VA awards $15.4M contract for West Virginia domiciliary renovation to AMVET RITZ JV LLC

Contract Overview

Contract Amount: $15,375,000 ($15.4M)

Contractor: Amvet Ritz JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-19

End Date: 2027-03-21

Contract Duration: 548 days

Daily Burn Rate: $28.1K/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: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, AND SUPERVISION, AND PERFORM ALL WORK NECESSARY TO PREPARE SITE FOR BUILDING OPERATIONS AND COMPLETE PROJECT 613-126 RENOVATE/EXPAND 47-BED DOMICILIARY POD B.

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.4 million to AMVET RITZ JV LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, AND SUPERVISION, AND PERFORM ALL WORK NECESSARY TO PREPARE SITE FOR BUILDING OPERATIONS AND COMPLETE PROJECT 613-126 RENOVATE/EXPAND 47-BED DOMICILIARY POD B. Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project involves significant construction and renovation, indicating potential for workforce impact. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The duration of 548 days is typical for complex building projects. 6. This contract falls within the broad category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $15.4 million for renovating and expanding a 47-bed domiciliary pod is within a reasonable range for significant construction projects. Benchmarking against similar VA or other federal agency projects for facility renovation and expansion of this scale would provide more precise value-for-money assessment. The firm fixed-price nature of the contract is a positive indicator for cost control, shifting risk to the contractor.

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 typically implies that the solicitation was broadly advertised and all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method generally fosters price discovery and allows the government to select the best value offer.

Taxpayer Impact: This competitive approach is beneficial for taxpayers as it is designed to drive down costs and ensure the government receives competitive pricing for the services rendered.

Public Impact

Veterans will benefit from improved and expanded domiciliary facilities. The project will deliver essential renovation and expansion services for a key VA facility. The geographic impact is focused on West Virginia, specifically where the domiciliary is located. The construction work will likely create jobs in the local and regional construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting veteran services.
Ensuring quality of construction meets VA standards.
Managing the scope of work effectively within the fixed-price contract.

Positive Signals

Addresses a clear need for facility improvement and expansion.
Utilizes a competitive bidding process to secure fair pricing.
Fixed-price contract provides cost certainty.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector (NAICS 236220). This sector encompasses establishments primarily engaged in the construction or remodeling of nonresidential buildings. The market for federal construction is substantial, driven by the need to maintain and upgrade government facilities across various agencies. This specific project addresses the VA's requirement for improved veteran housing and care infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor, AMVET RITZ JV LLC, may be a joint venture, the primary award mechanism did not prioritize small business participation. Subcontracting opportunities for small businesses may arise during the execution of the project, but this is not guaranteed by the contract terms provided.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officer and project managers. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the project within budget. Transparency is generally maintained through contract award databases and reporting, though specific details on ongoing oversight mechanisms are not provided.

Related Government Programs

VA Capital Asset and Business Operations Management
Federal Buildings and Facilities Construction
Veteran Housing and Support Services

Risk Flags

Potential for construction delays
Ensuring quality of work
Managing scope creep on fixed-price contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.4 million to AMVET RITZ JV LLC. THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, AND SUPERVISION, AND PERFORM ALL WORK NECESSARY TO PREPARE SITE FOR BUILDING OPERATIONS AND COMPLETE PROJECT 613-126 RENOVATE/EXPAND 47-BED DOMICILIARY POD B.

Who is the contractor on this award?

The obligated recipient is AMVET RITZ JV 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 $15.4 million.

What is the period of performance?

Start: 2025-09-19. End: 2027-03-21.

What is the track record of AMVET RITZ JV LLC in completing similar federal construction projects?

Information regarding the specific track record of AMVET RITZ JV LLC in completing similar federal construction projects is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract completion history, and any reported issues or successes on previous government contracts. Federal procurement databases and contractor performance systems (like CPARS) would be the primary sources for this information. Understanding their experience with VA facilities or domiciliary renovations specifically would be crucial for evaluating their capability to successfully execute this project.

How does the awarded price compare to similar VA domiciliary renovation projects?

Without specific data on comparable VA domiciliary renovation projects, a direct price comparison is challenging. However, the $15.4 million award for a 47-bed facility expansion and renovation suggests a significant investment per bed. Factors influencing cost include the extent of renovation, structural changes, system upgrades (HVAC, electrical, plumbing), and site preparation. Benchmarking against projects of similar scope, size, and geographic location, adjusted for inflation and regional construction cost variations, would be necessary to determine if this price represents good value for money. The firm fixed-price contract type implies the contractor has factored in these costs and risks.

What are the primary risks associated with this construction contract?

Key risks for this construction contract include potential construction delays due to unforeseen site conditions, weather, or supply chain disruptions, which could impact the delivery of services to veterans. Cost overruns are mitigated by the firm fixed-price structure, but scope creep or change orders could still increase the total cost if not managed carefully. Ensuring the quality of workmanship meets VA standards and that the contractor adheres to all safety regulations are also critical risk areas. The contractor's financial stability and management capacity to handle a project of this magnitude are inherent risks that should have been assessed during the procurement process.

How effective is the 'Full and Open Competition after Exclusion of Sources' method in ensuring competitive pricing for construction?

The 'Full and Open Competition after Exclusion of Sources' method is generally considered effective in ensuring competitive pricing for construction projects. By allowing all responsible sources to submit offers, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive bids. This approach fosters price discovery and allows the government to select the offer that represents the best value, which often translates to lower costs for taxpayers. However, the actual level of competition (number of bidders) and the specific evaluation criteria used significantly influence the degree of price competitiveness achieved.

What is the historical spending pattern for similar construction projects by the Department of Veterans Affairs?

Historical spending patterns for similar construction projects by the Department of Veterans Affairs would reveal trends in contract values, project durations, and the types of contractors awarded work. Analyzing past VA construction contracts, particularly those for facility renovations and expansions of healthcare or residential facilities, can provide benchmarks for current project costs and timelines. This data can highlight whether spending in this category has been increasing or decreasing, and identify any recurring issues or successful strategies. Understanding this historical context is vital for assessing the reasonableness of the current $15.4 million award and anticipating future needs.

What are the implications of the 548-day contract duration on project completion and service delivery?

A contract duration of 548 days (approximately 18 months) for a significant renovation and expansion project indicates a substantial undertaking. This timeline suggests that the project involves complex construction phases, potentially including demolition, structural work, and extensive interior and exterior upgrades. For service delivery, this duration implies that the existing domiciliary operations may need to be partially or fully relocated, or services significantly adjusted, during the construction period. Effective project management and clear communication between the contractor and the VA are crucial to minimize disruptions and ensure the project is completed efficiently, allowing for the timely resumption of full services in the improved facility.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77625B0033

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1005 N POINT BLVD STE 706, BALTIMORE, MD, 21224

Business Categories: Category Business, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $15,375,000

Exercised Options: $15,375,000

Current Obligation: $15,375,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline