VA awards $116.8M for Jefferson Barracks building construction, completed in 2018

Contract Overview

Contract Amount: $116,779,209 ($116.8M)

Contractor: Walsh Alberici Joint Venture

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-07-15

End Date: 2018-12-13

Contract Duration: 1,977 days

Daily Burn Rate: $59.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CLINIC AND TENANT BLDG, JEFFERSON BARRACKS, ST LOUIS MO.

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $116.8 million to WALSH ALBERICI JOINT VENTURE for work described as: IGF::OT::IGF CLINIC AND TENANT BLDG, JEFFERSON BARRACKS, ST LOUIS MO. Key points: 1. Contract awarded to Walsh Alberici Joint Venture for building construction. 2. Project involved construction of a clinic and tenant building at Jefferson Barracks. 3. The contract was a firm fixed-price definitive contract. 4. Construction period spanned from July 2013 to December 2018. 5. The contract was awarded under full and open competition. 6. The total value of the contract was approximately $116.8 million.

Value Assessment

Rating: good

The contract value of $116.8 million for a clinic and tenant building at Jefferson Barracks appears reasonable for a project of this scale and duration. Benchmarking against similar large-scale construction projects for federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that cost overruns were largely borne by the contractor, which can be a positive indicator for the government if the final cost aligns with initial estimates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bids suggests a competitive environment, which generally leads to better pricing and value for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition typically results in more favorable pricing for taxpayers by encouraging a wider range of contractors to bid and driving down costs through market forces.

Public Impact

Veterans in the St. Louis, MO area will benefit from improved healthcare facilities. The project delivered a new clinic and tenant building, enhancing medical service capacity. Geographic impact is localized to Jefferson Barracks, St. Louis, Missouri. Construction activities likely supported local jobs and the regional economy during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial bids were not fully representative of final construction needs.
Delays in construction could impact the timely delivery of services to veterans.
Ensuring quality of construction to meet long-term facility needs.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract limits government exposure to cost increases.
Project completion within the specified timeframe (though end date was extended).

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. Federal spending in construction is driven by the need for new facilities, upgrades, and maintenance across various agencies. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by the Department of Veterans Affairs or other agencies for similar types of facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large joint venture. Further analysis would be needed to determine if small businesses were involved as subcontractors and to assess the overall impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and potentially the VA Office of Inspector General. The firm fixed-price nature of the contract provides a degree of accountability for the contractor regarding cost. Transparency would be enhanced by public contract databases and reporting requirements.

Related Government Programs

VA Healthcare Construction
Federal Building and Facilities Construction
Military Construction Projects

Risk Flags

Potential for schedule delays
Risk of cost overruns (though mitigated by FFP)
Quality assurance during construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $116.8 million to WALSH ALBERICI JOINT VENTURE. IGF::OT::IGF CLINIC AND TENANT BLDG, JEFFERSON BARRACKS, ST LOUIS MO.

Who is the contractor on this award?

The obligated recipient is WALSH ALBERICI JOINT VENTURE.

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 $116.8 million.

What is the period of performance?

Start: 2013-07-15. End: 2018-12-13.

What was the original estimated cost of the project, and how did the final award amount compare?

The provided data indicates a final award amount of $116,779,209. However, the original estimated cost is not available in this dataset. To assess value for money, a comparison between the initial estimate and the final award is crucial. Significant deviations could indicate issues with the initial budgeting, scope changes, or the effectiveness of the competitive bidding process. Without the estimate, it's difficult to determine if the final price was a result of competitive pressures or unforeseen circumstances.

Were there any significant contract modifications or change orders that impacted the final cost or timeline?

The provided data shows a duration of 1977 days, which translates to approximately 5.4 years, from the start date of July 15, 2013, to the end date of December 13, 2018. While this indicates the project spanned a considerable period, it does not explicitly detail the number or value of contract modifications. Large construction projects often undergo modifications due to unforeseen site conditions, design changes, or scope adjustments. A review of the contract modification history would be necessary to understand if the final cost and timeline were significantly impacted by such changes and to assess the reasons behind them.

How did the winning bid from Walsh Alberici Joint Venture compare to other bids received?

The data indicates that there were 2 bids received for this contract. While the specific details of the other bid(s) are not provided, the fact that there were multiple bids suggests a degree of competition. To fully assess the competitiveness, one would need to know the value of the other bid(s) and how Walsh Alberici's bid was evaluated against them. A significant difference between the winning bid and the next lowest bid could suggest a less robust competition or a particularly advantageous offer from the winner. The 'full and open competition' designation implies a fair process was intended.

What is the track record of Walsh Alberici Joint Venture in completing federal construction contracts?

Walsh Alberici Joint Venture is a recognized entity in the construction industry. Information on their specific track record with federal contracts, including past performance on similar projects, on-time completion rates, and history of disputes or claims, would be essential for a comprehensive risk assessment. Federal agencies typically maintain past performance databases that inform source selection for future contracts. A review of their project history, particularly with the Department of Veterans Affairs, would provide insight into their reliability and capability.

What are the key performance indicators (KPIs) used to measure the success of this construction project?

Key performance indicators for a construction project of this nature typically include adherence to schedule, budget compliance (especially relevant for fixed-price contracts), quality of workmanship, safety record, and stakeholder satisfaction (e.g., end-users of the facility). For a VA clinic and tenant building, KPIs would also focus on the facility's readiness to provide services and its compliance with healthcare facility standards. The contract's success would be evaluated against these metrics, often documented in final inspection reports and close-out documentation.

How does the spending on this specific project compare to the VA's overall construction budget or spending on similar facilities?

The $116.8 million award represents a significant investment in a single facility. To contextualize this spending, it should be compared against the VA's annual construction budget and the average cost of similar clinic and tenant building projects. For instance, if the VA typically budgets billions for construction annually, this project represents a fraction of that. Similarly, comparing its cost per square foot or per bed (if applicable) to other VA facilities or comparable non-federal healthcare construction projects would provide valuable benchmarks for assessing its relative scale and cost-effectiveness.

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

Offers Received: 2

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: $116,779,209

Exercised Options: $116,779,209

Current Obligation: $116,779,209

Subaward Activity

Number of Subawards: 1032

Total Subaward Amount: $1,610,080,914

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline