VA awards $913K engineering services contract to Spur Design, LLC for Oklahoma City VAMC

Contract Overview

Contract Amount: $913,121 ($913.1K)

Contractor: Spur Design, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-09-29

End Date: 2027-08-15

Contract Duration: 2,146 days

Daily Burn Rate: $425/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OKLAHOMA CITY VAMC

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73101

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $913,120.7 to SPUR DESIGN, LLC for work described as: OKLAHOMA CITY VAMC Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process. 2. The contract duration of 2146 days suggests a long-term need for engineering services. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially stabilizing costs. 4. The award amount of $913,120.70 appears reasonable for the scope of engineering services. 5. The contract is for engineering services, a critical component for facility maintenance and upgrades. 6. The geographic location of the work is Oklahoma City, impacting local resources and workforce.

Value Assessment

Rating: good

The contract value of $913,120.70 for engineering services over approximately 5.9 years appears to be within a reasonable range for a project of this nature. Benchmarking against similar contracts for VAMC facility engineering would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control when the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, specific sources may have been excluded for reasons not detailed in the provided data. The number of bidders (10) indicates a moderate level of competition, which is generally positive for price discovery.

Taxpayer Impact: A moderate number of bidders suggests that taxpayers likely received competitive pricing, though the exclusion of certain sources could potentially limit the lowest possible price.

Public Impact

Veterans receiving services at the Oklahoma City VAMC will benefit from improved facility infrastructure and maintenance. The contract supports the delivery of essential engineering services for a key healthcare facility. The geographic impact is concentrated in Oklahoma City, potentially benefiting local engineering firms and their employees. The contract may lead to job creation or sustained employment for engineers and support staff in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause warrants further investigation to understand potential limitations on competition.
Lack of detailed scope of work makes it difficult to fully assess the value proposition.
The long contract duration could lead to scope creep or cost overruns if not managed effectively.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
10 bidders indicate a healthy level of interest and competition.
Award to Spur Design, LLC, a specific entity, suggests a focused selection process.

Sector Analysis

The engineering services sector is crucial for the maintenance, upgrade, and construction of federal facilities. This contract fits within the broader category of professional services supporting government infrastructure. Comparable spending benchmarks for similar VAMC facility engineering contracts would be necessary for a precise sector positioning analysis. The NAICS code 541330 (Engineering Services) indicates a specialized market.

Small Business Impact

The provided data indicates that small business set-asides were not utilized for this contract (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses had opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is facilitated by contract databases, but specific performance metrics and reporting details would require deeper investigation.

Related Government Programs

Veterans Affairs Medical Facility Construction
Engineering and Architectural Services
Federal Facility Maintenance Contracts
Department of Veterans Affairs Procurement

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Risk of scope creep or cost overruns in long-term fixed-price contracts.
Need for detailed performance metrics to ensure value for money.
Uncertainty regarding small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $913,120.7 to SPUR DESIGN, LLC. OKLAHOMA CITY VAMC

Who is the contractor on this award?

The obligated recipient is SPUR DESIGN, 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 $913,120.7.

What is the period of performance?

Start: 2021-09-29. End: 2027-08-15.

What is the track record of Spur Design, LLC with federal contracts, particularly with the Department of Veterans Affairs?

A thorough review of Spur Design, LLC's federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and their experience with similar projects, especially those involving healthcare facilities. Data from sources like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be crucial. Understanding their past performance with the VA specifically would provide insight into their reliability and capability in serving the agency's needs.

How does the awarded amount compare to the average cost for similar engineering services at VAMC facilities?

To benchmark the value-for-money, we would need to compare the $913,120.70 award to historical data for similar engineering services contracts at other VA Medical Centers. Factors such as the size and complexity of the facility, the specific engineering disciplines required (e.g., structural, mechanical, electrical), and the duration of the contract would need to be considered. Analyzing the average cost per square foot or per year for comparable projects would provide a clearer picture of whether this contract represents a fair and reasonable price for the services rendered.

What are the specific risks associated with a firm-fixed-price contract for long-term engineering services?

Firm-fixed-price (FFP) contracts are designed to provide cost certainty by shifting most of the risk to the contractor. However, for long-term engineering services (2146 days), risks can emerge. If the scope of work is not precisely defined or if unforeseen conditions arise during the project lifecycle, the contractor may incur unexpected costs, potentially leading to requests for change orders or, in extreme cases, contract disputes. Conversely, if the contractor significantly underestimates costs, they may cut corners on quality. Effective government oversight is crucial to manage these risks and ensure the project stays within budget and meets quality standards.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply for the effectiveness of the competition?

This contract clause indicates that the solicitation was intended for full and open competition, but certain sources were excluded. The reasons for exclusion are critical to understanding the true level of competition. If sources were excluded based on legitimate, objective criteria (e.g., lack of specific qualifications, past performance issues), then the competition might still be considered robust among the remaining eligible bidders. However, if exclusions were arbitrary or lacked clear justification, it could suggest a less competitive environment, potentially impacting price discovery and the ultimate value for taxpayers. The fact that 10 bidders participated suggests a reasonable level of interest despite potential exclusions.

What is the historical spending trend for engineering services at the Oklahoma City VAMC or similar facilities?

Analyzing historical spending for engineering services at the Oklahoma City VAMC and comparable facilities would provide context for this $913,120.70 award. This involves examining past contracts for similar services, their values, durations, and the contractors involved. Understanding whether spending has been consistent, increasing, or decreasing can reveal trends in facility needs and maintenance budgets. It also helps in identifying if this contract represents a significant deviation from historical patterns, which might warrant further investigation into the scope or necessity of the services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Solicitation ID: 36C77621R0154

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 312 SW 25TH STREET, OKLAHOMA CITY, OK, 73109

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $913,121

Exercised Options: $913,121

Current Obligation: $913,121

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline