VA awards $3.7M contract for building renovation, highlighting construction sector activity

Contract Overview

Contract Amount: $3,694,917 ($3.7M)

Contractor: Jackson Ryan Construction Services, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-24

End Date: 2026-02-09

Contract Duration: 1,022 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EO14042 - MATOC - RENOVATE BUILDING 14 FOR LOGISTIC EXPANSION

Place of Performance

Location: LEEDS, HAMPSHIRE County, MASSACHUSETTS, 01053

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.7 million to JACKSON RYAN CONSTRUCTION SERVICES, INC. for work described as: EO14042 - MATOC - RENOVATE BUILDING 14 FOR LOGISTIC EXPANSION Key points: 1. Contract focuses on essential facility upgrades for logistical expansion. 2. Competition dynamics suggest a standard procurement process for this type of work. 3. Performance will be monitored through delivery order execution. 4. The contract aligns with broader VA infrastructure modernization efforts. 5. Construction sector spending remains a significant component of federal outlays.

Value Assessment

Rating: good

The contract value of approximately $3.7 million for building renovation appears reasonable for a project of this scope, particularly within the context of federal construction projects. Benchmarking against similar renovation contracts for institutional buildings would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the final expenditure will depend on the specific work performed under the delivery order.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specific project. While more bidders could potentially drive prices lower, a competitive process was still employed, which is generally favorable for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the renovation services. Full and open competition helps ensure that public funds are used efficiently by preventing sole-source awards without justification.

Public Impact

Veterans will benefit from improved facilities supporting logistical operations. The contract delivers essential building renovation services. Geographic impact is localized to the facility where the renovation occurs. The project will likely involve skilled construction labor, supporting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during renovation.
Dependence on contractor's ability to meet project timelines and quality standards.

Positive Signals

Awarded under full and open competition, suggesting a fair procurement process.
Firm-fixed-price contract type helps manage cost certainty.
Clear delivery order mechanism for task execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks would involve analyzing other renovation and construction contracts awarded by agencies like the VA or GSA for similar building types and project scopes.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. Further analysis would be needed to determine if any small business participation occurred through the prime contractor's own subcontracting efforts or if the prime contractor itself is a small business. The absence of a set-aside suggests larger firms may have been the primary focus of competition.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs through the contract's delivery order system and performance monitoring. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified work within the agreed price. Transparency is facilitated by the contract award data being publicly available, though detailed project progress reports may be internal.

Related Government Programs

VA Facility Modernization Programs
Federal Building Construction Contracts
MATOC Contracts
Logistics Infrastructure Projects

Risk Flags

Potential for scope creep if renovation needs are not fully defined.
Risk of delays impacting facility operational readiness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.7 million to JACKSON RYAN CONSTRUCTION SERVICES, INC.. EO14042 - MATOC - RENOVATE BUILDING 14 FOR LOGISTIC EXPANSION

Who is the contractor on this award?

The obligated recipient is JACKSON RYAN CONSTRUCTION SERVICES, 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 $3.7 million.

What is the period of performance?

Start: 2023-04-24. End: 2026-02-09.

What is the track record of Jackson Ryan Construction Services, Inc. with federal contracts, particularly with the Department of Veterans Affairs?

A review of Jackson Ryan Construction Services, Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance on similar projects, including their timeliness, adherence to budget, and quality of work. Specifically looking at their history with the Department of Veterans Affairs would provide insight into their experience with the agency's specific requirements and procedures. Data on past performance evaluations, any contract disputes, or awards for exceptional performance would be crucial in understanding their reliability and capability for executing this current renovation contract effectively.

How does the awarded price compare to similar building renovation projects undertaken by the VA or other federal agencies?

To benchmark the value of this $3.7 million contract, a comparative analysis of similar federal building renovation projects is required. This would involve identifying contracts with comparable scope, size, and complexity, such as renovations of institutional or commercial buildings, awarded within a similar timeframe. Factors like geographic location, specific renovation needs (e.g., structural, MEP, finishes), and the level of competition for those comparable contracts would need to be considered. If this contract's per-square-foot cost or overall price falls within the typical range for such projects, it suggests fair pricing. Deviations could indicate either exceptional value or potential overpricing, warranting further investigation.

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

The primary risks associated with this renovation contract include potential cost overruns due to unforeseen site conditions, delays in project completion impacting logistical operations, and quality control issues. Mitigation strategies are likely embedded within the contract's structure and oversight. The firm-fixed-price nature helps control costs, assuming the scope is well-defined. The Department of Veterans Affairs' oversight, including site inspections and progress reviews, will address quality and timeliness. Clear performance standards and potential penalties for non-compliance also serve as risk mitigation tools. The contractor's own risk management plan will also be a key factor.

How effective is the current delivery order (DO) mechanism for managing this type of renovation project compared to other contract vehicles?

The Delivery Order (DO) mechanism, often used under Indefinite Delivery Indefinite Quantity (IDIQ) contracts or Master Agreements, provides flexibility in tasking and funding for specific projects like this renovation. Its effectiveness hinges on the clarity of the base contract's scope and the specific task orders issued. For renovation projects, DOs can be efficient if the scope is well-defined for each order, allowing for phased work or specific upgrades. However, if the base contract is too broad or task orders are poorly defined, it can lead to scope creep or disputes. Compared to a standalone fixed-price contract for the entire project, DOs offer more adaptability but require diligent management by the agency to ensure cost control and adherence to the overall project goals.

What is the historical spending trend for building renovation and construction by the Department of Veterans Affairs over the past five years?

Analyzing the Department of Veterans Affairs' historical spending on building renovation and construction over the past five years would reveal trends in infrastructure investment. This would involve aggregating data on contracts awarded for similar types of work, such as facility upgrades, expansions, and new construction. Key metrics to examine would include the total annual spending, the average contract value, the distribution of contract types (e.g., fixed-price, cost-plus), and the prevalence of different procurement methods (e.g., full and open competition, set-asides). Understanding these trends provides context for the current $3.7 million award, indicating whether it aligns with historical patterns or represents a significant shift in spending priorities or project scale.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 HALLADAY AVE W, SUFFIELD, CT, 06078

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

Financial Breakdown

Contract Ceiling: $3,694,917

Exercised Options: $3,694,917

Current Obligation: $3,694,917

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24118D0098

IDV Type: IDC

Timeline