VA Awards $15.7M MATOC for Construction Services to The Construction Services Group Inc

Contract Overview

Contract Amount: $15,724,930 ($15.7M)

Contractor: THE Construction Services Group Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-30

End Date: 2026-05-04

Contract Duration: 2,408 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29209

State: South Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.7 million to THE CONSTRUCTION SERVICES GROUP INC for work described as: VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES Key points: 1. The contract is a Multiple Award Task Order Contract (MATOC) for construction services across VISN 7 medical facilities. 2. Awarded to The Construction Services Group Inc. under full and open competition. 3. The contract has a base award of $15,724,930.07 and a duration of 2408 days. 4. This type of contract allows for flexibility in awarding task orders as needed. 5. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction.

Value Assessment

Rating: good

The base award of $15.7M for a MATOC appears reasonable for a multi-year construction services contract supporting multiple facilities. Benchmarking against similar MATOCs would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. This method generally promotes price discovery and ensures fair market value.

Taxpayer Impact: Competition likely led to a fair price, maximizing taxpayer value for the construction services procured.

Public Impact

Veterans will benefit from improved medical facilities through construction and renovation projects. Local economies may see job creation and business opportunities related to construction activities. The Department of Veterans Affairs gains a flexible contracting vehicle for ongoing facility needs. Taxpayers can expect efficient use of funds due to the competitive award process.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on individual task orders if not managed tightly.
Dependence on a single contractor for a broad range of services could pose a risk if performance issues arise.

Positive Signals

MATOC structure allows for streamlined procurement of future construction needs.
Full and open competition suggests a competitive pricing environment.
Long contract duration provides stability for planning and execution.

Sector Analysis

The construction sector is vital for maintaining and upgrading infrastructure. This contract falls under commercial and institutional building construction, a broad category encompassing various facility types. Benchmarks for MATOCs of this size and scope vary widely based on geographic location and specific service requirements.

Small Business Impact

The data indicates this contract was awarded to 'The Construction Services Group Inc.' and does not specify any small business set-asides or participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing the performance of this MATOC and its individual task orders. Robust oversight mechanisms are crucial to ensure quality, timely completion, and cost control for all awarded work.

Related Government Programs

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

Risk Flags

Potential for scope creep in task orders.
Contractor's capacity to manage multiple concurrent task orders.
Adequacy of VA oversight for distributed task orders.
Risk of unforeseen site conditions impacting costs and schedules.
Dependency on a single awardee for a broad service area.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.7 million to THE CONSTRUCTION SERVICES GROUP INC. VISN 7 MATOC IDIQ BASE AWARD. TASK ORDERS WILL BE AWARDED OFF THIS CONTRACT AT ALL VISN7 MEDICAL FACILITIES

Who is the contractor on this award?

The obligated recipient is THE CONSTRUCTION SERVICES GROUP 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 $15.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2026-05-04.

What is the typical profit margin for construction services contracts of this nature awarded under full and open competition?

Profit margins in construction vary significantly based on project complexity, risk, and market conditions. For firm-fixed-price contracts awarded competitively, typical profit margins might range from 5% to 15%. However, specific data for MATOCs supporting government facilities would require access to more detailed contract performance information and industry-specific benchmarks.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance under this MATOC?

Key performance indicators for construction MATOCs typically include on-time project completion, adherence to budget, quality of workmanship, safety compliance, and responsiveness to task order requirements. The VA likely has a performance management plan outlining specific metrics and evaluation criteria for The Construction Services Group Inc. to ensure successful delivery of services.

How does the 'exclusion of sources' clause in the 'full and open competition' affect potential bidder participation and pricing?

The phrase 'after exclusion of sources' typically refers to a specific justification for not including certain types of contractors or specific sources, often due to prior performance issues or specific technical requirements. While the overall competition is 'full and open,' this exclusion might limit the pool of potential bidders, potentially impacting the breadth of competition and price discovery compared to a completely unrestricted full and open process.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1412 ASHLEY RIVER RD, CHARLESTON, SC, 29407

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: $15,724,930

Exercised Options: $15,724,930

Current Obligation: $15,724,930

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24718D0140

IDV Type: IDC

Timeline