VA Awards $4.46M Contract for Logistics Space Renovation to Birmingham Industrial Construction

Contract Overview

Contract Amount: $4,457,049 ($4.5M)

Contractor: Birmingham Industrial Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-15

End Date: 2026-05-30

Contract Duration: 592 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: 564-24-104 RENOVATE SPACE FOR LOGISTICS

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72703

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC for work described as: 564-24-104 RENOVATE SPACE FOR LOGISTICS Key points: 1. Contract awarded for logistics space renovation at a total value of $4.46 million. 2. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting potential limitations. 3. The contract type is 'Definitive Contract' with a 'Firm Fixed Price' payment structure. 4. The project duration is 592 days, indicating a significant renovation effort.

Value Assessment

Rating: fair

The contract value of $4.46 million for renovating logistics space appears reasonable given the project scope and duration. Benchmarking against similar construction projects would provide a clearer assessment of its competitiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' implies that while open, certain sources were initially excluded, potentially impacting the breadth of competition and price discovery.

Taxpayer Impact: Taxpayer funds are being used for this renovation, and the effectiveness of the competition method will influence the value for money achieved.

Public Impact

Veterans Affairs facilities will see improved logistics capabilities, potentially enhancing operational efficiency. The renovation project will likely create jobs in the construction sector within Arkansas. The use of taxpayer funds for infrastructure improvements is a key public interest.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Limited competition method could lead to higher costs.
Contract duration is substantial, requiring close monitoring.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Project aims to improve critical logistics infrastructure.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. The VA's investment here addresses specific operational requirements.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities were available.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Ensuring adherence to the contract terms, quality of work, and timely completion is crucial for accountability.

Related Government Programs

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

Risk Flags

Limited competition method raises concerns about potential price inflation.
Lack of small business participation noted.
Contract duration is lengthy, increasing risk of delays or cost overruns.
Specific project outcomes and benefits are not detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.5 million to BIRMINGHAM INDUSTRIAL CONSTRUCTION, LLC. 564-24-104 RENOVATE SPACE FOR LOGISTICS

Who is the contractor on this award?

The obligated recipient is BIRMINGHAM INDUSTRIAL 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 $4.5 million.

What is the period of performance?

Start: 2024-10-15. End: 2026-05-30.

What specific improvements to logistics capabilities are expected from this renovation, and how will they be measured?

The contract details do not specify the exact improvements. However, renovations for logistics space typically aim to enhance storage efficiency, streamline workflows, and improve accessibility for goods and personnel. Measurable outcomes could include reduced processing times, increased storage capacity, or improved safety records within the renovated areas. Further documentation from the VA would clarify these specific objectives and their intended impact on operational effectiveness.

What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method?

The rationale for excluding sources in this competition method is not provided in the data. Typically, such exclusions might stem from specific technical requirements, past performance issues, or pre-qualification processes. Understanding the justification is key to assessing whether the exclusion unfairly limited competition or was necessary to ensure project success and compliance with federal acquisition regulations.

How does the $4.46 million cost compare to industry benchmarks for similar logistics space renovations of this scale and duration?

Without specific details on the scope of renovation (e.g., square footage, types of upgrades), a precise benchmark comparison is difficult. However, the cost per day is approximately $7,529 ($4.46M / 592 days). This figure needs to be contextualized against regional construction costs, the complexity of the required work (e.g., specialized storage, climate control), and the specific VA facility's needs to determine if it represents good value.

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: 36C25624R0102

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 105 CORPORATE WOODS CIR, ALABASTER, AL, 35007

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, 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: $4,457,049

Exercised Options: $4,457,049

Current Obligation: $4,457,049

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline