADVON CORPORATION, if they choose to subcontract portions of the work to small businesses.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, which stipulate performance requirements and penalties for non-compliance. Transparency is generally facilitated through federal procurement databases like FPDS-NG, where contract awards are recorded. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Facility Construction
Federal Laboratory Construction
Department of Veterans Affairs Procurement
Commercial Building Renovations
Healthcare Infrastructure Projects

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of delays due to unforeseen site conditions or regulatory changes.
Need for clear definition and adherence to 'excluded sources' rationale.
Ensuring long-term contractor performance and quality over extended duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.9 million to ADVON CORPORATION. RENOVATE CLINICAL RESEARCH LABORATORIES

Who is the contractor on this award?

The obligated recipient is ADVON CORPORATION.

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 $12.9 million.

What is the period of performance?

Start: 2021-12-10. End: 2026-04-16.

What is ADVON CORPORATION's track record with the Department of Veterans Affairs and similar federal construction projects?

A review of ADVON CORPORATION's contract history with the Department of Veterans Affairs (VA) and other federal agencies is crucial for assessing their reliability and performance. Specifically, examining past projects of similar scale and complexity, such as laboratory renovations or healthcare facility construction, would provide insight into their ability to manage budgets, timelines, and quality standards. Data on past performance ratings, any instances of contract disputes, or litigation involving ADVON CORPORATION would further inform this assessment. Understanding their experience with federal regulations and compliance requirements is also key. Without specific historical data on ADVON CORPORATION's performance on comparable projects, it is difficult to definitively gauge their suitability and potential risks associated with this contract.

How does the awarded price of $12.8 million compare to market rates for similar clinical laboratory renovations?

Benchmarking the $12.8 million contract value against market rates for similar clinical laboratory renovations requires detailed information on the scope of work, square footage, specific systems being installed (e.g., HVAC, specialized ventilation, plumbing, electrical), and the level of finishes. Generally, laboratory renovations are more expensive than standard commercial construction due to the specialized infrastructure and equipment required. Factors such as geographic location (Florida, in this case), prevailing labor costs, and material prices also influence the overall cost. A comprehensive comparison would involve analyzing data from private sector construction projects of comparable size and complexity, or other federal contracts for similar facilities. The firm fixed-price nature suggests the contractor has factored in these costs and risks, but a detailed cost breakdown would be needed for precise market rate validation.

What are the primary risks associated with the long duration (1588 days) of this renovation project?

The 1588-day duration (approximately 4.35 years) for this clinical laboratory renovation project presents several potential risks. Firstly, there is an increased risk of material cost escalation over such an extended period, although the firm fixed-price contract aims to mitigate this for the government by placing the risk on the contractor. Secondly, technological advancements or changes in research methodologies during the project's lifespan could render certain aspects of the renovation obsolete or require costly modifications. Thirdly, extended construction timelines can lead to unforeseen site conditions or regulatory changes that necessitate design adjustments. Finally, maintaining consistent project oversight and contractor performance over several years can be challenging, potentially leading to scope creep or quality degradation if not managed diligently. The VA will need robust project management to navigate these long-term risks.

What is the expected impact of these renovated laboratories on the VA's research capabilities and patient care?

The renovation of clinical research laboratories is expected to significantly enhance the VA's research capabilities by providing modern, state-of-the-art facilities. Improved infrastructure can support more advanced research projects, attract top scientific talent, and potentially lead to breakthroughs in medical treatments and understanding of diseases affecting veterans. Enhanced research often translates into better diagnostic tools and treatment protocols, ultimately improving the quality of patient care delivered by the VA. The specific impact will depend on the types of research conducted in these labs, but the investment signifies a commitment to advancing medical science for the benefit of veterans' health and well-being.

What does the 'after exclusion of sources' clause in the competition type imply for this contract?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was intended to be broad, certain potential sources were identified and excluded from the bidding process prior to the solicitation. The Federal Acquisition Regulation (FAR) permits such exclusions under specific circumstances, often related to national security, proprietary information, or when only a limited number of responsible sources can fulfill the requirement. The rationale for excluding sources must be documented and justified. For taxpayers, this clause raises a question about whether the exclusion potentially limited the competitive pool, possibly leading to a less competitive price than if all qualified sources had been allowed to bid. Understanding the justification for the exclusion is key to assessing if the government obtained the best possible value.

How does the firm fixed-price (FFP) contract type benefit the VA in this construction project?

A Firm Fixed-Price (FFP) contract type is generally advantageous for the VA in a construction project like this because it establishes a ceiling price that the contractor must adhere to, regardless of their actual costs. This shifts the majority of the financial risk from the government to the contractor. The VA knows the total cost upfront, which aids in budget certainty and financial planning. The contractor is incentivized to control costs and manage the project efficiently to maximize their profit margin. This structure is particularly suitable for projects with well-defined scopes and requirements, like building renovations, where unforeseen cost increases due to contractor inefficiencies are a primary concern. The VA's primary responsibility is to ensure the contractor meets the defined scope, quality, and schedule.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24821R0129

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2882 REMINGTON GREEN LN, TALLAHASSEE, FL, 32308

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

Financial Breakdown

Contract Ceiling: $12,874,440

Exercised Options: $12,874,440

Current Obligation: $12,874,440

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline