VA awards $18.3M construction contract to FAITH ENTERPRISES INCORPORATED for Commercial and Institutional Building Construction

Contract Overview

Contract Amount: $18,314,787 ($18.3M)

Contractor: Faith Enterprises Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-09-30

End Date: 2023-03-27

Contract Duration: 908 days

Daily Burn Rate: $20.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PRRTP

Place of Performance

Location: AURORA, ADAMS County, COLORADO, 80045

State: Colorado Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.3 million to FAITH ENTERPRISES INCORPORATED for work described as: PRRTP Key points: 1. The contract value of $18.3M is significant within the Commercial and Institutional Building Construction sector. 2. Competition was conducted under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES', suggesting a potentially limited but competitive process. 3. The contract duration of 908 days indicates a substantial project with potential for cost overruns or delays. 4. The use of a Firm Fixed Price contract aims to control costs, but the final price is fixed regardless of actual costs incurred.

Value Assessment

Rating: fair

The contract value of $18.3M for commercial building construction appears within a reasonable range for a project of this scope and duration. Benchmarking against similar VA construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was open, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The fixed price nature of the contract aims to protect taxpayers from cost overruns, but the effectiveness depends on the initial pricing accuracy and the competitive landscape.

Public Impact

Veterans will benefit from improved facilities constructed under this contract. Local economy may see job creation and business opportunities due to construction activities. The project's success impacts the VA's ability to provide services effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long contract duration increases risk of unforeseen issues.
Fixed price may not reflect true cost if initial estimates were low.

Positive Signals

Firm Fixed Price contract provides cost certainty.
Awarded to a single entity for clear accountability.
Project supports critical VA infrastructure needs.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a vital area for government infrastructure. Spending in this sector is often project-specific and influenced by agency needs and budget allocations.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability relies on contract management, performance monitoring, and adherence to the terms and conditions.

Related Government Programs

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

Risk Flags

Potential for cost overruns if initial estimates were inaccurate.
Risk of project delays due to the long duration.
Limited competition may have resulted in a higher price than with broader competition.
Dependence on a single contractor for project completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.3 million to FAITH ENTERPRISES INCORPORATED. PRRTP

Who is the contractor on this award?

The obligated recipient is FAITH ENTERPRISES INCORPORATED.

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 $18.3 million.

What is the period of performance?

Start: 2020-09-30. End: 2023-03-27.

What specific types of commercial and institutional buildings were constructed or renovated under this contract?

The provided data specifies 'Commercial and Institutional Building Construction' but lacks granular detail on the exact nature of the facilities. Further investigation into contract line items or project descriptions would be necessary to identify specific building types, such as administrative offices, medical facilities, or support structures, and their intended use.

What was the rationale for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The exclusion of sources typically occurs when specific capabilities, past performance, or certifications are required that only a subset of potential contractors possess. The agency's justification for these exclusions would be documented in the contract file, detailing the criteria that limited the competitive pool and ensuring the selected sources were best suited for the project's unique demands.

How does the final cost compare to the initial bid or estimated cost, given the firm fixed price structure?

With a Firm Fixed Price contract, the final cost is predetermined and agreed upon at the time of award. Therefore, the final cost should align with the awarded amount unless contract modifications or change orders were issued. Analyzing the difference between the awarded price and any initial estimates or bids would reveal the effectiveness of the price negotiation and the contractor's bidding accuracy.

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: 36C25920R0038

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 919 W COSTILLA ST, COLORADO SPRINGS, CO, 80905

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,314,787

Exercised Options: $18,314,787

Current Obligation: $18,314,787

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline