VA awards $21.4M contract for architectural services in Dallas, TX, with a long performance period

Contract Overview

Contract Amount: $21,403,201 ($21.4M)

Contractor: Page Southerland Page, L.L.P.

Awarding Agency: Department of Veterans Affairs

Start Date: 2009-08-31

End Date: 2027-04-22

Contract Duration: 6,443 days

Daily Burn Rate: $3.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A/E SERVICES DALLAS, TX

Place of Performance

Location: DALLAS, DALLAS County, TEXAS, 75201

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $21.4 million to PAGE SOUTHERLAND PAGE, L.L.P. for work described as: A/E SERVICES DALLAS, TX Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract has a significant duration, extending over 15 years, which may impact long-term cost-effectiveness. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The contractor, PAGE SOUTHERLAND PAGE, L.L.P., has been awarded this contract for architectural services. 5. The contract is for architectural services, a critical component for facility development and maintenance. 6. The duration of the contract (6443 days) is notably long, requiring careful performance monitoring.

Value Assessment

Rating: fair

The contract value of $21.4 million for architectural services over a period of approximately 17.6 years (6443 days) suggests an average annual cost of roughly $1.2 million. Benchmarking this against similar large-scale architectural contracts for federal agencies would be necessary to determine true value for money. The firm fixed price nature provides cost predictability, but the extended duration could lead to cost escalations if not managed proactively through performance reviews and potential adjustments.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified firms for this type of service.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it is expected to drive down costs through market forces and encourage a wider pool of talent, potentially leading to more innovative and cost-effective solutions.

Public Impact

Veterans in the Dallas, Texas region will benefit from improved or new facilities designed under this contract. The contract delivers essential architectural design and planning services for Department of Veterans Affairs projects. The geographic impact is focused on Dallas, Texas, supporting local infrastructure development. The contract supports the architecture and engineering workforce, particularly within the Dallas area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration of over 15 years presents a long-term commitment that requires sustained oversight to ensure continued value and relevance.
Potential for scope creep over such a long performance period if not rigorously managed.
Reliance on a single contractor for an extended period could limit future opportunities for other firms or innovative approaches.

Positive Signals

Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract is for essential architectural services, directly supporting the VA's mission.

Sector Analysis

This contract falls within the Architectural Services sector, a subset of the broader Architecture, Engineering, and Construction (AEC) industry. This sector is characterized by project-based work, requiring specialized design expertise. Federal spending in architectural services is crucial for the development and maintenance of government infrastructure, including facilities for agencies like the Department of Veterans Affairs. Market size for federal architectural services is substantial, with numerous firms competing for government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. This means that opportunities for small businesses would likely arise if the prime contractor, PAGE SOUTHERLAND PAGE, L.L.P., chooses to subcontract portions of the work, which is not guaranteed.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Department of Veterans Affairs contracting officers and program managers. The firm fixed price nature simplifies some aspects of financial oversight, but performance monitoring over the long duration is critical. Transparency is facilitated through contract award databases, but detailed project-specific oversight mechanisms are internal to the VA. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Veterans Affairs Facility Construction
Federal Architectural and Engineering Services
Government Building Design Contracts
Long-Term Government Service Contracts

Risk Flags

Long contract duration
Potential for cost escalation over time
Need for sustained oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $21.4 million to PAGE SOUTHERLAND PAGE, L.L.P.. A/E SERVICES DALLAS, TX

Who is the contractor on this award?

The obligated recipient is PAGE SOUTHERLAND PAGE, L.L.P..

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 $21.4 million.

What is the period of performance?

Start: 2009-08-31. End: 2027-04-22.

What is the historical spending pattern for architectural services by the Department of Veterans Affairs in the Dallas, TX region?

Analyzing historical spending for architectural services by the VA in Dallas, TX, requires accessing detailed procurement data over several fiscal years. This specific contract, valued at $21.4 million over approximately 17.6 years, represents a significant, long-term investment. Past spending would likely show a pattern of project-specific awards for facility upgrades, new construction, and renovations. The volume and value of these awards would fluctuate based on VA's capital investment plans, budget allocations, and the specific needs of its medical centers and administrative facilities in the region. Without access to granular historical data, it's difficult to provide precise figures, but it's reasonable to assume consistent, albeit variable, spending on architectural expertise to maintain and expand its physical footprint.

How does the duration of this contract compare to typical federal architectural service contracts?

The duration of this contract, spanning 6443 days (approximately 17.6 years), is exceptionally long for a federal architectural services contract. Typical contracts for architectural design services are often project-specific or cover shorter periods, such as 1-5 years, with options for renewal. Long-term contracts like this are more common for large-scale, multi-phase projects or indefinite-delivery/indefinite-quantity (IDIQ) vehicles where the scope is not fully defined at the outset. The extended performance period suggests a strategic, long-term commitment by the VA to architectural support for its Dallas facilities, potentially encompassing multiple projects or a sustained program of work over many years. This duration necessitates robust performance management and oversight to ensure continued alignment with evolving needs and standards.

What are the potential risks associated with a firm fixed-price contract of this extended duration?

While a firm fixed-price (FFP) contract aims to provide cost certainty, an extended duration of over 15 years introduces specific risks. One primary risk is the potential for the fixed price to become uncompetitive or inadequate due to unforeseen market changes, inflation, or evolving regulatory requirements over such a long period. The contractor might face challenges in accurately estimating costs for work to be performed far into the future. Conversely, if market conditions become highly favorable to the contractor, the government might be locked into paying a price that is no longer representative of fair market value. Effective risk mitigation requires clear contract terms, performance metrics, and potentially mechanisms for periodic review or adjustment, although FFP contracts are generally resistant to price changes.

What is the track record of PAGE SOUTHERLAND PAGE, L.L.P. with federal contracts, particularly with the Department of Veterans Affairs?

To assess the track record of PAGE SOUTHERLAND PAGE, L.L.P. with federal contracts, particularly the VA, one would need to consult federal procurement databases like SAM.gov or FPDS. These databases would provide a history of awards, contract types, values, and performance information. A review would likely reveal if the firm has a history of successful contract performance, timely delivery, and adherence to budget. For the VA, it would be important to see if they have previously been awarded and successfully executed architectural services contracts of similar scope and complexity. Positive past performance is a key indicator for future contract awards and suggests a lower risk profile for the agency.

How does the average annual cost of this contract compare to industry benchmarks for architectural services?

The average annual cost for this contract is approximately $1.2 million ($21.4M / 17.6 years). To compare this to industry benchmarks, one would need to analyze data specific to architectural services for large-scale government facilities. Benchmarks often consider factors like the type of facility (e.g., hospital, administrative), complexity of design, and geographic location. Industry reports or cost data from professional organizations like the American Institute of Architects (AIA) could provide average fee percentages or cost-per-square-foot metrics. Without such specific benchmark data, it's challenging to definitively state whether $1.2 million annually represents a high, low, or average cost. However, for a sustained, long-term architectural support role for a major agency like the VA, this figure may be within a reasonable range, pending detailed comparison.

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: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3500 MAPLE AVE STE 600, DALLAS, TX, 75219

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

Financial Breakdown

Contract Ceiling: $29,586,466

Exercised Options: $21,743,207

Current Obligation: $21,403,201

Actual Outlays: $2,428,942

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline