VA awards $1.7M construction MATOC to Paramount Construction Group, LLC for Utah facilities

Contract Overview

Contract Amount: $1,719,673 ($1.7M)

Contractor: Paramount Construction Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-12-06

End Date: 2026-04-30

Contract Duration: 510 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MATOC

Place of Performance

Location: SALT LAKE CITY, SALT LAKE County, UTAH, 84148

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.7 million to PARAMOUNT CONSTRUCTION GROUP, LLC for work described as: MATOC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of 510 days indicates a medium-term project scope. 4. The award is a Delivery Order under a larger MATOC, implying a phased approach to construction needs. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contractor, Paramount Construction Group, LLC, is based in Utah, aligning with the contract's geographic focus. 7. The contract is not set aside for small businesses, indicating it was open to all eligible bidders.

Value Assessment

Rating: good

The contract value of approximately $1.7 million for a 510-day duration appears reasonable for commercial and institutional building construction services. Benchmarking against similar projects would provide a more precise value-for-money assessment. The Firm Fixed Price structure is standard for construction and helps control costs for the VA. Without specific details on the scope of work for this particular delivery order, a definitive comparison to market rates is challenging, but the overall value seems aligned with typical construction project costs.

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,' which is a specific type of full and open competition. This indicates that the solicitation was made available to all eligible responsible prospective contractors, but certain sources were excluded from the initial solicitation phase for specific reasons. The presence of 5 bids suggests a moderate level of competition for this delivery order. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: The competitive nature of this award, despite potential source exclusions, is generally beneficial for taxpayers as it aims to secure the best value through a structured bidding process.

Public Impact

The Department of Veterans Affairs benefits from improved or maintained facilities, enhancing services for veterans. Construction services will be delivered in Utah, supporting local infrastructure development. The contract supports the construction workforce in Utah through employment opportunities. The project contributes to the upkeep and modernization of government institutional buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial delivery order's requirements are not clearly defined.
Reliance on a single contractor for multiple delivery orders could limit future competitive opportunities if not managed carefully.
Geographic concentration in Utah may limit broader competition for future needs if the MATOC is primarily used there.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The MATOC structure allows for flexibility in addressing future construction needs efficiently.
Contractor is based in the state where services are likely to be performed, potentially improving responsiveness.

Sector Analysis

The construction sector, particularly commercial and institutional building construction (NAICS 236220), is a significant part of the federal procurement landscape. Agencies like the Department of Veterans Affairs frequently require construction and renovation services to maintain and upgrade their facilities. This contract fits within the broader category of infrastructure development and maintenance, where federal spending is substantial. Comparable spending benchmarks would involve analyzing the average cost per square foot or per project for similar VA or other federal agency construction projects in the region.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This means the competition was open to all eligible firms, including large businesses. While there is no direct small business set-aside, the prime contractor, Paramount Construction Group, LLC, may engage small businesses as subcontractors to fulfill portions of the contract work. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements outlined in the MATOC agreement and subsequent delivery orders.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to complete the work within the agreed-upon price. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Facilities Construction and Repair
General Services Administration (GSA) Multiple Award Construction Contracts (MACC)
Department of Defense Construction Contracts
Public Building Construction

Risk Flags

Potential for contractor underperformance
Risk of cost overruns due to fixed-price nature
Scope definition clarity for delivery orders
Geographic concentration of MATOC usage

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.7 million to PARAMOUNT CONSTRUCTION GROUP, LLC. MATOC

Who is the contractor on this award?

The obligated recipient is PARAMOUNT CONSTRUCTION GROUP, 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 $1.7 million.

What is the period of performance?

Start: 2024-12-06. End: 2026-04-30.

What is the track record of Paramount Construction Group, LLC with federal contracts, particularly with the VA?

Information regarding Paramount Construction Group, LLC's specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A thorough analysis would require examining the company's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or successful completions. Understanding their experience with similar-sized projects and construction types (commercial/institutional buildings) would be crucial for assessing their capability and reliability for this MATOC award.

How does the awarded value of $1.7 million compare to similar VA construction projects in Utah?

To compare the $1.7 million award value, one would need to benchmark it against similar VA construction projects in Utah. This involves analyzing the scope of work, square footage, type of construction (e.g., new build, renovation), and contract duration for comparable projects. Without access to a database of historical VA construction contracts in Utah, a precise comparison is difficult. However, the value appears moderate for a MATOC delivery order, suggesting it could cover a significant renovation or a smaller new construction project. Factors like prevailing labor costs and material prices in Utah would also influence this comparison.

What are the primary risks associated with this Firm Fixed Price MATOC delivery order?

The primary risks associated with this Firm Fixed Price MATOC delivery order primarily lie with the contractor, Paramount Construction Group, LLC. These include the risk of cost overruns if material prices increase unexpectedly or unforeseen site conditions arise, potentially impacting their profit margin or leading to disputes. For the VA, risks include potential delays if the contractor underperforms or faces financial difficulties, and ensuring the quality of work meets specifications. The 'Full and Open Competition After Exclusion of Sources' aspect might introduce a minor risk if the excluded sources represented a significant portion of the potential competitive pool, potentially limiting the best possible price.

How effective is the MATOC structure for managing recurring construction needs for the VA in Utah?

The MATOC (Multiple Award Task Order Contract) structure is generally effective for managing recurring construction needs, as it allows the VA to efficiently procure services through task orders without needing to re-compete the entire contract each time. This can lead to faster project initiation and potentially better pricing through established relationships and pre-negotiated terms. For the VA in Utah, this MATOC provides a flexible mechanism to address various construction and repair requirements over its period of performance. Its effectiveness hinges on the VA's ability to clearly define task order scopes and manage the overall program to ensure continued competition and value across multiple orders.

What is the historical spending pattern for commercial and institutional building construction by the VA in Utah?

Analyzing the historical spending patterns for commercial and institutional building construction by the VA in Utah would require access to historical federal procurement data. This would involve querying databases like USASpending.gov or FPDS for contracts awarded by the VA under NAICS code 236220 (or similar construction codes) within the geographic boundaries of Utah over several fiscal years. Such an analysis would reveal the total annual spending, the number and average value of contracts awarded, and the primary contractors utilized. This context helps in understanding if the current $1.7 million award is consistent with past spending levels or represents a significant shift.

What are the implications of awarding this contract via 'Full and Open Competition After Exclusion of Sources'?

Awarding this contract via 'Full and Open Competition After Exclusion of Sources' means that while the solicitation was broadly advertised to all eligible responsible sources, certain specific sources were intentionally excluded from the initial bidding process. The reasons for exclusion are typically documented and justified (e.g., past performance issues, inability to meet specific requirements). This approach aims to ensure a competitive environment while potentially focusing the competition on a more qualified or suitable set of bidders. For taxpayers, it suggests an effort to balance broad competition with ensuring the most capable contractors are considered, potentially leading to better project outcomes, though it might slightly limit the absolute number of bidders compared to unrestricted full and open competition.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36C25924R0100

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 HIGHPOINT DR, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,719,673

Exercised Options: $1,719,673

Current Obligation: $1,719,673

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25924D0040

IDV Type: IDC

Timeline