VA awards $2M contract for environmental area renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $2,010,689 ($2.0M)

Contractor: Guarantee Interiors, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-04

End Date: 2026-04-02

Contract Duration: 514 days

Daily Burn Rate: $3.9K/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 ENVIRONMENTAL AREA 589A4-23-051

Place of Performance

Location: COLUMBIA, BOONE County, MISSOURI, 65201

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to GUARANTEE INTERIORS, INC. for work described as: RENOVATE ENVIRONMENTAL AREA 589A4-23-051 Key points: 1. Contract value appears reasonable for a renovation project of this scope. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 514 days indicates a substantial renovation effort. 5. Geographic focus on Missouri positions the project within a specific regional market.

Value Assessment

Rating: good

The contract value of $2,006,890 for renovating Environmental Area 589A4 is within a typical range for commercial and institutional building construction projects of this nature. Benchmarking against similar renovation contracts would provide a more precise value-for-money assessment, but the initial figure does not raise immediate red flags. The firm fixed-price structure is generally favorable for the government in managing costs for defined scopes of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain sources may have been excluded from the initial bidding process. The presence of 4 bidders suggests a moderate level of competition. The specific reasons for excluding certain sources would need further investigation to fully understand the impact on price discovery and overall competition.

Taxpayer Impact: A moderate number of bidders, even after potential source exclusions, generally allows for some price competition, which is beneficial for taxpayers. However, understanding the rationale behind source exclusion is key to ensuring the best possible value was achieved.

Public Impact

The Department of Veterans Affairs (VA) will benefit from an improved environmental area, potentially enhancing facility operations. The contract supports the construction industry by providing work for Guarantee Interiors, Inc. and potentially its subcontractors. The project's geographic impact is concentrated in Missouri, supporting local economic activity. The renovation will likely involve a skilled construction workforce, contributing to employment in the trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further scrutiny to ensure fair competition.
Lack of detailed scope in the provided data makes a precise value assessment challenging.

Positive Signals

Firm fixed-price contract type offers cost certainty.
Multiple bidders (4) indicate some level of market interest and competition.
Contract award to a single entity simplifies management and accountability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses a wide range of projects, from office buildings to healthcare facilities and government installations. Spending in this area is often driven by infrastructure upgrades, facility maintenance, and new construction needs across various government agencies. The $2M award is a moderate-sized contract within this sector.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities with the prime contractor, Guarantee Interiors, Inc. The extent of small business subcontracting will depend on the prime contractor's strategy and the nature of the work required for the renovation.

Oversight & Accountability

The contract is managed by the Department of Veterans Affairs, which has established oversight mechanisms for its procurement activities. The firm fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency would be enhanced by making the detailed contract scope and performance metrics publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facility Renovations
Government Building Construction
Commercial Construction Contracts
Environmental Remediation Projects

Risk Flags

Potential for unforeseen site conditions impacting cost and schedule.
Risk of contractor performance issues under a fixed-price contract.
Need for clear definition and oversight of 'environmental area' scope.
Impact of 'exclusion of sources' on overall competition level.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to GUARANTEE INTERIORS, INC.. RENOVATE ENVIRONMENTAL AREA 589A4-23-051

Who is the contractor on this award?

The obligated recipient is GUARANTEE INTERIORS, 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 $2.0 million.

What is the period of performance?

Start: 2024-11-04. End: 2026-04-02.

What is the track record of Guarantee Interiors, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to assess Guarantee Interiors, Inc.'s track record. This would involve examining past contract awards, performance evaluations, and any history of disputes or contract modifications. Understanding their experience with similar renovation projects, especially for the VA, would provide insight into their capability and reliability. Without specific historical data, it's difficult to definitively assess their past performance, but the award suggests they met the agency's requirements for this specific contract.

How does the $2,006,890 contract value compare to similar VA environmental area renovation projects?

To benchmark the value, one would need to compare this contract to similar projects undertaken by the VA or other federal agencies. Key comparison points would include the square footage renovated, the complexity of the environmental work (e.g., hazardous material abatement, specialized ventilation), and the duration of the project. A $2M contract for a 514-day renovation suggests a significant scope. If similar, less complex projects cost substantially less, or more complex projects cost similarly, it would indicate whether this contract represents good or fair value. Further analysis of the specific scope of work is needed for a precise comparison.

What are the primary risks associated with this firm fixed-price contract for environmental area renovation?

The primary risks for the government in a firm fixed-price contract are typically related to the contractor's ability to deliver the specified scope within the agreed price. For an environmental renovation, risks include unforeseen site conditions (e.g., hidden contamination), potential delays due to weather or material availability, and the contractor potentially cutting corners on quality to maintain profitability if the fixed price is too low. The VA's oversight and quality assurance processes are crucial to mitigating these risks. The contractor bears the risk of cost overruns if their estimates are inaccurate.

How effective are the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' clauses in ensuring competitive pricing for the VA?

This type of competition aims to balance the need for broad market access with specific requirements that might limit the pool of eligible bidders. While 'full and open' competition is generally preferred for maximizing price discovery, the 'after exclusion of sources' caveat suggests specific criteria were used to narrow the field. The effectiveness in ensuring competitive pricing depends heavily on the justification for the exclusions. If exclusions were narrowly defined and based on legitimate technical requirements, competition among the remaining bidders could still yield good prices. However, if exclusions were overly broad or arbitrary, it could stifle competition and lead to higher costs for taxpayers.

What is the historical spending trend for environmental area renovations by the Department of Veterans Affairs?

Analyzing historical spending data for VA environmental area renovations would reveal trends in contract values, frequency of awards, and the types of contractors engaged. This could show whether spending in this category has been increasing, decreasing, or remaining stable. It would also highlight common contract types (e.g., fixed-price vs. cost-plus) and competition levels. Understanding these patterns can help forecast future needs, identify potential cost efficiencies, and assess the overall investment the VA makes in maintaining and upgrading its facilities' environmental areas.

What are the potential workforce implications of this $2M renovation contract in Missouri?

A $2M construction contract typically requires a significant number of skilled labor hours over its 514-day duration. This project would likely create or sustain jobs for various trades, including electricians, plumbers, HVAC technicians, general laborers, and project managers within the Missouri region. The demand for these skills could positively impact local employment and the regional construction economy. The specific number of jobs created would depend on the project's labor intensity and the extent to which local labor is utilized by the prime contractor and any subcontractors.

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: 36C25524R0104

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2914 LOCUST ST, SAINT LOUIS, MO, 63103

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: $2,010,689

Exercised Options: $2,010,689

Current Obligation: $2,010,689

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline