VA Awards $10.8M for Building Construction and Renovation in Ohio

Contract Overview

Contract Amount: $10,822,406 ($10.8M)

Contractor: Veterans Contracting, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-07-23

End Date: 2025-09-30

Contract Duration: 1,530 days

Daily Burn Rate: $7.1K/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: CONSTRUCT 3RD FLOOR BUILDING 2 AND RENOVATE 1ST FLOOR PROJECT 539-333

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45220

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $10.8 million to VETERANS CONTRACTING, INC. for work described as: CONSTRUCT 3RD FLOOR BUILDING 2 AND RENOVATE 1ST FLOOR PROJECT 539-333 Key points: 1. The contract focuses on commercial and institutional building construction, a sector with significant infrastructure needs. 2. Competition was full and open after exclusion of sources, suggesting a deliberate effort to ensure fair pricing. 3. The project's duration of 1530 days indicates a substantial, long-term undertaking. 4. The firm-fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The contract value of $10.8M for a multi-year construction and renovation project appears reasonable given the scope. Benchmarking against similar VA or federal construction projects of comparable size and complexity 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.' This method, while specific, implies that multiple sources were considered before a final selection, potentially leading to competitive pricing.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers by encouraging a wide range of qualified bidders.

Public Impact

Veterans will benefit from improved facilities at the Department of Veterans Affairs. The project supports the construction industry and associated supply chains. Taxpayer funds are being invested in essential infrastructure for veteran services. The project's completion will enhance the operational capacity of the VA facility.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Potential for cost overruns due to long project duration.
Risk of scope creep impacting final cost.
Dependency on contractor performance for timely completion.

Positive Signals

Firm-fixed-price contract helps manage cost certainty.
Full and open competition generally leads to better pricing.
Project addresses critical infrastructure needs for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure upgrades and facility modernization needs, particularly within government agencies like the VA.

Small Business Impact

The data indicates that small businesses were not explicitly involved as prime contractors in this award. Further analysis would be needed to determine if small businesses participated as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and administrative agency. Oversight will be crucial to ensure the project stays on schedule and within budget, given its multi-year duration.

Related Government Programs

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

Risk Flags

Long project duration increases risk of unforeseen cost increases.
Potential for delays impacting facility readiness.
Complexity of renovation and new construction.
Reliance on a single prime contractor for execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $10.8 million to VETERANS CONTRACTING, INC.. CONSTRUCT 3RD FLOOR BUILDING 2 AND RENOVATE 1ST FLOOR PROJECT 539-333

Who is the contractor on this award?

The obligated recipient is VETERANS CONTRACTING, 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 $10.8 million.

What is the period of performance?

Start: 2021-07-23. End: 2025-09-30.

What specific improvements or new facilities does the 3rd-floor construction and 1st-floor renovation entail?

The provided data does not detail the specific improvements. Further investigation into the contract's statement of work or project scope documents would be necessary to understand the exact nature of the construction and renovation, including the functional purpose of the new third floor and the specific areas of the first floor being renovated.

How does the 'exclusion of sources' in the competition method impact potential cost savings?

While 'full and open competition after exclusion of sources' suggests a broad initial search, the exclusion implies certain pre-qualification or specific criteria were applied. This could potentially limit the number of bidders compared to unrestricted full and open competition, possibly affecting the intensity of price competition, though it aims to ensure only qualified entities bid.

What are the key performance indicators (KPIs) for this contract to ensure effectiveness and value?

Key performance indicators would likely include adherence to the construction schedule, meeting quality standards for materials and workmanship, compliance with safety regulations, and staying within the firm-fixed-price budget. Effective project management and regular progress reviews by the VA would be essential to monitor these KPIs.

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: SEALED BID

Solicitation ID: 36C25020B0070

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4770 W 139TH ST, CLEVELAND, OH, 44135

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

Financial Breakdown

Contract Ceiling: $10,822,406

Exercised Options: $10,822,406

Current Obligation: $10,822,406

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline