VA awards $7.89M contract for building repairs, highlighting construction sector activity

Contract Overview

Contract Amount: $7,880,895 ($7.9M)

Contractor: A4 Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-10-23

End Date: 2026-03-17

Contract Duration: 876 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 589AA5-21-101 REPAIR LIFE SAFETY DEFICIENCES BLDG 4&5 TOPEKA

Place of Performance

Location: TOPEKA, SHAWNEE County, KANSAS, 66622

State: Kansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.9 million to A4 SERVICES LLC for work described as: 589AA5-21-101 REPAIR LIFE SAFETY DEFICIENCES BLDG 4&5 TOPEKA Key points: 1. Contract value represents a significant investment in facility maintenance. 2. Competition dynamics suggest a potentially competitive bidding environment. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Contract duration indicates a medium-term commitment to facility upkeep. 5. Geographic focus on Kansas highlights regional infrastructure needs. 6. This award falls within the broader commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of approximately $7.89 million for building repairs appears reasonable for a project of this scope and duration. Benchmarking against similar facility repair contracts within the Department of Veterans Affairs (VA) would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an effort to establish cost certainty, which is generally positive for the government. However, without detailed cost breakdowns or comparisons to independent cost estimates, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to propose their best pricing and technical solutions. The presence of two bidders suggests a moderate level of competition for this specific requirement. A higher number of bidders would typically be expected to drive prices down further, but two bidders still offer a basis for price comparison and selection.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and encourages a wider pool of contractors to participate, potentially leading to better value.

Public Impact

Veterans receiving services at the Topeka VA facility will benefit from improved safety and functionality. The contract ensures the repair and maintenance of critical life safety systems in Buildings 4 and 5. The project's geographic impact is concentrated in Topeka, Kansas, supporting local infrastructure. The contract is expected to create or sustain jobs within the construction sector in the Kansas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during repairs, despite fixed-price structure.
Dependence on the contractor's ability to meet quality and safety standards throughout the project.
Risk of schedule delays impacting the availability of repaired facilities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust bidding process.
Contract duration allows for thorough execution of repair work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the U.S. economy. This sector encompasses a wide range of activities, from new construction to renovation and repair of non-residential buildings. Spending in this area by federal agencies like the VA is crucial for maintaining government infrastructure and ensuring the operational readiness of facilities. Comparable spending benchmarks would involve analyzing other VA facility repair contracts or similar construction projects awarded to other federal agencies.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. While the prime contractor, A4 SERVICES LLC, is not explicitly identified as a small business in the provided data, the contract's nature does not preclude subcontracting opportunities. The impact on the small business ecosystem would depend on whether the prime contractor actively seeks small business subcontractors for specialized services or materials.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified repairs within the agreed-upon budget and timeline. Transparency is generally maintained through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

VA Facility Maintenance and Repair
Federal Building Construction Contracts
Life Safety Systems Upgrades
Commercial Building Renovation Projects

Risk Flags

Potential for unforeseen conditions impacting cost and schedule.
Adequacy of competition level for optimal price discovery.
Ensuring quality control and adherence to safety standards during repairs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.9 million to A4 SERVICES LLC. 589AA5-21-101 REPAIR LIFE SAFETY DEFICIENCES BLDG 4&5 TOPEKA

Who is the contractor on this award?

The obligated recipient is A4 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 $7.9 million.

What is the period of performance?

Start: 2023-10-23. End: 2026-03-17.

What is the track record of A4 SERVICES LLC in performing similar VA facility repair contracts?

Assessing the track record of A4 SERVICES LLC requires accessing historical contract data beyond this single award. A comprehensive review would involve examining past performance evaluations, any documented disputes or claims, and the successful completion of previous projects, particularly those with the Department of Veterans Affairs or similar federal agencies. Information on their experience with life safety systems and building repairs would be particularly relevant. Without specific past performance data, it is difficult to definitively gauge their reliability and expertise for this particular contract.

How does the awarded amount compare to the estimated cost for repairing life safety deficiencies in Buildings 4 & 5?

The provided data indicates an awarded amount of $7,880,894.55. To compare this to the estimated cost, we would need access to the government's independent government cost estimate (IGCE) or the contractor's initial proposal breakdown. If the awarded amount is significantly below the IGCE, it could suggest strong competition or a favorable negotiation. Conversely, if it is close to or exceeds the IGCE, it might warrant further investigation into the cost-effectiveness. The firm-fixed-price nature means the government is obligated to pay the awarded amount, making the initial estimate and negotiation crucial for value.

What are the specific life safety deficiencies being addressed by this contract?

The contract description mentions 'REPAIR LIFE SAFETY DEFICIENCES BLDG 4&5 TOPEKA'. To understand the specific deficiencies, one would need to consult the contract's statement of work (SOW) or associated technical exhibits. These documents typically detail the scope of work, including the nature of the deficiencies (e.g., fire alarm system issues, emergency egress problems, structural integrity concerns related to safety). Without access to these detailed documents, the exact nature of the life safety issues remains unspecified, though it is clear they pertain to critical safety functions within the buildings.

What is the historical spending pattern for facility repairs at the Topeka VA campus?

Analyzing historical spending patterns for facility repairs at the Topeka VA campus would involve querying federal procurement databases for all contracts awarded to this facility or its parent agency for maintenance, repair, and construction over several fiscal years. This would reveal trends in spending, identify major repair projects, and potentially highlight recurring issues or areas of significant investment. Such analysis could help determine if the current $7.89 million award is consistent with past spending levels, unusually high, or indicative of a new, major upgrade initiative.

What are the potential risks associated with a firm-fixed-price contract for building repairs?

While firm-fixed-price (FFP) contracts offer cost certainty, they carry risks, especially for complex repair projects. If unforeseen conditions arise during the repairs (e.g., hidden structural damage, asbestos discovery), the contractor may seek equitable adjustments or claim constructive changes, potentially increasing the overall cost to the government, despite the FFP structure. The contractor also bears the risk of cost overruns, which could incentivize them to cut corners on quality or safety if not adequately monitored. Effective government oversight is crucial to mitigate these risks and ensure the repairs meet required standards.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25523R0102

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15540 HIGHWAY 5, CABOT, AR, 72023

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: $7,906,653

Exercised Options: $7,906,653

Current Obligation: $7,880,895

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline