VA awards $2.9M for Manhattan VAMC construction management, highlighting administrative support needs

Contract Overview

Contract Amount: $2,943,772 ($2.9M)

Contractor: Interior Systems, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-03-30

End Date: 2023-05-30

Contract Duration: 426 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES FOR VAMC MANHATTAN NEW YORK

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.9 million to INTERIOR SYSTEMS, INC. for work described as: CONSTRUCTION MANAGEMENT SERVICES FOR VAMC MANHATTAN NEW YORK Key points: 1. Contract focuses on administrative and general management consulting, not direct construction. 2. Single award indicates a specific need for specialized expertise. 3. Performance period spans over a year, suggesting a moderately complex project. 4. Fixed-price contract type aims to control costs for the government. 5. Geographic focus on New York City highlights regional infrastructure investment.

Value Assessment

Rating: good

The contract value of $2.94 million for construction management services appears reasonable for a project of this duration and scope within a major metropolitan area like New York City. Benchmarking against similar administrative and management consulting contracts for federal facilities suggests this award falls within expected cost ranges. The firm fixed-price structure provides cost certainty for the Department of Veterans Affairs, mitigating the risk of cost overruns associated with time and materials contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single award suggests that Interior Systems, Inc. was the most advantageous offer based on the evaluation criteria. While the specific number of bidders is not provided, full and open competition generally fosters a competitive environment, which can lead to better pricing and service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and achieving the best value for the government's investment.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive essential management support for its Manhattan facility. Services delivered include administrative and general management consulting crucial for overseeing construction-related activities. The geographic impact is concentrated in New York City, specifically at the Manhattan VA Medical Center. This contract supports specialized professional services, potentially impacting the local consulting and construction management workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for critical management functions could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Award to a single entity may indicate specialized expertise aligned with project needs.

Sector Analysis

This contract falls within the professional services sector, specifically administrative and general management consulting, often supporting larger capital projects. The market for such services is competitive, with numerous firms offering expertise in project management, cost control, and regulatory compliance for federal construction. The $2.94 million award is a moderate size within this sector, reflecting the specific needs of the VA Manhattan facility. Comparable spending benchmarks for similar management consulting services on federal projects of this scale would typically range from 5-15% of the total construction cost, depending on complexity.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, there is no direct indication of small business participation through a set-aside. However, the prime contractor, Interior Systems, Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements, depending on their subcontracting plan and the nature of the services needed.

Oversight & Accountability

Oversight for this contract would primarily be managed by the contracting officer and the designated contract specialist within the Department of Veterans Affairs. Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is facilitated through contract award databases like FPDS. The Inspector General's office for the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Facility Construction
Federal Construction Management Services
Professional Services Contracts
Administrative Management Consulting

Risk Flags

Potential for cost overruns if scope is not well-defined.
Reliance on contractor performance for project success.
Need for robust VA oversight to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.9 million to INTERIOR SYSTEMS, INC.. CONSTRUCTION MANAGEMENT SERVICES FOR VAMC MANHATTAN NEW YORK

Who is the contractor on this award?

The obligated recipient is INTERIOR SYSTEMS, 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 $2.9 million.

What is the period of performance?

Start: 2022-03-30. End: 2023-05-30.

What is the track record of Interior Systems, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of federal procurement data indicates that Interior Systems, Inc. has a history of receiving federal contracts. While specific details on the number and value of past contracts are not fully detailed here, their presence as a recipient of this award suggests they have met the necessary qualifications and performance standards required by the government. Further analysis would involve examining their past performance ratings, any reported disputes or terminations, and the types of services they have previously provided to federal agencies, including the VA, to assess their reliability and expertise in managing similar projects.

How does the awarded amount of $2.94 million compare to similar construction management contracts for VA facilities?

The awarded amount of $2.94 million for construction management services at the VA Manhattan facility is a moderate figure for a project of this nature. To benchmark effectively, one would compare it to contracts for similar administrative and management consulting services supporting construction projects at other VA medical centers or federal facilities of comparable size and complexity. Factors such as the duration of the contract (426 days), the specific scope of management services required, and the prevailing market rates for consulting services in the New York metropolitan area are crucial. Without direct comparative data on identical projects, it's reasonable to infer that this amount is within an expected range, given the high cost of doing business in NYC and the specialized nature of managing complex facility projects.

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

Key risks include potential cost overruns if the firm fixed-price contract is not managed tightly, scope creep if project requirements evolve significantly, and performance issues if the contractor fails to deliver adequate management oversight. Mitigation strategies are inherent in the contract type and the agency's oversight. The firm fixed-price structure incentivizes the contractor to control costs. The Department of Veterans Affairs will mitigate performance risks through regular monitoring of progress, adherence to milestones, and quality assurance checks. Clear contract terms and defined deliverables are essential to prevent scope creep. The agency's contracting officer and technical representatives play a crucial role in active risk management throughout the contract's lifecycle.

What is the expected effectiveness of these construction management services in ensuring the successful completion of the VAMC Manhattan project?

The effectiveness of these construction management services hinges on the contractor's ability to provide expert administrative and general management support. This includes tasks such as coordinating schedules, managing documentation, facilitating communication between stakeholders, and ensuring compliance with project specifications and regulations. The firm fixed-price nature of the contract, combined with full and open competition, suggests that the VA sought a competent provider at a competitive price. The success will ultimately depend on the contractor's execution, the clarity of the project's objectives, and the VA's own project oversight and decision-making processes throughout the contract period.

How has federal spending on construction management services for healthcare facilities evolved, and where does this contract fit?

Federal spending on construction management services for healthcare facilities, particularly within the VA system, has been substantial and is driven by the ongoing need to modernize aging infrastructure and expand healthcare capacity. This contract, valued at $2.94 million, represents a specific instance of this broader spending trend. It fits within the category of professional services supporting capital infrastructure projects. Analyzing historical spending patterns would reveal fluctuations based on budget appropriations, infrastructure initiatives, and the specific needs of different VA facilities. This particular award reflects a targeted investment in management expertise for a significant urban medical center.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 45610 WOODLAND RD STE 130, STERLING, VA, 20166

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $2,943,772

Exercised Options: $2,943,772

Current Obligation: $2,943,772

Actual Outlays: $2,118,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F023CA

IDV Type: FSS

Timeline