VA awards $14.4M construction contract to Brasfield & Gorrie LLC for Mississippi facility

Contract Overview

Contract Amount: $14,411,847 ($14.4M)

Contractor: Brasfield & Gorrie LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-05-29

End Date: 2011-06-06

Contract Duration: 738 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BLIND

Place of Performance

Location: BILOXI, HARRISON County, MISSISSIPPI, 39530

State: Mississippi Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.4 million to BRASFIELD & GORRIE LLC for work described as: BLIND Key points: 1. Contract value represents a significant investment in healthcare infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. Contract duration of 738 days indicates a substantial construction timeline. 5. The award to a single contractor highlights the need for robust oversight. 6. Geographic focus on Mississippi points to regional infrastructure development.

Value Assessment

Rating: good

The contract value of $14.4 million for commercial and institutional building construction appears reasonable given the scope of a facility project. Benchmarking against similar VA construction projects would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract suggests that the contractor assumed a significant portion of the cost risk, which can be a positive indicator if the initial pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 12 bidders participating, the level of competition was robust. This suggests that the Department of Veterans Affairs likely received a range of proposals, allowing for price discovery and potentially leading to a more favorable price for the government.

Taxpayer Impact: A high number of bidders in a full and open competition generally benefits taxpayers by driving down costs through competitive pressure and encouraging efficient project execution.

Public Impact

Veterans in Mississippi will benefit from improved healthcare facilities. The project will deliver new or renovated institutional building space. The geographic impact is concentrated in Mississippi, supporting regional development. The construction project will likely create numerous jobs in the skilled trades and related industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise in fixed-price contracts.
Ensuring timely completion within the 738-day duration requires diligent project management.
Quality of construction must be rigorously monitored to meet VA standards.

Positive Signals

Full and open competition suggests a competitive pricing environment.
Firm fixed-price contract shifts cost risk to the contractor.
Award to a single, presumably experienced, contractor can streamline execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures like hospitals, government facilities, and educational institutions. The market size for federal construction is substantial, with agencies like the VA consistently investing in infrastructure to serve veterans. This specific award aligns with the government's ongoing efforts to modernize and expand healthcare facilities.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Brasfield & Gorrie LLC, may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for various construction trades and services. This could provide valuable work for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically involve the Department of Veterans Affairs' contracting officers and project managers, who are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm fixed-price nature of the contract means that the contractor bears most of the financial risk, but quality assurance and progress monitoring remain critical. Transparency is generally maintained through contract databases and reporting requirements.

Related Government Programs

VA Medical Center Construction
Federal Building and Infrastructure Projects
Healthcare Facility Modernization
Department of Veterans Affairs Capital Investments

Risk Flags

Potential for cost escalation in fixed-price contracts due to unforeseen circumstances.
Risk of project delays impacting facility availability.
Need for stringent quality control to ensure construction meets VA standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.4 million to BRASFIELD & GORRIE LLC. BLIND

Who is the contractor on this award?

The obligated recipient is BRASFIELD & GORRIE 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 $14.4 million.

What is the period of performance?

Start: 2009-05-29. End: 2011-06-06.

What is the track record of Brasfield & Gorrie LLC with the Department of Veterans Affairs?

Brasfield & Gorrie LLC has a history of working with the Department of Veterans Affairs on various construction projects. Analyzing their past performance on similar VA contracts, including adherence to schedules, budget management, and quality of work, would provide insight into their reliability and capability. Specific details on past VA awards, their values, and outcomes would be necessary for a comprehensive assessment. Generally, large construction firms like Brasfield & Gorrie have extensive experience with federal agencies, but a detailed review of their specific VA project history is crucial for understanding their suitability for this particular contract.

How does the awarded amount compare to similar VA construction projects in Mississippi?

To assess the value for money, the $14.4 million award should be benchmarked against comparable Department of Veterans Affairs construction projects undertaken in Mississippi or similar geographic regions. Factors such as the size of the facility, the scope of work (new construction vs. renovation), complexity of the build, and prevailing market conditions at the time of award are critical for a fair comparison. Without specific data on comparable projects, it's difficult to definitively state if this award represents excellent, good, or fair value. However, the presence of 12 bidders suggests a competitive environment that likely contributed to a reasonable price.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with a firm fixed-price (FFP) contract, especially for a large construction project like this, revolve around potential cost overruns if unforeseen conditions arise during construction (e.g., unexpected site issues, material price escalations beyond initial estimates). While the contractor assumes most of the financial risk, significant issues could lead to disputes or delays. Another risk is the potential for the contractor to cut corners on quality to maintain profitability if margins are tight, necessitating robust government oversight. Ensuring the contractor has adequate bonding and insurance is also a risk mitigation measure.

How effective is the 'full and open competition' strategy for VA construction projects of this magnitude?

The 'full and open competition' strategy is generally considered highly effective for federal construction projects of this magnitude, as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The fact that 12 bids were received indicates that this approach successfully attracted significant interest. This level of competition fosters price discovery and encourages contractors to submit their best offers. For taxpayers, this strategy typically leads to better value by driving down costs and promoting efficiency, although it requires a well-defined solicitation and thorough evaluation process by the agency.

What is the historical spending trend for similar construction services by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently allocates significant funds towards the construction and renovation of its healthcare facilities to meet the evolving needs of veterans. Historical spending data would likely show a steady or increasing trend in capital investments for infrastructure, driven by factors such as aging facilities, increased veteran populations, and the need to adopt new medical technologies. Analyzing VA's budget allocations and contract awards for construction services over the past several years would reveal patterns in spending, identify major projects, and highlight any shifts in priorities or investment levels within the sector.

What are the implications of the 738-day duration on project risk and cost?

A contract duration of 738 days (approximately two years) for a construction project of this scale is substantial and carries several implications. Longer durations increase the risk of market fluctuations in material costs and labor availability, which, despite the fixed-price nature, can sometimes lead to change orders or claims if not managed meticulously. It also extends the period during which unforeseen site conditions or design challenges might emerge. From a taxpayer perspective, a longer timeline means the capital is tied up for an extended period before the facility becomes operational, potentially delaying the realization of benefits. However, a longer duration might also be necessary for complex projects to ensure quality and thorough execution.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA10109RP0041

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3021 7TH AVE SOUTH, BIRMINGHAM, AL, 90

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,411,847

Exercised Options: $14,411,847

Current Obligation: $14,411,847

Timeline