DoD awards $16.3M paving contract to VEMAC, LLC for Fort Bliss organizational parking

Contract Overview

Contract Amount: $16,279,315 ($16.3M)

Contractor: Vemac, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-18

End Date: 2011-01-14

Contract Duration: 483 days

Daily Burn Rate: $33.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PAVING CONSTRUCTION TYPE I BCT-3 ORGANIZATIONAL PARKING, FT BLISS

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79916

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $16.3 million to VEMAC, LLC for work described as: PAVING CONSTRUCTION TYPE I BCT-3 ORGANIZATIONAL PARKING, FT BLISS Key points: 1. Contract value represents a significant investment in base infrastructure. 2. VEMAC, LLC, a relatively new entity, secured this award. 3. The contract was awarded under full and open competition. 4. Fixed-price contract type suggests cost certainty for the government. 5. Project duration of 483 days indicates a substantial construction undertaking. 6. Geographic focus on Texas highlights regional infrastructure development.

Value Assessment

Rating: fair

Benchmarking the value of this specific paving contract is challenging without detailed scope and material cost data. However, the total award of $16.3 million for organizational parking construction at Fort Bliss suggests a significant project. The firm-fixed-price structure aims to control costs, but the ultimate value for money depends on the quality of work and adherence to schedule. Comparing it to similar military base paving projects would require more granular data on square footage, materials used, and labor costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition after exclusion of sources,' indicating that multiple bidders were likely considered, but specific details on the number of bids received are not provided. This procurement method generally promotes competitive pricing and allows the government to select the best value offer. The exclusion of sources clause might suggest specific technical requirements or past performance considerations that narrowed the field, but the overall intent is to maximize competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive bids and avoids overpayment.

Public Impact

Military personnel and civilian employees at Fort Bliss will benefit from improved organizational parking facilities. The project delivers essential construction services, enhancing the operational readiness and quality of life at the base. The geographic impact is localized to Fort Bliss, Texas, supporting the local economy through construction activities. The contract implies a need for skilled construction labor, potentially creating jobs in the Texas region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

VEMAC, LLC's track record and experience with similar large-scale paving projects need further scrutiny.
Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Ensuring timely completion within the 483-day duration is critical for operational impact.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
Project addresses a clear need for infrastructure improvement at a major military installation.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction sector (NAICS 237310). This sector is characterized by significant public and private investment in infrastructure. Federal spending in this area often supports military installations, transportation networks, and public works. The market size for heavy construction is substantial, with numerous firms capable of undertaking such projects. This specific contract represents a targeted investment in base infrastructure, distinct from broader transportation initiatives.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, VEMAC, LLC, as the prime contractor, is likely a larger entity. There is no explicit information regarding subcontracting plans for small businesses. Without a small business subcontracting goal, the direct impact on the small business ecosystem for this specific contract may be limited, though VEMAC might engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Quality assurance representatives would likely monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Infrastructure Modernization
Federal Highway Administration Projects

Risk Flags

Contractor experience verification needed.
Potential for unforeseen site conditions.
Weather-related delays risk.
Quality assurance monitoring critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.3 million to VEMAC, LLC. PAVING CONSTRUCTION TYPE I BCT-3 ORGANIZATIONAL PARKING, FT BLISS

Who is the contractor on this award?

The obligated recipient is VEMAC, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $16.3 million.

What is the period of performance?

Start: 2009-09-18. End: 2011-01-14.

What is VEMAC, LLC's specific experience with large-scale paving and construction projects, particularly for military installations?

Information regarding VEMAC, LLC's specific track record for large-scale paving and construction projects, especially those undertaken for military installations, is not detailed in the provided data. As the contract was awarded under full and open competition, it implies that VEMAC met the minimum qualifications set forth in the solicitation. However, a deeper dive into their past performance, project portfolio, and client references would be necessary to fully assess their capability and suitability for this type of work. Without this additional context, it's difficult to definitively gauge their experience level beyond what was sufficient to win this particular bid.

How does the $16.3 million award compare to the average cost of similar organizational parking construction projects at military bases?

Directly comparing the $16.3 million award to the average cost of similar organizational parking projects is challenging without specific benchmarks for square footage, materials, and site complexity. However, the total award suggests a substantial project. Factors influencing cost include the scale of the parking area, type of paving material, drainage requirements, lighting, and any unique site preparation needs at Fort Bliss. To establish a meaningful comparison, one would need data on comparable projects, including their scope, location, and the year of award, to adjust for inflation and regional cost differences. The firm-fixed-price nature of this contract implies that the government sought cost certainty upfront.

What are the primary risks associated with this paving construction contract, and how are they being mitigated?

Primary risks for this paving construction contract include potential delays due to unforeseen subsurface conditions (e.g., soil instability, underground utilities), weather disruptions impacting the construction schedule, and material price fluctuations (though mitigated by the fixed-price contract). Ensuring the quality of workmanship to prevent premature deterioration is also a key risk. Mitigation strategies likely involve thorough site investigations prior to award, robust project management by the contractor, clear quality assurance protocols by the government, and contingency planning within the project schedule and budget. The firm-fixed-price structure incentivizes the contractor to manage these risks effectively to maintain profitability.

What is the expected impact of these new parking facilities on the operational efficiency and quality of life at Fort Bliss?

The new organizational parking facilities are expected to significantly improve operational efficiency and quality of life at Fort Bliss by providing adequate, well-maintained spaces for military personnel and civilian employees. Reduced time spent searching for parking can enhance punctuality and reduce stress. Improved organization and potentially enhanced security within parking areas contribute to a safer and more functional base environment. This infrastructure upgrade supports the daily routines of those working and residing at the installation, contributing to overall morale and productivity.

How has federal spending on paving and construction at Department of Defense facilities evolved over the past five years?

Federal spending on paving and construction at Department of Defense (DoD) facilities has historically been substantial, driven by the need to maintain and modernize extensive infrastructure across numerous installations. While specific figures for paving alone are not readily available without detailed analysis of broader construction categories, overall DoD infrastructure spending fluctuates based on budget allocations, military readiness priorities, and aging facility replacement needs. Trends often show a consistent demand for upgrades, repairs, and new construction to support evolving military operations and enhance quality of life for service members. This $16.3 million award represents a portion of that ongoing investment.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HY09R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1919 E RIO GRANDE AVE, EL PASO, TX, 79902

Business Categories: Category Business, Hispanic American Owned Business, HUBZone Firm, Labor Surplus Area Firm, Minority Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $16,279,315

Exercised Options: $16,279,315

Current Obligation: $16,279,315

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HY09D0007

IDV Type: IDC

Timeline