VA Awards $4.68M Roof Replacement Contract to Padovani Construction for NJ Healthcare System

Contract Overview

Contract Amount: $4,677,176 ($4.7M)

Contractor: Padovani Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-11-21

End Date: 2026-04-17

Contract Duration: 1,243 days

Daily Burn Rate: $3.8K/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: PROJECT NO. 561A4-17-108 REPLACE ROOF - BLDGS. 2, 4, 6, 7, 8, 9, 57 VA NJ HEALTHCARE SYSTEM LYONS

Place of Performance

Location: LYONS, SOMERSET County, NEW JERSEY, 07939

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.7 million to PADOVANI CONSTRUCTION LLC for work described as: PROJECT NO. 561A4-17-108 REPLACE ROOF - BLDGS. 2, 4, 6, 7, 8, 9, 57 VA NJ HEALTHCARE SYSTEM LYONS Key points: 1. The contract aims to replace roofs on multiple buildings within the VA NJ Healthcare System. 2. The award was made under full and open competition after exclusion of sources. 3. The project has a firm fixed price contract type. 4. The total duration of the contract is 1243 days.

Value Assessment

Rating: good

The contract value of $4.68 million for roof replacement across multiple buildings appears reasonable given the scope. Benchmarking against similar large-scale institutional roof replacement projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. This method might limit the pool of bidders, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance at a VA facility, ensuring continued service delivery.

Public Impact

Ensures continued operation of critical VA healthcare facilities by maintaining building integrity. Supports local economy through construction services and potential job creation. Addresses deferred maintenance needs within the VA system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues are discovered during roof replacement.
Contract duration extends over three years, increasing exposure to market fluctuations.
Limited competition after source exclusion could lead to suboptimal pricing.

Positive Signals

Addresses critical infrastructure needs for veteran healthcare.
Firm fixed price contract provides cost certainty.
Competition, even if limited, is a positive sign.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector for government facilities is driven by maintenance, repair, and new construction needs, often influenced by agency budgets and infrastructure priorities.

Small Business Impact

The data indicates the awardee is Padovani Construction LLC. It is unclear from the provided data whether this is a small business. Further analysis would be needed to determine the impact on small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard procurement regulations and contract management practices should ensure accountability and proper execution of the work.

Related Government Programs

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

Risk Flags

Contract duration exceeds three years.
Potential for scope creep if unforeseen issues arise.
Limited competition after source exclusion.
Firm Fixed Price contract can be less flexible for unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.7 million to PADOVANI CONSTRUCTION LLC. PROJECT NO. 561A4-17-108 REPLACE ROOF - BLDGS. 2, 4, 6, 7, 8, 9, 57 VA NJ HEALTHCARE SYSTEM LYONS

Who is the contractor on this award?

The obligated recipient is PADOVANI CONSTRUCTION LLC.

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 $4.7 million.

What is the period of performance?

Start: 2022-11-21. End: 2026-04-17.

What is the estimated cost per square foot for the roof replacement, and how does it compare to industry benchmarks for similar government facilities?

The provided data does not include the total square footage of the roofs being replaced, making a per-square-foot cost calculation impossible. To assess value, this metric would need to be obtained and compared against industry averages for commercial and institutional building construction, particularly for government contracts which can sometimes have different cost structures due to regulations and bidding processes.

What were the specific reasons for excluding other potential sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' process?

The rationale for excluding specific sources under this procurement method is not detailed in the provided data. Typically, such exclusions are based on factors like prior performance, specialized capabilities, or specific technical requirements that only a limited number of contractors can meet. Understanding these reasons is crucial for evaluating whether the exclusion unduly limited competition and potentially impacted the final price.

How will the VA ensure the quality and longevity of the roof replacements, given the extended contract duration and the number of buildings involved?

The VA will likely employ a multi-faceted approach to ensure quality, including detailed specifications in the contract, regular site inspections by contracting officers' representatives (CORs), material testing, and performance reviews of the contractor. The firm fixed price nature of the contract incentivizes the contractor to complete the work to specification to avoid payment disputes. Post-completion warranties will also be a key factor.

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: SEALED BID

Solicitation ID: 36C24222B0020

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 46 HIGGINSVILLE RD, NESHANIC STATION, NJ, 08853

Business Categories: Category Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $4,677,176

Exercised Options: $4,677,176

Current Obligation: $4,677,176

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline