VA awards $45.1M design-build contract for seismic renovation and abatement at Walla Walla facility

Contract Overview

Contract Amount: $45,105,511 ($45.1M)

Contractor: Lasa-Pacifictech JV 1

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-26

End Date: 2025-09-30

Contract Duration: 2,561 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD SEISMIC RENOVATE, ASBESTOS AND LEAD BASED PAINT ABATEMENT BLDG. 86 OPC WALLA WALLA, WA

Place of Performance

Location: WALLA WALLA, WALLA WALLA County, WASHINGTON, 99362

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $45.1 million to LASA-PACIFICTECH JV 1 for work described as: DESIGN BUILD SEISMIC RENOVATE, ASBESTOS AND LEAD BASED PAINT ABATEMENT BLDG. 86 OPC WALLA WALLA, WA Key points: 1. The contract's fixed-price nature aims to control costs for the seismic renovation and hazardous material abatement. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration of 2561 days indicates a long-term, complex project. 4. The project is located in Washington state, impacting local construction and labor markets. 5. This contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $45.1 million for a design-build seismic renovation and abatement project appears reasonable given the scope and duration. Benchmarking against similar large-scale federal construction projects for seismic retrofitting and hazardous material removal would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost overruns on complex projects.

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.' This indicates that while the competition was intended to be broad, specific sources may have been excluded based on pre-qualification or other criteria. The number of bidders is not specified, but the 'full and open' designation suggests an effort to maximize competition within the defined parameters.

Taxpayer Impact: This procurement approach aims to ensure competitive pricing for taxpayers while allowing for specialized requirements to be met.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive an upgraded and safer facility. The project delivers essential seismic retrofitting and asbestos/lead-based paint abatement services. The geographic impact is localized to Walla Walla, Washington, potentially creating local jobs. The construction workforce in the region will be directly impacted by this multi-year project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen conditions arise during abatement or renovation.
Dependency on specialized abatement contractors could limit competitive options in the future.
Long project duration increases exposure to market fluctuations in material and labor costs.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Design-build approach can streamline project delivery and potentially reduce overall timelines.
Seismic renovation and abatement address critical safety and infrastructure needs for the VA.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically addressing complex renovation and hazardous material abatement. The federal government is a significant consumer of construction services, particularly for infrastructure upgrades and specialized facilities like those managed by the VA. Comparable spending benchmarks would involve analyzing other large-scale seismic retrofits and abatement projects awarded by federal agencies.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While the prime contractor is a joint venture, the implications for small business subcontracting are not detailed in this summary. Further analysis would be needed to determine if small businesses are involved in subcontracting roles for this project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, which shifts cost risk to the contractor. Transparency is typically facilitated through contract award databases and agency reporting, though specific oversight reports or IG jurisdiction details are not provided here.

Related Government Programs

VA Facility Modernization Projects
Federal Seismic Retrofitting Programs
Asbestos and Lead Abatement Contracts
Design-Build Construction Contracts

Risk Flags

Potential for unforeseen hazardous materials.
Complexity of seismic retrofitting requirements.
Long contract duration increases risk exposure.
Dependence on specialized joint venture contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $45.1 million to LASA-PACIFICTECH JV 1. DESIGN BUILD SEISMIC RENOVATE, ASBESTOS AND LEAD BASED PAINT ABATEMENT BLDG. 86 OPC WALLA WALLA, WA

Who is the contractor on this award?

The obligated recipient is LASA-PACIFICTECH JV 1.

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 $45.1 million.

What is the period of performance?

Start: 2018-09-26. End: 2025-09-30.

What is the track record of LASA-PACIFICTECH JV 1 with federal contracts, particularly for similar renovation and abatement projects?

Information regarding the specific track record of the joint venture 'LASA-PACIFICTECH JV 1' is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for both LASA and PACIFICTECH, individually and as a joint venture, on federal contracts. This would include examining their history with similar scope projects, on-time delivery, budget adherence, and overall quality of work. Without this data, it's difficult to definitively assess their capability and past performance on complex renovation and abatement tasks.

How does the awarded amount of $45.1 million compare to the estimated cost or budget for this specific seismic renovation and abatement project?

The provided data only includes the awarded contract amount ($45,105,510.60) and does not contain information on the government's estimated cost or allocated budget for this project. To assess value for money, a comparison between the awarded price and the government's independent government cost estimate (IGCE) would be necessary. If the awarded amount is significantly below the IGCE, it could indicate strong competition or a favorable market. Conversely, if it's at or above the IGCE, further scrutiny of the pricing and scope might be warranted. Without the estimated cost, a direct comparison is not possible.

What are the primary risks associated with a long-duration (2561 days) design-build contract for seismic renovation and hazardous material abatement?

Long-duration projects, especially those involving hazardous material abatement and seismic retrofitting, carry several inherent risks. For the government, risks include potential cost escalation due to market fluctuations in materials and labor over the extended period, especially if the fixed-price contract has escalation clauses or if significant unforeseen conditions are discovered. For the contractor, risks involve managing project scope creep, ensuring workforce stability, and maintaining profitability over many years. For both parties, the extended timeline increases the possibility of encountering unforeseen site conditions (e.g., unexpected asbestos/lead levels, structural issues) that could lead to change orders, delays, and disputes. Additionally, technological advancements in construction or abatement methods could emerge during the project lifecycle.

What is the historical spending pattern for similar building construction and renovation projects by the Department of Veterans Affairs in Washington state?

Analyzing historical spending patterns for similar VA projects in Washington state would require access to federal procurement databases (like FPDS or USASpending.gov) filtered by agency (VA), geographic location (WA), and NAICS code (236220 - Commercial and Institutional Building Construction), as well as keywords related to seismic renovation and abatement. This would reveal the frequency, average contract values, and types of contractors typically awarded such projects. Without this specific historical data, it's challenging to benchmark this $45.1 million contract against the VA's typical investment in similar infrastructure upgrades within the state. However, large-scale renovations and seismic upgrades are generally significant investments.

What specific criteria were used to exclude certain sources in the 'Full and Open Competition After Exclusion of Sources' procurement method?

The data indicates the contract was procured under 'Full and Open Competition After Exclusion of Sources.' This typically means that while the solicitation was publicly advertised, certain potential offerors were excluded based on pre-determined criteria established in the solicitation documents. These criteria often relate to specific qualifications, past performance, technical capabilities, security clearances, or geographic presence necessary for the unique requirements of the project. The exclusion is usually justified to ensure that only capable and appropriate contractors participate, especially in complex projects like seismic retrofits and hazardous material abatement where specialized expertise is critical. The specific reasons for exclusion would be detailed in the contract's justification and approval (J&A) documents, which are not provided here.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 36C10F18R0473

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8286 WESTERN WAY CIR D-10, JACKSONVILLE, FL, 32256

Business Categories: Category Business, Hispanic American Owned Business, Minority Owned Business, Partnership or Limited Liability Partnership, SBA Certified 8 a Joint Venture, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $45,105,511

Exercised Options: $45,105,511

Current Obligation: $45,105,511

Actual Outlays: $21,815,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline