VA Awards $17.8M Construction Contract to Talion Construction for Expanded SPS Project
Contract Overview
Contract Amount: $17,826,449 ($17.8M)
Contractor: Talion Construction, LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-08-10
End Date: 2026-06-29
Contract Duration: 688 days
Daily Burn Rate: $25.9K/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: THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EXPAND SPS (MINOR) CONSTRUCTION PROJECT
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85012
State: Arizona Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $17.8 million to TALION 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 COMPLETION OF THE EXPAND SPS (MINOR) CONSTRUCTION PROJECT Key points: 1. Contract value of $17.8M for minor construction project. 2. Competition method: Full and Open Competition after Exclusion of Sources. 3. Risk: Standard construction project risks, including potential delays and cost overruns. 4. Sector: Commercial and Institutional Building Construction.
Value Assessment
Rating: good
The contract value of $17.8M appears reasonable for a minor construction project of this nature. Benchmarking against similar VA construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition after Exclusion of Sources,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a necessary construction project. The limited competition raises a slight concern regarding optimal price realization.
Public Impact
Veterans will benefit from improved facilities at the VA. Local economy may see job creation through the construction project. Potential for increased operational efficiency at the VA facility.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the best price.
- Construction projects are susceptible to delays and cost overruns.
Positive Signals
- Project addresses a clear need for facility expansion.
- Contract awarded to a known entity (Talion Construction).
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on government agency needs and economic conditions. The $17.8M value is moderate for a federal construction project.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business set-asides were considered or if there were opportunities for subcontracting.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight. Standard contract management processes should be in place to monitor progress, quality, and adherence to budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may result in higher costs.
- Potential for construction delays impacting project completion.
- Risk of unforeseen issues arising during construction.
- Contract value is substantial for a 'minor' project.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $17.8 million to TALION CONSTRUCTION, LLC. THE CONTRACTOR SHALL PROVIDE ALL TOOLS, EQUIPMENT, MATERIALS, LABOR, SUPERVISION, PERSONNEL, AND SHALL DO ALL THINGS NECESSARY THAT WILL RESULT IN THE COMPLETION OF THE EXPAND SPS (MINOR) CONSTRUCTION PROJECT
Who is the contractor on this award?
The obligated recipient is TALION 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 $17.8 million.
What is the period of performance?
Start: 2024-08-10. End: 2026-06-29.
What specific improvements does the 'Expanded SPS (Minor) Construction Project' entail, and how will they enhance veteran services?
The provided data does not detail the specific improvements of the 'Expanded SPS (Minor) Construction Project.' Further documentation would be required to understand the project's scope, such as whether SPS refers to a specific service or building area. Understanding these details is crucial for assessing the project's direct impact on veteran care and facility functionality.
What were the key factors leading to the 'Exclusion of Sources' in this Full and Open Competition, and did it limit the pool of qualified bidders?
The rationale for excluding certain sources in a 'Full and Open Competition after Exclusion of Sources' is not detailed in the provided data. This method typically involves a justification for excluding specific types of contractors or sources, perhaps due to specialized requirements or prior performance issues. It is important to understand these factors to assess if the exclusion unduly limited the competitive landscape and potentially impacted the final price.
How does the $17.8M contract value compare to industry benchmarks for similar-sized minor construction projects within the VA or other federal agencies?
Without specific details on the project's scope (e.g., square footage, type of expansion, specific systems involved), a precise benchmark comparison is difficult. However, $17.8M for a 'minor' construction project suggests a significant undertaking. A detailed cost breakdown and comparison with recent, similar VA construction contracts would be necessary to determine if the pricing is competitive and represents good value for taxpayers.
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: 36C77623B0032
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 30850 WEALTH STREET, MURRIETA, CA, 92563
Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, 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: $17,826,449
Exercised Options: $17,826,449
Current Obligation: $17,826,449
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-10
Current End Date: 2026-06-29
Potential End Date: 2026-06-29 00:00:00
Last Modified: 2025-11-25
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