VA awards $4M+ MATOC for facility upgrades, with 3 bids received under full and open competition

Contract Overview

Contract Amount: $4,059,503 ($4.1M)

Contractor: Imperial Construction & Electric Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-06-28

End Date: 2025-12-30

Contract Duration: 2,742 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION MATOC UPGRADE CORRIDORS

Place of Performance

Location: BRONX, BRONX County, NEW YORK, 10468

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.1 million to IMPERIAL CONSTRUCTION & ELECTRIC INC. for work described as: IGF::OT::IGF CONSTRUCTION MATOC UPGRADE CORRIDORS Key points: 1. Contract awarded to Imperial Construction & Electric Inc. for facility upgrades. 2. The contract has a long performance period extending into late 2025. 3. Pricing structure is Firm Fixed Price, indicating clear cost expectations. 4. The contract was competed under full and open competition, suggesting broad market engagement. 5. Geographic focus is New York, impacting local construction and workforce. 6. This is a delivery order under a larger Multiple Award Task Order Contract (MATOC).

Value Assessment

Rating: good

The contract value of over $4 million for facility upgrades appears reasonable given the scope and duration. Benchmarking against similar MATOC delivery orders for construction services by the VA would provide a more precise value-for-money assessment. The firm fixed price structure helps manage cost certainty for the government. Without specific details on the individual task orders issued under this MATOC, a granular per-unit cost analysis is not feasible, but the overall award value is within expected ranges for such projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The data shows 3 bids were received, which suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred, a higher number of bidders could potentially lead to more aggressive pricing. The VA's process likely involved a thorough evaluation of technical capabilities and price to select the best value.

Taxpayer Impact: The use of full and open competition ensures that taxpayer dollars are exposed to a wide range of potential suppliers, fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

Veterans in New York will benefit from improved healthcare facilities. Essential infrastructure upgrades will be delivered to VA medical centers. The contract supports the modernization of healthcare infrastructure. Local construction jobs in New York are likely to be supported by this contract. The project contributes to the operational efficiency of VA facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep on future task orders under the MATOC.
Long performance period could lead to challenges in adapting to new technologies or building codes.
Dependence on a single contractor for multiple task orders could limit future competition if not managed carefully.

Positive Signals

Awarded under full and open competition, maximizing potential bidder pool.
Firm Fixed Price contract type provides cost certainty.
Delivery order under a MATOC allows for streamlined procurement of future needs.
Contractor has experience in commercial and institutional building construction.
Long-term contract provides stability for facility upgrade planning.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a critical component of the broader construction industry. The market for government construction contracts is substantial, with agencies like the Department of Veterans Affairs consistently investing in facility maintenance and upgrades. Benchmarking against similar MATOC awards for construction services reveals that contract values can range widely based on project scope, but this award appears consistent with typical delivery orders for facility modernization.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is Imperial Construction & Electric Inc., the implications for small business subcontracting are not detailed in this data. A thorough review would require examining the subcontracting plan, if any, associated with this delivery order to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and program managers. The firm fixed price nature of the contract provides a degree of cost control. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract performance or award process.

Related Government Programs

VA Facilities Engineering
Military Construction
General Services Administration (GSA) Schedules
Construction and Engineering Services

Risk Flags

Moderate competition level may impact future price discovery.
Long contract duration requires diligent oversight.
Scope of specific upgrades not fully detailed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.1 million to IMPERIAL CONSTRUCTION & ELECTRIC INC.. IGF::OT::IGF CONSTRUCTION MATOC UPGRADE CORRIDORS

Who is the contractor on this award?

The obligated recipient is IMPERIAL CONSTRUCTION & ELECTRIC 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 $4.1 million.

What is the period of performance?

Start: 2018-06-28. End: 2025-12-30.

What is the historical spending pattern for facility upgrades at this specific VA facility or within this region?

Analyzing historical spending for facility upgrades at the relevant VA facility or within the New York region would provide crucial context for this $4M+ award. Without access to specific historical data, it's difficult to determine if this represents an increase, decrease, or consistent level of investment. Agencies often have multi-year capital investment plans that guide such spending. Understanding past expenditures can help assess whether this contract aligns with long-term facility modernization strategies and whether the current award represents a significant shift in investment. It also helps in identifying potential trends in contract types, durations, and awarded contractors for similar projects.

How does the per-task order value of this MATOC delivery order compare to similar construction contracts awarded by the VA?

Comparing the per-task order value of this MATOC delivery order to similar construction contracts awarded by the VA requires access to detailed data on individual task orders and comparable contracts. Since this data point represents the total value of a delivery order under a MATOC, its 'per-unit cost' is not directly applicable in the traditional sense. However, we can benchmark the overall value against other facility upgrade contracts. If similar projects for comparable scope (e.g., HVAC upgrades, structural repairs) awarded under different contract vehicles or to different entities within the VA have significantly lower or higher values, it would indicate potential issues with pricing or scope definition. A higher value might be justified by unique requirements or market conditions, while a lower value could suggest better negotiation or a more competitive bidding environment for those other contracts.

What is the track record of Imperial Construction & Electric Inc. on similar government contracts, particularly with the VA?

Imperial Construction & Electric Inc.'s track record on similar government contracts, especially with the VA, is a key indicator of performance risk and capability. A review of their past performance would involve examining contract databases for previous awards, their value, duration, and any reported performance issues or successes. Specifically, looking at their experience with facility upgrades, MATOCs, and firm-fixed-price contracts would be relevant. Positive past performance, particularly on VA projects, suggests a lower risk of delivery delays, cost overruns, or quality issues. Conversely, a history of disputes, contract terminations, or poor performance ratings would raise concerns about their ability to successfully execute this current contract, despite the moderate competition.

What specific types of facility upgrades are covered under this contract, and how do they align with VA's modernization priorities?

The specific types of facility upgrades covered under this contract are crucial for understanding its impact and value. While the data identifies it as 'IGF::OT::IGF CONSTRUCTION MATOC UPGRADE CORRIDORS,' this suggests a focus on corridor upgrades within facilities, potentially related to infrastructure, safety, or modernization. Understanding the exact scope—whether it includes electrical, plumbing, HVAC, structural, or aesthetic improvements—is essential. Aligning these upgrades with the VA's stated modernization priorities, such as enhancing patient care environments, improving energy efficiency, or ensuring compliance with current building codes and accessibility standards, helps justify the investment. Without this detailed scope, it's difficult to fully assess the strategic importance and effectiveness of the contract.

Given the moderate competition (3 bidders), what is the potential risk of contractor performance issues or price escalation in future task orders?

The moderate competition level of 3 bidders for this MATOC delivery order presents a potential risk for future contractor performance and price escalation. While 3 bidders indicate some level of market engagement, it is not as robust as a larger pool, which could lead to less downward pressure on prices. For future task orders issued under this MATOC, if the number of interested and capable bidders remains limited, Imperial Construction & Electric Inc. might face less incentive to offer highly competitive pricing. Furthermore, a smaller pool of qualified contractors could mean fewer options if performance issues arise with the incumbent, potentially leading to delays or increased costs if a replacement or corrective action is needed. The VA's contract management will be critical in mitigating these risks.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 769 MONTGOMERY ST STE 102, JERSEY CITY, NJ, 07306

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: $4,059,503

Exercised Options: $4,059,503

Current Obligation: $4,059,503

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA24313D0151

IDV Type: IDC

Timeline