VA awards $36.7M construction contract for architectural services in Pennsylvania

Contract Overview

Contract Amount: $36,665,053 ($36.7M)

Contractor: P.J. Dick Incorporated

Awarding Agency: Department of Veterans Affairs

Start Date: 2006-09-15

End Date: 2008-02-14

Contract Duration: 517 days

Daily Burn Rate: $70.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION AWARD

Place of Performance

Location: PITTSBURGH, ALLEGHENY County, PENNSYLVANIA, 15201

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $36.7 million to P.J. DICK INCORPORATED for work described as: CONSTRUCTION AWARD Key points: 1. Contract awarded for architectural services, indicating a need for design and planning expertise. 2. The contract duration of 517 days suggests a moderately complex project. 3. Fixed-price contract type helps manage cost certainty for the government. 4. Awarded by the Department of Veterans Affairs, likely supporting healthcare infrastructure. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The award amount of $36.7 million for architectural services appears reasonable for a project of this scope and duration. Benchmarking against similar large-scale architectural contracts for federal agencies, particularly those involving healthcare or complex facilities, would provide further context. The fixed-price nature of the contract suggests that the contractor assumed the majority of the cost risk, which can be beneficial for the government if the project stays within scope. Without specific details on the deliverables and complexity, a precise value-for-money assessment is challenging, but the competitive award process likely contributed to a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 2 bids suggests a moderate level of competition for this architectural services contract. While more bidders could potentially drive prices lower, a competitive process still ensures that the government receives proposals from qualified firms. The agency's decision to use full and open competition is generally a positive sign for price discovery and ensuring a fair market price.

Taxpayer Impact: Full and open competition generally leads to better price discovery and can result in cost savings for taxpayers by encouraging multiple firms to offer competitive bids.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive architectural services to support its facilities. The services delivered will likely involve the design and planning of new construction or renovation projects for VA facilities. The geographic impact is focused on Pennsylvania, where the architectural services will be rendered or applied. The contract supports the architecture and engineering sector, potentially involving specialized firms and professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex architectural projects, which could impact final costs if not managed tightly.
Reliance on a single contractor for a significant duration necessitates strong oversight to ensure timely delivery and quality.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a robust and fair procurement process.
The Department of Veterans Affairs is a major federal agency with a clear mission, implying a well-defined need for the services.

Sector Analysis

This contract falls within the Architectural Services industry, a key component of the broader Construction and Engineering sector. This sector is characterized by project-based work, requiring specialized expertise in design, planning, and project management. Federal spending in this area often supports infrastructure development, facility upgrades, and specialized government needs. Comparable spending benchmarks would involve analyzing other large federal architectural contracts, particularly those awarded by agencies like the VA, GSA, or DoD, to assess the scale and pricing relative to market norms.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, P.J. Dick Incorporated, is likely a larger firm. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though larger prime contractors often engage small businesses for specialized services on such projects.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Veterans Affairs. Accountability measures would include adherence to the contract terms, performance standards, and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected in the procurement or execution of the contract.

Related Government Programs

Department of Veterans Affairs Facility Construction
Federal Architectural and Engineering Services
Construction Services for Government Buildings
Healthcare Facility Design and Planning

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Quality control is critical for architectural designs.
Contractor performance history needs further review for federal projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $36.7 million to P.J. DICK INCORPORATED. CONSTRUCTION AWARD

Who is the contractor on this award?

The obligated recipient is P.J. DICK 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 $36.7 million.

What is the period of performance?

Start: 2006-09-15. End: 2008-02-14.

What specific types of architectural services were procured under this contract, and what was the intended project scope?

The contract specifies 'Architectural Services' (NAICS code 541310) and was awarded to P.J. Dick Incorporated by the Department of Veterans Affairs. While the exact project scope is not detailed in the provided data, architectural services typically encompass preliminary design, schematic design, design development, construction documents, and potentially construction administration. Given the awarding agency, it is highly probable that these services were intended for the design or renovation of a Veterans Affairs medical center, clinic, or other healthcare-related facility in Pennsylvania. The contract duration of 517 days suggests a project of moderate complexity, likely involving significant design work and potentially coordination with various stakeholders.

How does the award amount of $36.7 million compare to typical federal architectural service contracts of similar duration and scope?

The award amount of $36.7 million for a 517-day architectural services contract is substantial, suggesting a project of significant scale or complexity. Federal architectural contracts can vary widely based on project type (e.g., hospital vs. office building), location, and specific requirements. For large-scale federal projects, especially those involving specialized facilities like healthcare centers, such an award amount is not unusual. However, without knowing the specific deliverables and the exact nature of the facility being designed, a precise comparison is difficult. Benchmarking against similar VA projects or large healthcare construction design contracts would be necessary for a more accurate assessment of value for money.

What are the potential risks associated with a fixed-price contract for architectural services, and how might they be mitigated?

A primary risk with fixed-price contracts for architectural services is the potential for the contractor to cut corners on quality to maintain profitability if unforeseen issues arise or if the initial cost estimate was too low. Another risk is scope creep, where the client requests additional services beyond the original agreement, which can lead to disputes or change orders. Mitigation strategies include clearly defining the scope of work in the contract, establishing robust quality assurance processes, maintaining open communication channels between the government and the contractor, and implementing a strict change order management process. The government's oversight team plays a crucial role in monitoring progress and ensuring adherence to contract specifications.

What is the track record of P.J. Dick Incorporated in performing federal architectural or construction contracts?

P.J. Dick Incorporated is a well-established construction firm with a significant presence in the Mid-Atlantic region. While the provided data focuses on this specific architectural services award, the company has a history of undertaking large-scale construction and renovation projects for various clients, including government entities. To assess their track record specifically for federal architectural services, a review of their past federal contract performance, including any awards or past performance evaluations, would be beneficial. Their longevity and the scale of projects they undertake suggest a capacity to manage complex federal contracts, but specific performance data would offer a clearer picture.

How has federal spending on architectural services evolved over the past five years, and does this contract align with broader trends?

Federal spending on architectural services generally fluctuates based on infrastructure needs, agency priorities, and overall budget allocations. Over the past five years, there has been a consistent demand for architectural services to support facility modernization, new construction, and upgrades across various federal agencies, including the Department of Defense, Department of Veterans Affairs, and General Services Administration. Spending trends are often influenced by major infrastructure initiatives or specific agency capital investment plans. This $36.7 million award to the VA aligns with the ongoing need for facility improvements and expansions within the agency, reflecting a sustained investment in healthcare infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 101-06-0019

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1020 LEBANON RD, WEST MIFFLIN, PA, 12

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,665,053

Exercised Options: $36,665,053

Current Obligation: $36,665,053

Timeline