VA awards $19.5M infrastructure upgrade contract to Richard Group LLC for Texas facility

Contract Overview

Contract Amount: $19,541,342 ($19.5M)

Contractor: Richard Group LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-03

End Date: 2025-10-03

Contract Duration: 395 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EHRM-CONSTRUCTION CONTRACT FOR INFRASTRUCTURE UPGRADES

Place of Performance

Location: BONHAM, FANNIN County, TEXAS, 75418

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.5 million to RICHARD GROUP LLC for work described as: EHRM-CONSTRUCTION CONTRACT FOR INFRASTRUCTURE UPGRADES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs by setting a fixed price upfront. 3. The contract duration of 395 days indicates a medium-term project. 4. The award value of approximately $19.5 million falls within a moderate spending range for infrastructure projects. 5. The project is located in Texas, potentially impacting the local construction workforce and economy. 6. The contractor, Richard Group LLC, will be responsible for commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $19.5 million for infrastructure upgrades appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. Without specific details on the scope of work, a direct comparison to market rates for per-unit costs is challenging.

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 presence of 6 bidders suggests a healthy level of competition for this project, which generally leads to better pricing and value for the government. The exclusion of sources clause might warrant further investigation into its specific application.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Veterans Affairs (VA) will benefit from upgraded infrastructure at its Texas facility. The project will deliver essential construction services to improve the facility's operational capabilities. The geographic impact is concentrated in Texas, potentially creating local jobs and stimulating the regional economy. The construction services will likely involve skilled labor, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type requires clarification to ensure no potential bidders were unfairly excluded.
The specific nature of the 'infrastructure upgrades' is not detailed, making it difficult to assess the full scope and potential risks.
The contractor's track record on similar large-scale infrastructure projects should be reviewed for performance history.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The project addresses necessary infrastructure upgrades for a VA facility, supporting its mission.
The contract duration is defined, allowing for project planning and resource allocation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant part of the broader construction industry. The market for government construction contracts is substantial, with agencies like the VA frequently undertaking infrastructure projects to maintain and upgrade facilities. This specific award represents a moderate investment within this sector, contributing to the overall economic activity in construction.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem for this specific contract may be limited unless Richard Group LLC voluntarily engages small business subcontractors.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified work for a set price. Transparency could be enhanced by making detailed project milestones and performance reports publicly available.

Related Government Programs

VA Facility Maintenance and Repair
Federal Building Construction
Infrastructure Modernization Programs
Department of Defense Construction Contracts

Risk Flags

Competition Type: 'Full and open competition after exclusion of sources' requires further scrutiny to ensure fairness and maximum competition.
Scope Definition: Lack of specific details on 'infrastructure upgrades' poses a risk to assessing project completeness and value.
Contractor Past Performance: A review of Richard Group LLC's history on similar projects is needed to confirm capability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.5 million to RICHARD GROUP LLC. EHRM-CONSTRUCTION CONTRACT FOR INFRASTRUCTURE UPGRADES

Who is the contractor on this award?

The obligated recipient is RICHARD GROUP 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 $19.5 million.

What is the period of performance?

Start: 2024-09-03. End: 2025-10-03.

What is the specific scope of work for these 'infrastructure upgrades' and what are the key performance indicators?

The provided data does not detail the specific scope of work for the 'infrastructure upgrades.' This could range from HVAC system replacements, electrical upgrades, structural repairs, to modernization of specific building components. Key performance indicators (KPIs) are also not specified but would typically include adherence to project timelines, quality of workmanship, safety compliance, and completion within the agreed-upon budget. Understanding these details is crucial for assessing the project's success and the value delivered.

How does the $19.5 million award compare to similar VA infrastructure projects in Texas or other states?

Benchmarking this $19.5 million award against similar VA infrastructure projects requires access to a database of comparable contracts. Factors such as the size and type of facility, the specific nature of the upgrades (e.g., new construction vs. renovation), and regional labor costs significantly influence project value. Generally, infrastructure projects of this magnitude for federal agencies can range from tens of millions to hundreds of millions of dollars. A detailed comparison would involve analyzing contracts with similar scope, duration, and location to determine if this award represents a competitive price point.

What is Richard Group LLC's track record with the Department of Veterans Affairs and on similar construction projects?

Information regarding Richard Group LLC's specific track record with the Department of Veterans Affairs (VA) and on similar large-scale infrastructure projects is not provided in the summary data. A thorough assessment would involve reviewing past performance evaluations, contract history, and any reported issues or successes on previous government contracts. This includes examining their experience with firm-fixed-price contracts and projects of comparable complexity and value to gauge their capability and reliability.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Potential risks for this infrastructure upgrade contract could include unforeseen site conditions, material cost fluctuations (though mitigated by fixed-price), contractor performance issues, delays in permitting or inspections, and scope creep. Mitigation strategies typically involve robust contract oversight by the VA, clear definition of scope and deliverables, performance bonds, regular progress meetings, and contingency planning. The 'exclusion of sources' in the competition type might also represent a risk if it led to a less competitive outcome than intended.

What is the historical spending pattern for infrastructure upgrades at this specific VA facility or similar facilities?

The provided data does not include historical spending patterns for infrastructure upgrades at this specific VA facility or similar ones. Analyzing past spending would involve reviewing previous contracts awarded for maintenance, repair, and upgrades at the facility. This historical context is valuable for understanding the frequency and scale of such investments, identifying potential trends, and assessing whether the current $19.5 million award aligns with or deviates from established patterns, potentially indicating a significant new initiative or a backlog of deferred maintenance.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77624B0007

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 566 W LAKE STREET, CHICAGO, IL, 60661

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

Financial Breakdown

Contract Ceiling: $19,541,342

Exercised Options: $19,541,342

Current Obligation: $19,541,342

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline