VA awards $13.4M construction contract to ADVON CORPORATION for specialty treatment expansion in Florida

Contract Overview

Contract Amount: $13,442,424 ($13.4M)

Contractor: Advon Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-12-12

End Date: 2026-03-23

Contract Duration: 832 days

Daily Burn Rate: $16.2K/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: 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 SPECIALTY TREATMENT EXPANSION (MINOR) CONSTRUCTION PROJECT.

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33612

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.4 million to ADVON CORPORATION 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 SPECIALTY TREATMENT EXPANSION (MINOR) CONSTRUCTION PROJECT. Key points: 1. Contract awarded to ADVON CORPORATION for construction services. 2. Project involves specialty treatment expansion (minor) construction. 3. Contract duration is 832 days. 4. Firm Fixed Price contract type. 5. Awarded by the Department of Veterans Affairs. 6. Geographic location: Florida. 7. This is a definitive contract. 8. No small business set-aside noted.

Value Assessment

Rating: good

The contract value of $13.4 million for a specialty treatment expansion project appears reasonable given the scope of construction services required. Benchmarking against similar VA construction projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed price structure helps control costs for the government, but the final cost will depend on the contractor's efficiency and material costs.

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 multiple vendors were likely solicited and considered. This approach generally fosters a competitive environment, leading to potentially better pricing and service offerings. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of qualified contractors to bid, ensuring the government receives competitive pricing.

Public Impact

Veterans in Florida will benefit from expanded specialty treatment facilities. The project will deliver improved healthcare infrastructure. The geographic impact is concentrated in Florida. Construction activities will likely create temporary jobs in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise.
Dependence on ADVON CORPORATION's performance and timely completion.
Risk of material price fluctuations impacting the fixed price contract.

Positive Signals

Firm fixed price contract provides cost certainty.
Full and open competition suggests a competitive award process.
Award to a single contractor simplifies management and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports the development and maintenance of government facilities, including critical healthcare infrastructure. The market for such construction services is competitive, with numerous firms capable of undertaking projects of this scale.

Small Business Impact

The contract does not indicate any small business set-aside. This means that large businesses were eligible to compete and potentially win. Subcontracting opportunities for small businesses may arise at the discretion of the prime contractor, ADVON CORPORATION, but there is no explicit requirement for it in the contract details provided.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, likely through contract officers and technical representatives who will monitor progress, quality, and adherence to the contract terms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Healthcare Construction Projects
Federal Building and Infrastructure Development
Construction Services for Government Agencies

Risk Flags

Potential for cost overruns
Contractor performance risk
Material price volatility

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.4 million to ADVON CORPORATION. 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 SPECIALTY TREATMENT EXPANSION (MINOR) CONSTRUCTION PROJECT.

Who is the contractor on this award?

The obligated recipient is ADVON CORPORATION.

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 $13.4 million.

What is the period of performance?

Start: 2023-12-12. End: 2026-03-23.

What is ADVON CORPORATION's track record with the Department of Veterans Affairs?

A review of ADVON CORPORATION's contract history with the Department of Veterans Affairs (VA) would be necessary to assess their performance on previous projects. This would involve examining past contract values, completion timeliness, quality of work, and any instances of disputes or contract modifications. Understanding their experience with similar construction projects, particularly those involving healthcare facilities or expansions, would provide valuable insight into their capability to successfully execute this current contract. Without specific historical data, it's difficult to definitively gauge their track record.

How does the $13.4 million cost compare to similar VA construction projects?

Benchmarking the $13.4 million contract value against similar VA construction projects requires access to a database of comparable contracts. Factors such as project scope (e.g., square footage, complexity of renovations, specific medical equipment integration), geographic location (which influences labor and material costs), and the year of award are crucial for a fair comparison. If this project involves a relatively standard minor expansion, the cost might be in line with industry averages. However, if it includes highly specialized medical infrastructure or faces unique site challenges, the cost could be justified. A detailed cost breakdown from the contractor would be needed for a granular analysis.

What are the primary risks associated with this construction contract?

The primary risks associated with this construction contract include potential cost overruns due to unforeseen site conditions or material price escalations, as it is a firm fixed-price contract. Delays in project completion could also be a risk, impacting the VA's ability to utilize the expanded facilities. Furthermore, the performance and reliability of the contractor, ADVON CORPORATION, are critical; any issues with their management, labor force, or subcontractors could jeopardize project success. Ensuring adherence to quality standards and safety regulations throughout the construction process is another key risk area that requires diligent oversight.

How effective is full and open competition in ensuring value for taxpayer money in construction contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in construction contracts. By allowing all responsible sources to submit bids, the government maximizes the potential for receiving the lowest possible price and the highest quality service. This competitive pressure incentivizes contractors to be efficient, innovative, and cost-conscious. While the process requires upfront investment in solicitation and evaluation, the long-term savings and improved outcomes typically outweigh these costs. The VA's use of this method for the ADVON CORPORATION contract suggests a commitment to achieving competitive pricing.

What is the historical spending trend for similar construction projects by the VA?

Analyzing historical spending trends for similar construction projects by the VA would involve examining aggregate data on contract awards for building construction, renovation, and expansion over several fiscal years. This would reveal patterns in average contract values, the number of awards, and the types of contractors frequently engaged. Understanding these trends can help identify whether spending on projects like the specialty treatment expansion is increasing, decreasing, or remaining stable. It can also highlight periods of high or low activity, potentially correlating with budget allocations or infrastructure needs. Such analysis provides context for the current $13.4 million award.

What are the implications of the 'exclusion of sources' clause in the competition type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that while the competition was open, certain sources might have been excluded based on specific criteria outlined in the solicitation, such as capability, past performance, or security requirements. This is distinct from a sole-source or limited competition where the pool of potential bidders is intentionally restricted from the outset. The exclusion of sources suggests a pre-qualification or filtering process occurred, aiming to ensure that only highly qualified and suitable contractors participated in the final bidding stage. This can sometimes lead to fewer bids but potentially higher quality proposals.

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: 36C77623B0016

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2882 REMINGTON GREEN LN, TALLAHASSEE, FL, 32308

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

Financial Breakdown

Contract Ceiling: $13,442,424

Exercised Options: $13,442,424

Current Obligation: $13,442,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline