VA Awards $3.48M Parking Garage Contract to Paramount Construction Group for Malcom Randall VAMC

Contract Overview

Contract Amount: $3,477,905 ($3.5M)

Contractor: Paramount Construction Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-18

End Date: 2026-12-17

Contract Duration: 455 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INSTALL PARKING GARAGE MALCOM RANDALL VAMC

Place of Performance

Location: LAKE CITY, COLUMBIA County, FLORIDA, 32025

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to PARAMOUNT CONSTRUCTION GROUP, LLC for work described as: INSTALL PARKING GARAGE MALCOM RANDALL VAMC Key points: 1. Contract awarded for construction of a parking garage at the Malcom Randall VAMC. 2. Paramount Construction Group, LLC is the prime contractor. 3. The contract is a Firm Fixed Price award. 4. Competition was full and open after exclusion of sources. 5. The project duration is 455 days.

Value Assessment

Rating: fair

The contract value of $3.48 million for a 455-day construction project appears within a reasonable range for a commercial and institutional building. Benchmarking against similar VA or federal construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was initiated but specific sources were excluded. This method can impact price discovery if the exclusion was not fully justified.

Taxpayer Impact: The $3.48 million expenditure represents taxpayer investment in critical infrastructure for veterans' healthcare facilities.

Public Impact

Improved access and convenience for veterans visiting the Malcom Randall VAMC. Potential for job creation during the construction phase. Enhancement of medical center infrastructure to support patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in construction projects.
Dependence on a single contractor for project completion.
Risk of delays impacting facility readiness.

Positive Signals

Addresses a clear need for improved parking facilities.
Firm Fixed Price contract provides cost certainty.
Competitive bidding process likely secured a reasonable price.

Sector Analysis

The construction sector, particularly for institutional buildings like VA medical centers, requires specialized expertise. Spending benchmarks vary significantly based on project scope, location, and material costs. This $3.48 million award falls within the typical range for mid-sized construction projects.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were explicitly mentioned for this contract. Further investigation is needed to determine if small businesses were involved in the bidding or subcontracting process.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for federal construction projects, including site inspections and progress reviews, should be in place to ensure quality and adherence to schedule.

Related Government Programs

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

Risk Flags

Potential for construction delays.
Risk of cost overruns if unforeseen issues arise.
Limited transparency on source exclusion criteria.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to PARAMOUNT CONSTRUCTION GROUP, LLC. INSTALL PARKING GARAGE MALCOM RANDALL VAMC

Who is the contractor on this award?

The obligated recipient is PARAMOUNT CONSTRUCTION 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 $3.5 million.

What is the period of performance?

Start: 2025-09-18. End: 2026-12-17.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The exclusion of sources typically occurs when specific capabilities, past performance, or security clearances are required that only a limited number of contractors possess. Understanding these criteria is crucial to assess if the exclusion was justified and if it potentially limited competitive pricing. Without this information, it's difficult to definitively state the impact on price discovery, though it inherently reduces the pool of potential bidders.

What are the key performance indicators (KPIs) for this parking garage construction, and how will their achievement be measured to ensure project effectiveness?

Key performance indicators likely include adherence to the 455-day schedule, completion within the $3.48 million budget, and meeting all specified construction quality standards and building codes. Effectiveness will be measured by the successful handover of a functional, safe, and durable parking facility that meets the needs of the VAMC and its visitors, as verified through final inspections and occupancy permits.

Given the firm fixed price, what mechanisms are in place to manage potential unforeseen site conditions or material price fluctuations that could impact the contractor's profitability and project time

While a firm fixed price contract aims to transfer risk to the contractor, most federal contracts include clauses for unforeseen conditions or equitable adjustments under specific circumstances. The contract likely details procedures for change orders or modifications if significant, unanticipatable issues arise. However, the contractor bears the primary risk for normal fluctuations and project execution.

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: 36C24825R0118

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2301 HIGHWAY 51 BLDG 100, MADISON, MS, 39110

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,477,905

Exercised Options: $3,477,905

Current Obligation: $3,477,905

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline