VA awards $4.2M MATOC for construction services to NACCI Construction, with task orders to follow

Contract Overview

Contract Amount: $4,211,620 ($4.2M)

Contractor: Nacci Construction Services, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-07-15

End Date: 2026-06-05

Contract Duration: 1,421 days

Daily Burn Rate: $3.0K/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: AUGUSTA, RICHMOND County, GEORGIA, 30904

State: Georgia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $4.2 million to NACCI CONSTRUCTION SERVICES, 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 an indefinite-delivery indefinite-quantity (IDIQ) vehicle, allowing for multiple task orders over its lifespan. 2. Awarded as a firm-fixed-price contract, the total value represents the base award, with potential for higher spending through task orders. 3. The contract was competed under 'full and open competition after exclusion of sources,' indicating a competitive process with specific justifications. 4. NACCI Construction Services, Inc. is the prime contractor for this base award. 5. The contract duration is 1421 days, spanning from July 2022 to June 2026. 6. This contract supports construction needs across all VISN 7 Medical Facilities. 7. The North American Industry Classification System (NAICS) code is 236220, pertaining to Commercial and Institutional Building Construction.

Value Assessment

Rating: fair

The base award of $4.2 million for a MATOC contract is a moderate amount for construction services. Without visibility into the task orders awarded under this IDIQ, a comprehensive value assessment is difficult. Benchmarking against similar MATOC contracts for construction services within the VA or other agencies would require more data on the scope and value of individual task orders. The firm-fixed-price nature of task orders generally provides cost certainty, but the overall value-for-money depends on the efficiency and pricing of those future orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method suggests that while the competition was intended to be broad, there were reasons for excluding certain sources, possibly related to specific capabilities or prior performance. The number of bidders is not provided, which limits the assessment of the intensity of competition. The exclusion of sources may have implications for price discovery, potentially leading to less competitive pricing compared to a truly unrestricted full and open competition.

Taxpayer Impact: The exclusion of sources, even if justified, could mean that taxpayers did not benefit from the lowest possible prices that might have been achieved with a wider pool of bidders. This procurement type warrants scrutiny to ensure the exclusion was necessary and did not unduly limit competition.

Public Impact

Veterans receiving care at VISN 7 Medical Facilities will benefit from improved infrastructure and updated facilities. The contract supports the modernization and maintenance of healthcare infrastructure within the Veterans Health Administration. Geographic impact is concentrated within the VISN 7 network, serving medical facilities in Georgia. The contract will likely involve a workforce of construction professionals, tradespeople, and project managers, contributing to employment in the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure it was fully justified and did not limit competition unnecessarily.
Lack of data on the number of bidders makes it difficult to assess the true level of competition and its impact on pricing.
The total contract value is only the base award; actual spending could be significantly higher through task orders, necessitating ongoing monitoring.

Positive Signals

The contract is a firm-fixed-price type for task orders, which provides cost certainty for specific projects.
The IDIQ structure allows for flexibility in addressing a range of construction needs across multiple facilities.
Awarded to NACCI Construction Services, Inc., indicating a specific contractor has been vetted for this work.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. The Department of Veterans Affairs is a major federal agency with substantial real estate holdings, requiring ongoing construction and renovation services to maintain and upgrade its facilities. The market for such services is competitive, with numerous firms capable of undertaking government contracts. This MATOC award is a common contracting vehicle used by agencies like the VA to streamline the procurement of recurring construction needs across various locations.

Small Business Impact

The contract was not set aside for small businesses (ss: false, sb: false). This means that the competition was open to businesses of all sizes, and NACCI Construction Services, Inc. is likely a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. The lack of a small business set-aside suggests that opportunities for small businesses may be limited to subcontracting roles, if any are mandated by the prime contractor.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of Veterans Affairs, specifically the VISN 7 network. As an IDIQ contract with task orders, oversight will involve reviewing and approving each individual task order to ensure it aligns with the contract's scope and fair pricing. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected in the award or execution of task orders under this MATOC.

Related Government Programs

VA Medical Facility Construction
Department of Veterans Affairs Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Construction Services for Federal Agencies
MATOC (Multiple Award Task Order Contract) Vehicles

Risk Flags

Competition Method Justification
Task Order Value and Scope Uncertainty
Contractor Performance Risk
Budgetary Oversight for Task Orders

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $4.2 million to NACCI CONSTRUCTION SERVICES, 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 NACCI CONSTRUCTION SERVICES, 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 $4.2 million.

What is the period of performance?

Start: 2022-07-15. End: 2026-06-05.

What is the track record of NACCI Construction Services, Inc. with the Department of Veterans Affairs and other federal agencies?

Assessing NACCI Construction Services, Inc.'s track record requires a review of their past performance on federal contracts, particularly those with the Department of Veterans Affairs. This would involve examining contract databases like SAM.gov for awarded contracts, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or corrective actions. A strong performance history with the VA, especially on similar construction projects or IDIQ vehicles, would indicate a lower risk for this MATOC. Conversely, a history of poor performance, cost overruns, or schedule delays on previous federal contracts could raise concerns about their ability to effectively execute future task orders under this new award.

How does the $4.2 million base award compare to other VA MATOC contracts for construction services?

The $4.2 million base award for this MATOC is a moderate starting point. Many MATOC contracts, especially those supporting large healthcare systems like the VA's VISN 7, can see their total value increase significantly through task orders, often reaching tens or hundreds of millions of dollars over their lifespan. To benchmark this base award, one would compare it to the initial award values of similar MATOCs issued by the VA or other agencies for commercial and institutional building construction. Factors like the geographic scope (VISN 7 covers multiple facilities in Georgia), the types of construction services anticipated, and the contract duration (over 3.5 years) are relevant. Without data on the average base award for comparable VA MATOCs, it's difficult to definitively label $4.2 million as high or low, but it suggests a focused scope for the initial award.

What are the primary risks associated with this type of IDIQ contract for construction services?

The primary risks associated with this IDIQ contract revolve around the uncertainty of task order values and scope. While the base award is $4.2 million, the total spending could far exceed this, making budget forecasting challenging for the VA. There's a risk that task orders could be awarded at prices that are not as competitive as they might be in a more direct, project-specific procurement, especially given the 'exclusion of sources' noted in the competition. Contractor performance on individual task orders is another risk; delays, cost overruns, or quality issues on specific projects could impact facility operations. Finally, the administrative burden of managing numerous task orders, ensuring fair pricing, and overseeing performance across multiple sites requires robust oversight from the VA.

What is the expected effectiveness of this contract in meeting the VA's construction needs in VISN 7?

The effectiveness of this contract hinges on how well the task orders awarded under it address the specific construction and renovation needs of the VISN 7 Medical Facilities. As a MATOC, it provides a flexible mechanism for the VA to quickly procure services for a range of projects, from minor repairs to more substantial upgrades. Its effectiveness will be measured by the timely completion of these projects, adherence to budget, and the quality of the finished work, ultimately contributing to the operational efficiency and patient care environment within VISN 7. The contractor's ability to respond efficiently to diverse task order requirements and the VA's project management oversight will be critical determinants of its overall effectiveness.

How has the VA's spending on construction services evolved, and how does this contract fit into that pattern?

The VA consistently allocates significant funds towards the construction, renovation, and maintenance of its vast network of healthcare facilities. Spending patterns typically involve a mix of large-scale new construction projects, major renovations, and smaller, recurring maintenance and repair tasks. IDIQ vehicles like this MATOC are a strategic tool the VA uses to manage the latter categories efficiently, allowing for streamlined procurement of numerous smaller projects without needing to conduct a full competitive bid for each one. This $4.2 million base award fits into a broader pattern of the VA utilizing flexible contracting vehicles to ensure its infrastructure remains modern and functional, supporting its mission to care for veterans.

What are the implications of the 'full and open competition after exclusion of sources' for price discovery and taxpayer value?

The procurement method 'full and open competition after exclusion of sources' implies that while the competition was intended to be broad, specific sources were deliberately excluded. The reasons for exclusion are not detailed but could relate to specialized capabilities, past performance issues with certain firms, or specific requirements that only a subset of the market could meet. This exclusion can impact price discovery because it narrows the field of potential bidders. If the excluded sources were capable of performing the work competitively, their absence might lead to higher prices than would have been achieved in a truly unrestricted competition. For taxpayers, this means the value for money achieved depends heavily on the justification for the exclusion and the competitiveness among the remaining bidders. A thorough justification is crucial to ensure that taxpayer funds are used efficiently.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 110B N LOUISVILLE ST, HARLEM, GA, 30814

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: $4,211,620

Exercised Options: $4,211,620

Current Obligation: $4,211,620

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24719D0020

IDV Type: IDC

Timeline