VA awards $12.6M contract for Fresno facility upgrades, focusing on site access and security

Contract Overview

Contract Amount: $12,604,551 ($12.6M)

Contractor: Capex Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-23

End Date: 2026-05-21

Contract Duration: 849 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IMPROVE SITE ACCESS AND PHYSICAL SECURITY DEFICIENCIES FOR VA FRESNO

Place of Performance

Location: FRESNO, FRESNO County, CALIFORNIA, 93703

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $12.6 million to CAPEX CONSTRUCTION LLC for work described as: IMPROVE SITE ACCESS AND PHYSICAL SECURITY DEFICIENCIES FOR VA FRESNO Key points: 1. Contract addresses critical infrastructure needs for enhanced physical security and site accessibility. 2. Competition was robust, indicating potential for competitive pricing and value. 3. Fixed-price contract type shifts risk to the contractor, promoting cost certainty. 4. Project duration of 849 days suggests a significant scope of work. 5. Geographic focus on California may have implications for local construction markets. 6. Contractor's performance history and specific expertise in VA projects warrant further review.

Value Assessment

Rating: good

The $12.6 million contract for VA Fresno facility upgrades appears reasonable given the scope of improving site access and physical security. While specific cost breakdowns are not provided, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns. Benchmarking against similar VA facility renovation projects would provide a clearer picture of value for money, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with two bids received. The presence of multiple bidders suggests a healthy level of market interest and competition, which typically drives more competitive pricing and encourages contractors to offer their best value propositions. The limited number of bids could indicate a specialized market or specific requirements that narrowed the field.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The fact that two bids were submitted suggests that taxpayer funds are likely being used efficiently.

Public Impact

Veterans utilizing the VA Fresno facility will benefit from improved safety and accessibility. The project will enhance the physical security of a key healthcare infrastructure asset. Construction activities will likely create temporary employment opportunities in the Fresno area. The upgrades aim to ensure compliance with modern security standards and accessibility regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for schedule delays given the project's duration and complexity.
Ensuring the selected contractor has specialized experience in VA security protocols.
Monitoring cost adherence despite the fixed-price contract to prevent scope creep.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a fair market price was likely achieved.
Project addresses essential security and accessibility needs for veteran services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing facility improvements for a government entity. The market for such construction services is substantial, driven by ongoing needs for maintenance, upgrades, and new builds across federal agencies. Comparable spending benchmarks would involve analyzing other VA facility renovation contracts or similar government construction projects focused on security and accessibility.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside provisions. There is no explicit mention of subcontracting goals for small businesses. Further analysis would be needed to determine if the prime contractor has a history of engaging small businesses in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

VA Capital Asset and Business Management
Federal Buildings Fund
Department of Veterans Affairs Construction Projects

Risk Flags

Potential for schedule overruns
Contractor performance risk
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $12.6 million to CAPEX CONSTRUCTION LLC. IMPROVE SITE ACCESS AND PHYSICAL SECURITY DEFICIENCIES FOR VA FRESNO

Who is the contractor on this award?

The obligated recipient is CAPEX CONSTRUCTION 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 $12.6 million.

What is the period of performance?

Start: 2024-01-23. End: 2026-05-21.

What is the track record of CAPEX CONSTRUCTION LLC with the Department of Veterans Affairs?

Information regarding CAPEX CONSTRUCTION LLC's specific track record with the Department of Veterans Affairs (VA) is not detailed in the provided data. A comprehensive review would involve examining past performance evaluations, previous contract awards, and any reported issues or successes on prior VA projects. Understanding their experience with similar security and facility upgrade projects for government entities, particularly within the healthcare sector, would be crucial for assessing their capability to successfully execute this contract. Without this historical data, it's difficult to definitively gauge their reliability and expertise in serving the VA's needs.

How does the awarded amount compare to similar VA facility security upgrade contracts?

Direct comparison of the $12.6 million award to similar VA facility security upgrade contracts requires access to a broader dataset of recent awards within the same sector and for comparable project scopes. Factors such as geographic location, specific security enhancements required (e.g., access control systems, perimeter fencing, surveillance), and the size and complexity of the facility all influence contract value. The firm-fixed-price structure and the fact that it was a full and open competition with two bidders are positive indicators, suggesting the price was likely competitive. However, without specific benchmark data for similar VA projects, a definitive value-for-money assessment remains challenging.

What are the primary risks associated with this type of construction contract for the VA?

The primary risks associated with this construction contract for the VA, despite being firm-fixed-price, include potential schedule delays due to unforeseen site conditions, weather, or contractor performance issues. There's also a risk of scope creep if requirements are not clearly defined and managed, potentially leading to change orders that could increase costs. Ensuring the contractor possesses the necessary specialized expertise for security upgrades and adheres to VA standards is critical. Furthermore, managing the impact on ongoing VA operations during construction presents logistical challenges. The limited number of bidders could also indicate a risk if the chosen contractor underperforms, as finding a replacement quickly might be difficult.

How effective are firm-fixed-price contracts in ensuring cost control for construction projects?

Firm-fixed-price (FFP) contracts are generally considered effective in ensuring cost control for construction projects because they shift the majority of the financial risk from the buyer (the VA) to the seller (the contractor). Under an FFP contract, the contractor agrees to a set price for the defined scope of work, regardless of their actual costs. This incentivizes the contractor to manage their resources efficiently and control expenses to maximize profit. However, effectiveness can be diminished if the initial scope of work is poorly defined, leading to numerous change orders, or if the contractor lacks the technical capability to perform the work within the agreed-upon budget, potentially resulting in quality compromises or contractor default.

What is the historical spending trend for facility upgrades at VA Fresno?

Historical spending data specifically for facility upgrades at the VA Fresno facility is not provided in the current dataset. To assess historical spending patterns, one would need to analyze past contracts awarded to or for the VA Fresno site, looking at the frequency, value, and nature of previous upgrade or maintenance projects. Understanding if this $12.6 million contract represents a significant increase or decrease in spending compared to prior periods, and whether previous upgrades addressed similar security and access issues, would provide valuable context for evaluating the current investment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26123R0110

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4966 W 11000 N, HIGHLAND, UT, 84003

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: $12,604,551

Exercised Options: $12,604,551

Current Obligation: $12,604,551

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline