VA awards $1.8M contract for Fargo roof repairs, highlighting regional infrastructure needs

Contract Overview

Contract Amount: $1,793,935 ($1.8M)

Contractor: Ameritech Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-18

End Date: 2026-07-27

Contract Duration: 677 days

Daily Burn Rate: $2.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR SELECT ROOFS FARGO, ND

Place of Performance

Location: FARGO, CASS County, NORTH DAKOTA, 58102

State: North Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.8 million to AMERITECH CONTRACTING LLC for work described as: REPAIR SELECT ROOFS FARGO, ND Key points: 1. Contract value appears reasonable for specialized roofing services in a specific geographic area. 2. Full and open competition suggests a healthy market for roofing contractors. 3. Contract duration of nearly two years indicates a significant scope of work. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Focus on infrastructure maintenance aligns with agency priorities. 6. Geographic concentration in North Dakota may limit broader market comparisons.

Value Assessment

Rating: good

The contract value of approximately $1.8 million for roof repairs in Fargo, ND, seems aligned with the scope of work for a definitive contract. Without specific details on the size and complexity of the roofs, direct comparison is challenging. However, the fixed-price nature suggests the government has a clear understanding of costs, and the contractor assumes the risk of cost overruns. Benchmarking against similar VA roofing projects in the Midwest would provide further insight into value for money.

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,' indicating that while sources were initially excluded, the final award was made through a competitive process open to all eligible bidders. With 6 bidders, this suggests a reasonable level of competition for this specialized service. The presence of multiple bids is generally positive for price discovery and achieving a fair market price.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely drove down the final price compared to a sole-source or limited competition scenario. The multiple bids received indicate that taxpayer funds are being used efficiently.

Public Impact

Veterans in the Fargo, North Dakota area will benefit from improved facilities. Essential infrastructure maintenance services are being delivered to a VA facility. The contract has a geographic impact primarily within North Dakota. Local and regional roofing contractors and their workforce are likely to be engaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial roof assessments were incomplete.
Weather-related delays could impact project timeline and costs.
Ensuring compliance with VA facility standards requires diligent oversight.

Positive Signals

Fixed-price contract limits cost uncertainty for the government.
Multiple bidders suggest a competitive market and potential for good pricing.
Contract duration allows for thorough execution of repairs.

Sector Analysis

The roofing industry is a mature sector within construction services, characterized by numerous small to large businesses. Federal contracts for facility maintenance and repair are common across various agencies. This contract fits within the broader category of building and infrastructure upkeep, a consistent area of government spending. Comparable spending benchmarks would typically involve analyzing other roofing repair contracts awarded by federal agencies in similar geographic regions and for similar facility types.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). While the primary award was not to a small business, the prime contractor, Ameritech Contracting LLC, may utilize small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the nature of the work required.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and facility managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to complete the work to specifications. Transparency is facilitated through federal contract databases where award details are published. The Inspector General's office may conduct audits or investigations if specific concerns arise regarding performance or financial integrity.

Related Government Programs

VA Facility Maintenance Contracts
Federal Building Repair Contracts
Construction Services for Government Facilities
Roofing Services Contracts

Risk Flags

Potential for weather delays impacting schedule.
Risk of unforeseen conditions requiring scope adjustments.
Need for diligent quality assurance oversight.
Contractor performance history requires verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.8 million to AMERITECH CONTRACTING LLC. REPAIR SELECT ROOFS FARGO, ND

Who is the contractor on this award?

The obligated recipient is AMERITECH CONTRACTING 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 $1.8 million.

What is the period of performance?

Start: 2024-09-18. End: 2026-07-27.

What is the track record of Ameritech Contracting LLC with the federal government, particularly for roofing projects?

A review of federal procurement data indicates that Ameritech Contracting LLC has been awarded multiple contracts across various agencies, including the Department of Defense and the Department of Veterans Affairs. While specific details on the volume and success rate of past roofing projects require deeper analysis, the company's consistent federal awards suggest a level of experience and capability. Further investigation into past performance evaluations and any reported issues on previous contracts would provide a more comprehensive understanding of their track record. Examining the value and scope of their prior roofing-related awards would also offer context for their current $1.8 million contract.

How does the awarded price compare to similar roofing repair contracts in the region?

Benchmarking this $1.8 million contract against similar roofing repair projects in North Dakota or the surrounding Midwest region is crucial for assessing value. Without access to a detailed breakdown of the work (e.g., square footage, type of roofing material, complexity of repairs), a precise comparison is difficult. However, the number of bidders (6) suggests a competitive environment, which typically leads to prices closer to market rates. If comparable projects of similar scale and scope were awarded at significantly lower or higher figures, it would indicate potential overpricing or exceptional value, respectively. Further analysis would involve identifying specific comparable contracts and adjusting for factors like inflation and project complexity.

What are the primary risks associated with this specific roofing repair contract?

The primary risks associated with this roofing repair contract include potential weather-related delays, which are common in North Dakota and can impact project timelines and potentially costs if not managed effectively. Another risk is the possibility of unforeseen structural issues discovered during the repair process, which could lead to scope creep and cost increases, although the firm-fixed-price nature aims to mitigate this for the government. Ensuring the quality of materials and workmanship meets VA standards is also a risk that requires diligent oversight. Finally, the contractor's ability to manage the project efficiently within the allocated budget and timeframe is a key performance risk.

How effective is the firm-fixed-price contract type in ensuring program effectiveness for roof repairs?

The firm-fixed-price (FFP) contract type is generally effective in ensuring cost certainty for the government and incentivizing the contractor to perform efficiently. For roof repairs, FFP shifts the risk of cost overruns to Ameritech Contracting LLC. This means the contractor is motivated to complete the work within the agreed-upon price, potentially leading to better cost management and timely completion. Program effectiveness is enhanced as the government has a clear budget ceiling. However, FFP can sometimes lead to contractors cutting corners on quality if not rigorously overseen, or it may result in higher initial bid prices to account for contractor risk. Therefore, effective oversight and clear performance standards are critical to ensure the repairs are both cost-effective and durable.

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

The Department of Veterans Affairs (VA) consistently spends significant amounts on facility maintenance and repair, including roofing services, across its numerous medical centers and administrative buildings nationwide. Historical data shows a steady demand for such services, driven by the aging infrastructure of many VA facilities. Spending patterns vary by region and the specific needs of each facility, with larger, older complexes often requiring more substantial investments. Analyzing VA's historical spending on roofing contracts can reveal trends in contract values, types of services procured (e.g., repair vs. replacement), and the prevalence of different contract vehicles used, such as indefinite-delivery indefinite-quantity (IDIQ) contracts or competitive firm-fixed-price awards like this one.

What is the significance of the contract duration (677 days) in relation to the contract value?

The contract duration of 677 days (approximately 22 months) for a $1.8 million contract suggests a substantial scope of work or a phased approach to the roof repairs. A longer duration for a fixed-price contract can indicate that the project involves multiple buildings, complex repair sequences, or requires work to be performed over extended periods to minimize disruption to facility operations. It allows the contractor ample time for planning, execution, and potentially addressing unforeseen issues. From a value perspective, it implies that the $1.8 million is intended to cover a comprehensive set of repairs or maintenance activities over a significant period, rather than a quick, single-event fix. This duration is not inherently excessive but warrants scrutiny to ensure efficient progress and prevent unnecessary delays.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C26324B0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 151 BROAD ST, MIDDLETOWN, CT, 06457

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

Financial Breakdown

Contract Ceiling: $1,793,935

Exercised Options: $1,793,935

Current Obligation: $1,793,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline