VA awards $5.6M contract for CMOP building parking lot construction to CAPEX CONSTRUCTION LLC

Contract Overview

Contract Amount: $5,647,488 ($5.6M)

Contractor: Capex Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-11-01

End Date: 2026-03-05

Contract Duration: 855 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE CMOP BUILDING ACQUISITION PARKING LOT.

Place of Performance

Location: HIGHLAND, UTAH County, UTAH, 84003

State: Utah Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.6 million to CAPEX CONSTRUCTION LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE CMOP BUILDING ACQUISITION PARKING LOT. Key points: 1. Contract focuses on construction of a parking lot for the CMOP building, indicating infrastructure support. 2. The contract is a Firm Fixed Price type, which shifts cost risk to the contractor. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract duration is 855 days, spanning over two years. 5. The contractor, CAPEX CONSTRUCTION LLC, is responsible for providing all necessary labor and materials. 6. The project is located in Utah, potentially benefiting the local economy and workforce.

Value Assessment

Rating: good

The contract value of $5.6 million for a parking lot construction project appears reasonable given the scope of work, which includes providing all necessary tools, equipment, materials, labor, and supervision. Without specific benchmarks for parking lot construction in Utah, a direct cost comparison is difficult. However, the firm fixed-price nature of the contract suggests that the price was determined through a competitive process, which typically leads to fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' indicating that the solicitation was made available to all responsible prospective contractors. The presence of 5 bids suggests a healthy level of competition, which is generally favorable for price discovery and achieving a competitive price.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a lower price than a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Department of Veterans Affairs (VA) and potentially veterans utilizing the CMOP facility, through improved infrastructure. The service delivered is the construction of a parking lot, enhancing accessibility and functionality of the CMOP building. The geographic impact is localized to Utah, where the CMOP building and parking lot are situated. Workforce implications include job creation for construction workers and related trades in the Utah area during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the operational readiness of the CMOP facility.
Risk of unforeseen site conditions requiring change orders, potentially increasing costs despite fixed-price nature.
Ensuring quality of construction meets VA standards and long-term durability of the parking lot.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Awarded through full and open competition, indicating a competitive market for these services.
Contract duration allows for phased construction and potentially better resource management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focused on infrastructure development. The market for construction services is often fragmented, with numerous small to large firms capable of undertaking such projects. The $5.6 million value places this contract in the mid-range for construction projects of this nature, and it aligns with the VA's ongoing need to maintain and improve its facilities.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means the contract was not exclusively reserved for small businesses. While there's no explicit subcontracting requirement mentioned, the prime contractor, CAPEX CONSTRUCTION LLC, may choose to engage small businesses as subcontractors, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officer and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facility Construction
CMOP Facility Operations
Infrastructure Development Contracts
Commercial Building Construction

Risk Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Risk of construction delays impacting facility accessibility or operations.
Ensuring long-term durability and quality of the constructed parking lot.
Contractor's past performance on similar scale projects needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.6 million to CAPEX CONSTRUCTION LLC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE CONSTRUCTION OF THE CMOP BUILDING ACQUISITION PARKING LOT.

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 $5.6 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-03-05.

What is the track record of CAPEX CONSTRUCTION LLC in performing similar government construction contracts?

A review of federal procurement data indicates that CAPEX CONSTRUCTION LLC has been awarded multiple contracts, primarily within the construction sector. While specific details on past performance for projects of this exact scale and type (e.g., large parking lot construction for federal facilities) would require deeper analysis of contract close-out reports and performance evaluations, the company's presence in the federal contracting space suggests some level of experience. Further investigation into their past performance ratings on similar projects, particularly those with the Department of Veterans Affairs or other agencies requiring infrastructure development, would be necessary to fully assess their track record and suitability for this specific project.

How does the awarded price of $5.6 million compare to similar parking lot construction projects for federal agencies?

Benchmarking the $5.6 million cost for this parking lot construction requires comparing it to similar projects in terms of size, complexity, location, and scope. Without specific details on the square footage, number of parking spaces, or specific site preparation requirements, a precise comparison is challenging. However, for large-scale institutional parking lot projects, costs can range significantly based on materials, labor rates, and site conditions. Given that this contract is for the VA and involves full and open competition, the price is likely reflective of market rates. A more detailed analysis would involve examining the contract's line-item breakdown, if available, and comparing it to industry cost estimating guides or data from recently completed, comparable federal construction projects.

What are the primary risks associated with this construction contract, and how are they being mitigated?

The primary risks associated with this construction contract include potential cost overruns (though mitigated by the firm fixed-price structure), schedule delays due to unforeseen site conditions or weather, and quality control issues. The firm fixed-price contract shifts the financial risk of cost overruns to CAPEX CONSTRUCTION LLC, incentivizing efficient project management. Mitigation for schedule delays often involves detailed project planning, contingency time built into the schedule, and clear communication protocols. Quality control is typically managed through contract specifications, regular site inspections by the government, and adherence to industry standards. The VA's oversight role is crucial in monitoring progress and ensuring compliance.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. In this case, with 5 bids received, there was sufficient competition to likely achieve a fair market price. The effectiveness is further supported by the firm fixed-price contract type, which locks in the cost. However, the ultimate value for money also depends on the contractor's ability to deliver the project on time and to the required quality standards, which is monitored by the VA.

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

The Department of Veterans Affairs (VA) consistently invests in infrastructure to support its network of healthcare facilities and administrative buildings. Historical spending patterns for parking lot construction and related infrastructure projects by the VA would likely show a continuous need for upgrades, expansions, and new construction to accommodate growing patient loads and aging facilities. The total annual spending on such projects can fluctuate based on budget allocations, infrastructure assessments, and specific modernization initiatives. Analyzing past VA contracts for similar construction work, including their values, durations, and competition levels, would provide context for the current $5.6 million award and indicate the VA's ongoing commitment to facility maintenance and improvement.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: 36C77623B0039

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4966 W 11000 N, HIGHLAND, 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: $11,257,759

Exercised Options: $11,257,759

Current Obligation: $5,647,488

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline