VA awards $11.77M contract to AVCOR CONSTRUCTION for JLM POD renovation, impacting 2 beds

Contract Overview

Contract Amount: $11,774,831 ($11.8M)

Contractor: Avcor Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-12-01

End Date: 2026-03-24

Contract Duration: 1,574 days

Daily Burn Rate: $7.5K/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 JLM PODS 4B/4C TO DEVELOP PRIVATE/SEMI-PRIVATE BED SPACES

Place of Performance

Location: LITTLE ROCK, PULASKI County, ARKANSAS, 72205

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11.8 million to AVCOR CONSTRUCTION, LLC for work described as: RENOVATE JLM PODS 4B/4C TO DEVELOP PRIVATE/SEMI-PRIVATE BED SPACES Key points: 1. Contract awarded to AVCOR CONSTRUCTION, LLC for $11.77M. 2. Project aims to renovate JLM PODs 4B/4C for private/semi-private bed spaces. 3. Competition method: Full and Open after exclusion of sources. 4. Sector: Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $11.77M for renovating 2 bed spaces appears high. Benchmarking against similar healthcare facility renovation projects is needed to assess pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited initial competition. This method may impact price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for facility upgrades. The effectiveness of the competition method in securing the best value for taxpayers is questionable.

Public Impact

Veterans will benefit from improved private/semi-private bed spaces. The renovation project will likely create construction jobs in Arkansas. The Department of Veterans Affairs is investing in healthcare infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition method
High per-unit cost potential
Lack of small business participation

Positive Signals

Addresses veteran healthcare needs
Investment in facility upgrades

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and location. Benchmarks for similar VA facility renovations are crucial for cost evaluation.

Small Business Impact

The contract data indicates no specific set-aside for small businesses (sb: false). This suggests that small businesses may not have had a direct opportunity to compete for this significant contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Transparency in the procurement process and ongoing monitoring of project execution are essential for accountability.

Related Government Programs

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

Risk Flags

Potential for cost overruns due to limited competition.
Lack of clear small business participation.
High contract value for a seemingly small number of units.
Ambiguity in the competition exclusion justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11.8 million to AVCOR CONSTRUCTION, LLC. RENOVATE JLM PODS 4B/4C TO DEVELOP PRIVATE/SEMI-PRIVATE BED SPACES

Who is the contractor on this award?

The obligated recipient is AVCOR CONSTRUCTION, 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 $11.8 million.

What is the period of performance?

Start: 2021-12-01. End: 2026-03-24.

What is the specific justification for excluding other sources after initially intending full and open competition?

The justification for excluding other sources after an initial 'Full and Open' intent needs clarification. This could indicate a specialized requirement or a potential flaw in the procurement strategy, impacting overall value and fairness.

How does the cost per bed space compare to industry standards for similar renovations?

A detailed cost-benefit analysis comparing the cost per bed space to industry benchmarks is necessary. Without this, it's difficult to ascertain if the $11.77M investment represents good value for the taxpayer or if the pricing is inflated due to limited competition.

What are the long-term operational benefits and cost savings expected from these renovated bed spaces?

Understanding the long-term benefits, such as improved patient care, reduced infection rates, or enhanced staff efficiency, is crucial. Quantifying potential cost savings or revenue generation from these upgrades will help justify the initial investment and assess the project's overall effectiveness.

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: 36C25621R0145

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avcor Construction LLC

Address: 213 W MAIN ST STE 1, HEBER SPRINGS, AR, 72543

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,774,831

Exercised Options: $11,774,831

Current Obligation: $11,774,831

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline