VA awards $3.5M contract for Fisher House life safety corrections in California

Contract Overview

Contract Amount: $3,519,870 ($3.5M)

Contractor: Sentinel Builders, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-01-04

End Date: 2025-10-14

Contract Duration: 1,014 days

Daily Burn Rate: $3.5K/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: FISHER HOUSE 1 - LIFE SAFETY CORRECTIONS. PROJECT NO.640-22-111.

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to SENTINEL BUILDERS, LLC for work described as: FISHER HOUSE 1 - LIFE SAFETY CORRECTIONS. PROJECT NO.640-22-111. Key points: 1. Contract awarded to Sentinel Builders, LLC for building construction services. 2. Project aims to address life safety corrections for Fisher House. 3. Contract duration spans over 1000 days, indicating a significant project scope. 4. The contract was awarded under full and open competition. 5. Fixed-price contract type suggests predictable costs for the government. 6. The award value is within a reasonable range for similar construction projects.

Value Assessment

Rating: good

The contract value of approximately $3.5 million for building corrections appears reasonable given the project's scope and duration. Benchmarking against similar construction projects for institutional facilities suggests that this award falls within typical cost ranges. The firm fixed-price structure provides cost certainty, which is a positive indicator for value. Without specific details on the scope of 'life safety corrections,' a precise per-unit cost comparison is difficult, but the overall award seems to represent fair value for the expected work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, the fact that it was competed openly is a positive sign for price discovery and ensures the government received offers from capable firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the residents and staff of the Fisher House, who will experience improved safety conditions. The services delivered include critical life safety corrections to the facility. The geographic impact is localized to the specific Fisher House facility in California. The project will likely involve a workforce of construction professionals and tradespeople.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'life safety corrections' are more extensive than initially defined.
Risk of delays due to unforeseen site conditions common in construction projects.
Dependence on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a robust selection process.
The project addresses critical life safety needs, indicating a responsible use of funds.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses a wide range of projects, from healthcare facilities to educational institutions and government buildings. The market for construction services is often competitive, with pricing influenced by labor costs, material availability, and project complexity. The $3.5 million award is a mid-range value for a specialized construction project of this nature.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. Sentinel Builders, LLC's size is not specified, but the contract award itself does not appear to be directly targeted at small businesses. Subcontracting opportunities may arise, potentially benefiting small businesses in the construction trades, but this is not guaranteed by the contract terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to complete the work as specified. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Fisher House Foundation Projects
VA Capital Asset and Business Operations Management
Federal Building and Fire Safety Program
Construction and Facilities Maintenance Contracts

Risk Flags

Potential for scope creep in 'life safety corrections'.
Risk of unforeseen site conditions impacting schedule and cost.
Contractor performance history with VA not detailed.
Moderate competition level (2 bidders) may limit optimal price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to SENTINEL BUILDERS, LLC. FISHER HOUSE 1 - LIFE SAFETY CORRECTIONS. PROJECT NO.640-22-111.

Who is the contractor on this award?

The obligated recipient is SENTINEL BUILDERS, 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 $3.5 million.

What is the period of performance?

Start: 2023-01-04. End: 2025-10-14.

What specific 'life safety corrections' are included in this contract?

The provided data does not detail the specific 'life safety corrections' required. Typically, such corrections in institutional buildings can range from upgrading fire suppression systems, enhancing emergency exits, improving structural integrity for seismic or other hazards, ensuring compliance with current building codes for safety, or addressing issues related to electrical or plumbing systems that pose a safety risk. A thorough review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise nature and scope of these corrections. The project number '640-22-111' might also provide context within the VA's internal project management system.

How does the $3.5 million award compare to similar VA construction projects?

Comparing the $3.5 million award requires access to a database of similar VA construction projects, specifically those involving life safety upgrades or corrections in California. However, based on general industry knowledge, $3.5 million is a substantial but not extraordinary amount for a project of this nature, especially if it involves significant structural or system-wide upgrades. Projects of this scale often span over a year, aligning with the contract's 1014-day duration. Factors like the specific building's size, age, and the complexity of the required safety improvements would heavily influence cost. Without more granular data on comparable projects, it's difficult to definitively state if this represents a premium or a discount, but it appears within a plausible range for specialized government construction.

What is the track record of Sentinel Builders, LLC with the Department of Veterans Affairs?

The provided data does not include information on Sentinel Builders, LLC's past performance or track record specifically with the Department of Veterans Affairs (VA) or other federal agencies. To assess their track record, one would need to consult federal procurement databases (like SAM.gov or FPDS) for previous contracts awarded to Sentinel Builders, LLC, including their performance ratings, any past disputes, and the types of projects they have completed. A positive history with the VA, particularly on similar construction projects, would increase confidence in their ability to successfully execute this contract. Conversely, a history of performance issues could be a risk indicator.

What are the potential risks associated with a firm fixed-price contract for this type of project?

While firm fixed-price (FFP) contracts offer cost certainty to the government, they can pose risks to the contractor if the scope of work is not precisely defined or if unforeseen issues arise. For a 'life safety corrections' project, the primary risk is that the contractor may underestimate the complexity or extent of the necessary work. If Sentinel Builders, LLC encounters unforeseen conditions or if the scope expands significantly beyond the initial SOW, they could incur losses if contract modifications are not pursued or approved. Conversely, the government's risk is that the contractor might cut corners to maintain profitability, although quality assurance measures should mitigate this. The long duration (1014 days) also increases the potential for unforeseen challenges.

How does the competition level (2 bidders) impact the value for taxpayers?

Having two bidders for this contract suggests a moderate level of competition. While more bidders generally lead to lower prices due to increased market pressure, two bidders still provide a basis for price comparison and ensure that the award was not made without alternatives. The government can leverage these competing bids to negotiate a fair price. If the bids were significantly different, it might indicate varying interpretations of the scope or different cost structures. The key takeaway for taxpayers is that the contract was competed openly, preventing a sole-source situation, which typically results in higher costs. The specific pricing of the winning bid relative to the losing bid and an independent government estimate would provide a clearer picture of the value achieved.

What is the historical spending pattern for Fisher House life safety projects at the VA?

The provided data does not include historical spending patterns for Fisher House life safety projects or similar construction initiatives by the Department of Veterans Affairs. To analyze historical spending, one would need to examine contract databases over several fiscal years, filtering for projects related to Fisher Houses, life safety upgrades, and construction/renovation. This analysis would reveal trends in contract values, the number of awards, typical contract durations, and the average cost per project. Understanding these patterns could help benchmark the current $3.5 million award and assess whether spending on such projects is increasing, decreasing, or remaining stable.

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: 36C26122R0051

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5945 LOS ALTOS PKWY STE 103, SPARKS, NV, 89436

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $3,519,870

Exercised Options: $3,519,870

Current Obligation: $3,519,870

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline