VA awards $20.5M for Oklahoma City parking garage construction to ADVON CORPORATION

Contract Overview

Contract Amount: $20,479,980 ($20.5M)

Contractor: Advon Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-06

End Date: 2026-07-20

Contract Duration: 713 days

Daily Burn Rate: $28.7K/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: OKLAHOMA CITY VA HEALTH CARE SYSTEM PARKING GARAGE 2

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.5 million to ADVON CORPORATION for work described as: OKLAHOMA CITY VA HEALTH CARE SYSTEM PARKING GARAGE 2 Key points: 1. Contract awarded to ADVON CORPORATION for construction services. 2. Project aims to improve parking infrastructure at the Oklahoma City VA Health Care System. 3. Contract type is a firm-fixed-price definitive contract. 4. Funding allocated for construction services, with a duration of 713 days. 5. The contract was awarded under full and open competition. 6. Geographic focus on Oklahoma City, Oklahoma.

Value Assessment

Rating: good

The contract value of $20.5 million for a parking garage project appears within a reasonable range for large-scale construction. Benchmarking against similar federal or commercial parking garage projects would provide a more precise value-for-money assessment. The firm-fixed-price structure shifts risk to the contractor, which can be beneficial for budget certainty if well-defined requirements are established. Further analysis would involve comparing the cost per square foot or per parking space to industry standards.

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 multiple bidders were likely considered. The specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not fully detailed in the provided data. However, the designation suggests a robust competitive environment was sought.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple firms to bid and offer competitive pricing.

Public Impact

Veterans and staff at the Oklahoma City VA Health Care System will benefit from improved parking facilities. The project will deliver a new parking garage, enhancing accessibility and convenience. The geographic impact is localized to Oklahoma City, Oklahoma. Construction activities will likely involve a local workforce, providing employment opportunities in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Ensuring timely completion within the 713-day duration is critical to avoid impacting facility operations.
Quality control during construction needs rigorous oversight to meet VA standards.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Full and open competition suggests a competitive bidding process.
Award to ADVON CORPORATION, assuming they have a relevant track record, indicates capability.

Sector Analysis

The construction sector is a significant area of federal spending, encompassing a wide range of projects from infrastructure to facility upgrades. This contract for a parking garage falls under commercial and institutional building construction. Federal agencies like the VA frequently undertake large construction projects to maintain and improve their facilities, often competing these contracts to leverage market dynamics and achieve cost efficiencies. The market for large-scale construction is competitive, with numerous firms capable of undertaking such projects.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large-value construction project awarded under full and open competition, it is less likely to be exclusively reserved for small businesses. However, the prime contractor, ADVON CORPORATION, may engage small businesses as subcontractors to fulfill specific project requirements, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this construction contract would typically be managed by the Department of Veterans Affairs' contracting officers and project managers. They are responsible for monitoring progress, ensuring compliance with contract terms, and approving payments. The contract's firm-fixed-price nature implies that the contractor bears much of the cost risk, but oversight is still crucial for quality assurance and schedule adherence. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions impacting cost
Quality assurance during construction requires diligent oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.5 million to ADVON CORPORATION. OKLAHOMA CITY VA HEALTH CARE SYSTEM PARKING GARAGE 2

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 $20.5 million.

What is the period of performance?

Start: 2024-08-06. End: 2026-07-20.

What is ADVON CORPORATION's track record with the Department of Veterans Affairs and similar construction projects?

A comprehensive review of ADVON CORPORATION's past performance with the Department of Veterans Affairs and on comparable construction projects is essential for a full assessment. This would involve examining past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or litigation. Understanding their experience with large-scale institutional buildings, particularly healthcare-related facilities, would provide insight into their capability to successfully execute this parking garage project. Without specific historical data on ADVON CORPORATION's performance, it is difficult to definitively assess their reliability and expertise for this particular contract.

How does the $20.5 million cost compare to similar federal parking garage construction projects?

Benchmarking the $20.5 million contract value against similar federal parking garage construction projects is crucial for assessing value for money. Factors such as square footage, number of parking spaces, location, and complexity of design significantly influence project costs. A preliminary comparison suggests that for a large federal project, this figure is within a plausible range, but a detailed analysis would require accessing data on comparable projects awarded by agencies like the General Services Administration (GSA) or other departments. Examining cost per parking space or cost per square foot from similar projects would provide a more concrete benchmark to determine if this contract represents a fair and reasonable price.

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 due to unforeseen site conditions, delays in project completion impacting facility operations, and quality control issues. The firm-fixed-price contract structure mitigates financial risk for the government by capping the total cost, shifting cost escalation risks to the contractor. However, the government remains exposed to risks related to schedule adherence and quality. Mitigation strategies would involve robust project management, detailed site investigations prior to award, clear performance standards in the contract, and regular site inspections by VA personnel. The 713-day duration also presents a risk of schedule slippage, requiring diligent monitoring.

What is the expected impact of this parking garage on the operational efficiency and accessibility of the Oklahoma City VA Health Care System?

The construction of a new parking garage is expected to significantly enhance the operational efficiency and accessibility of the Oklahoma City VA Health Care System. Currently, inadequate parking can lead to delays for patients and staff, impacting appointment schedules and overall workflow. A new facility should alleviate parking shortages, reducing patient wait times and improving the overall experience for veterans seeking care. It will also provide a more secure and organized environment for vehicles, contributing to a more positive and functional campus atmosphere. Improved accessibility is a key component of patient-centered care, and this project directly addresses that need.

What is the historical spending trend for construction projects at the Oklahoma City VA Health Care System?

Analyzing historical spending trends for construction projects at the Oklahoma City VA Health Care System would provide context for the $20.5 million award. This involves examining past capital improvement budgets, the number and value of construction contracts awarded over several fiscal years, and the types of projects undertaken. Understanding whether this parking garage represents a significant increase or a typical investment in facility upgrades can inform future budget planning and resource allocation. A trend of consistent investment suggests a commitment to maintaining and modernizing facilities, while sporadic large expenditures might indicate deferred maintenance or major expansion initiatives.

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: 36C77623B0046

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: $20,480,070

Exercised Options: $20,480,070

Current Obligation: $20,479,980

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline