VA awards $823K construction contract to D Square Construction LLC for building upgrades

Contract Overview

Contract Amount: $823,664 ($823.7K)

Contractor: D Square Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-13

End Date: 2026-10-12

Contract Duration: 182 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TK REPLACE EP BUILDING 500 ROOM 4416

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90025

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $823,664 to D SQUARE CONSTRUCTION LLC for work described as: TK REPLACE EP BUILDING 500 ROOM 4416 Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm fixed-price contract type suggests cost certainty for the government. 3. The contract duration of 182 days indicates a focused scope of work. 4. The contractor, D Square Construction LLC, has not previously received federal contracts of this nature. 5. The project is located in California, a region with significant construction activity. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $823,664 for building upgrades appears within a reasonable range for commercial construction projects of this scope. However, without specific details on the scope of work (e.g., square footage, type of upgrades), a precise benchmark is difficult. The firm fixed-price structure provides cost predictability. Given the sole-source award, a direct comparison to competitively bid projects is not feasible, which may limit the assurance of obtaining the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can meet the specific requirements. The lack of competition means that the VA did not benefit from a bidding process that could have driven down prices through market forces. The absence of multiple bids raises questions about whether the government secured the most cost-effective solution available.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the lack of competitive bidding. A sole-source award bypasses the opportunity for multiple companies to offer proposals, potentially leading to higher costs than if the contract had been competed.

Public Impact

The Department of Veterans Affairs will benefit from improved facilities. The contract will support the renovation or upgrade of Building 500, Room 4416. The project's geographic impact is localized to the VA facility in California. The contract is expected to create short-term employment opportunities for construction workers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value.
Limited public information on the specific scope of work and required expertise.
Contractor's track record with federal contracts appears limited, raising potential performance risks.

Positive Signals

Firm fixed-price contract provides cost certainty.
Contract duration is relatively short, suggesting a manageable project timeline.
Project aims to improve VA facilities, directly supporting veteran services.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the U.S. economy, encompassing a wide range of projects from office buildings to healthcare facilities. Federal agencies are major consumers of construction services, with spending often driven by infrastructure needs, facility maintenance, and modernization efforts. This contract, valued at just under $1 million, represents a small portion of overall federal construction spending but is crucial for the specific facility's operational needs. Benchmarks for similar projects would typically consider factors like building size, age, and the complexity of renovations.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The contractor, D Square Construction LLC, is identified as an LLC, but its size status relative to small business definitions is not specified. The absence of set-aside provisions means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of the awarded contractor's team.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. The firm fixed-price nature simplifies some aspects of financial oversight compared to cost-reimbursement contracts. Transparency is facilitated through federal contract databases, but detailed project-specific oversight reports are not publicly available.

Related Government Programs

Federal Building Construction
Department of Veterans Affairs Facilities Management
Commercial Building Renovation

Risk Flags

Sole-source award may limit price competition.
Contractor's limited federal contracting history could indicate performance risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $823,664 to D SQUARE CONSTRUCTION LLC. TK REPLACE EP BUILDING 500 ROOM 4416

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 $823,664.

What is the period of performance?

Start: 2026-04-13. End: 2026-10-12.

What is the specific scope of work for the building upgrades at Building 500, Room 4416?

The provided data does not detail the specific scope of work for the upgrades at Building 500, Room 4416. It only specifies the location and the NAICS code for Commercial and Institutional Building Construction. To understand the full scope, one would need to consult the contract's statement of work (SOW) or performance work statement (PWS). This would typically outline the exact nature of the renovations, such as HVAC system replacement, electrical upgrades, interior modifications, or structural repairs, and the expected outcomes.

What is the track record of D Square Construction LLC with federal contracts, particularly with the VA?

Based on the provided data, D Square Construction LLC has received one federal contract, this current award from the Department of Veterans Affairs valued at $823,664. There is no indication of prior federal contract history for this entity in the given information. This suggests that this contract may be one of their first, or perhaps their only, federal engagements. Further investigation into federal procurement databases like SAM.gov or FPDS would be necessary to confirm their complete federal contracting history and assess their experience level with government projects.

How does the $823,664 contract value compare to similar VA construction projects?

Comparing the $823,664 contract value to similar VA construction projects requires access to a broader dataset of VA contracts, specifically those for building upgrades or renovations within a similar timeframe and geographic region. Without this comparative data, it's challenging to definitively state if this value is high, low, or average. However, for a single building room or specific area upgrade, this amount could represent a substantial renovation. The sole-source nature of the award also complicates direct value comparisons, as competitively bid projects often yield different pricing.

What are the potential risks associated with a sole-source award for this construction project?

The primary risk associated with a sole-source award is the potential for a lack of price competition, which could lead to the government paying more than necessary. Without multiple bids, there's less market pressure to ensure the most cost-effective solution is chosen. Additionally, sole-source awards can sometimes indicate unique requirements or a lack of available qualified contractors, which might pose performance risks if the chosen contractor lacks extensive experience or resources. Transparency and justification for the sole-source decision are crucial to mitigate these risks.

What is the historical spending pattern of the VA on commercial and institutional building construction?

The provided data does not offer historical spending patterns for the VA on commercial and institutional building construction. To analyze this, one would need to examine multi-year federal procurement data, looking at contracts awarded under the relevant NAICS codes (like 236220) by the Department of Veterans Affairs. This analysis would reveal trends in spending, identify major contractors, and potentially highlight periods of increased or decreased investment in facility upgrades and construction across the VA system.

What are the implications of the firm fixed-price contract type for project management and cost control?

A firm fixed-price (FFP) contract type is generally advantageous for the government in terms of cost control, as the price is set and not subject to upward adjustment based on the contractor's actual costs. This shifts the risk of cost overruns to the contractor. For project management, it means the focus is on ensuring the contractor delivers the specified scope of work within the agreed-upon price and schedule. Any changes to the scope would typically require a formal contract modification, including potential price adjustments, which are subject to negotiation.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26226B0007

Offers Received: 1

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: $823,664

Exercised Options: $823,664

Current Obligation: $823,664

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline