VA awards $14.7M construction contract to Serviam Construction LLC for facility upgrades

Contract Overview

Contract Amount: $14,727,055 ($14.7M)

Contractor: Serviam Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-11-21

End Date: 2026-01-06

Contract Duration: 411 days

Daily Burn Rate: $35.8K/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: EXPAND MRI

Place of Performance

Location: SYRACUSE, ONONDAGA County, NEW YORK, 13210

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $14.7 million to SERVIAM CONSTRUCTION LLC for work described as: EXPAND MRI Key points: 1. Contract value represents a significant investment in infrastructure modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Fixed-price contract type may offer cost certainty but limits flexibility for scope changes. 4. Contract duration of over a year indicates a substantial project scope. 5. Geographic focus on New York highlights regional infrastructure needs. 6. The award falls within the broad category of commercial and institutional building construction.

Value Assessment

Rating: good

The contract value of $14.7 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Benchmarking against similar VA construction projects would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an expectation of well-defined requirements and cost control by the contractor. Further analysis of the contractor's past performance and bid details would refine this 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 that while full and open competition was intended, certain sources may have been excluded prior to the final award. The presence of two bids suggests a degree of competition, but the exclusion of sources raises questions about the breadth of the competitive pool. This limited competition might impact price discovery and potentially lead to higher costs compared to a truly open solicitation.

Taxpayer Impact: Taxpayers may not have benefited from the widest possible range of competitive offers, potentially resulting in a less optimal price than could have been achieved through unrestricted competition.

Public Impact

Veterans will benefit from improved facilities and infrastructure at VA sites. The contract will deliver essential construction and renovation services. The project's impact is primarily focused within New York. Local construction workforce may see employment opportunities arise from this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment.
Exclusion of sources could indicate barriers to entry for other qualified contractors.
Firm-fixed-price contracts can be less adaptable to unforeseen site conditions.

Positive Signals

Award to a single contractor streamlines project management.
Fixed-price contract provides budget predictability for the VA.
Contract duration allows for thorough execution of construction tasks.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building and renovation of non-residential structures such as government facilities, hospitals, and educational institutions. Spending in this sector is often driven by government infrastructure needs and facility modernization programs. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for similar government building projects in the Northeast region.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities. Further investigation into subcontracting plans would clarify the extent of small business involvement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price structure, which holds the contractor responsible for delivering the specified work within the agreed-upon cost. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Capital Asset and Business Process Realignment
Federal Buildings and Facilities Construction
Department of Defense Construction Contracts

Risk Flags

Limited competition may impact price optimization.
Potential for unforeseen site conditions in construction projects.
Contract duration requires sustained project management oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $14.7 million to SERVIAM CONSTRUCTION LLC. EXPAND MRI

Who is the contractor on this award?

The obligated recipient is SERVIAM 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 $14.7 million.

What is the period of performance?

Start: 2024-11-21. End: 2026-01-06.

What is Serviam Construction LLC's track record with the Department of Veterans Affairs and other federal agencies?

Serviam Construction LLC has a history of federal contracting, primarily with the Department of Veterans Affairs. Analyzing their past performance ratings, contract completion history, and any documented disputes or awards would provide insight into their reliability and capability. A review of their contract portfolio with other agencies, if any, would further contextualize their experience and ability to handle projects of this scale and complexity. Specific data on past performance metrics, such as on-time delivery and adherence to budget on previous VA projects, would be crucial for a comprehensive assessment of their track record.

How does the awarded price compare to similar construction projects undertaken by the VA or other federal agencies in New York?

Benchmarking this $14.7 million contract against similar commercial and institutional building construction projects awarded by the VA or other federal agencies in the New York region is essential for assessing value for money. Factors such as square footage, type of construction (e.g., new build vs. renovation), specific facility needs (e.g., medical equipment integration), and prevailing labor and material costs in the New York area should be considered. A detailed comparison would involve analyzing cost per square foot, unit costs for specific construction elements, and overall project complexity to determine if Serviam Construction LLC's bid was competitive and represented a fair market price.

What are the primary risks associated with this firm-fixed-price contract for facility upgrades?

The primary risks associated with this firm-fixed-price contract revolve around potential scope creep and unforeseen site conditions. While the fixed price offers cost certainty, it can become a liability if the project scope expands beyond the initial requirements without a corresponding price adjustment. Unforeseen issues discovered during construction, such as structural problems or hazardous materials, could lead to change orders, potentially increasing the overall cost and duration if not managed effectively. Contractor performance risk also exists, where delays or quality issues could impact the project's timely completion and the VA's ability to utilize the upgraded facilities.

What is the expected impact of these facility upgrades on the delivery of services to veterans?

These facility upgrades are expected to significantly enhance the delivery of services to veterans by modernizing and improving the functionality of VA facilities. Upgraded infrastructure can lead to a more comfortable and efficient healthcare environment, potentially improving patient experience and staff productivity. Modernized spaces may also allow for the implementation of new technologies or expanded service offerings, addressing current capacity limitations or outdated systems. Ultimately, the goal is to provide veterans with state-of-the-art facilities that support high-quality care and a positive user experience.

How has federal spending on commercial and institutional building construction by the VA trended over the past five years?

Analyzing federal spending trends on commercial and institutional building construction by the VA over the past five years would provide context for this $14.7 million award. This trend analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, potentially indicating shifts in VA infrastructure priorities or budget allocations. Understanding historical spending patterns can help identify periods of high investment, which might correlate with major modernization initiatives or responses to facility needs. Such data could also highlight any significant fluctuations that might warrant further investigation into their causes.

What does the 'exclusion of sources' in the contract's competition type imply for future procurements?

The 'exclusion of sources' in the contract's competition type, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' implies that while the solicitation was intended to be open, specific potential bidders were identified and excluded prior to the final competition phase. This could be due to various reasons, such as prior performance issues, inability to meet specific pre-qualification criteria, or specific statutory/regulatory limitations. For future procurements, this suggests that agencies may employ pre-qualification steps or have specific criteria that could limit the pool of eligible bidders, potentially impacting the breadth of competition and the diversity of participating firms. It underscores the importance of understanding and meeting all stated pre-qualification requirements.

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: 36C24224R0037

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2304 BROAD AVE, ALTOONA, PA, 16601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Economically Disadvantaged Women Owned Small Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $14,727,055

Exercised Options: $14,727,055

Current Obligation: $14,727,055

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline