VA awards $3.6M construction task order to The Povolny Group Inc. for Utah facilities

Contract Overview

Contract Amount: $3,600,886 ($3.6M)

Contractor: THE Povolny Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-15

End Date: 2026-07-22

Contract Duration: 310 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MATOC TASK ORDER

Place of Performance

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

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.6 million to THE POVOLNY GROUP INC for work described as: MATOC TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Fixed-price contract type aims to control costs and provide budget certainty. 3. Task order duration of 310 days indicates a focused scope of work. 4. Awarded by the Department of Veterans Affairs, aligning with agency infrastructure needs. 5. No small business set-aside noted, potentially limiting direct opportunities for smaller firms. 6. The contract falls under commercial and institutional building construction, a broad sector.

Value Assessment

Rating: good

The contract value of approximately $3.6 million for a 310-day duration appears reasonable for construction services. Benchmarking against similar VA construction task orders would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control. Without specific deliverables or scope details, a definitive comparison to market rates is challenging, but the award suggests the price was deemed competitive by the agency.

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 bidders were likely considered. The presence of 8 bidders (as per 'no': 8) suggests a healthy level of competition for this specific task order. This competitive environment generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down the final price and encouraged the submission of competitive bids, ensuring the government received good value for its investment.

Public Impact

Veterans in Utah will benefit from improved or maintained facilities managed by the VA. The contract delivers essential commercial and institutional building construction services. Geographic impact is concentrated in Utah, supporting local infrastructure. Potential for local workforce employment in the construction trades within Utah.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in construction, despite fixed-price.
Dependence on contractor performance for timely completion and quality of work.
Limited visibility into specific construction details and potential long-term maintenance needs.

Positive Signals

Fixed-price contract type helps mitigate cost escalation risks.
Awarded through full and open competition, suggesting a vetted and capable contractor.
Contract duration is defined, providing clear performance timelines.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. This sector encompasses a wide range of projects, from office buildings to healthcare facilities. The award to The Povolny Group Inc. suggests they are a capable provider in this space. Comparable spending benchmarks for similar VA construction projects in the region would offer further context on the scale and value of this award.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all eligible contractors, including large businesses. While this ensures broad competition, it may limit direct subcontracting opportunities for small businesses unless The Povolny Group Inc. voluntarily includes them in their supply chain. Further analysis would be needed to determine if subcontracting plans exist.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and relevant program officials within the Department of Veterans Affairs. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though specific project details might be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Facilities Management
Military Construction
General Services Administration (GSA) Buildings and Facilities

Risk Flags

Potential for scope creep impacting budget and timeline.
Contractor performance risk: ensuring quality and timely completion.
Reliance on fixed-price contract to control costs, but change orders can increase price.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.6 million to THE POVOLNY GROUP INC. MATOC TASK ORDER

Who is the contractor on this award?

The obligated recipient is THE POVOLNY GROUP INC.

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 $3.6 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-07-22.

What is the track record of The Povolny Group Inc. with the Department of Veterans Affairs?

A review of federal procurement data indicates that The Povolny Group Inc. has received multiple awards from various federal agencies, including the Department of Veterans Affairs. While this specific task order is for $3.6 million, their past performance with the VA would be a key factor in the agency's decision-making process. A deeper dive into their contract history with the VA, including performance evaluations and any past disputes or issues, would provide a more comprehensive understanding of their reliability and capability in fulfilling government contracts, particularly in construction services.

How does the $3.6 million value compare to similar VA construction contracts in Utah?

The $3.6 million value for this task order is a moderate-sized award within the broader context of federal construction projects. To benchmark its value effectively, it would be necessary to compare it against similar commercial and institutional building construction contracts awarded by the VA in Utah or surrounding regions over the past few years. Factors such as the specific scope of work (e.g., new construction, renovation, specific building type), contract duration, and prevailing market rates for labor and materials in Utah would need to be considered for an accurate comparison. Without this granular data, it's difficult to definitively state if this represents exceptional value.

What are the primary risks associated with this firm fixed-price construction contract?

Despite the firm fixed-price (FFP) structure, which is designed to mitigate cost risks for the government, several risks remain. The primary risk is contractor non-performance or substandard performance, leading to delays, cost overruns (if change orders are necessary due to unforeseen site conditions or scope creep), or quality issues. There's also the risk of contractor default. For the VA, ensuring adequate oversight and robust contract administration is crucial to manage these risks. The relatively short duration of 310 days might also indicate a focused scope, potentially reducing some long-term risks but increasing the intensity of execution within that timeframe.

How effective is full and open competition in ensuring value for this type of construction contract?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including for construction projects. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The fact that this $3.6 million task order had 8 bidders suggests that the VA successfully attracted a competitive field. This level of competition increases the likelihood that the government will receive a fair and reasonable price and that the selected contractor possesses the necessary qualifications and capacity to perform the work effectively, ultimately benefiting taxpayers.

What is the historical spending trend for commercial and institutional building construction by the VA?

The Department of Veterans Affairs consistently allocates significant funds towards the construction and maintenance of its facilities to support healthcare services for veterans. Historical spending data reveals a substantial and ongoing investment in this category. Analyzing trends over the past 5-10 years would show fluctuations based on agency priorities, infrastructure needs, and budget allocations. This $3.6 million task order represents a small fraction of the VA's overall annual construction expenditure, which can range in the billions, reflecting the scale of their real estate portfolio and commitment to modernizing facilities.

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

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1906 LIVINGSTON AVE, SAINT PAUL, MN, 55118

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,600,886

Exercised Options: $3,600,886

Current Obligation: $3,600,886

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25924D0042

IDV Type: IDC

Timeline