VA awards $3.3M construction management contract to SIRIS LLC for San Francisco HCS project

Contract Overview

Contract Amount: $3,324,713 ($3.3M)

Contractor: Siris LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-05-01

End Date: 2027-04-30

Contract Duration: 1,825 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION PROJECT MANAGEMENT SERVICES FOR VA SAN FRANCISCO HCS

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.3 million to SIRIS LLC for work described as: CONSTRUCTION PROJECT MANAGEMENT SERVICES FOR VA SAN FRANCISCO HCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm-fixed-price delivery order, providing cost certainty for the government. 3. The duration of 1825 days (5 years) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical component of construction management. 5. The contract is managed by the Department of Veterans Affairs, aligning with its mission to support veterans. 6. The project is located in San Francisco, California, a high-cost urban area.

Value Assessment

Rating: good

The contract value of $3.32 million over five years for construction project management services appears reasonable, especially considering the location in San Francisco. Benchmarking against similar VA construction management contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the initial award seems within a plausible range for the scope and duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were two bids received suggests a moderate level of competition for this specific requirement. While two bidders is better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite receiving only two bids, aims to ensure taxpayers receive fair pricing by allowing multiple companies to vie for the contract. This process helps prevent inflated costs that might arise from a less competitive environment.

Public Impact

Veterans in the San Francisco area will benefit from improved healthcare facilities through the successful completion of the HCS project. The contract delivers essential construction project management services, ensuring the efficient and effective execution of the VA San Francisco HCS. The geographic impact is concentrated in San Francisco, California, supporting local infrastructure development. The contract may have implications for the local construction and engineering workforce, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) could potentially lead to higher costs than if more bids were received.
The firm-fixed-price contract type might incentivize the contractor to cut corners if not adequately monitored, though this is a standard contract type.
The long duration of the contract could present challenges in adapting to unforeseen changes in project scope or market conditions.

Positive Signals

Awarded under full and open competition, which is a positive indicator of a fair process.
Firm-fixed-price contract provides cost certainty for the government.
The contractor, SIRIS LLC, is performing services for the Department of Veterans Affairs, aligning with a mission-focused agency.
The contract duration of five years suggests a stable, long-term need that the contractor is positioned to fulfill.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to construction project management. The market for these services is substantial, driven by ongoing infrastructure development and facility upgrades across government agencies. The VA, in particular, has a continuous need for such services to maintain and improve its healthcare facilities nationwide. Comparable spending benchmarks would involve analyzing other large-scale construction management contracts awarded by federal agencies for similar facility types and geographic locations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, SIRIS LLC, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract, requiring SIRIS LLC to deliver services within the agreed-upon terms and price. Transparency is facilitated by the contract's public availability, allowing for scrutiny. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Capital Asset and Business Management
Federal Construction Projects
Engineering and Architectural Services
Department of Veterans Affairs Healthcare System Modernization

Risk Flags

Limited Competition
Potential for Cost Overruns in Fixed-Price Contracts
Long Contract Duration Risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.3 million to SIRIS LLC. CONSTRUCTION PROJECT MANAGEMENT SERVICES FOR VA SAN FRANCISCO HCS

Who is the contractor on this award?

The obligated recipient is SIRIS 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 $3.3 million.

What is the period of performance?

Start: 2022-05-01. End: 2027-04-30.

What is SIRIS LLC's track record with the federal government, particularly with the Department of Veterans Affairs?

SIRIS LLC has a history of federal contracting, primarily with agencies like the Department of Defense and the Department of Veterans Affairs. Their contract portfolio often includes services related to engineering, construction management, and facility support. Analyzing their past performance on similar VA projects, including any reported issues or successes, would provide further insight into their reliability and capability for this specific San Francisco HCS project. A review of past performance evaluations and any contract modifications or disputes would be beneficial for a comprehensive assessment.

How does the awarded price of $3.32 million compare to similar construction project management contracts for VA healthcare facilities?

The $3.32 million award for five years of construction project management services for the VA San Francisco HCS needs to be benchmarked against similar contracts. Factors such as project complexity, facility size, geographic location (San Francisco being a high-cost area), and the specific services included in the scope of work are crucial for comparison. Without access to a database of comparable VA construction management contracts, it's difficult to definitively state if this price is high or low. However, the firm-fixed-price nature suggests an attempt to control costs, and the duration implies a significant scope of work.

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

The primary risks with a firm-fixed-price contract, especially for a long-duration project like this, include potential cost overruns if the contractor miscalculates expenses or encounters unforeseen site conditions, and the risk of reduced quality if the contractor seeks to minimize costs. For the government, the risk is paying a premium if the initial price was set too high due to limited competition. Effective oversight, clear performance standards, and robust communication channels are essential to mitigate these risks and ensure the project's successful completion within budget and to the required quality.

How effective is the 'full and open competition' process likely to be with only two bids received?

While 'full and open competition' is the preferred method for ensuring broad market access and competitive pricing, receiving only two bids suggests that the competition may have been less robust than ideal. This could be due to several factors, such as the specialized nature of the services required, the specific geographic location, or the contract's estimated value. The effectiveness is diminished compared to a scenario with numerous bidders, as it potentially limits the range of pricing and innovative solutions presented. However, it still provides a baseline for price discovery and ensures that at least two qualified entities were willing to compete.

What is the historical spending pattern for construction project management services by the Department of Veterans Affairs?

The Department of Veterans Affairs historically spends significant amounts on construction, renovation, and facility management services to maintain its extensive network of healthcare facilities. Spending patterns for project management services are typically tied to the agency's capital investment plans and infrastructure modernization efforts. Analyzing VA's budget allocations for construction and related services over the past several years would reveal trends, identify peak spending periods, and highlight recurring needs for project management support. This contract represents a portion of that ongoing investment.

What are the potential implications of the 5-year contract duration on project adaptability and contractor performance?

A five-year contract duration for construction project management offers stability and allows the contractor to develop deep familiarity with the VA San Francisco HCS project. This long-term engagement can foster a strong working relationship and ensure continuity of expertise. However, it also presents challenges. Market conditions, material costs, and technological advancements can change significantly over five years, potentially requiring contract modifications or leading to inefficiencies if the initial pricing doesn't account for such fluctuations. Ensuring robust change management clauses and regular performance reviews are critical to maintaining project relevance and contractor accountability throughout the contract's lifespan.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11 EWALL ST STE 228, MOUNT PLEASANT, SC, 29464

Business Categories: Category Business, Corporate Entity Not Tax Exempt, 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: $3,324,713

Exercised Options: $3,324,713

Current Obligation: $3,324,713

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA19D00CA

IDV Type: FSS

Timeline