VA Awards $19.1M for Perry Point VAMC Roof Replacement to Sandow Construction Inc

Contract Overview

Contract Amount: $19,100,335 ($19.1M)

Contractor: Sandow Construction Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-29

End Date: 2026-09-10

Contract Duration: 1,077 days

Daily Burn Rate: $17.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPLACEMENT OF ROOFS OF THE PATIENT BUILDINGS AT PERRY POINT VAMC

Place of Performance

Location: PERRY POINT, CECIL County, MARYLAND, 21902

State: Maryland Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.1 million to SANDOW CONSTRUCTION INC for work described as: REPLACEMENT OF ROOFS OF THE PATIENT BUILDINGS AT PERRY POINT VAMC Key points: 1. Significant contract value for building construction services. 2. Competition method indicates potential for price discovery, but exclusion of sources warrants review. 3. Risk associated with large-scale construction projects and potential for cost overruns. 4. Construction sector is highly competitive, but specific expertise may limit bidders.

Value Assessment

Rating: fair

The contract value of $19.1M for roof replacement appears substantial. Benchmarking against similar VAMC roof repair contracts would be necessary to assess if this price is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, certain sources were excluded, potentially impacting the breadth of price discovery and overall competitiveness.

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

Public Impact

Ensures continued operation and safety of patient facilities at Perry Point VAMC. Supports the construction industry and local employment through the awarded contract. Addresses critical infrastructure needs for veterans' healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Exclusion of sources in competition
Potential for cost overruns in large construction projects
Contract duration and potential for delays

Positive Signals

Addresses critical infrastructure needs
Supports veteran healthcare facilities

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, facility maintenance, and new construction projects, often influenced by government agency requirements and budget allocations.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific contract award. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Standard oversight mechanisms for construction projects, including progress monitoring and quality control, should be in place to ensure successful completion and taxpayer value.

Related Government Programs

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

Risk Flags

Limited competition may have reduced price competitiveness.
Potential for unforeseen issues in large-scale construction.
Contract duration of over two years increases risk of delays.
Firm-fixed-price contract can be less flexible to scope changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.1 million to SANDOW CONSTRUCTION INC. REPLACEMENT OF ROOFS OF THE PATIENT BUILDINGS AT PERRY POINT VAMC

Who is the contractor on this award?

The obligated recipient is SANDOW CONSTRUCTION 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 $19.1 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-10.

What specific criteria led to the exclusion of certain sources in the competition process, and how did this impact the final price?

The exclusion of sources typically occurs due to specific technical requirements, past performance issues, or unique capabilities needed for the project. Understanding these criteria is crucial to evaluating whether the limited competition resulted in a fair and reasonable price. Without this information, it's difficult to definitively assess if the government secured the best possible value or if alternative bidders could have offered more competitive pricing.

What are the primary risks associated with a multi-year, firm-fixed-price contract for extensive roof replacements, and what mitigation strategies are in place?

Key risks include unforeseen site conditions, material price fluctuations, and contractor performance issues, all of which can lead to delays and cost overruns, despite the fixed-price nature. Mitigation strategies often involve robust contract language, detailed site investigations prior to bidding, contingency planning, and active project management by the agency to monitor progress and address issues promptly.

How does the $19.1 million expenditure align with typical spending benchmarks for similar VAMC roof replacement projects of this scale?

Assessing alignment requires comparing this contract's cost per square foot or total value against historical data for comparable VAMC roof replacements. Factors like building age, roof complexity, material choices, and regional labor costs significantly influence these benchmarks. A detailed cost-benefit analysis, considering the long-term implications of a new roof versus continued repairs, would further clarify the value proposition.

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: SEALED BID

Solicitation ID: 36C24523B0002

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 48TH ST, BLADENSBURG, MD, 20710

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $40,368,999

Exercised Options: $21,268,663

Current Obligation: $19,100,335

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline