VA Awards $47M for Admin Building & Education Center Construction to Archer Western/Demaria JV

Contract Overview

Contract Amount: $47,047,234 ($47.0M)

Contractor: Archer Western/Demaria Joint Venture IV

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-12-31

End Date: 2019-08-30

Contract Duration: 2,433 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF ADMINISTRATION BUILDING AND EDUCATION CENTER CONSTRUCTION

Place of Performance

Location: NORTH LAS VEGAS, CLARK County, NEVADA, 89086

State: Nevada Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $47.0 million to ARCHER WESTERN/DEMARIA JOINT VENTURE IV for work described as: IGF::OT::IGF ADMINISTRATION BUILDING AND EDUCATION CENTER CONSTRUCTION Key points: 1. The contract awarded to Archer Western/Demaria Joint Venture IV for $47,047,234.30 represents a significant investment in infrastructure. 2. The project falls under the Commercial and Institutional Building Construction sector, a competitive area with established benchmarks. 3. The use of a Firm Fixed Price contract aims to control costs, but the duration of the contract (2433 days) presents potential risks. 4. The award was made by the Department of Veterans Affairs, highlighting their commitment to facility improvements.

Value Assessment

Rating: fair

The contract value of $47M for a large construction project appears within a reasonable range for similar government contracts. However, without specific details on the scope and complexity, a precise pricing assessment is difficult. The benchmark for this type of construction can vary significantly based on location and specific requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple bidders vie for the contract. The use of a definitive contract with a firm fixed price further supports cost control.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it encourages competitive bidding and potentially lower prices. The firm fixed price contract also provides cost certainty.

Public Impact

Veterans will benefit from improved facilities, potentially enhancing educational and administrative services. The construction project will likely create jobs in the local Nevada economy. The long contract duration could lead to price fluctuations if not managed carefully.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2433 days) may lead to cost overruns or scope creep.
Lack of specific small business participation noted.
Firm Fixed Price contract might not account for unforeseen material cost increases over a long period.

Positive Signals

Awarded under full and open competition, ensuring competitive pricing.
Firm Fixed Price contract provides cost certainty.
Project addresses critical infrastructure needs for the VA.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can be substantial, with benchmarks varying widely based on project size, location, and specific construction needs. Government projects often adhere to specific building codes and sustainability standards, influencing costs.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract (ss: false, sb: false). While awarded under full and open competition, there's no explicit information on whether small businesses were prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Given the long duration, regular oversight will be crucial to ensure the project stays on schedule, within budget, and meets quality standards. The use of a definitive contract implies a clear agreement on scope and deliverables.

Related Government Programs

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

Risk Flags

Long contract duration
Potential for cost escalation over time
Lack of explicit small business participation noted
Firm Fixed Price may not cover unforeseen material cost increases

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $47.0 million to ARCHER WESTERN/DEMARIA JOINT VENTURE IV. IGF::OT::IGF ADMINISTRATION BUILDING AND EDUCATION CENTER CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is ARCHER WESTERN/DEMARIA JOINT VENTURE IV.

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 $47.0 million.

What is the period of performance?

Start: 2012-12-31. End: 2019-08-30.

What is the estimated cost per square foot for this construction project, and how does it compare to similar VA facilities?

Without the square footage of the Administration Building and Education Center, a precise cost per square foot cannot be calculated. However, for large institutional buildings, costs can range from $300 to $600 per square foot, depending on complexity, materials, and location. Comparing this to similar VA projects would require access to detailed project specifications and cost breakdowns.

What are the specific risks associated with the 2433-day contract duration, and what mitigation strategies are in place?

The primary risks of a long contract duration include potential escalation of material and labor costs, outdated technology or design by completion, and contractor performance degradation. Mitigation strategies could involve phased pricing adjustments, strict change order management, regular performance reviews, and clear contract clauses addressing unforeseen circumstances.

How effectively will this new facility improve the delivery of educational and administrative services to veterans?

The effectiveness hinges on the facility's design, capacity, and integration with existing services. If the new center provides modern, accessible spaces and incorporates advanced educational tools, it could significantly enhance service delivery. However, without details on the specific services planned, the impact remains speculative. User feedback and post-occupancy evaluations will be key indicators.

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: VA101-12-R-0070

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 929 W ADAMS ST, CHICAGO, IL, 60607

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

Financial Breakdown

Contract Ceiling: $47,078,623

Exercised Options: $47,078,623

Current Obligation: $47,047,234

Subaward Activity

Number of Subawards: 696

Total Subaward Amount: $730,437,284

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline