VA awards $8.6M contract for primary care facility renovation to V Line Services L.L.C

Contract Overview

Contract Amount: $8,600,000 ($8.6M)

Contractor: V Line Services L.L.C.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-17

End Date: 2025-09-10

Contract Duration: 1,059 days

Daily Burn Rate: $8.1K/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: RENOVATE PRIMARY CARE PACT B340/341

Place of Performance

Location: DAYTON, MONTGOMERY County, OHIO, 45428

State: Ohio Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.6 million to V LINE SERVICES L.L.C. for work described as: RENOVATE PRIMARY CARE PACT B340/341 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a definitive contract with a firm fixed price, indicating defined scope and cost. 3. The duration of 1059 days suggests a significant renovation project. 4. The awardee, V Line Services L.L.C., is a relatively new entity based on the award date. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is for renovating a primary care pact, directly impacting healthcare infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $8.6 million contract for renovating a primary care facility is challenging without specific details on the scope of work and the facility's condition. However, the firm fixed-price structure suggests that the contractor assumes the risk for cost overruns, which can be a positive indicator for the government if the scope is well-defined. Comparing this to similar-sized healthcare facility renovations would provide a clearer picture of its value proposition.

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 indicates that while the competition was intended to be broad, specific sources may have been excluded for defined reasons. The fact that it was 'full and open' suggests multiple bidders were likely considered, which generally promotes price discovery and potentially better pricing for the government.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it encourages multiple companies to offer their best prices and services, leading to potentially lower overall costs.

Public Impact

Veterans will benefit from improved primary care facilities. The contract delivers renovation services for a healthcare infrastructure project. The geographic impact is localized to Ohio, where the facility is located. The project will likely create or sustain jobs in the construction sector within Ohio.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in a 'full and open' competition warrants further investigation to ensure no viable bidders were unfairly excluded.
The relatively new status of the awardee could present potential performance risks if they lack extensive experience with projects of this scale.
The long duration of the contract (1059 days) increases the risk of scope creep or unforeseen issues impacting the final cost and timeline.

Positive Signals

The use of a firm fixed-price contract shifts cost overrun risk to the contractor.
The 'full and open' competition aspect suggests a deliberate effort to solicit multiple bids.
The contract directly addresses the need for improved healthcare facilities for veterans.

Sector Analysis

The construction sector, particularly for institutional buildings like healthcare facilities, is a significant part of the federal contracting landscape. This contract falls under commercial and institutional building construction (NAICS 236220). Federal spending in this area often involves renovations, new builds, and maintenance of government-owned properties. The market size for such projects can be substantial, with numerous firms competing for contracts, especially those designated for full and open competition.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor may still choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs (VA) contracting officers and program managers. The VA has an Office of Inspector General (OIG) that conducts audits and investigations into VA programs and contracts to ensure accountability and prevent fraud, waste, and abuse. Transparency would be facilitated through contract award databases and reporting requirements.

Related Government Programs

VA Healthcare Construction Projects
Federal Building Renovations
Commercial and Institutional Building Construction Contracts

Risk Flags

Potential performance risk due to awardee's limited federal contracting history.
Risk of scope creep or unforeseen conditions due to long contract duration.
Need for clarity on the justification for excluding sources in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.6 million to V LINE SERVICES L.L.C.. RENOVATE PRIMARY CARE PACT B340/341

Who is the contractor on this award?

The obligated recipient is V LINE SERVICES L.L.C..

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 $8.6 million.

What is the period of performance?

Start: 2022-10-17. End: 2025-09-10.

What is the track record of V Line Services L.L.C. in completing federal construction contracts of similar size and scope?

As of the award date of October 17, 2022, V Line Services L.L.C. appears to be a relatively new entity in the federal contracting space. Information regarding their prior track record on federal construction contracts of similar size and scope is limited in publicly available databases. Further investigation into their past performance, including any commercial projects or state/local government contracts, would be necessary to fully assess their capabilities and reliability for this significant renovation project. The absence of a substantial federal contract history could represent a risk factor that the VA would need to mitigate through rigorous oversight and performance management.

How does the awarded amount of $8.6 million compare to the estimated cost or benchmark for similar primary care facility renovations?

Without specific details on the scope of work, the size of the facility, and the extent of the renovations required, it is difficult to definitively benchmark the $8.6 million award against industry standards. However, for a comprehensive renovation of a primary care facility, this amount could be within a reasonable range, especially if it involves significant structural, mechanical, or electrical upgrades. A more precise comparison would require access to the detailed project requirements, architectural plans, and cost estimates that informed the bid. The firm fixed-price nature of the contract suggests the VA believes this price adequately covers the defined scope.

What are the specific risks associated with a contract duration of 1059 days for a facility renovation?

A contract duration of 1059 days (approximately 2.9 years) for a facility renovation introduces several potential risks. These include the increased likelihood of encountering unforeseen site conditions (e.g., hazardous materials, structural issues) that could lead to change orders and cost increases. There's also a higher risk of material price escalation over such a long period, although the firm fixed-price contract aims to mitigate this for the government. Furthermore, extended project timelines can lead to contractor fatigue, potential staff turnover, and a greater chance of regulatory changes impacting the project. Maintaining consistent oversight and communication throughout this extended period is crucial for the VA.

What does the 'after exclusion of sources' clause in the competition type imply for the bidding process and potential cost savings?

The 'Full and Open Competition After Exclusion of Sources' clause indicates that while the competition was intended to be broad, certain potential bidders were specifically excluded from participating. The reasons for exclusion must be justified and documented according to federal acquisition regulations. This could occur if certain sources failed to meet pre-qualification criteria, past performance issues, or other specific requirements. While it aims for broad competition, the exclusion of even one potentially competitive source could theoretically limit the number of bids received and potentially impact the final price. However, if the exclusions were based on valid, objective criteria, the remaining competition could still yield a fair and reasonable price.

What is the historical spending pattern for primary care facility renovations by the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) consistently allocates significant funds towards the construction, renovation, and maintenance of its healthcare facilities to serve the veteran population. Historical spending patterns show a continuous need for upgrades to existing infrastructure and the development of new facilities to meet evolving healthcare demands. While specific figures for 'primary care facility renovations' can vary year to year based on infrastructure needs assessments and budget allocations, the VA's overall capital investment in facilities is substantial. Analyzing past VA budget requests and contract awards for similar projects would reveal trends in spending and the types of renovations prioritized.

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: 36C25022B0031

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 663 EUHARLEE FIVE FORKS RD, KINGSTON, GA, 30145

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: $8,600,000

Exercised Options: $8,600,000

Current Obligation: $8,600,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline