VA awards $3.5M contract for clinical improvement renovations to GovSolutions, Inc

Contract Overview

Contract Amount: $3,520,156 ($3.5M)

Contractor: Govsolutions, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-01-11

End Date: 2026-04-30

Contract Duration: 840 days

Daily Burn Rate: $4.2K/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: 652-17-901 RENOVATION OF 2C CLINICAL IMPROVEMENT

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23249

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.5 million to GOVSOLUTIONS, INC. for work described as: 652-17-901 RENOVATION OF 2C CLINICAL IMPROVEMENT Key points: 1. Contract awarded for building construction services, indicating a need for facility upgrades. 2. The contract is a firm-fixed-price type, which shifts cost risk to the contractor. 3. The duration of the contract is 840 days, suggesting a moderately complex project. 4. The award was made under full and open competition, implying a competitive bidding process. 5. The contractor, GovSolutions, Inc., is relatively new to federal contracting based on award data. 6. The contract falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $3.5 million for building renovations appears within a reasonable range for a project of this nature. However, without specific details on the scope of work, a precise value-for-money assessment is challenging. Benchmarking against similar VA renovation projects would provide a clearer picture of whether the pricing is competitive. The firm-fixed-price structure suggests the government has negotiated a set price, but the contractor's ability to manage costs will determine the ultimate value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, a competitive process was utilized, which is generally favorable for price discovery and ensuring a fair market price.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially leading to lower prices and better quality services. This process helps ensure that government funds are used efficiently by selecting the most cost-effective and capable offeror.

Public Impact

Veterans receiving care at the facility will benefit from improved clinical environments. The contract supports the Department of Veterans Affairs' mission to provide healthcare services. The project is located in Virginia, potentially impacting the local construction workforce. The renovations are expected to enhance the functionality and efficiency of clinical spaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contractor's limited track record in federal contracting may present execution risks.
Scope of work for renovations is not detailed, making it difficult to assess full value.
Potential for cost overruns if unforeseen issues arise during construction.
Dependence on a single contractor for a multi-year renovation project.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type shifts cost risk to the contractor.
Contract duration allows for structured project execution.
Project aims to improve clinical facilities for veterans.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area often supports infrastructure improvements, facility upgrades, and new construction for government agencies. The market size for commercial construction is substantial, and federal contracts represent a portion of this, often subject to specific procurement regulations and competition requirements. Benchmarking against similar government building projects would be necessary for a comprehensive analysis.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, GovSolutions, Inc., may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of Veterans Affairs (VA) contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified renovations within the agreed-upon budget. Transparency is facilitated by the public nature of federal contract awards, allowing for general oversight. Specific Inspector General jurisdiction would apply if fraud, waste, or abuse is suspected.

Related Government Programs

VA Healthcare Facility Renovations
Federal Building Construction Contracts
Commercial Building Construction Services
Firm Fixed Price Contracts

Risk Flags

Contractor Past Performance Unknown
Scope of Work Ambiguity
Potential for Change Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.5 million to GOVSOLUTIONS, INC.. 652-17-901 RENOVATION OF 2C CLINICAL IMPROVEMENT

Who is the contractor on this award?

The obligated recipient is GOVSOLUTIONS, 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 $3.5 million.

What is the period of performance?

Start: 2024-01-11. End: 2026-04-30.

What is the specific scope of work for the '2C Clinical Improvement' renovations?

The provided data does not detail the specific scope of work for the '2C Clinical Improvement' renovations. This contract, identified by number 652-17-901, is categorized under NAICS code 236220 (Commercial and Institutional Building Construction). To understand the value and impact, a detailed breakdown of the renovation tasks, including structural changes, system upgrades (e.g., HVAC, electrical, plumbing), interior finishing, and any specialized medical equipment installation, would be necessary. Without this information, it's difficult to assess if the $3.5 million award is commensurate with the expected improvements to clinical facilities for veterans.

How does the $3.5 million contract value compare to similar VA clinical renovation projects?

A direct comparison of the $3.5 million contract value to similar VA clinical renovation projects requires access to a database of historical VA contracts with detailed scope and cost information. The provided data indicates this is a firm-fixed-price contract awarded to GOVSOLUTIONS, INC. by the Department of Veterans Affairs (VA) with an estimated completion date in April 2026. To benchmark effectively, one would need to identify comparable projects in terms of size, complexity, and geographic location within the VA system. Factors such as the age and condition of the existing facility, the specific clinical services being upgraded, and the extent of modernization would influence project costs. A preliminary assessment suggests the value is within a plausible range for significant facility upgrades, but a definitive value-for-money judgment necessitates comparative data.

What is the track record of GOVSOLUTIONS, INC. with federal contracts, particularly with the VA?

The provided data indicates that GOVSOLUTIONS, INC. is the contractor for this $3.5 million VA contract. A review of federal procurement databases would be necessary to fully ascertain their track record. However, based on the limited information available (e.g., award date, contract type), it's possible this is one of their initial or significant federal awards. A deeper dive into contract history, past performance reviews, and any previous awards or terminations would be crucial for assessing their reliability and experience in executing projects of this scale and complexity, especially within the sensitive environment of healthcare facility renovations for the VA.

What are the potential risks associated with a firm-fixed-price contract for building renovations?

Firm-fixed-price (FFP) contracts, like the one awarded to GOVSOLUTIONS, INC. for $3.5 million, place the primary responsibility for cost control on the contractor. While this benefits the government by establishing a ceiling price, potential risks include the contractor cutting corners on quality or materials to maintain profitability if unforeseen issues arise during construction. Conversely, if the scope of work is not clearly defined, the contractor may face significant cost overruns, potentially leading to disputes or contract modifications. For the VA, the risk lies in ensuring the defined scope is comprehensive enough to cover all necessary improvements and that the contractor possesses the expertise to manage the project effectively within the fixed price, especially given the complexities of clinical environments.

How does the 'full and open competition after exclusion of sources' procurement method impact this contract?

The procurement method 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' (often referred to as FAR 6.302-1 or similar justifications) suggests that while the competition was intended to be broad, specific criteria or circumstances led to the exclusion of certain potential sources. This could be due to unique capabilities, proprietary technology, or other factors that limit the pool of eligible bidders. Although it aims for competition, the exclusion of sources might reduce the number of bidders compared to a purely 'full and open' process. In this case, 3 bids were received. The impact on taxpayers is that while competition was sought, the exclusion might have limited the potential for the lowest possible price if more diverse sources could have participated. A thorough justification for the exclusion would be needed to ensure fairness and maximize value.

What is the significance of the contract duration (840 days) for this renovation project?

The contract duration of 840 days, approximately 2.3 years, indicates that the '2C Clinical Improvement' renovation project is substantial in scope and complexity. This extended timeline allows for phased construction, potentially minimizing disruption to ongoing clinical operations, and provides ample time for the contractor, GOVSOLUTIONS, INC., to procure materials, manage subcontractors, and execute the work meticulously. For the VA, a longer duration might suggest a project involving significant structural changes, system overhauls, or upgrades to multiple areas within the facility. It also implies a need for sustained project oversight from the agency throughout the execution period to ensure milestones are met and quality is maintained.

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: SEALED BID

Solicitation ID: 36C24623B0024

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Govsolutions Inc.

Address: 108 S BIRDNECK RD, VIRGINIA BEACH, VA, 23451

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Native American 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, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,520,156

Exercised Options: $3,520,156

Current Obligation: $3,520,156

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline