VA awards $3.7M for Aquatic Center construction to Sentinel Builders, LLC

Contract Overview

Contract Amount: $3,709,633 ($3.7M)

Contractor: Sentinel Builders, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-23

End Date: 2026-05-27

Contract Duration: 611 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AQUATIC CENTER PALO ALTO AWARD

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to SENTINEL BUILDERS, LLC for work described as: AQUATIC CENTER PALO ALTO AWARD Key points: 1. Contract awarded for construction of an aquatic center, indicating investment in recreational or therapeutic facilities. 2. The contract was competed under full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type aims to control costs and provide predictability for the government. 4. The duration of the contract is approximately 20 months, aligning with typical construction project timelines. 5. The award is managed by the Department of Veterans Affairs, likely for the benefit of veterans. 6. The project falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $3.7 million for an aquatic center appears to be within a reasonable range for a project of this nature, though specific benchmarks for such specialized facilities are not readily available. Without detailed project scope and specifications, a precise value-for-money assessment is challenging. The firm fixed-price structure suggests an effort to manage cost overruns, but the final value will depend on the execution and any potential change orders. Comparing this to similar VA construction projects or other government-funded recreational facilities would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was broad, certain sources may have been excluded based on specific criteria. However, the 'full and open' designation generally suggests a competitive process where all responsible sources were permitted to submit offers. With 4 bids received, the competition level appears moderate, which can be a positive sign for price discovery. The specific reasons for excluding other sources would need further investigation to fully understand the competitive landscape.

Taxpayer Impact: A competitive bidding process, even with some exclusions, generally benefits taxpayers by encouraging lower prices and better value. The presence of multiple bids suggests that the government received a range of pricing options, potentially leading to a more cost-effective outcome.

Public Impact

Veterans are the primary beneficiaries, likely gaining access to a new aquatic facility for recreation, therapy, or rehabilitation. The project delivers construction services for a specialized institutional building. The geographic impact is localized to Palo Alto, California, where the aquatic center will be built. The construction will likely involve a workforce of skilled tradespeople and laborers in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial fixed-price agreement.
Dependence on the specific expertise of Sentinel Builders, LLC for a specialized facility.
The 'exclusion of sources' in the competition warrants further review to ensure maximum competition was achieved.

Positive Signals

Firm fixed-price contract helps mitigate cost escalation risks for the government.
Awarded under full and open competition, indicating a structured procurement process.
The Department of Veterans Affairs is a reputable agency with experience in managing construction projects.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to specialized facilities. This contract for an aquatic center falls under commercial and institutional building construction. Federal spending in this sector is driven by the need to maintain and upgrade government facilities, as well as build new ones to serve various public needs, such as those of veterans. Benchmarks for similar institutional building projects can vary widely based on size, complexity, and location.

Small Business Impact

There is no indication that this contract was set aside for small businesses, nor is there information about subcontracting plans. The award to Sentinel Builders, LLC, without specific small business designations, suggests it may be a larger entity or that small business participation was not a primary set-aside criterion for this particular procurement. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs typically has robust oversight mechanisms for its construction projects, including contract administration, site inspections, and quality assurance processes. The Inspector General's office would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases and public reporting, though specific project details may be limited.

Related Government Programs

VA Medical Center Construction
Federal Building Construction
Recreational Facility Construction
Therapeutic Facility Construction

Risk Flags

Potential for cost overruns due to fixed-price contract and specialized nature of construction.
Risk associated with contractor's past performance and experience with similar projects.
Ensuring adequate competition despite 'exclusion of sources' clause.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to SENTINEL BUILDERS, LLC. AQUATIC CENTER PALO ALTO AWARD

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 $3.7 million.

What is the period of performance?

Start: 2024-09-23. End: 2026-05-27.

What is the track record of Sentinel Builders, LLC with the federal government?

A review of federal procurement data indicates that Sentinel Builders, LLC has received federal contracts. However, the extent of their federal contracting history, past performance ratings, and experience with projects of similar scale and complexity to this aquatic center would require a deeper dive into their contract awards and performance evaluations. Understanding their past performance, particularly with the Department of Veterans Affairs or similar agencies, is crucial for assessing the risk associated with this award. A comprehensive review would involve examining contract close-out data, any reported disputes or claims, and client feedback where available to gauge their reliability and capability.

How does the $3.7 million cost compare to similar VA aquatic or therapeutic facility projects?

Benchmarking the $3.7 million cost for this aquatic center against similar Department of Veterans Affairs (VA) projects is challenging without more specific details on the facility's size, features, and intended use (e.g., therapeutic vs. recreational). VA construction costs can vary significantly based on geographic location, labor rates, and the complexity of the design. Generally, specialized facilities like aquatic centers can be more expensive per square foot than standard buildings due to specialized equipment, plumbing, and environmental controls. A comparative analysis would ideally look at projects with similar square footage, construction types, and therapeutic or recreational functionalities awarded within the last 1-3 years to provide a relevant cost comparison.

What are the primary risks associated with this firm fixed-price contract for an aquatic center?

The primary risks associated with a firm fixed-price contract for an aquatic center, despite its cost control benefits, include potential scope creep and unforeseen site conditions. If the project's requirements evolve beyond the initial scope, or if unexpected geological or environmental issues arise during construction, the contractor may seek change orders, potentially increasing the overall cost. Another risk is that the contractor might cut corners on quality to maintain profitability if costs escalate unexpectedly, although contract oversight should mitigate this. The specialized nature of an aquatic center also introduces risks related to the contractor's specific expertise in installing and maintaining complex water systems and related infrastructure.

What is the expected effectiveness of this aquatic center for veteran therapy and recreation?

The effectiveness of this aquatic center for veteran therapy and recreation will largely depend on its design, accessibility, programming, and integration with broader VA healthcare and wellness initiatives. Aquatic therapy is a well-established modality for physical rehabilitation, pain management, and mental health support, offering low-impact exercise and stress reduction. For recreation, it provides a venue for physical activity and social engagement. The success will be measured by veteran utilization rates, patient outcomes in therapeutic programs, and overall satisfaction. The VA's strategic goals for veteran well-being and the specific clinical needs of the veteran population served by this facility will dictate its ultimate effectiveness.

What are the historical spending patterns for aquatic or therapeutic facilities by the VA?

Historical spending patterns for aquatic or therapeutic facilities by the VA are not a distinct, easily isolatable category within broader federal spending data. The VA's capital construction budget typically encompasses a wide array of projects, including new medical centers, expansions, renovations, and specialized treatment spaces. While specific investments in aquatic therapy pools or centers may occur, they are often integrated into larger facility projects or classified under broader categories like 'medical building construction' or 'rehabilitation services infrastructure.' Analyzing past VA budgets and contract awards would be necessary to identify trends and the typical scale of investment in such specialized facilities over time.

How does the 'Full and Open Competition After Exclusion of Sources' impact price discovery and value?

The 'Full and Open Competition After Exclusion of Sources' (F&O CAES) is a procurement method that allows for broad competition but permits the exclusion of specific sources based on defined criteria, such as national security, export controls, or specific technical requirements. While it aims for a competitive environment, the exclusion of certain potential bidders could limit the pool of offers. This limitation might reduce the downward pressure on prices that could arise from maximum competition, potentially impacting price discovery. The value derived depends heavily on the justification for the exclusions; if the exclusions are well-founded and necessary, the resulting competition might still yield good value. However, if exclusions are overly broad or unjustified, it could lead to less competitive pricing and potentially suboptimal value for taxpayers.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26124R0053

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,809,633

Exercised Options: $3,809,633

Current Obligation: $3,709,633

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline