VA awards $69M construction contract to Crossland Construction for facility upgrades

Contract Overview

Contract Amount: $69,076,538 ($69.1M)

Contractor: Crossland Construction Company, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-12-15

End Date: 2013-04-01

Contract Duration: 1,568 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FAY

Place of Performance

Location: FAYETTEVILLE, WASHINGTON County, ARKANSAS, 72703

State: Arkansas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $69.1 million to CROSSLAND CONSTRUCTION COMPANY, INC. for work described as: FAY Key points: 1. Contract value appears reasonable for the scope of work, considering the duration and complexity of large-scale construction projects. 2. Full and open competition was utilized, suggesting a robust market engagement and potential for competitive pricing. 3. The contract's duration of over four years indicates a significant, long-term commitment to facility improvement. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project's focus on building construction places it within a sector with established cost benchmarks. 6. Awarded by the Department of Veterans Affairs, aligning with federal priorities for healthcare infrastructure.

Value Assessment

Rating: good

The contract value of $69.1 million for a multi-year construction project by the VA is within the expected range for large-scale facility upgrades. Benchmarking against similar VA or other federal construction projects of comparable size and complexity would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control. Without specific details on the scope of work (e.g., square footage, type of upgrades), a definitive per-square-foot cost comparison is difficult, but the overall award seems aligned with industry standards for major construction endeavors.

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 offers. The presence of three bidders suggests a moderate level of competition for this significant construction project. A higher number of bidders typically leads to more aggressive pricing and a broader range of technical solutions, but three bidders can still result in a competitive outcome, especially for specialized or large-scale projects.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

Veterans will benefit from improved healthcare facilities and infrastructure. The contract supports the delivery of essential construction services for government-owned buildings. The geographic impact is primarily within Arkansas, where the construction work will take place. The project will likely create or sustain jobs in the construction sector within the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term construction projects if not managed tightly.
Reliance on a single contractor for an extended period could pose risks if performance issues arise.
Construction projects are inherently subject to unforeseen site conditions or material price fluctuations, even with fixed-price contracts.

Positive Signals

Firm-fixed-price contract type helps lock in costs and reduce financial risk for the government.
Full and open competition suggests a thorough vetting of potential contractors.
The contractor, Crossland Construction Company, Inc., has a track record of completing large-scale projects, implying experience and capability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector involves the building of non-residential structures such as government facilities, hospitals, and educational institutions. Federal spending in this area is crucial for maintaining and upgrading public infrastructure. Comparable spending benchmarks would involve analyzing the cost per square foot or per project for similar government building construction projects awarded by agencies like the General Services Administration (GSA) or the Department of Defense.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a significant small business subcontracting component explicitly detailed in the provided summary. While Crossland Construction Company, Inc. may utilize small businesses in its supply chain, the primary award mechanism did not prioritize small business participation. This means the direct impact on the small business construction ecosystem may be limited unless subcontracting opportunities are actively pursued and awarded.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified construction services. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or reported.

Related Government Programs

VA Major Medical Facility Lease Program
GSA Public Buildings Construction
Department of Defense Military Construction

Risk Flags

Long project duration increases exposure to market volatility.
Potential for unforeseen site conditions in construction.
Contractor performance risk over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $69.1 million to CROSSLAND CONSTRUCTION COMPANY, INC.. FAY

Who is the contractor on this award?

The obligated recipient is CROSSLAND CONSTRUCTION COMPANY, INC..

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 $69.1 million.

What is the period of performance?

Start: 2008-12-15. End: 2013-04-01.

What specific types of facility upgrades or construction were included in this $69 million contract?

The provided data does not specify the exact nature of the construction or upgrades. However, given the contractor's specialization in commercial and institutional building construction and the awarding agency (Department of Veterans Affairs), it is highly probable that the contract involved significant renovations, expansions, or new construction of medical facilities, administrative buildings, or support infrastructure critical to VA operations. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which would outline the precise deliverables, specifications, and timelines for the construction activities.

How does the $69 million award compare to other similar VA construction projects in terms of value and scope?

Without specific details on the scope of work (e.g., square footage, type of construction, specific upgrades), a direct comparison is challenging. However, $69 million is a substantial amount, indicative of a large-scale project. The VA frequently awards multi-million dollar contracts for construction and renovation of its medical centers and clinics nationwide. To benchmark effectively, one would need to compare this award against other VA construction contracts awarded within a similar timeframe, focusing on projects of comparable size (e.g., new building construction vs. extensive renovation) and complexity. The number of bidders (3) suggests a competitive but potentially specialized market for this particular project.

What are the key performance indicators (KPIs) or milestones associated with this contract, and how is performance being monitored?

Key performance indicators and milestones for a construction contract of this nature typically revolve around adherence to schedule, budget, quality standards, safety regulations, and successful completion of defined construction phases or deliverables. Performance monitoring by the VA would likely involve regular site inspections, progress reports from the contractor, review of project documentation, and potentially independent quality assurance checks. Specific KPIs would be detailed in the contract's SOW or PWS, outlining requirements for things like concrete pour quality, structural integrity, system installations (HVAC, electrical, plumbing), and final project closeout procedures.

What is the track record of Crossland Construction Company, Inc. with the Department of Veterans Affairs and other federal agencies?

Crossland Construction Company, Inc. has a history of working with the Department of Veterans Affairs and other federal entities. Publicly available contract databases often show a portfolio of completed projects for various government agencies. A thorough review would involve examining past performance evaluations, any past disputes or contract modifications, and the overall success rate of their previous federal contracts. Their ability to win a $69 million contract suggests a demonstrated capacity and a generally positive performance history, though a deeper dive into specific past performance reviews would be necessary for a comprehensive assessment.

What are the potential risks associated with a firm-fixed-price contract for a project spanning over four years?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, a project duration of over four years introduces specific risks. The primary risk is that unforeseen economic conditions, such as significant inflation in material costs or labor rates, could erode the contractor's profit margin, potentially leading to pressure for change orders or claims if not adequately accounted for in the initial pricing. Additionally, market shifts in labor availability or specialized material supply could impact the contractor's ability to perform within the fixed price. The government's risk is generally lower in an FFP contract, but ensuring the contractor remains financially viable and motivated throughout the extended period is crucial.

How does this contract fit into the VA's broader strategy for infrastructure modernization and healthcare delivery?

This contract likely represents a component of the VA's ongoing strategy to modernize its healthcare infrastructure, ensuring facilities are up-to-date, efficient, and capable of meeting the evolving healthcare needs of veterans. Investments in construction and renovation are critical for maintaining state-of-the-art medical equipment, improving patient care environments, enhancing energy efficiency, and ensuring compliance with current building codes and accessibility standards. Such projects are fundamental to the VA's mission of providing high-quality healthcare services across the nation.

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: VA-101-08-RP-0061

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 833 SE AVE, COLUMBUS, KS, 02

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $137,485,423

Exercised Options: $136,985,590

Current Obligation: $69,076,538

Timeline