VA Awards $15.87M for Kitchen Renovation, Highlighting Commercial Construction Needs

Contract Overview

Contract Amount: $15,874,293 ($15.9M)

Contractor: Ecrmjv LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-08-23

End Date: 2025-11-15

Contract Duration: 1,545 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE KITCHEN BUILDING 100

Place of Performance

Location: BAY PINES, PINELLAS County, FLORIDA, 33744

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $15.9 million to ECRMJV LLC for work described as: RENOVATE KITCHEN BUILDING 100 Key points: 1. Significant investment in facility upgrades for the Department of Veterans Affairs. 2. Competition method suggests a deliberate effort to ensure fair pricing. 3. Potential risks include project delays and cost overruns common in construction. 4. Sector focus is on commercial and institutional building construction.

Value Assessment

Rating: good

The $15.87 million contract value appears reasonable for a large-scale kitchen renovation project. Benchmarking against similar VA or federal facility upgrades would provide a more precise 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 utilized for essential facility improvements, aiming for long-term operational efficiency.

Public Impact

Improved facilities for VA staff and potentially beneficiaries. Supports the commercial construction industry and associated jobs. Ensures compliance with modern building and health codes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing.
Construction projects are susceptible to unforeseen delays and cost increases.
Small business participation is not indicated.

Positive Signals

Addresses critical infrastructure needs.
Utilizes a firm fixed-price contract to control costs.
Long-duration contract allows for phased execution.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital area for government infrastructure. Spending benchmarks for similar projects vary widely based on scope and location.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract. Further analysis would be needed to determine if any subcontracting opportunities were pursued.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Accountability will be measured by project completion, adherence to budget, and quality of the renovation.

Related Government Programs

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

Risk Flags

Limited competition may result in higher costs.
Construction projects carry inherent risks of delays and cost overruns.
Lack of explicit small business set-aside.
Contract duration is substantial, increasing exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $15.9 million to ECRMJV LLC. RENOVATE KITCHEN BUILDING 100

Who is the contractor on this award?

The obligated recipient is ECRMJV 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 $15.9 million.

What is the period of performance?

Start: 2021-08-23. End: 2025-11-15.

What specific improvements does the kitchen renovation entail, and how do they align with the VA's operational needs?

The specific improvements are not detailed in the provided data. However, kitchen renovations typically involve upgrading equipment, improving workflow, enhancing sanitation, and modernizing the overall space. For the VA, this likely aligns with needs for efficient food service operations, improved staff morale, and potentially enhanced patient support services where applicable.

What are the primary risks associated with this 'limited competition' award, and how are they being mitigated?

The primary risk of limited competition is potentially higher costs due to reduced market pressure. Mitigation strategies might include robust negotiation by the contracting officer, clear performance standards, and potentially incorporating clauses for price adjustments based on market indices if feasible within the contract type.

How will the effectiveness of this $15.87 million investment be measured post-completion?

Effectiveness will be measured through several key performance indicators. These include the successful completion of the renovation within the specified timeline and budget, improved operational efficiency of the kitchen, positive feedback from users (staff/beneficiaries), and compliance with all health and safety regulations.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24821R0064

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5089 SANBORN DR, MILTON, FL, 32570

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $15,938,623

Exercised Options: $15,938,623

Current Obligation: $15,874,293

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline