VA awards $14.88M construction contract to Iron Sword Enterprises for primary care facility

Contract Overview

Contract Amount: $14,883,162 ($14.9M)

Contractor: Iron Sword Enterprises, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-30

End Date: 2026-09-03

Contract Duration: 703 days

Daily Burn Rate: $21.2K/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: CONSOLIDATE PRIMARY CARE FIRST FLOOR

Place of Performance

Location: ALBANY, ALBANY County, NEW YORK, 12208

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.9 million to IRON SWORD ENTERPRISES, LLC for work described as: CONSOLIDATE PRIMARY CARE FIRST FLOOR Key points: 1. Contract value appears reasonable for a large-scale construction project of this nature. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of approximately two years is standard for major construction. 4. Performance risk appears moderate given the nature of construction projects. 5. This contract falls within the commercial and institutional building construction sector. 6. The awardee, Iron Sword Enterprises, LLC, is a new entity in federal contracting. 7. No small business set-aside was applied to this procurement.

Value Assessment

Rating: good

The contract value of $14.88 million for the consolidation and renovation of a primary care facility's first floor seems within the expected range for a project of this scope. Benchmarking against similar VA or other federal healthcare construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs for the government, assuming the scope is well-defined. Without specific cost breakdowns or detailed comparisons to market rates for similar construction services in the New York area, a definitive assessment of pricing efficiency 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,' indicating that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this specific procurement. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The exclusion of sources clause might indicate specific pre-qualification criteria were met by the bidders.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of potential providers. However, with only two bids received, there is a possibility that the competitive pressure was not as intense as it could have been with more offers.

Public Impact

Veterans in the New York area will benefit from improved primary care facilities. The project will deliver enhanced healthcare infrastructure for the Department of Veterans Affairs. Geographic impact is concentrated in New York, specifically where the facility is located. The construction work will likely create temporary employment opportunities for skilled tradespeople in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The awardee, Iron Sword Enterprises, LLC, appears to be a relatively new entity in federal contracting, which could present execution risks.
Limited competition (two bidders) may indicate potential challenges in the market or the specific requirements of the solicitation.
The firm-fixed-price contract type requires careful scope management to avoid change orders that could increase costs.

Positive Signals

The contract was awarded under full and open competition, maximizing the pool of potential offerors.
The firm-fixed-price contract provides cost certainty for the government once the scope is finalized.
The project aims to improve critical healthcare infrastructure for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The federal government, particularly agencies like the Department of Veterans Affairs, consistently invests in healthcare infrastructure. Spending in this sector is driven by the need to maintain, modernize, and expand facilities. Comparable spending benchmarks would involve analyzing other VA medical center construction or renovation projects, as well as similar institutional building projects across federal agencies.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. The procurement was conducted under full and open competition. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The lack of a small business set-aside means that large businesses were eligible to compete and potentially win, which is standard for large-scale construction projects where specialized capabilities might be required.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified construction services. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

VA Medical Facility Construction
Federal Healthcare Infrastructure Projects
Commercial Building Renovation Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

New Contractor Risk
Limited Competition
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.9 million to IRON SWORD ENTERPRISES, LLC. CONSOLIDATE PRIMARY CARE FIRST FLOOR

Who is the contractor on this award?

The obligated recipient is IRON SWORD ENTERPRISES, 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 $14.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-03.

What is the track record of Iron Sword Enterprises, LLC in federal contracting?

Based on the provided data, Iron Sword Enterprises, LLC appears to be a relatively new entrant into the federal contracting space. The data does not indicate a significant history of prior federal awards or performance. As a newer entity, its track record with complex construction projects, adherence to federal regulations, and ability to manage large-scale contracts effectively is not yet established through extensive federal performance history. Further investigation into their corporate structure, bonding capacity, and any prior non-federal project experience would be necessary for a comprehensive assessment of their capabilities and reliability.

How does the awarded value compare to similar VA primary care facility construction projects?

Directly comparing the $14.88 million award for consolidating and renovating a first floor of a primary care facility requires access to a database of similar projects with detailed scope and location information. However, for a significant renovation or consolidation of a healthcare facility floor, this value is plausible, especially in a high-cost area like New York. Factors such as the extent of structural work, MEP (mechanical, electrical, plumbing) upgrades, specialized medical equipment integration, and compliance with healthcare building codes significantly influence project costs. Without specific comparable project data, it's difficult to definitively state if this represents exceptional value, but it falls within a reasonable range for substantial facility work.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential execution challenges due to the awardee's likely limited federal contracting experience, as Iron Sword Enterprises, LLC appears to be a newer entity. Scope creep is another significant risk, particularly in construction projects, which could lead to cost overruns if not managed tightly under the firm-fixed-price structure. Furthermore, the limited competition (two bidders) might suggest underlying market conditions or solicitation complexities that could impact overall project success or future pricing. Ensuring robust project oversight and clear communication channels will be crucial to mitigate these risks.

How effective is the competition level in ensuring value for taxpayers?

The competition level for this contract, with two bids received under full and open competition, presents a mixed picture for taxpayer value. While full and open competition is designed to maximize opportunities and foster competitive pricing, only two bidders suggest that the market may not have been as robustly engaged as possible. This could mean that the government secured a reasonable price, but potentially not the absolute lowest achievable if more firms had participated. The effectiveness hinges on whether these two bidders were highly qualified and aggressively priced their offers. Without more bids, the downward pressure on price might have been less intense.

What are the historical spending patterns for similar construction projects at the VA?

Historical spending patterns for similar construction projects at the VA indicate a consistent and substantial investment in healthcare infrastructure. The VA regularly procures services for the construction, renovation, and maintenance of its medical centers, clinics, and administrative facilities nationwide. Spending varies significantly based on project size, scope (new construction vs. renovation), location, and complexity (e.g., specialized medical equipment installation). Analyzing past VA construction contracts, particularly those for facility upgrades or new builds in major metropolitan areas, would reveal trends in contract values, duration, and the types of contractors typically awarded these projects.

What is the significance of the 'Exclusion of Sources' clause in the competition type?

The 'Full and Open Competition After Exclusion of Sources' designation suggests that while the procurement was broadly advertised, specific sources were excluded from consideration. This typically occurs when certain pre-qualification criteria, unique capabilities, or specific certifications are required, and only a limited number of firms meet them. For example, a project might require specialized security clearances, specific technological expertise, or adherence to unique manufacturing processes. While it's still considered 'full and open' in that all *eligible* sources could compete, the exclusion narrows the field, potentially impacting the number of bids received and the overall competitive landscape.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24224R0080

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2359 STATE ROUTE 300, WALLKILL, NY, 12589

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $14,883,162

Exercised Options: $14,883,162

Current Obligation: $14,883,162

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline