VA awards $5.8M contract for building upgrades in Pennsylvania, highlighting construction sector activity

Contract Overview

Contract Amount: $5,789,850 ($5.8M)

Contractor: R. a. Glancy & Sons, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-09-07

End Date: 2027-03-31

Contract Duration: 1,666 days

Daily Burn Rate: $3.5K/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: UPGRADE STEAM - CONSTRUCTION

Place of Performance

Location: ERIE, ERIE County, PENNSYLVANIA, 16504

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.8 million to R. A. GLANCY & SONS, INC. for work described as: UPGRADE STEAM - CONSTRUCTION Key points: 1. Contract value appears reasonable for a multi-year construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration of 1666 days indicates a significant scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic focus on Pennsylvania aligns with VA facility needs. 6. Contractor R. A. Glancy & Sons, Inc. has experience in commercial construction.

Value Assessment

Rating: good

The contract value of approximately $5.8 million for building upgrades is within a typical range for commercial and institutional construction projects of this scale. Benchmarking against similar VA or other federal construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the primary financial risk, which can be advantageous for the government if costs are managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific sources may have been excluded for documented reasons. The presence of 4 bidders suggests a moderate level of competition. This level of competition is generally sufficient to promote price discovery, but a higher number of bidders could potentially lead to more aggressive pricing.

Taxpayer Impact: A moderate number of bidders indicates that taxpayers likely received a fair price, though further competition could have potentially yielded greater savings.

Public Impact

Veterans in Pennsylvania will benefit from improved facilities. The contract supports the modernization and maintenance of critical VA infrastructure. The project's geographic impact is concentrated within Pennsylvania. The construction services delivered will likely involve a skilled labor force, supporting jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise, despite fixed-price contract.
Dependence on contractor performance for timely completion and quality of work.
Limited transparency on the specific exclusion of sources in the competition process.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Multiple bidders indicate a degree of market interest and competition.
Project duration allows for phased completion and potentially less disruption.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. The Department of Veterans Affairs, like other agencies, frequently procures construction services for facility maintenance, renovation, and new builds. Spending in this sector is influenced by infrastructure needs, agency modernization efforts, and economic conditions. Comparable spending benchmarks would involve analyzing other large-scale construction projects awarded by federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The contractor, R. A. Glancy & Sons, Inc., is likely a larger entity. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses within the overall project scope.

Oversight & Accountability

Oversight for this contract would typically 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 the contractor to deliver the specified work within the agreed-upon price. Transparency is generally provided through contract award databases, though detailed project progress and specific oversight activities may not always be publicly available.

Related Government Programs

VA Facility Modernization Projects
Federal Construction Contracts
Commercial Building Construction Services
Institutional Building Upgrades

Risk Flags

Potential for extended project timeline leading to increased costs or delays.
Reliance on contractor's ability to manage complex construction tasks.
Need for robust government oversight to ensure quality and adherence to scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.8 million to R. A. GLANCY & SONS, INC.. UPGRADE STEAM - CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is R. A. GLANCY & SONS, 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 $5.8 million.

What is the period of performance?

Start: 2022-09-07. End: 2027-03-31.

What is the track record of R. A. Glancy & Sons, Inc. with federal contracts, particularly with the VA?

A review of federal procurement data indicates that R. A. Glancy & Sons, Inc. has been awarded multiple federal contracts, primarily in the construction domain. While specific details on their performance history with the Department of Veterans Affairs would require a deeper dive into contract performance reports and past performance evaluations, their consistent engagement suggests a level of capability. Analyzing past awards, contract values, and any reported issues or commendations would provide a clearer picture of their reliability and expertise in executing government projects, especially those similar in scope and complexity to the UPGRADE STEAM project.

How does the awarded price compare to similar VA construction projects in Pennsylvania?

To benchmark the $5.8 million contract value, a comparative analysis of similar VA construction projects in Pennsylvania awarded within the last 2-3 years would be necessary. This would involve identifying contracts for building upgrades, renovations, or new construction of comparable size and complexity. Factors such as the specific type of upgrades (e.g., HVAC, structural, electrical), the age and condition of the facility, and prevailing market rates for labor and materials in the region would need to be considered. Without this granular data, it's challenging to definitively state if the price represents excellent or fair value, though the moderate competition suggests it is likely competitive.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks associated with this firm fixed-price contract lie in potential cost overruns due to unforeseen site conditions, material price fluctuations, or scope creep if not managed tightly. While the contractor assumes the risk of exceeding their estimated costs, significant issues could lead to delays or disputes. For the government, the risk is ensuring the contractor possesses the technical expertise and financial stability to complete the project to specification and on time. Effective project management, clear communication, and robust oversight are crucial to mitigate these risks and ensure the project's success.

How effective are the 'Full and Open Competition After Exclusion of Sources' procedures in ensuring competitive pricing?

The 'Full and Open Competition After Exclusion of Sources' procedure aims to balance broad competition with specific needs that might necessitate excluding certain vendors. Its effectiveness in ensuring competitive pricing depends heavily on the justification for excluding sources and the subsequent level of competition achieved. If legitimate reasons exist for exclusion (e.g., specialized capabilities, national security), and multiple capable bidders still emerge, competitive pricing can be achieved. However, if the exclusions are overly broad or not well-justified, it could limit the bidder pool, potentially leading to less competitive pricing than true full and open competition. The presence of 4 bidders in this case suggests a moderate level of price discovery.

What is the historical spending trend for construction services by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently allocates significant funding towards construction services to maintain and upgrade its extensive network of healthcare facilities and administrative buildings. Historical spending data reveals a steady demand for construction, encompassing everything from minor repairs and renovations to major new facility constructions. This spending is driven by the need to provide modern, safe, and efficient healthcare environments for veterans, as well as to comply with evolving building codes and healthcare standards. Fluctuations in annual spending can be influenced by budget appropriations, major infrastructure initiatives, and the lifecycle of existing facilities.

What are the implications of the 1666-day duration on project management and potential disruptions?

A project duration of 1666 days (approximately 4.5 years) for building upgrades signifies a substantial undertaking. This extended timeline allows for complex phases of work, potentially minimizing disruption to ongoing VA operations by enabling work to be performed sequentially or in specific areas. However, it also increases the risk of encountering unforeseen challenges over a longer period, such as changes in technology, material availability, or regulatory requirements. Effective project management is critical to maintain momentum, control costs, and ensure quality throughout the multi-year execution. Stakeholder communication and adaptive planning will be key to navigating this extended duration successfully.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2361 VENTURE DR, GIBSONIA, PA, 15044

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

Financial Breakdown

Contract Ceiling: $5,789,850

Exercised Options: $5,789,850

Current Obligation: $5,789,850

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $4,144,446

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24420D0023

IDV Type: IDC

Timeline