VA awards $3.97M construction MATOC to D Square Construction LLC for Arizona projects

Contract Overview

Contract Amount: $3,967,818 ($4.0M)

Contractor: D Square Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-01-20

End Date: 2026-09-17

Contract Duration: 240 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NCO 22 CONSTRUCTION MATOC

Place of Performance

Location: TUCSON, PIMA County, ARIZONA, 85713

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.0 million to D SQUARE CONSTRUCTION LLC for work described as: NCO 22 CONSTRUCTION MATOC Key points: 1. Contract awarded to a single vendor for a multi-award indefinite-delivery indefinite-quantity (MATOC) contract. 2. The contract has a base period of 240 days, with potential for task orders extending beyond. 3. Fixed-price contract type suggests clear cost expectations, but flexibility for task order variations. 4. Geographic focus on Arizona may indicate specific regional needs or contractor specialization. 5. The contract is not set aside for small businesses, indicating a focus on broader market capabilities. 6. The award value represents a portion of potential MATOC ceiling, actual spend may vary.

Value Assessment

Rating: fair

The contract value of $3.97 million is for the base period of the MATOC, which typically allows for multiple task orders over its lifespan. Benchmarking against similar construction MATOCs is difficult without knowing the total ceiling value and the scope of potential task orders. However, the award to a single entity for this initial value suggests a focused approach. The firm-fixed-price structure is standard for construction, but the value itself doesn't immediately indicate exceptional or poor value without more context on the specific services to be rendered.

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 standard method for competitive solicitations. This indicates that the solicitation was broadly advertised, and multiple responsible sources were permitted to submit offers. The fact that it resulted in an award to a single vendor for this specific delivery order does not necessarily imply limited competition at the solicitation stage, but rather that D Square Construction LLC was selected as the best value offeror among those who responded.

Taxpayer Impact: This competitive approach is generally favorable for taxpayers as it aims to secure the best possible pricing and quality by allowing multiple qualified contractors to bid on the work.

Public Impact

The Department of Veterans Affairs (VA) will benefit from improved facilities and infrastructure. Projects will likely involve commercial and institutional building construction and renovation within Arizona. The contract supports the VA's mission to provide healthcare and benefits to veterans. Local construction workforce in Arizona may see employment opportunities through this contract and its task orders. The geographic focus ensures resources are directed towards specific VA facility needs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if task orders are not tightly managed.
Dependence on a single contractor for a MATOC could limit flexibility if performance issues arise.
Scope creep in task orders could increase the overall contract value beyond initial expectations.
Ensuring consistent quality across various task orders will be critical.
The exclusion of sources language needs careful review to ensure true competition was achieved.

Positive Signals

Award to a single vendor can streamline management and communication for the contracting agency.
MATOC structure allows for efficient procurement of multiple, potentially smaller, construction projects.
Firm-fixed-price contract type provides cost certainty for defined scopes of work.
Focus on a specific geographic region can lead to specialized expertise and potentially faster execution.
The contract is for construction services, a critical need for maintaining and upgrading federal facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. The federal government is a significant consumer of construction services, awarding billions annually for the maintenance, repair, and new construction of its vast portfolio of facilities, including those managed by the Department of Veterans Affairs. This MATOC award is a common contracting vehicle used by agencies to efficiently procure a range of construction services over a period of time.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the competition was open to all eligible contractors, and the primary awardee, D Square Construction LLC, is likely not classified as a small business for the purpose of this contract, or the set-aside criteria were not met. The absence of explicit small business provisions means that opportunities for small businesses will depend on the subcontracting decisions made by the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs contracting and program officials. Accountability will be ensured through the terms and conditions of the firm-fixed-price delivery order and the overarching MATOC agreement. Transparency is facilitated by the federal procurement data system, where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to this contract were identified.

Related Government Programs

VA Facilities Construction and Repair
General Construction Services
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Construction Services for Federal Buildings

Risk Flags

Potential for limited competition on future task orders.
Contractor performance risk concentration.
Scope creep management.
Quality assurance across multiple task orders.
Adequacy of initial competition for MATOC award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.0 million to D SQUARE CONSTRUCTION LLC. NCO 22 CONSTRUCTION MATOC

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 $4.0 million.

What is the period of performance?

Start: 2026-01-20. End: 2026-09-17.

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

Information regarding the specific track record of D Square Construction LLC with the Department of Veterans Affairs or other federal agencies is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or corrective actions. Without this data, it's difficult to gauge their experience level and reliability for this specific MATOC. Federal agencies typically conduct pre-award reviews of contractor past performance as part of the selection process.

How does the awarded value of $3.97 million compare to similar construction MATOCs awarded by the VA or other agencies?

The awarded value of $3.97 million represents the initial delivery order or base value for this MATOC, not necessarily the total potential value. Comparing this figure directly to other MATOCs is challenging without knowing the total ceiling amount and the duration of the contract. However, for a single delivery order under a MATOC, $3.97 million is a substantial amount, suggesting a significant scope of work. Benchmarking would require analyzing the average value of initial task orders or the total contract values for similar construction MATOCs within the VA or across other agencies, considering factors like project type and geographic location.

What are the primary risk indicators associated with awarding a MATOC to a single vendor?

Awarding a MATOC to a single vendor presents several risk indicators. Firstly, it concentrates performance risk; if the sole contractor experiences financial difficulties, management issues, or fails to meet performance standards, the agency has limited recourse without initiating a new, lengthy procurement. Secondly, it can reduce price competition over the life of the contract, as the agency is largely bound to this vendor for subsequent task orders, potentially leading to less favorable pricing compared to a multi-award IDIQ where multiple vendors compete on each task order. Lastly, it limits the agency's flexibility to leverage specialized expertise from different contractors for diverse project needs that may arise.

What is the expected effectiveness of this contract in meeting the VA's construction needs in Arizona?

The effectiveness of this contract hinges on several factors. The MATOC structure is designed for efficiency in procuring various construction services, which should help the VA address its facility needs in Arizona promptly. The firm-fixed-price nature of the award provides cost certainty for the defined scope. However, effectiveness will ultimately depend on the quality of work performed by D Square Construction LLC, the clarity and management of individual task orders, and the VA's ability to oversee the projects effectively. The focus on Arizona suggests a strategic allocation of resources to meet specific regional requirements.

What are the historical spending patterns for construction services by the Department of Veterans Affairs in Arizona?

Historical spending patterns for construction services by the Department of Veterans Affairs in Arizona are not provided in the current data. To analyze this, one would need to examine past VA contract awards for construction projects specifically within Arizona over several fiscal years. This analysis would reveal trends in spending levels, types of construction projects undertaken (e.g., new builds, renovations, specific facility types), and potentially identify key contractors or contracting vehicles previously utilized. Such data would provide context for the current $3.97 million award and help assess its alignment with historical investment.

What is the significance of the 'Commercial and Institutional Building Construction' NAICS code (236220) in the context of this award?

The NAICS code 236220, 'Commercial and Institutional Building Construction,' signifies that the contract is intended for the construction or major renovation of non-residential buildings. This includes a wide range of structures such as hospitals, administrative buildings, educational facilities, and other public or private institutions. For the VA, this code is highly relevant as it covers the construction and upkeep of medical centers, clinics, and administrative offices. Awarding a contract under this code indicates the VA's intent to procure services for building projects that fall within this broad category, ensuring the facilities necessary for veteran care and services are adequately maintained and developed.

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: 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: $3,967,818

Exercised Options: $3,967,818

Current Obligation: $3,967,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26224D0069

IDV Type: IDC

Timeline