VA awards $2.9M contract for demolition services at Menlo Park, California

Contract Overview

Contract Amount: $2,906,978 ($2.9M)

Contractor: Acierto LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-08

End Date: 2026-10-31

Contract Duration: 327 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DEMOLISH ENGINEERING BUILDINGS AT MENLO PARK

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to ACIERTO LLC for work described as: DEMOLISH ENGINEERING BUILDINGS AT MENLO PARK Key points: 1. Contract awarded to ACIERTO LLC for demolition of engineering buildings. 2. Project duration is 327 days, concluding in October 2026. 3. The contract was awarded under full and open competition. 4. The estimated value is approximately $2.9 million. 5. This contract falls under the Commercial and Institutional Building Construction NAICS code. 6. The award is a Delivery Order under a larger contract vehicle. 7. The contract type is Firm Fixed Price, indicating predictable costs.

Value Assessment

Rating: good

The contract value of $2.9 million for demolition services appears reasonable for a project of this scope. Benchmarking against similar demolition contracts for institutional buildings would provide a more precise value-for-money assessment. The firm fixed-price structure helps manage cost risks for the government. Without specific details on the size and complexity of the buildings to be demolished, a definitive comparison is challenging, but the award amount is within expected ranges for such projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this service. This competitive process is expected to drive fair pricing and ensure the government receives competitive proposals. The exclusion of sources clause suggests a specific reason for limiting initial outreach, but the subsequent full and open competition mitigates potential concerns.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among qualified contractors.

Public Impact

The Department of Veterans Affairs (VA) will benefit from the modernization of its Menlo Park facilities. Demolition services will clear the way for future construction or renovation projects. The project is geographically located in Menlo Park, California. The contract is expected to create temporary employment opportunities within the construction and demolition sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for unforeseen hazardous materials requiring additional remediation costs.
Contract duration may be subject to delays due to permitting or environmental reviews.

Positive Signals

Firm Fixed Price contract limits cost overruns for the government.
Full and open competition suggests a robust bidding process.
Delivery Order structure implies it's part of an existing, potentially pre-vetted, contract vehicle.

Sector Analysis

The Commercial and Institutional Building Construction sector encompasses a wide range of activities, including demolition, new construction, and renovation of non-residential structures. Federal spending in this sector supports infrastructure development and maintenance across various agencies. Demolition contracts are crucial for site preparation and modernization efforts. Comparable spending benchmarks for demolition projects can vary significantly based on building size, materials, location, and environmental considerations.

Small Business Impact

This contract does not appear to have a small business set-aside. 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 subcontracting with small businesses or if there are any indirect impacts on the small business ecosystem through this award.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. As a Delivery Order under a larger contract vehicle, oversight may be managed through the terms of that parent contract. Transparency is generally maintained through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facilities Modernization Projects
Federal Building Demolition Contracts
Construction Services for Government Agencies

Risk Flags

Potential for undisclosed hazardous materials.
Risk of project delays impacting subsequent construction phases.
Contractor performance below expectations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to ACIERTO LLC. DEMOLISH ENGINEERING BUILDINGS AT MENLO PARK

Who is the contractor on this award?

The obligated recipient is ACIERTO 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 $2.9 million.

What is the period of performance?

Start: 2025-12-08. End: 2026-10-31.

What is the track record of ACIERTO LLC in performing similar demolition contracts for the federal government?

Information regarding ACIERTO LLC's specific track record with federal demolition contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on similar projects. Federal procurement databases and agency performance rating systems (like CPARS) would be the primary sources for this information. Understanding their experience with projects of comparable scale, complexity, and regulatory requirements (e.g., hazardous material abatement) is crucial for evaluating their capability to successfully execute this contract.

How does the awarded amount of $2.9 million compare to market rates for similar demolition projects in the Menlo Park, California area?

Benchmarking the $2.9 million award against market rates for similar demolition projects in Menlo Park requires detailed cost data, including building size, materials, environmental considerations (like asbestos or lead paint), and site accessibility. General industry cost estimators suggest that demolition can range from $5 to $20 per square foot, but this is highly variable. Without specifics on the square footage and complexity of the engineering buildings at Menlo Park, a precise comparison is difficult. However, the award amount appears within a plausible range for institutional building demolition in a high-cost-of-living area like the San Francisco Bay Area, assuming a moderate project scope.

What are the primary risks associated with this demolition contract, and how are they being mitigated?

Key risks include the discovery of unforeseen hazardous materials (e.g., asbestos, lead paint, underground storage tanks), potential environmental contamination, project delays due to permitting or weather, and contractor performance issues. Mitigation strategies likely include thorough site assessments prior to demolition, adherence to strict environmental regulations, contingency planning within the contract (though less explicit in FFP), and the government's oversight of contractor performance. The Firm Fixed Price (FFP) contract structure shifts some cost risk to the contractor, incentivizing them to manage these risks effectively.

What is the expected effectiveness of this contract in achieving the VA's facility modernization goals?

The effectiveness of this contract is directly tied to the successful and timely demolition of the specified engineering buildings. By clearing these structures, the VA facilitates its facility modernization goals, potentially enabling the construction of new, more efficient facilities or the repurposing of the land. The contract's effectiveness will be measured by its completion on schedule, within budget (as defined by the FFP), and according to the specified demolition standards, thereby enabling the subsequent phases of the VA's modernization plan.

What are the historical spending patterns for demolition services by the Department of Veterans Affairs?

Historical spending patterns for demolition services by the VA would reveal the frequency and average cost of such contracts. Analyzing past awards can indicate whether this $2.9 million contract is typical, unusually large, or small compared to previous VA demolition efforts. It can also highlight trends in contracting methods (e.g., competition levels) and the types of facilities being demolished. This context helps in assessing the current award's significance and potential future spending needs in this category.

What specific environmental considerations or hazardous materials are anticipated at the Menlo Park site, and how are they addressed in the contract?

The provided data does not specify anticipated environmental considerations or hazardous materials. However, demolition projects, especially at older institutional sites, often involve asbestos-containing materials (ACM), lead-based paint (LBP), and potentially contaminated soil or underground utilities. A thorough pre-demolition survey and hazardous materials assessment are standard practice. The contract terms would typically outline procedures for identification, abatement, and disposal of such materials, often requiring specialized licenses and compliance with EPA and state regulations. The cost and schedule implications of these factors are critical.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2053 NORTH 2000 WEST, FARR WEST, UT, 84404

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $2,906,978

Exercised Options: $2,906,978

Current Obligation: $2,906,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26120D0079

IDV Type: IDC

Timeline