VA awards $14.5M construction contract for heavy civil engineering, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $14,541,877 ($14.5M)

Contractor: Burchick Construction CO Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2006-07-17

End Date: 2008-07-27

Contract Duration: 741 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PHASE I DEVELOPMENT

Place of Performance

Location: BRIDGEVILLE, WASHINGTON County, PENNSYLVANIA, 15017

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.5 million to BURCHICK CONSTRUCTION CO INC for work described as: PHASE I DEVELOPMENT Key points: 1. Contract awarded under firm fixed-price terms, indicating predictable costs for the government. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of 741 days suggests a significant scope of work for the project. 4. Awarded by the Department of Veterans Affairs, likely supporting infrastructure for veteran services. 5. The North American Industry Classification System (NAICS) code 237990 points to specialized heavy construction. 6. The contract value of $14.5 million falls within a moderate spending range for such projects.

Value Assessment

Rating: good

The contract value of $14.5 million for heavy civil engineering construction appears reasonable given the project's scope and duration. Without specific benchmarks for similar VA projects in Pennsylvania, a direct comparison is difficult. However, the firm fixed-price structure suggests the contractor assumed the cost risk, which can be advantageous for the government. The number of bids received (5) indicates a healthy level of interest, potentially leading to competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a competitive environment for this heavy civil engineering project. The open competition process is designed to ensure the government receives the best value by allowing multiple contractors to vie for the work, driving down prices and encouraging innovation.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors. This process helps ensure that public funds are used efficiently and effectively for infrastructure projects.

Public Impact

Veterans and VA staff will benefit from improved or new infrastructure at a VA facility. The project delivers heavy and civil engineering construction services, likely involving site preparation, utility work, or structural development. The geographic impact is focused on Pennsylvania, where the construction work will take place. The project will likely create temporary employment opportunities for construction workers and related trades in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price nature.
Delays in project completion could impact the intended use of the new or improved facilities.
Ensuring the quality of heavy civil engineering work requires rigorous oversight.

Positive Signals

Firm fixed-price contract structure limits the government's exposure to cost increases.
Full and open competition suggests a robust selection process for the contractor.
The award to a specific construction company indicates a successful procurement outcome.

Sector Analysis

The construction sector, particularly heavy and civil engineering, is a significant area of federal spending. This contract falls under NAICS code 237990, which includes projects like water and sewer line construction, tunnels, bridges, and dams. Federal agencies, including the Department of Veterans Affairs, frequently contract for such services to maintain and upgrade their facilities and infrastructure. Comparable spending benchmarks would typically be assessed against similar-sized heavy construction projects within the federal or state government portfolio.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. The award to Burchick Construction Co Inc, a firm, suggests it may have the capacity to handle the project independently or through its own established network. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details are often internal.

Related Government Programs

VA Medical Center Construction
Federal Building and Grounds Maintenance
Heavy Construction Services
Infrastructure Improvement Projects

Risk Flags

Potential for unforeseen site conditions impacting fixed-price cost.
Contract duration may lead to extended disruption.
Need for rigorous quality assurance in heavy construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.5 million to BURCHICK CONSTRUCTION CO INC. PHASE I DEVELOPMENT

Who is the contractor on this award?

The obligated recipient is BURCHICK CONSTRUCTION CO 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 $14.5 million.

What is the period of performance?

Start: 2006-07-17. End: 2008-07-27.

What is the track record of Burchick Construction Co Inc with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal contract databases indicates that Burchick Construction Co Inc has received multiple federal awards. While specific details on their track record with the Department of Veterans Affairs (VA) require deeper analysis of past performance reviews and contract histories, the award of this $14.5 million contract suggests they met the VA's requirements for this project. Further investigation into their past performance, including any past issues or commendations on similar-sized projects, would provide a more comprehensive understanding of their reliability and capability. Examining their history with other agencies could also reveal patterns in project completion, adherence to budget, and quality of work.

How does the $14.5 million award compare to similar heavy civil engineering construction contracts awarded by the VA or other federal agencies?

The $14.5 million award for heavy civil engineering construction is a moderate-sized contract within the federal landscape. To benchmark its value effectively, comparisons should be made with similar projects under NAICS code 237990 awarded by the VA and other agencies like the Army Corps of Engineers or General Services Administration over the past few years. Factors such as geographic location, specific project scope (e.g., utility upgrades vs. new structure construction), and prevailing market conditions at the time of award are crucial for a fair comparison. Without access to a detailed database of comparable projects, it's challenging to definitively state if this award represents excellent, fair, or questionable value for money.

What are the primary risks associated with a firm fixed-price contract for heavy civil engineering construction of this magnitude?

While firm fixed-price (FFP) contracts are generally favored for cost certainty, they carry specific risks in heavy civil engineering. The primary risk is that unforeseen site conditions (e.g., unexpected soil geology, environmental hazards, subsurface utilities) can significantly increase costs for the contractor. If these conditions are not adequately accounted for in the contract's contingency or scope, the contractor might seek change orders, potentially negating the FFP benefit. Another risk is contractor performance; if the contractor lacks the expertise or resources, delays and quality issues can arise, impacting the project's intended benefits and potentially leading to disputes. Robust pre-award site investigations and clear contract language regarding unforeseen conditions are critical mitigation strategies.

What is the expected effectiveness of the completed construction work in supporting the Department of Veterans Affairs' mission?

The effectiveness of this $14.5 million construction contract hinges on its specific purpose within the Department of Veterans Affairs (VA). If the project involves upgrading or expanding medical facilities, improving accessibility, or enhancing operational infrastructure, its effectiveness will be directly tied to supporting the VA's mission of providing healthcare and services to veterans. For instance, new or renovated patient areas could improve the quality of care, while upgraded utilities ensure reliable facility operation. The project's success will be measured by its timely completion, adherence to specifications, and the extent to which it enhances the VA's ability to serve veterans. The 741-day duration suggests a substantial undertaking, implying a significant expected impact.

How has the Department of Veterans Affairs' spending on heavy civil engineering construction evolved over the past five years?

Analyzing the Department of Veterans Affairs' (VA) spending trends on heavy civil engineering construction over the past five years would reveal patterns related to infrastructure investment priorities and budget allocations. This specific $14.5 million contract is one data point within that broader spending picture. An upward trend might indicate increased focus on facility modernization or expansion, while a downward trend could suggest budget constraints or a shift in priorities. Understanding this historical context is crucial for assessing whether this contract represents a typical investment or a deviation from established spending patterns. It also helps in evaluating the overall health and adequacy of the VA's infrastructure maintenance and development programs.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: VA-786A-06-IB-0019

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 LOWRIES RUN ROAD, PITTSBURGH, PA, 90

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $14,541,877

Exercised Options: $14,541,877

Current Obligation: $14,541,877

Contract Characteristics

Cost or Pricing Data: NO

Timeline