VA Awards $8.3M Clinic Addition Contract to Edgewater Construction Services in West Virginia

Contract Overview

Contract Amount: $8,332,957 ($8.3M)

Contractor: Edgewater Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-09-26

End Date: 2026-01-12

Contract Duration: 2,665 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8.3 million to EDGEWATER CONSTRUCTION SERVICES, LLC for work described as: PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION Key points: 1. Contract awarded for construction of a clinic and administrative addition. 2. Edgewater Construction Services, LLC is the prime contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The project is located in West Virginia and is a firm fixed price contract. 5. The contract duration is 2665 days.

Value Assessment

Rating: fair

The contract value of $8.3M for a clinic and administrative addition appears reasonable for a project of this scope and duration. Benchmarking against similar construction projects would provide a more definitive 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 a limited competition. This method might impact price discovery compared to unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this construction project. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.

Public Impact

Veterans in West Virginia will benefit from expanded clinic and administrative facilities. The project supports local construction jobs and economic activity in the region. The construction will modernize and improve healthcare infrastructure for the VA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This project falls under Commercial and Institutional Building Construction. Spending in this sector can vary significantly based on project size, location, and complexity. The $8.3M value is moderate for a government construction project of this nature.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this contract, as 'sb' is false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' method warrants scrutiny to ensure fairness and prevent potential impropriety.

Related Government Programs

Risk Flags

Tags

commercial-and-institutional-building-co, department-of-veterans-affairs, wv, definitive-contract, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8.3 million to EDGEWATER CONSTRUCTION SERVICES, LLC. PROJ 613-121 CONSTRUCT DOM CLINIC&CLC ADMIN ADDITION

Who is the contractor on this award?

The obligated recipient is EDGEWATER CONSTRUCTION SERVICES, 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 $8.3 million.

What is the period of performance?

Start: 2018-09-26. End: 2026-01-12.

What was the specific justification for excluding certain sources from the competition, and how did this impact the final price?

The justification for excluding sources is critical for understanding the procurement strategy. If the exclusion was based on specific capabilities or past performance, it might be warranted. However, if it unduly limited competition, it could have led to a higher price than achievable through broader bidding. A review of the solicitation documents and award justification would clarify the rationale and its potential financial implications for taxpayers.

Given the 2665-day duration, what mechanisms are in place to manage potential cost overruns or scope creep?

A contract spanning over 7 years presents significant risks for cost escalation due to inflation, material price fluctuations, and potential changes in requirements. Robust contract management, including regular performance reviews, change order controls, and clear milestones, is essential. The firm fixed price nature offers some protection, but the agency must actively monitor for any conditions that might necessitate contract modifications or claims.

How does the final award price compare to independent cost estimates or benchmarks for similar VA clinic construction projects?

Comparing the $8.3M award to benchmarks is crucial for assessing value. If similar projects in comparable regions cost significantly less, it raises concerns about the pricing. Conversely, if it aligns with or is below market rates, it suggests a reasonable outcome. The VA should have conducted an independent government cost estimate (IGCE) prior to award to validate the contractor's proposal.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C24518B0233

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 123 BRUTON CT STE 100, CHESAPEAKE, VA, 23322

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

Financial Breakdown

Contract Ceiling: $8,332,957

Exercised Options: $8,332,957

Current Obligation: $8,332,957

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline

Start Date: 2018-09-26

Current End Date: 2026-01-12

Potential End Date: 2026-01-12 00:00:00

Last Modified: 2026-01-12

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