VA Awards $9.1M for Building Renovation in New Mexico to Faith Enterprises Inc

Contract Overview

Contract Amount: $9,144,278 ($9.1M)

Contractor: Faith Enterprises Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-27

End Date: 2026-04-15

Contract Duration: 2,757 days

Daily Burn Rate: $3.3K/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: RENOVATE B-41, QUAD 4A. CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS AND SERVICES PER THE CONTRACT DOCUMENTS AND PER GUIDANCE AS DIRECTED FROM THE CONTRACTING AUTHORITIES.

Place of Performance

Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87108

State: New Mexico Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.1 million to FAITH ENTERPRISES INCORPORATED for work described as: RENOVATE B-41, QUAD 4A. CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS AND SERVICES PER THE CONTRACT DOCUMENTS AND PER GUIDANCE AS DIRECTED FROM THE CONTRACTING AUTHORITIES. Key points: 1. The contract is for comprehensive renovation services, including labor and materials. 2. Faith Enterprises Inc. secured the award through full and open competition. 3. The project duration is substantial, spanning over 2700 days. 4. This award falls within the Commercial and Institutional Building Construction sector.

Value Assessment

Rating: fair

The contract value of $9.1M for a multi-year renovation project appears within a reasonable range for large-scale construction. However, without specific project scope details or comparable project data, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and aims for the best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the services rendered, though the total cost is significant.

Public Impact

Veterans in New Mexico will benefit from improved facilities at the VA. The project supports local construction jobs and economic activity. Transparency in the bidding process ensures public funds are used responsibly.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration may increase risk of cost overruns or scope creep.
Lack of specific scope details makes it hard to benchmark value.
Small business participation is not indicated.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type limits cost uncertainty.
Contracting agency is the Department of Veterans Affairs, a major federal entity.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction, a sector characterized by significant investment in infrastructure and facilities. Benchmarks for similar large-scale renovations would typically consider project complexity, location, and duration.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business set-aside goals were considered or met through subcontracting.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including site inspections and progress reporting, should be in place to ensure quality and adherence to the contract.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration.
Lack of detailed scope of work.
No indication of small business participation.
Potential for cost escalation over the project's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.1 million to FAITH ENTERPRISES INCORPORATED. RENOVATE B-41, QUAD 4A. CONTRACTOR TO PROVIDE ALL LABOR, MATERIALS AND SERVICES PER THE CONTRACT DOCUMENTS AND PER GUIDANCE AS DIRECTED FROM THE CONTRACTING AUTHORITIES.

Who is the contractor on this award?

The obligated recipient is FAITH ENTERPRISES INCORPORATED.

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 $9.1 million.

What is the period of performance?

Start: 2018-09-27. End: 2026-04-15.

What specific renovations are included in the B-41 project, and how do they align with VA facility needs?

The provided data lacks specific details on the renovation scope for B-41. Understanding the exact nature of the work, such as structural repairs, system upgrades, or modernization of specific areas, is crucial for assessing its alignment with VA facility needs and justifying the $9.1M investment. Further documentation would be required to evaluate this aspect comprehensively.

What are the key performance indicators (KPIs) for Faith Enterprises Inc. to ensure successful project completion and taxpayer value?

Key performance indicators for this project should include adherence to the schedule, quality of workmanship, compliance with safety regulations, and effective budget management. Success will be measured by the timely completion of renovations to the specified standards, ensuring the facility is functional and meets the intended improvements for veterans and staff, thereby maximizing taxpayer value.

How will the long contract duration (2757 days) be managed to mitigate risks of cost escalation and scope creep?

Managing the long duration requires robust contract administration, including regular progress reviews, clear change order procedures, and proactive risk identification. The VA should implement strict controls to prevent scope creep and monitor material costs for potential escalation. Performance incentives or penalties tied to milestones could also encourage efficient execution and mitigate risks associated with extended timelines.

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: 36E77618B0087

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 919 W COSTILLA ST, COLORADO SPRINGS, CO, 80905

Business Categories: Category Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $9,144,278

Exercised Options: $9,144,278

Current Obligation: $9,144,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline