VA awards $14.7M contract for facility upgrades, highlighting need for infrastructure modernization

Contract Overview

Contract Amount: $14,743,970 ($14.7M)

Contractor: Blue Cord Design and Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-25

End Date: 2026-11-30

Contract Duration: 766 days

Daily Burn Rate: $19.2K/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: REPLACE WINDOWS AND WEATHER PROTECTION

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32803

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.7 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC for work described as: REPLACE WINDOWS AND WEATHER PROTECTION Key points: 1. Contract value appears reasonable given the scope of facility upgrades. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include project delays and cost overruns common in construction. 4. This contract addresses critical infrastructure needs within the VA. 5. Construction sector spending is a significant portion of federal outlays. 6. The award to a single contractor warrants scrutiny of the bidding process.

Value Assessment

Rating: good

The contract value of $14.7 million for facility upgrades is within a typical range for projects of this nature. Benchmarking against similar VA facility modernization contracts would provide a clearer picture of value for money. The firm fixed-price structure offers cost certainty, but the final cost will depend on the contractor's efficiency and any unforeseen issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which is an unusual designation. Typically, 'full and open' implies broad competition. The exclusion of sources suggests specific criteria were applied, potentially limiting the bidder pool. With 3 bidders, the competition level is moderate, which can still lead to fair pricing, but a wider pool might have yielded more competitive offers.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but the exclusion of certain sources could have potentially limited savings.

Public Impact

Veterans will benefit from improved facilities and a better healthcare environment. The contract delivers essential building construction and weather protection services. The geographic impact is focused on Florida, where the facilities are located. This project will likely create or sustain jobs within the construction sector in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in construction projects leading to cost increases.
Reliance on a single contractor for a significant project introduces performance risk.
The 'exclusion of sources' in the competition type requires further investigation to ensure fairness.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarding to a single, presumably qualified, contractor can streamline execution.
The project addresses a clear need for facility modernization.

Sector Analysis

The construction sector is a major component of federal spending, encompassing a wide range of projects from infrastructure to facility maintenance. This contract falls within the commercial and institutional building construction sub-sector. Federal spending in this area is driven by the need to maintain and upgrade government-owned facilities, ensuring operational efficiency and safety. Comparable spending benchmarks would involve analyzing the average cost of similar-sized facility renovation projects across federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which penalizes cost overruns for the contractor. Transparency is facilitated through federal contract databases, and the Inspector General's office may conduct audits or investigations if performance issues or fraud are suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building Modernization Projects
Commercial Construction Contracts
Infrastructure Improvement Programs

Risk Flags

Competition type requires clarification
Potential for cost overruns in construction
Contractor performance history not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.7 million to BLUE CORD DESIGN AND CONSTRUCTION, LLC. REPLACE WINDOWS AND WEATHER PROTECTION

Who is the contractor on this award?

The obligated recipient is BLUE CORD DESIGN AND 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 $14.7 million.

What is the period of performance?

Start: 2024-10-25. End: 2026-11-30.

What is the track record of BLUE CORD DESIGN AND CONSTRUCTION, LLC with VA contracts?

A review of federal procurement data would be necessary to fully assess the track record of BLUE CORD DESIGN AND CONSTRUCTION, LLC with the Department of Veterans Affairs. This would involve examining past performance on similar contracts, including project types, values, timeliness of completion, and any reported issues or disputes. Understanding their history with the VA can provide insights into their capacity and reliability for executing this current $14.7 million facility upgrade project. Without specific historical data, it's difficult to definitively gauge their past performance, but the award suggests they met the VA's requirements for this procurement.

How does the $14.7 million contract value compare to similar VA facility upgrade projects?

To benchmark the $14.7 million contract value, one would need to compare it against recent VA contracts for similar facility upgrades, considering factors like project scope, size of the facility, geographic location, and specific types of work (e.g., HVAC, roofing, structural repairs). For instance, if similar projects in Florida or other regions with comparable construction costs have ranged from $10 million to $20 million, then this award appears to be within a reasonable range. Conversely, if comparable projects were significantly less expensive, it might indicate a higher-than-average cost for this particular contract, warranting further investigation into the specifics of the work required.

What are the primary risks associated with this firm fixed-price contract?

While a firm fixed-price (FFP) contract is designed to provide cost certainty, risks remain. For the VA, the primary risk is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise, potentially leading to future repair needs. For the contractor, the risk lies in underestimating the project's complexity or encountering unexpected site conditions, which could result in financial losses if they cannot absorb the additional costs. Delays, even with an FFP contract, can still impact the VA's operational readiness and may incur indirect costs.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for ensuring value?

The 'Full and Open Competition After Exclusion of Sources' designation is somewhat contradictory and requires clarification. True full and open competition typically maximizes the bidder pool, fostering the best possible price discovery. Excluding sources, even if justified by specific requirements (e.g., security, specialized capabilities), inherently limits competition. While the presence of 3 bidders indicates some level of competition, the exclusion means the government may not have received offers from all potentially capable contractors. The effectiveness in ensuring value depends heavily on the justification for the exclusion and whether the remaining pool was sufficiently competitive.

What is the historical spending trend for facility upgrades by the Department of Veterans Affairs?

Analyzing the historical spending trend for facility upgrades by the Department of Veterans Affairs would reveal patterns in investment in their infrastructure. This involves examining annual or multi-year spending data on construction, renovation, and maintenance projects across VA medical centers and administrative facilities. Trends might show increasing or decreasing investment levels, shifts in the types of upgrades prioritized (e.g., modernization vs. new construction), and the average contract values over time. Such analysis helps contextualize the current $14.7 million award within the VA's broader capital investment strategy and budget allocation.

What are the implications of awarding this contract to BLUE CORD DESIGN AND CONSTRUCTION, LLC for the Florida region?

Awarding this $14.7 million contract to BLUE CORD DESIGN AND CONSTRUCTION, LLC has several implications for the Florida region. Economically, it signifies a significant injection of capital into the local construction market, potentially creating jobs for skilled tradespeople, project managers, and support staff. It also provides a substantial revenue stream for the awarded contractor and any local subcontractors they may engage. Furthermore, the successful completion of the facility upgrades will enhance the operational capacity and service delivery of the specific VA facility in Florida, ultimately benefiting veterans in the region.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24824R0135

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 835 BENNETT RD STE 100, ORLANDO, FL, 32803

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: $14,744,770

Exercised Options: $14,744,770

Current Obligation: $14,743,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline