VA awards $15M construction contract for Clarksburg Nutrition & PT Eye Clinic to RBVETCO, LLC

Contract Overview

Contract Amount: $15,043,534 ($15.0M)

Contractor: Rbvetco, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-31

End Date: 2027-02-26

Contract Duration: 940 days

Daily Burn Rate: $16.0K/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: CLARKSBURG NUTRITION & PT EYE CLINIC CONSTRUCTION

Place of Performance

Location: CLARKSBURG, HARRISON County, WEST VIRGINIA, 26301

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.0 million to RBVETCO, LLC for work described as: CLARKSBURG NUTRITION & PT EYE CLINIC CONSTRUCTION Key points: 1. Contract awarded to RBVETCO, LLC for construction services. 2. The contract has a duration of 940 days. 3. This is a firm-fixed-price contract, indicating predictable costs for the government. 4. The contract was awarded under full and open competition. 5. The project is located in West Virginia. 6. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The contract value of $15,043,534.49 for a clinic construction project requires benchmarking against similar VA or other federal construction projects. Without specific details on the scope of work, it's difficult to definitively assess value for money. However, the firm-fixed-price structure provides cost certainty. The award to RBVETCO, LLC, a single entity, suggests a competitive process that should have driven pricing, but further analysis of the bid landscape is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that the initial solicitation was broad, but certain sources were later excluded. This suggests a competitive process was intended, but the exclusion of sources warrants further investigation to understand its impact on the number of bids received and overall price discovery. The presence of two bids indicates some level of competition.

Taxpayer Impact: A full and open competition, even with exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can lead to lower prices. However, the exclusion of sources could limit the competitive pool and potentially increase costs if viable bidders were unfairly removed.

Public Impact

Veterans in West Virginia will benefit from improved healthcare facilities. The project will deliver new construction for a Nutrition & Physical Therapy Eye Clinic. The geographic impact is concentrated in Clarksburg, West Virginia. The construction project will likely create temporary jobs in the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The exclusion of sources in the 'full and open competition' process raises concerns about fairness and potential limitations on competitive pricing.
The duration of the contract (940 days) is substantial and could introduce risks related to cost escalation or delays if not managed effectively.

Positive Signals

The firm-fixed-price contract type offers cost certainty to the government, mitigating risks associated with fluctuating construction expenses.
Awarding the contract under a competitive process, even with exclusions, suggests an effort to secure the best value.
The project directly addresses the healthcare infrastructure needs of veterans in West Virginia.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this sector often involves large-scale projects for government agencies like the VA. Benchmarking this $15 million project would involve comparing its cost per square foot or per unit of service (if applicable) to similar healthcare facility construction projects undertaken by federal or state governments, as well as private sector developments.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, RBVETCO, LLC. The extent of small business subcontracting will depend on RBVETCO's strategy and the specific requirements of the project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, which penalizes cost overruns by the contractor. Transparency is typically facilitated through contract award databases and public reporting, though specific project oversight details may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Healthcare Construction Projects
Federal Building and Infrastructure Development
Commercial and Institutional Construction Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Long contract duration increases risk of cost escalation and delays.
Need for detailed scope of work to benchmark value effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.0 million to RBVETCO, LLC. CLARKSBURG NUTRITION & PT EYE CLINIC CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is RBVETCO, 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 $15.0 million.

What is the period of performance?

Start: 2024-07-31. End: 2027-02-26.

What is the specific scope of work for the Clarksburg Nutrition & PT Eye Clinic construction, and how does it compare to similar VA clinic construction projects in terms of cost per square foot?

The provided data does not detail the specific scope of work for the Clarksburg Nutrition & PT Eye Clinic construction beyond its designation as 'Commercial and Institutional Building Construction.' To assess value for money, a detailed breakdown of the project's requirements (e.g., square footage, specialized medical equipment installation, site preparation, architectural features) would be necessary. This information would then be used to calculate a cost per square foot and compare it against benchmarks for similar VA clinic construction projects. For instance, if similar projects in comparable regions cost between $300-$500 per square foot, and this project's scope suggests a similar build-out, a total project cost of $15 million might indicate a facility of approximately 30,000 to 50,000 square feet. Deviations from this range, without clear justification (like highly specialized equipment or unique site challenges), could signal potential overpricing or under-scoping.

What does the exclusion of sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type imply for the competitive landscape and potential taxpayer savings?

The award type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests that while the initial solicitation aimed for broad participation, certain potential bidders were subsequently disqualified or chose not to participate further. This can imply several things: the exclusion criteria might have been stringent, potentially filtering out smaller or less experienced firms, or there might have been issues with specific proposals. If the exclusion significantly narrowed the field, it could reduce the intensity of competition, potentially leading to higher prices than if all eligible sources had remained. Conversely, if the excluded sources were non-compliant or unable to meet critical requirements, their removal might have streamlined the process for compliant bidders, potentially leading to a more efficient award. The fact that only two bids were received further emphasizes the need to understand the rationale behind the source exclusions to fully gauge the impact on taxpayer savings.

What is the track record of RBVETCO, LLC in completing federal construction contracts, particularly those of similar size and complexity for the Department of Veterans Affairs?

Information regarding the specific track record of RBVETCO, LLC in completing federal construction contracts, especially those of similar size and complexity for the Department of Veterans Affairs, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on federal contracts, including on-time completion rates, adherence to budget, quality of work, and any history of disputes or contract modifications. Examining their portfolio of VA projects, if any, would be particularly relevant to understand their experience with the agency's specific requirements and standards. Without this historical performance data, it is difficult to definitively assess their capability and reliability for this $15 million clinic construction project.

How does the duration of 940 days for this construction contract compare to typical timelines for similar VA healthcare facility projects, and what are the associated risks?

A contract duration of 940 days (approximately 2.5 years) for a $15 million clinic construction project is a significant timeframe. Typical timelines for similar VA healthcare facility projects can vary widely based on project scope, size, and complexity, but this duration suggests a substantial undertaking. Longer contract durations inherently increase the risk of cost escalation due to inflation, potential changes in material costs, and labor market fluctuations. There's also an increased risk of project delays due to unforeseen site conditions, weather, or administrative hurdles. Effective project management, clear milestones, and robust contingency planning by both the VA and RBVETCO, LLC are crucial to mitigate these risks and ensure timely completion within the firm-fixed-price framework.

What are the historical spending patterns for commercial and institutional building construction by the Department of Veterans Affairs, and how does this award fit within that context?

Historical spending patterns for commercial and institutional building construction by the Department of Veterans Affairs (VA) typically show significant annual investments in upgrading and expanding healthcare facilities across the country. The VA consistently ranks among the top federal agencies for construction expenditures. This $15 million award for the Clarksburg clinic fits within the VA's ongoing mission to modernize its infrastructure and improve healthcare access for veterans. To place this award in context, one would analyze the VA's total construction budget over the past several fiscal years, identify the proportion allocated to new facility construction versus renovations, and compare the average contract size for similar projects. This analysis would reveal whether $15 million is a typical award value for a clinic of this nature or if it represents a larger or smaller investment than usual.

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: 36C77623B0031

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 100 W MAIN ST STE 100, CARNEGIE, PA, 15106

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $15,043,534

Exercised Options: $15,043,534

Current Obligation: $15,043,534

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline