VA Awards $2.7M Ambulance Garage Construction to Covenant Construction Services LLC
Contract Overview
Contract Amount: $2,737,138 ($2.7M)
Contractor: Covenant Construction Services LLC
Awarding Agency: Department of Veterans Affairs
Start Date: 2024-06-28
End Date: 2025-11-28
Contract Duration: 518 days
Daily Burn Rate: $5.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PROJECT 636-807 CONSTRUCT AMBULANCE GARAGE IOWA CITY VA HEALTH CARE SYSTEM
Place of Performance
Location: IOWA CITY, JOHNSON County, IOWA, 52240
State: Iowa Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $2.7 million to COVENANT CONSTRUCTION SERVICES LLC for work described as: PROJECT 636-807 CONSTRUCT AMBULANCE GARAGE IOWA CITY VA HEALTH CARE SYSTEM Key points: 1. Spending on construction for VA facilities is a significant area of government expenditure. 2. Covenant Construction Services LLC is the awardee for this project. 3. The contract type is Firm Fixed Price, indicating a defined cost for the project. 4. The project falls under the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: fair
The contract value of $2.7M for an ambulance garage appears within a reasonable range for institutional building construction. However, without specific details on the scope of work and local construction costs, a precise pricing assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a limited competition, potentially impacting price discovery. This method might lead to higher prices compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for this construction project. The limited competition raises questions about whether the most cost-effective solution was secured.
Public Impact
Improved infrastructure for the Iowa City VA Health Care System. Potential for job creation through the construction contract. Ensures operational readiness for emergency medical services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may have inflated costs.
- Contract duration of 518 days is substantial for this project value.
Positive Signals
- Addresses a critical infrastructure need for the VA.
- Firm Fixed Price contract provides cost certainty.
Sector Analysis
The construction sector, particularly for institutional buildings like healthcare facilities, is subject to market fluctuations in material and labor costs. Benchmarks for similar VA construction projects would provide better context for this award.
Small Business Impact
The data indicates the awardee is Covenant Construction Services LLC. There is no explicit information provided regarding small business participation or subcontracting in this specific award notice.
Oversight & Accountability
The Department of Veterans Affairs is responsible for oversight of this contract. The 'EXCLUSION OF SOURCES' in the competition method warrants scrutiny to ensure fairness and value.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Limited competition may reduce cost savings.
- Potential for cost overruns if scope is not clearly defined.
- Contract duration may be longer than optimal.
- Lack of transparency in source exclusion.
Tags
commercial-and-institutional-building-co, department-of-veterans-affairs, ia, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $2.7 million to COVENANT CONSTRUCTION SERVICES LLC. PROJECT 636-807 CONSTRUCT AMBULANCE GARAGE IOWA CITY VA HEALTH CARE SYSTEM
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 $2.7 million.
What is the period of performance?
Start: 2024-06-28. End: 2025-11-28.
What specific factors led to the exclusion of certain sources in the competition?
The exclusion of sources typically occurs due to specific technical requirements, past performance, or unique capabilities needed for the project that only a limited number of contractors can meet. Understanding these specific criteria is crucial to determine if the exclusion was justified and did not unduly restrict competition, potentially impacting the final price.
How does the $2.7M cost compare to similar ambulance garage construction projects at other VA facilities?
A comparative analysis against similar projects would reveal if the $2.7M price is competitive. Factors like project size, complexity, location-specific labor and material costs, and the specific scope of work (e.g., specialized equipment, environmental controls) influence cost. Benchmarking is essential to assess value for money.
What are the key performance indicators (KPIs) for this contract to ensure successful project completion and taxpayer value?
Key performance indicators should include adherence to the project schedule (518 days), quality of construction meeting VA standards, safety compliance on-site, and final cost within the firm fixed price. Regular progress reviews and inspections by the VA contracting officer's representative are vital for accountability and ensuring the project delivers the intended operational benefits.
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: 36C77624B0011
Offers Received: 7
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: $2,737,138
Exercised Options: $2,737,138
Current Obligation: $2,737,138
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-28
Current End Date: 2025-11-28
Potential End Date: 2025-11-28 00:00:00
Last Modified: 2026-02-19
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