VA Awards $6.6M Renovation Contract to Welch Construction Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $6,632,363 ($6.6M)

Contractor: Welch Construction Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-28

End Date: 2026-02-28

Contract Duration: 1,857 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE CLC

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13209

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.6 million to WELCH CONSTRUCTION INC. for work described as: RENOVATE CLC Key points: 1. Contract awarded for building construction services. 2. Welch Construction Inc. secured the $6.6M definitive contract. 3. Competition was full and open after source exclusion. 4. The contract has a duration of 1857 days.

Value Assessment

Rating: good

The contract value of $6.6M for a 5-year duration appears reasonable for a renovation project of this scope. Benchmarking against similar VA construction contracts would provide a more precise assessment.

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, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the renovation services.

Public Impact

Veterans in New York will benefit from improved facilities. Local construction jobs may be supported by this contract. The Department of Veterans Affairs will see facility upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns given the long contract duration.
Dependence on a single contractor for a significant period.

Positive Signals

Competitive award process.
Clear contract end date.
Firm fixed price contract type.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs and economic conditions. The VA's spending on construction is a key component of its facility management.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (sb: false). Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The definitive contract structure and firm fixed price type provide a degree of accountability for the contractor's performance and cost.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration (1857 days).
Potential for scope creep.
Reliance on a single contractor.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.6 million to WELCH CONSTRUCTION INC.. RENOVATE CLC

Who is the contractor on this award?

The obligated recipient is WELCH 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 $6.6 million.

What is the period of performance?

Start: 2021-01-28. End: 2026-02-28.

What specific renovations are included in this contract and how do they align with VA facility needs?

The provided data does not detail the specific renovation tasks. However, the contract's purpose is 'RENOVATE CLC,' likely referring to a Community Living Center. These centers provide long-term care for veterans, so renovations would typically focus on improving living spaces, common areas, and essential infrastructure to enhance resident comfort, safety, and quality of care.

What are the potential risks associated with a 5-year firm fixed-price renovation contract?

A significant risk with a long-term firm fixed-price contract is that unforeseen issues or material cost increases could erode the contractor's profit margin, potentially leading to quality compromises or disputes. Conversely, if costs decrease significantly, the government might overpay. The VA must actively monitor performance and scope to mitigate these risks.

How effective is the 'full and open competition after exclusion of sources' method in ensuring value for this type of construction contract?

This method aims to maximize competition while allowing for specific exclusions based on pre-defined criteria, potentially ensuring specialized capabilities are considered. For construction, it can be effective if the exclusion criteria are justified and do not unduly limit the pool of qualified bidders. The ultimate effectiveness hinges on whether it truly led to the best value and price for the government.

Industry Classification

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

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: 36C24221B0005

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4331 SLATE HILL RD, MARCELLUS, NY, 13108

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: $6,632,363

Exercised Options: $6,632,363

Current Obligation: $6,632,363

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline