VA awards $4.09M contract for Sacramento VA entrance and parking, with D Square Construction LLC selected

Contract Overview

Contract Amount: $4,085,946 ($4.1M)

Contractor: D Square Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-18

End Date: 2026-06-18

Contract Duration: 882 days

Daily Burn Rate: $4.6K/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: CORRECT SACRAMENTO ENTRANCE ACCESS AND PARKING, PROJECT 612A4-21-011

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to D SQUARE CONSTRUCTION LLC for work described as: CORRECT SACRAMENTO ENTRANCE ACCESS AND PARKING, PROJECT 612A4-21-011 Key points: 1. Contract value appears reasonable for construction of this nature, though specific benchmarks are needed for definitive assessment. 2. Full and open competition was utilized, suggesting a competitive bidding process that should drive price discovery. 3. The contract duration of 882 days indicates a significant project scope requiring careful management. 4. Project is situated in California, a high-cost construction market. 5. The firm-fixed-price structure shifts most cost risk to the contractor. 6. No small business set-aside was applied, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract value of $4.09 million for commercial and institutional building construction is within a typical range for such projects. However, without detailed project specifications, scope of work, and location-specific cost indices, a precise value-for-money assessment is challenging. Benchmarking against similar VA or other federal construction projects of comparable size and complexity in California would provide a clearer picture of whether the pricing is competitive. The firm-fixed-price contract type suggests that the contractor bears the primary risk for cost overruns, which can sometimes lead to higher initial bids.

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 is a specific type of full and open competition. This indicates that the agency sought proposals from all responsible sources, but may have excluded certain sources for specific reasons (though not detailed here). The fact that it was competed broadly suggests that multiple bidders likely vied for the contract, which is generally positive for price negotiation and ensuring a fair market price.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. It reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

Veterans in the Sacramento area will benefit from improved access and parking at the VA facility. The project involves construction and renovation services for the VA's Sacramento campus. The geographic impact is localized to Sacramento, California. The project is expected to create jobs in the construction sector within the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the firm-fixed-price structure.
Contractor's past performance on similar large-scale construction projects needs thorough review to mitigate execution risks.
Coordination with ongoing VA operations during construction could present logistical challenges.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, promoting budget certainty.
Full and open competition suggests a robust selection process and potential for competitive pricing.
Project aims to improve critical infrastructure for veteran services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector often supports infrastructure development, facility upgrades, and new construction for government agencies. The market size for federal construction is substantial, with agencies like the Department of Veterans Affairs consistently investing in their facilities to serve veterans. This project aligns with the VA's ongoing efforts to modernize and improve its healthcare and administrative infrastructure.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements specifically for small businesses. This means that larger construction firms were likely the primary bidders and recipients of this award. While this ensures capacity for large projects, it may limit opportunities for small businesses to participate in significant federal construction contracts unless they are part of a larger firm's supply chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting and project management offices. Accountability measures are typically embedded in the contract terms, including performance standards, delivery schedules, and quality requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Commercial Construction Services
General Building Construction

Risk Flags

Potential for scope creep if SOW is not precisely defined.
Contractor performance risk over extended duration.
Need for detailed review of contractor's past performance.
Potential for higher initial cost due to FFP structure and contingencies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to D SQUARE CONSTRUCTION LLC. CORRECT SACRAMENTO ENTRANCE ACCESS AND PARKING, PROJECT 612A4-21-011

Who is the contractor on this award?

The obligated recipient is D SQUARE 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 $4.1 million.

What is the period of performance?

Start: 2024-01-18. End: 2026-06-18.

What is the specific scope of work for 'CORRECT SACRAMENTO ENTRANCE ACCESS AND PARKING, PROJECT 612A4-21-011'?

The provided data indicates the project title is 'CORRECT SACRAMENTO ENTRANCE ACCESS AND PARKING, PROJECT 612A4-21-011'. While the exact details are not fully elaborated in the summary data, the title suggests the work involves improvements to the main entrance, access routes, and parking facilities at the Sacramento VA facility. This could encompass tasks such as resurfacing or expanding parking lots, improving traffic flow, enhancing pedestrian access, upgrading lighting, landscaping, and potentially modifying building entrances for better accessibility and security. The firm-fixed-price nature implies a defined scope that the contractor must complete within the agreed budget.

How does the awarded price of $4.09 million compare to similar VA construction projects?

Benchmarking the $4.09 million award against similar VA construction projects requires access to a database of comparable contracts. Factors such as project size (square footage), complexity (e.g., new build vs. renovation, specific structural requirements), location (California's high construction costs), and the specific scope (entrance and parking) are crucial for a fair comparison. Generally, large-scale parking and entrance improvements for federal facilities can range from hundreds of thousands to several million dollars. Without specific comparable contract data, it's difficult to definitively state if this price represents excellent or questionable value. However, the use of full and open competition suggests an effort to achieve a competitive price.

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

The primary risk for the VA with a firm-fixed-price (FFP) contract is that the contractor may have included significant contingency in their bid to cover unforeseen issues, potentially leading to a higher initial price than a cost-reimbursable contract might have achieved if costs were lower than anticipated. However, the main benefit is budget certainty for the VA. Risks for the VA are mitigated by a well-defined Statement of Work (SOW) and robust oversight. If the SOW is ambiguous, the contractor could claim constructive changes, leading to change orders that increase the cost. Contractor performance risk (delays, quality issues) is also present, though mitigated by the contractor's incentive to complete the work efficiently under FFP.

What is the track record of D Square Construction LLC on federal contracts?

Information on D Square Construction LLC's track record with federal contracts is not detailed in the provided summary data. A thorough analysis would require reviewing their past performance history in federal procurement databases, such as the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). This review should focus on their experience with projects of similar size, scope, and complexity, as well as their record regarding on-time delivery, quality of work, and adherence to budget. Positive past performance is a key indicator of future success and reduces risk for the awarding agency.

How might the 'Full and Open Competition After Exclusion of Sources' impact the final price and quality?

The 'Full and Open Competition After Exclusion of Sources' designation implies that the contract was broadly solicited, allowing all responsible contractors to submit bids, but specific sources were excluded. The exclusion criteria are not detailed here but could relate to security, past performance issues, or specific technical capabilities. Broad competition generally leads to lower prices and better quality as contractors vie for the award. However, if the exclusion criteria were overly restrictive or improperly applied, it could limit the pool of qualified bidders, potentially reducing the competitive pressure and impacting the final price and quality outcomes. The number of bids received would be a key indicator.

What are the implications of the 882-day duration for project management and oversight?

An 882-day duration (approximately 2.4 years) for the Sacramento VA entrance and parking project signifies a substantial undertaking. This extended timeline necessitates robust project management and oversight from the VA. Key implications include the need for consistent monitoring of progress against milestones, managing potential contractor resource fluctuations over such a long period, and adapting to any changes in regulations or site conditions that may arise. The VA must maintain active engagement to ensure the project stays on track, quality is maintained, and costs remain controlled, especially given the potential for inflation or material price changes over the project's lifespan.

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

Solicitation ID: 36C26124R0007

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 530 E 27TH ST, TUCSON, AZ, 85713

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

Financial Breakdown

Contract Ceiling: $4,085,946

Exercised Options: $4,085,946

Current Obligation: $4,085,946

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26120D0082

IDV Type: IDC

Timeline