VA Awards $13M Research Wing Renovation to Green-Veg JV Construction Services

Contract Overview

Contract Amount: $13,052,372 ($13.1M)

Contractor: Green-Veg JV Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-08-24

End Date: 2026-02-24

Contract Duration: 1,280 days

Daily Burn Rate: $10.2K/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: RENOVATE RESEARCH K-WING, PROJECT 541-20-104

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44106

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.1 million to GREEN-VEG JV CONSTRUCTION SERVICES, LLC for work described as: RENOVATE RESEARCH K-WING, PROJECT 541-20-104 Key points: 1. The Department of Veterans Affairs awarded a $13.05 million contract for the K-Wing renovation. 2. The contract was awarded to Green-Veg JV Construction Services, LLC. 3. The project falls under Commercial and Institutional Building Construction. 4. The contract type is Firm Fixed Price, indicating price certainty for the government. 5. The award was made after exclusion of sources, suggesting a specific justification for limited competition.

Value Assessment

Rating: fair

The $13.05 million award for a research wing renovation appears to be within a reasonable range for similar institutional construction projects, though specific scope details are needed for a precise comparison. The firm fixed price contract helps manage cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the initial intent might have been broader, specific circumstances led to a limited pool of bidders. This method can sometimes lead to higher prices if competition is significantly restricted.

Taxpayer Impact: The taxpayer impact is moderate, as the limited competition may have resulted in a price higher than what could have been achieved under full and open competition without exclusions.

Public Impact

Veterans will benefit from improved research facilities, potentially leading to advancements in healthcare. Local construction jobs may be created or sustained by this project. The renovation could impact the operational efficiency and capacity of the research wing. The use of taxpayer funds for infrastructure improvements is a key public interest.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition after exclusion of sources
Potential for higher costs due to restricted bidding
Long contract duration (1280 days)

Positive Signals

Firm Fixed Price contract type
Investment in critical research infrastructure
Potential for improved research outcomes

Sector Analysis

The construction sector, particularly for institutional and commercial buildings, is subject to market fluctuations in material costs and labor availability. A $13 million project of this nature requires significant planning and execution capabilities, with benchmarks varying based on location and specific building requirements.

Small Business Impact

The awardee, Green-Veg JV Construction Services, LLC, is not indicated as a small business. The contract was not set aside for small businesses, suggesting that larger firms were expected to compete or were specifically sought.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The 'exclusion of sources' clause warrants scrutiny to ensure proper justification and adherence to procurement regulations, safeguarding taxpayer funds.

Related Government Programs

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

Risk Flags

Limited competition
Potential for higher costs
Long contract duration
Contractor not identified as small business

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.1 million to GREEN-VEG JV CONSTRUCTION SERVICES, LLC. RENOVATE RESEARCH K-WING, PROJECT 541-20-104

Who is the contractor on this award?

The obligated recipient is GREEN-VEG JV CONSTRUCTION SERVICES, 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 $13.1 million.

What is the period of performance?

Start: 2022-08-24. End: 2026-02-24.

What specific factors led to the exclusion of sources, and how did this impact the final price compared to a fully open competition?

The exclusion of sources typically occurs when only a limited number of contractors possess the unique capabilities, specialized knowledge, or proprietary technology required for a specific project. This restriction can limit price discovery, potentially leading to higher costs than if a broader range of competitors were involved. A thorough review of the justification documentation is necessary to assess the validity of the exclusion and its financial implications.

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

Key performance indicators for this renovation would likely include adherence to the project schedule, quality of construction meeting specified standards, and completion within budget. Effectiveness will be measured by the successful commissioning of the renovated research wing, its readiness for occupancy, and its ability to support the intended research activities without operational disruptions. Post-occupancy evaluations and user feedback will also contribute to assessing effectiveness.

Given the firm fixed price contract, what mechanisms are in place to manage potential cost overruns or scope creep during the extended performance period?

While a firm fixed price contract aims to lock in costs, mechanisms to manage overruns and scope creep include strict change order management processes, detailed contract specifications, and regular progress reviews. The government will likely require detailed documentation for any proposed changes, assessing their necessity and impact on cost and schedule before approval. The contractor bears the primary risk for cost overruns unless changes are formally directed by the government.

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: 36C25022B0021

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8100 GRAND AVE STE 700, CLEVELAND, OH, 44104

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,052,372

Exercised Options: $13,052,372

Current Obligation: $13,052,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline