VA Awards $18.8M Renovation Contract to Eastern Construction & Electric Inc

Contract Overview

Contract Amount: $18,834,370 ($18.8M)

Contractor: Eastern Construction & Electric Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-06-07

End Date: 2026-03-31

Contract Duration: 2,854 days

Daily Burn Rate: $6.6K/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: IGF::OT::IGF RENOVATE OR SUITES CONSTRUCTION PROJECT

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.8 million to EASTERN CONSTRUCTION & ELECTRIC INC for work described as: IGF::OT::IGF RENOVATE OR SUITES CONSTRUCTION PROJECT Key points: 1. Contract awarded for renovation and suite construction. 2. Eastern Construction & Electric Inc. is the prime contractor. 3. The contract falls under the Commercial and Institutional Building Construction NAICS code. 4. This is a significant investment in facility upgrades for the VA.

Value Assessment

Rating: fair

The contract value of $18.8M is substantial for a renovation project. Benchmarking against similar VA facility renovation contracts would be necessary to fully assess its value, but the fixed-price nature suggests an attempt at cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a limited competition. While not sole-source, it suggests that not all potential bidders were considered, which could impact price discovery and potentially lead to higher costs than a truly open competition.

Taxpayer Impact: Taxpayer funds are being used for this significant renovation. The limited competition raises questions about whether the best possible price was secured for the government.

Public Impact

Improved facilities for veterans at the VA. Potential for job creation through construction activities. Impact on local economy in Pennsylvania where the project is located.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have inflated costs.
Contract duration is long (over 7 years).
No small business participation noted.

Positive Signals

Addresses critical facility needs.
Firm fixed price contract provides cost certainty.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. Spending benchmarks for similar VA facility renovations would provide context for the $18.8M award, but large-scale renovations often represent significant investments.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to support small businesses and could be a point of concern for federal contracting goals.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The long duration of the contract necessitates robust oversight to ensure project milestones are met and funds are managed effectively.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Lack of small business participation.
Long contract duration increases risk of cost overruns or scope creep.
Potential for performance issues over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.8 million to EASTERN CONSTRUCTION & ELECTRIC INC. IGF::OT::IGF RENOVATE OR SUITES CONSTRUCTION PROJECT

Who is the contractor on this award?

The obligated recipient is EASTERN 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 $18.8 million.

What is the period of performance?

Start: 2018-06-07. End: 2026-03-31.

What specific renovations or suite constructions are included in this project, and how do they align with the VA's strategic goals for facility improvement?

The provided data does not detail the specific scope of work for the renovation or suite construction. Understanding the precise nature of the improvements is crucial to assessing their alignment with the VA's strategic objectives for enhancing veteran care facilities and operational efficiency. Further documentation would be needed to evaluate this aspect.

Given the 'limited competition' method, what steps were taken to ensure the price was fair and reasonable, and what was the rationale for excluding other sources?

The rationale for excluding other sources and the specific steps taken to ensure a fair and reasonable price under limited competition are not detailed here. Typically, agencies must justify such decisions, often based on specific requirements or prior performance. A review of the contract file would be necessary to understand the justification and price validation process.

How will the success and effectiveness of this renovation project be measured, particularly in terms of improved veteran services or operational efficiency?

Measuring the success of this renovation project will likely involve post-completion assessments of facility functionality, veteran satisfaction surveys, and potentially tracking operational efficiency metrics. The VA should establish clear performance metrics and conduct thorough evaluations to determine if the project achieved its intended outcomes and provided value.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA244-16-R-1566

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 18 GEORGETOWN RD, WRIGHTSTOWN, NJ, 08562

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,834,370

Exercised Options: $18,834,370

Current Obligation: $18,834,370

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline