VA awards $3M contract for Brockton medical center roof replacement to KMK Construction

Contract Overview

Contract Amount: $3,054,012 ($3.1M)

Contractor: KMK Construction, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-08

End Date: 2026-05-30

Contract Duration: 752 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 523A5-22-001 REPLACE MULTIPLE ROOFS AT THE VA MEDICAL CENTER IN BROCKTON, MA

Place of Performance

Location: BROCKTON, PLYMOUTH County, MASSACHUSETTS, 02301

State: Massachusetts Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to KMK CONSTRUCTION, INC for work described as: 523A5-22-001 REPLACE MULTIPLE ROOFS AT THE VA MEDICAL CENTER IN BROCKTON, MA Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is a firm fixed-price definitive contract, providing cost certainty. 3. The duration of 752 days indicates a significant project scope. 4. The awardee, KMK Construction, Inc., is a new entity in federal contracting based on available data. 5. The project is located in Massachusetts, impacting local construction workforce and materials suppliers. 6. The contract value is within a moderate range for major facility maintenance projects.

Value Assessment

Rating: good

The contract value of approximately $3 million for roof replacement at a VA medical center appears reasonable given the scope and duration. Benchmarking against similar large-scale roofing projects for federal facilities suggests this price is competitive. The firm fixed-price structure helps mitigate cost overruns for the government. However, without specific details on the square footage or complexity of the roofing required, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which typically means that the solicitation was broadly advertised, but specific sources were initially excluded before a full and open competition was conducted. Five bids were received, indicating a healthy level of interest and competition for this roofing project. The competitive nature of the bidding process is expected to drive down prices and ensure the government receives fair market value.

Taxpayer Impact: The robust competition suggests that taxpayer dollars are being used efficiently, as multiple contractors vied to offer the best price and terms for the roof replacement services.

Public Impact

The primary beneficiaries are veterans and staff at the VA Medical Center in Brockton, MA, who will receive a safe and weather-resilient facility. The contract delivers essential infrastructure maintenance services, ensuring the operational integrity of a critical healthcare facility. The geographic impact is localized to Brockton, Massachusetts, potentially creating temporary jobs for local construction workers and benefiting local material suppliers. The project will likely involve skilled tradespeople, including roofers, laborers, and supervisors, contributing to the local construction economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

New contractor: KMK Construction, Inc. has limited federal contracting history, which can sometimes introduce performance risks.
Project complexity: Large-scale roof replacements on active medical facilities can present logistical and operational challenges.
Weather dependency: Roofing projects are susceptible to delays due to adverse weather conditions, potentially impacting the schedule.

Positive Signals

Competitive award: The contract was awarded through full and open competition, indicating a potentially strong bid.
Fixed-price contract: The firm fixed-price structure provides cost certainty and limits the government's exposure to cost overruns.
Essential service: The project addresses critical infrastructure needs for a vital VA facility.

Sector Analysis

The federal construction and maintenance sector is a significant area of government spending, encompassing a wide range of projects from minor repairs to major facility construction. Roofing is a critical component of building maintenance, essential for protecting infrastructure from the elements and ensuring operational continuity. This contract fits within the broader category of facility sustainment, repair, and alteration (SRA) for federal buildings. Comparable spending benchmarks for similar roofing projects can vary widely based on building size, material type, and geographic location.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a small business set-aside. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though KMK Construction, Inc. may engage small businesses as subcontractors if it aligns with their project execution strategy.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs (VA). As a definitive contract awarded under full and open competition, it is subject to standard federal procurement regulations and oversight mechanisms. The VA's Office of Inspector General (OIG) may conduct audits or investigations into the contract's performance and financial aspects if concerns arise. Transparency is maintained through contract databases like FPDS, which record award details.

Related Government Programs

VA Facilities Management
Federal Building Maintenance
Construction Services
Infrastructure Repair

Risk Flags

New Contractor Risk
Potential for Schedule Delays (Weather)
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to KMK CONSTRUCTION, INC. 523A5-22-001 REPLACE MULTIPLE ROOFS AT THE VA MEDICAL CENTER IN BROCKTON, MA

Who is the contractor on this award?

The obligated recipient is KMK CONSTRUCTION, 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 $3.1 million.

What is the period of performance?

Start: 2024-05-08. End: 2026-05-30.

What is the track record of KMK Construction, Inc. with federal contracts?

Based on the provided data, KMK Construction, Inc. appears to be a relatively new entrant into the federal contracting space, with this award being a significant initial contract. Further investigation into federal procurement databases would be necessary to ascertain the full extent of their federal contract history, including any prior awards, performance evaluations, or past performance information. The limited history suggests a potential for higher risk compared to established contractors with a proven track record of successful federal project completion. However, a competitive bid on a full and open solicitation indicates their capability and willingness to engage with government projects.

How does the $3.05 million cost compare to similar VA roofing projects?

Benchmarking the $3.05 million cost requires detailed project specifications such as the total square footage of roofing replaced, the type of roofing materials used, and the complexity of the existing roof structure (e.g., multiple levels, HVAC penetrations). However, for a large VA medical center, a multi-million dollar roofing project is not uncommon. Typical large-scale roofing projects for federal facilities can range from $1 million to over $10 million depending on these factors. The firm fixed-price nature of this contract provides cost certainty for the VA. A more precise comparison would involve analyzing the cost per square foot against similar projects awarded in the same region and for comparable facility types.

What are the potential risks associated with a new contractor performing this work?

The primary risk associated with a new contractor like KMK Construction, Inc. is the lack of a demonstrated federal performance history. This can translate to potential challenges in project management, adherence to federal regulations and reporting requirements, quality control, and timely completion. There might be a steeper learning curve regarding government-specific processes and communication protocols. To mitigate these risks, the VA will likely implement robust oversight, regular progress reviews, and clear performance metrics. Ensuring adequate bonding and insurance is also crucial. The competitive nature of the award, however, suggests that KMK Construction, Inc. presented a credible plan and pricing.

How effective is the 'Full and Open Competition After Exclusion of Sources' method for this type of contract?

The 'Full and Open Competition After Exclusion of Sources' (FOUC AES) method is a specific type of competitive procurement. It implies that the agency initially considered excluding certain sources but ultimately opened the competition broadly. For a project like roof replacement, which is a standard construction service, FOUC AES can be effective if the initial exclusion was based on specific, justifiable criteria that were later deemed unnecessary or if the agency wanted to ensure a wider pool of qualified bidders. Receiving five bids suggests the method, in this case, successfully attracted multiple interested parties, fostering price competition and potentially leading to a better value for the government compared to a sole-source or limited competition award.

What is the historical spending trend for roofing contracts at the Brockton VA Medical Center?

Analyzing historical spending trends for roofing contracts specifically at the Brockton VA Medical Center would require accessing detailed historical contract data. Without access to that specific data, it's difficult to provide a precise trend. However, federal facilities, especially older ones like medical centers, typically require periodic roof maintenance and replacement due to wear and tear. Spending on such projects can be cyclical, with larger replacement projects occurring every 15-30 years, interspersed with smaller repair and maintenance contracts. The current $3.05 million award suggests a significant capital investment, possibly indicating the end of the lifespan for the existing roof or a major upgrade.

What are the implications of a Firm Fixed Price (FFP) contract for this roofing project?

A Firm Fixed Price (FFP) contract, like the one awarded to KMK Construction, Inc., is generally advantageous for the government when the scope of work is well-defined and the risks of cost overruns are manageable. For a roofing project, the primary costs are labor, materials, and equipment, which are relatively predictable. The FFP structure places the risk of cost overruns on the contractor, incentivizing them to manage their costs efficiently and complete the project within budget. This provides the VA with significant cost certainty, making budgeting more straightforward. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs.

Industry Classification

NAICS: Construction › Foundation, Structure, and Building Exterior Contractors › Roofing Contractors

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24124B0025

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1395 CHAFFEE RD S STE 2, JACKSONVILLE, FL, 32221

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: $3,054,012

Exercised Options: $3,054,012

Current Obligation: $3,054,012

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline