VA Awards $13.8M Contract for Wilmington Medical Center Administration Building Construction

Contract Overview

Contract Amount: $13,809,465 ($13.8M)

Contractor: Senate Builders & Construction Managers, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-10-30

End Date: 2026-09-30

Contract Duration: 2,161 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TO CONSTRUCT A NEW ADMINISTRATION BUILDING FOR THE WILMINGTON VA MEDICAL CENTER.

Place of Performance

Location: WILMINGTON, NEW CASTLE County, DELAWARE, 19805

State: Delaware Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $13.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC. for work described as: TO CONSTRUCT A NEW ADMINISTRATION BUILDING FOR THE WILMINGTON VA MEDICAL CENTER. Key points: 1. The contract aims to construct a new administration building for the Wilmington VA Medical Center. 2. Senate Builders & Construction Managers, Inc. secured the award. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. The contract type is Firm Fixed Price, indicating a defined cost for the project.

Value Assessment

Rating: good

The $13.8 million contract price appears reasonable for the construction of a new administration building, especially considering the firm fixed-price nature which limits cost overruns. Benchmarking against similar government construction projects of this scale would provide a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition where specific sources were initially excluded. This approach may impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: The firm fixed-price contract provides cost certainty for taxpayers, but the limited competition might have resulted in a higher price than if broader competition had been allowed.

Public Impact

Improved administrative facilities for the Wilmington VA Medical Center. Potential for job creation during the construction phase. Enhanced operational efficiency for VA staff through modern infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have impacted price.
Long duration (2161 days) could introduce unforeseen costs.

Positive Signals

Firm Fixed Price contract provides cost control.
Clear objective: construction of a new building.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is often driven by infrastructure needs and facility upgrades for government agencies. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine if small businesses had an opportunity to participate.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard government oversight procedures for construction projects, including site inspections and progress reviews, should be in place to ensure quality and adherence to schedule.

Related Government Programs

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

Risk Flags

Limited competition.
Long project duration.
Potential for scope creep over the project's lifecycle.
Dependence on a single contractor for a multi-year project.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $13.8 million to SENATE BUILDERS & CONSTRUCTION MANAGERS, INC.. TO CONSTRUCT A NEW ADMINISTRATION BUILDING FOR THE WILMINGTON VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is SENATE BUILDERS & CONSTRUCTION MANAGERS, 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 $13.8 million.

What is the period of performance?

Start: 2020-10-30. End: 2026-09-30.

What is the estimated cost per square foot for this administration building, and how does it compare to similar VA facilities?

The provided data does not include the square footage of the administration building, making it impossible to calculate the cost per square foot. To assess value, this metric would need to be obtained and compared against industry benchmarks and similar government construction projects. Without this, a precise value assessment is limited.

What were the specific reasons for excluding certain sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method?

The rationale for excluding specific sources is not detailed in the provided data. Typically, such exclusions might be based on prior performance, specialized capabilities, or specific regulatory requirements. Understanding these reasons is crucial for evaluating whether the exclusion was justified and if it potentially limited competition unfairly.

How will the long project duration of 2161 days impact the overall effectiveness and potential for cost escalation?

A project duration of 2161 days (nearly 6 years) is substantial and increases the risk of cost escalation due to inflation, material price fluctuations, and potential changes in requirements. Effective project management, contingency planning, and regular contract reviews will be critical to maintaining effectiveness and controlling costs over this extended period.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24420R0017

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2232 DEKALB PKE, EAST NORRITON, PA, 19401

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $13,809,465

Exercised Options: $13,809,465

Current Obligation: $13,809,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline