VA awards $2.1M parking facility contract to CAPEX CONSTRUCTION LLC, raising questions about competition and value

Contract Overview

Contract Amount: $2,107,859 ($2.1M)

Contractor: Capex Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-03-31

End Date: 2027-03-26

Contract Duration: 360 days

Daily Burn Rate: $5.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 691-24-105- CONSTRUCTION OF NEW PARKING FACILITIES FOR POLICE VEHICLES

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.1 million to CAPEX CONSTRUCTION LLC for work described as: PROJECT 691-24-105- CONSTRUCTION OF NEW PARKING FACILITIES FOR POLICE VEHICLES Key points: 1. Contract awarded without competition, limiting price discovery and potentially increasing costs. 2. The firm fixed-price contract structure shifts risk to the contractor. 3. No small business set-aside was utilized, potentially impacting small business participation. 4. The project aims to address critical infrastructure needs for police vehicles. 5. The contract duration of 360 days suggests a focused scope of work.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bidding. The $2.1 million price tag for constructing parking facilities needs to be assessed against similar projects in California. Without competing bids, it's difficult to ascertain if the price reflects fair market value or if taxpayers received the best possible price. The absence of a competitive process means there's no direct comparison to gauge cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. The Department of Veterans Affairs did not solicit bids from other construction companies. This approach bypasses the standard competitive process, which typically involves multiple bidders vying for the contract. The lack of competition means there is no direct comparison of pricing or capabilities from other firms.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. It also reduces transparency in the procurement process.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs, which will gain essential parking infrastructure for its police vehicles. The contract will deliver new parking facilities, improving operational efficiency and vehicle security. The geographic impact is localized to the facility's location in California. Workforce implications include job creation for construction workers and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in inflated pricing.
Sole-source award limits transparency and accountability.
No small business participation noted, potentially excluding valuable local contractors.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Project addresses a clear infrastructure need for law enforcement vehicles.
Defined contract duration provides a clear timeline for completion.

Sector Analysis

The construction sector, particularly commercial and institutional building construction, is a significant area of federal spending. This contract falls within the broader category of infrastructure development. Federal agencies often engage construction firms for a wide range of projects, from office buildings to specialized facilities. Benchmarking this specific project's cost would require comparing it to similar parking structure constructions, considering factors like size, materials, and location.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The absence of small business participation in this sole-source award means that opportunities for smaller firms to contribute to this project were not actively pursued through the procurement process. This could limit the impact on the small business ecosystem for this particular contract.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' internal procurement and project management divisions. As a sole-source award, the justification for not competing the contract would be subject to review. Transparency is limited due to the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Veterans Affairs Facilities Management
Federal Law Enforcement Vehicle Support
Public Infrastructure Projects

Risk Flags

Lack of Competition
Potential for Overpricing
Limited Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.1 million to CAPEX CONSTRUCTION LLC. PROJECT 691-24-105- CONSTRUCTION OF NEW PARKING FACILITIES FOR POLICE VEHICLES

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 $2.1 million.

What is the period of performance?

Start: 2026-03-31. End: 2027-03-26.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded on a 'NOT COMPETED' basis, which is synonymous with a sole-source award. Federal agencies typically justify sole-source procurements when only one responsible source is available or capable of meeting the agency's needs. This could be due to unique capabilities, urgent requirements where competition is not feasible, or specific circumstances outlined in the Federal Acquisition Regulation (FAR). Without further documentation from the Department of Veterans Affairs, the precise justification remains unknown, but it would need to meet strict FAR criteria to bypass full and open competition.

How does the $2.1 million cost compare to similar parking facility construction projects?

Direct comparison of the $2.1 million cost is difficult without more specific project details and market data for similar constructions in California. Factors influencing cost include the size of the facility (number of parking spaces), materials used, site preparation requirements, and local labor costs. Generally, construction costs for parking structures can vary significantly. To assess value, one would ideally compare this contract's price per square foot or per parking space against recent, competitively bid projects of similar scope and location. The absence of competition here prevents a direct benchmark against other potential bids.

What are the potential risks associated with a sole-source contract for construction?

The primary risk of a sole-source contract is the potential for overpayment, as the absence of competition removes the incentive for the contractor to offer the lowest possible price. There is also a reduced level of transparency in the procurement process. Furthermore, the agency may not benefit from innovative solutions or efficiencies that might have been proposed by other contractors during a competitive bidding process. For construction projects, risks also include potential delays or quality issues if the sole-source contractor is not adequately vetted or managed.

What is the expected impact on law enforcement vehicle operations?

The construction of new parking facilities is intended to directly support law enforcement vehicle operations by providing secure, dedicated, and potentially expanded parking. This can improve vehicle readiness, reduce wear and tear from unsecured parking, and enhance overall operational efficiency by ensuring vehicles are readily available. The new facilities may also offer better security, protecting vehicles from vandalism or theft, and potentially providing amenities like charging stations for electric vehicles or maintenance access points, depending on the facility's design.

What is the historical spending pattern for similar construction projects by the Department of Veterans Affairs?

Analyzing historical spending patterns for similar construction projects by the Department of Veterans Affairs (VA) would require access to detailed procurement databases and contract award histories. The VA, like other large federal agencies, undertakes numerous construction projects annually. Understanding past spending on parking facilities or similar infrastructure would involve looking at the number of contracts awarded, their values, the types of competition used (competitive vs. sole-source), and the contractors involved. Without specific historical data for VA parking facility projects, it's impossible to provide a precise spending pattern comparison for this $2.1 million contract.

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: 36C26226R0049

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1146 N 1190 E, AMERICAN FORK, 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: $2,107,859

Exercised Options: $2,107,859

Current Obligation: $2,107,859

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline