VA awards $7.6M contract for building repairs, highlighting structural needs at a facility

Contract Overview

Contract Amount: $7,605,108 ($7.6M)

Contractor: Avcor Construction, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-30

End Date: 2026-09-30

Contract Duration: 365 days

Daily Burn Rate: $20.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BUILDING 65 STRUCTURAL REPAIRS - POP 365 DAYS FROM NTP.

Place of Performance

Location: NORTH LITTLE ROCK, PULASKI County, ARKANSAS, 72114

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.6 million to AVCOR CONSTRUCTION, LLC for work described as: BUILDING 65 STRUCTURAL REPAIRS - POP 365 DAYS FROM NTP. Key points: 1. Contract addresses critical structural repairs, indicating potential long-term asset management needs. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. Fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of 365 days from notice to proceed suggests a focused, project-specific scope. 5. The contractor, AVCOR CONSTRUCTION, LLC, is relatively new to federal contracting based on available data. 6. The contract's value is moderate, suggesting it addresses a specific, contained repair project.

Value Assessment

Rating: fair

The contract value of $7.6 million for structural repairs appears reasonable for a project of this nature, though a direct comparison to similar building repair contracts is limited without more specific project details. The firm-fixed-price structure is standard for construction projects where scope is well-defined. Benchmarking the per-square-foot cost or cost per repair type would provide a clearer picture of value for money, but this data is not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple vendors were likely solicited and allowed to bid. The specific reason for excluding other sources is not detailed, but the 'full and open' designation suggests a robust competitive environment. The presence of multiple bidders generally promotes price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and the veterans who utilize the facility, ensuring a safe and functional environment. The contract delivers essential structural repair services to a government-owned building. The geographic impact is localized to the facility in Arkansas where the repairs will be conducted. The contract will likely involve skilled construction labor, potentially creating short-term employment opportunities in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited track record for the contractor in federal space may present execution risks.
Scope definition for 'structural repairs' could be broad, potentially leading to change orders if not precisely managed.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market response and potential for competitive pricing.
The contract is for a defined duration, indicating a focused project scope.

Sector Analysis

The commercial and institutional building construction sector is vast, encompassing a wide range of projects from new builds to renovations and repairs. Federal agencies, like the VA, are significant clients within this sector, requiring maintenance and upgrades for their extensive real estate portfolios. This contract fits within the broader category of facilities maintenance and repair, a consistent area of federal spending. Comparable spending benchmarks for structural repairs can vary widely based on building age, materials, and specific structural issues.

Small Business Impact

This contract was not set aside for small businesses, and the contractor, AVCOR CONSTRUCTION, LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. The impact on the small business ecosystem is therefore neutral to minimal, as it does not appear to leverage small business capabilities directly.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and facilities management divisions. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work for the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight reports are not typically publicly disseminated unless issues arise or are highlighted by an Inspector General.

Related Government Programs

VA Facilities Management and Maintenance
Federal Building Construction and Repair
Public Infrastructure Projects

Risk Flags

Contractor experience level
Potential for scope creep
Weather-related delays

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.6 million to AVCOR CONSTRUCTION, LLC. BUILDING 65 STRUCTURAL REPAIRS - POP 365 DAYS FROM NTP.

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 $7.6 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-30.

What is the specific nature of the structural issues requiring repair, and how were these identified?

The provided data indicates 'BUILDING 65 STRUCTURAL REPAIRS' as the description. However, the specific nature of the structural issues (e.g., foundation problems, roof integrity, load-bearing wall damage) and the methodology used for their identification (e.g., routine inspections, engineering assessments, post-event evaluations) are not detailed in the award information. Further investigation into the contract's statement of work or associated technical documentation would be necessary to ascertain the precise problems and their origin. This information is crucial for understanding the necessity and scope of the repairs.

How does the awarded amount of $7.6 million compare to the estimated cost or budget for these repairs?

The awarded amount is $7,605,108. Without access to the government's initial cost estimate or budget allocation for these specific structural repairs, it is difficult to definitively assess whether the award represents a favorable or unfavorable outcome relative to expectations. The fact that it was awarded under full and open competition suggests that the market was tested, and the price achieved reflects competitive dynamics. However, a comparison to the government's independent government cost estimate (IGCE) would provide a more direct measure of value realization.

What is AVCOR CONSTRUCTION, LLC's experience with similar structural repair projects for federal agencies?

Based on the limited data provided, AVCOR CONSTRUCTION, LLC appears to be a relatively new entrant or has had limited federal contract activity. A deeper dive into federal procurement databases (like SAM.gov or FPDS) would be necessary to ascertain the full extent of their past performance. Their experience with projects of similar scale, complexity, and type (structural repairs) for federal clients is a key factor in assessing execution risk. If their track record is sparse, the VA may have relied on performance bonds or other risk mitigation strategies.

What are the potential risks associated with a 365-day duration from Notice to Proceed (NTP) to completion?

A 365-day duration from NTP for structural repairs can present several risks. Firstly, it allows for potential delays due to weather, unforeseen site conditions, or material availability over a longer period. Secondly, if the project scope is not meticulously defined, the extended timeline could increase the likelihood of scope creep and change orders, potentially escalating costs beyond the firm-fixed-price. Thirdly, prolonged construction activity can lead to temporary disruptions for facility users. Effective project management, clear communication, and proactive risk mitigation by the VA are essential to ensure timely completion within the specified period.

Are there any specific performance metrics or quality assurance measures outlined in the contract?

The provided award data does not specify performance metrics or quality assurance measures. However, for a construction contract of this nature, it is standard practice for the Department of Veterans Affairs to have quality assurance surveillance plans (QASP) in place. These plans typically outline how the government will monitor the contractor's performance, ensure compliance with contract specifications and standards (e.g., building codes, engineering requirements), and verify the quality of work. Specific metrics might relate to defect rates, schedule adherence, or material compliance.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C25625R0087

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Avcor Construction LLC

Address: 10684 HIGHWAY 319, AUSTIN, AR, 72007

Business Categories: 8(a) Program Participant, Category Business, DoT Certified Disadvantaged Business Enterprise, 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: $7,605,108

Exercised Options: $7,605,108

Current Obligation: $7,605,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline