VA Awards $3M Waste Management Construction Contract to Covenant Construction Services LLC

Contract Overview

Contract Amount: $2,997,281 ($3.0M)

Contractor: Covenant Construction Services LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-09

End Date: 2025-08-27

Contract Duration: 414 days

Daily Burn Rate: $7.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF WASTE MANAGEMENT

Place of Performance

Location: IOWA CITY, JOHNSON County, IOWA, 52246

State: Iowa Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to COVENANT CONSTRUCTION SERVICES LLC for work described as: CONSTRUCTION OF WASTE MANAGEMENT Key points: 1. Contract awarded for waste management construction services. 2. Covenant Construction Services LLC is the sole awardee. 3. The contract is a Firm Fixed Price type. 4. This falls under Commercial and Institutional Building Construction. 5. The contract duration is 414 days.

Value Assessment

Rating: good

The contract value of $2,997,280.75 appears reasonable for a construction project of this nature. Benchmarking against similar VA or other federal construction contracts for waste management facilities would provide a more precise assessment.

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 competition was sought, specific criteria or circumstances led to the exclusion of some potential bidders, potentially impacting price discovery.

Taxpayer Impact: The $3M expenditure represents taxpayer investment in essential waste management infrastructure for the VA. Ensuring competitive pricing within the limited competition framework is key to maximizing taxpayer value.

Public Impact

Ensures proper waste management facilities for VA operations. Supports infrastructure development within the federal sector. Potential for local job creation through the construction project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have reduced price competitiveness.
Small business participation not indicated.

Positive Signals

Addresses a critical operational need for the VA.
Fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the construction sector, specifically for commercial and institutional buildings. Federal spending in this area is driven by infrastructure needs, facility upgrades, and operational requirements across various agencies.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the project scope necessitated larger contractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight procedures for construction projects, including progress monitoring and quality assurance, should be in place to ensure successful completion and adherence to terms.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition may have resulted in a higher price than if fully open.
Lack of small business participation noted.
Potential for construction delays impacting operational readiness.
Contract type is fixed price, but scope changes could increase costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to COVENANT CONSTRUCTION SERVICES LLC. CONSTRUCTION OF WASTE MANAGEMENT

Who is the contractor on this award?

The obligated recipient is COVENANT CONSTRUCTION SERVICES 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 $3.0 million.

What is the period of performance?

Start: 2024-07-09. End: 2025-08-27.

What specific factors led to the exclusion of sources in the full and open competition process, and how did this impact the final price?

The exclusion of sources in the 'Full and Open Competition After Exclusion of Sources' process typically occurs when specific technical requirements, past performance, or unique capabilities are necessary, and only a limited number of contractors can meet them. This can sometimes lead to less competitive pricing compared to unrestricted full and open competition, as the pool of eligible bidders is smaller. A detailed review of the solicitation and award documents would clarify the exact reasons for exclusion and their price implications.

Are there any potential risks associated with Covenant Construction Services LLC's ability to deliver this project on time and within budget?

Without specific performance data or known issues with Covenant Construction Services LLC, it's difficult to assess risk definitively. However, general risks in construction projects include unforeseen site conditions, material availability delays, labor shortages, and scope creep. The fixed-price nature of the contract shifts some cost overrun risk to the contractor, but delays could still impact VA operations. Monitoring project progress and contractor performance closely is crucial.

How does this contract contribute to the VA's overall waste management efficiency and effectiveness?

This contract directly addresses the VA's need for construction of waste management facilities, implying an upgrade or expansion of existing capabilities. Effective waste management is crucial for public health, environmental compliance, and operational efficiency within healthcare settings. The successful completion of this project should enhance the VA's ability to manage waste streams safely and compliantly, potentially leading to cost savings and improved environmental stewardship.

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: 36C77623B0054

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2635 BERKSHIRE PKWY STE 202, CLIVE, IA, 50325

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $2,997,281

Exercised Options: $2,997,281

Current Obligation: $2,997,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline