VA awards $3M contract for Fisher House site prep, highlighting firm fixed-price structure

Contract Overview

Contract Amount: $2,998,638 ($3.0M)

Contractor: Junot Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-10-27

End Date: 2026-10-22

Contract Duration: 360 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 667-23-113, CON - FISHER HOUSE SITE PREP

Place of Performance

Location: SHREVEPORT, CADDO County, LOUISIANA, 71104

State: Louisiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.0 million to JUNOT GROUP, LLC for work described as: 667-23-113, CON - FISHER HOUSE SITE PREP Key points: 1. Contract utilizes a firm fixed-price model, aiming to control costs for site preparation. 2. Competition was full and open after exclusion of sources, suggesting a deliberate procurement strategy. 3. The contract duration of 360 days indicates a focused scope for the site preparation work. 4. Awarded to JUNOT GROUP, LLC, this contract falls under the 'Site Preparation Contractors' NAICS code. 5. The contract is a definitive contract, suggesting a pre-negotiated agreement for services. 6. Geographically, the work is designated for Louisiana (LA).

Value Assessment

Rating: good

The contract value of approximately $3 million for site preparation appears reasonable given the scope and duration. As a definitive contract with a firm fixed-price structure, it offers cost certainty. Benchmarking against similar site preparation contracts would provide a more precise value-for-money assessment, but the fixed-price nature generally aligns with good fiscal practice by shifting risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to pre-qualification or specific requirements. The number of bidders is not explicitly stated in the provided data, but the 'exclusion of sources' suggests a potentially narrower field than truly full and open competition.

Taxpayer Impact: The exclusion of certain sources, even within an open competition framework, could potentially limit the most competitive pricing. However, the firm fixed-price structure aims to mitigate cost overruns for taxpayers.

Public Impact

This contract directly supports the construction or expansion of a Fisher House, which provides lodging for families of veterans and service members receiving care at military and VA medical centers. The services delivered include essential site preparation, laying the groundwork for the facility. The geographic impact is focused on Louisiana, specifically where the Fisher House facility is being established. Workforce implications include employment opportunities for construction and site preparation labor in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' could impact price discovery.
Scope creep risk, though mitigated by firm fixed-price, needs monitoring during site prep.
Contractor's past performance on similar VA projects requires review for risk assessment.

Positive Signals

Firm fixed-price contract provides cost certainty and transfers risk to the contractor.
Awarding to a single entity streamlines management and execution of site preparation.
Definitive contract structure implies a pre-established relationship or framework for services.

Sector Analysis

This contract falls within the Construction and Engineering services sector, specifically focusing on site preparation. The market for such services is robust, driven by ongoing infrastructure development and facility construction across government agencies. The value of $3 million is moderate for a definitive contract of this nature, and it aligns with typical spending for the initial phases of building projects, including those for healthcare support facilities like Fisher Houses.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Subcontracting opportunities for small businesses may exist but are not explicitly detailed or mandated in this award information.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. Accountability measures are inherent in the firm fixed-price structure, which penalizes contractor overruns. Transparency is facilitated by public contract databases, though detailed performance metrics are not always publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Fisher House Foundation Projects
VA Capital Asset and Business Development Management
Military Construction Projects
General Site Preparation Services

Risk Flags

Potential for limited competition due to source exclusion.
Risk of unforeseen site conditions impacting cost and schedule.
Contractor performance and capability assessment is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.0 million to JUNOT GROUP, LLC. 667-23-113, CON - FISHER HOUSE SITE PREP

Who is the contractor on this award?

The obligated recipient is JUNOT GROUP, 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 $3.0 million.

What is the period of performance?

Start: 2025-10-27. End: 2026-10-22.

What is the track record of JUNOT GROUP, LLC with the Department of Veterans Affairs on similar site preparation contracts?

A thorough review of JUNOT GROUP, LLC's past performance with the Department of Veterans Affairs (VA) is crucial for assessing risk and ensuring successful project execution. Specifically, examining their history on contracts with similar scope (site preparation), value (around $3 million), and contract type (firm fixed-price, definitive) would provide valuable insights. This includes evaluating their on-time delivery, adherence to budget, quality of work, and any documented performance issues or commendations. Information on previous VA contracts, including any modifications, disputes, or terminations, should be analyzed to gauge their reliability and capability in fulfilling the requirements of this new Fisher House site preparation contract.

How does the $3 million contract value compare to similar site preparation projects for healthcare support facilities?

The $3 million contract value for site preparation is a moderate figure for a project of this nature. To benchmark its value effectively, comparisons should be made with similar site preparation contracts awarded by the VA or other federal agencies for healthcare support facilities, such as Fisher Houses or related medical annexes. Key comparison points include the square footage of the prepared site, the complexity of the terrain, the scope of work (e.g., grading, excavation, utility rough-ins), and the geographic location, as labor and material costs vary significantly. If comparable projects in Louisiana or similar economic regions have similar scope and cost $3 million or less, it suggests good value. Conversely, if similar projects cost substantially less, it might indicate potential overpricing or a more complex scope than initially apparent.

What are the primary risks associated with this firm fixed-price contract for site preparation?

While a firm fixed-price (FFP) contract is designed to control costs and transfer risk to the contractor, several risks remain. For site preparation, unforeseen subsurface conditions (e.g., unexpected rock formations, poor soil stability, groundwater issues) can significantly increase contractor costs, potentially leading to claims or disputes if not adequately addressed in the contract's contingency planning. Contractor performance risk is also present; JUNOT GROUP, LLC might lack the necessary expertise, resources, or management capacity to complete the work efficiently and to standard, potentially causing delays. Furthermore, the 'exclusion of sources' in the competition could mean fewer contractors were vetted, potentially increasing the risk of selecting a less capable firm. Finally, inadequate or ambiguous SOWs can lead to scope creep, even in an FFP contract, if change orders are not managed strictly.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' strategy in ensuring competitive pricing for this contract?

The strategy of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' aims to balance broad competition with specific requirements. By excluding certain sources, the VA likely targeted contractors with specific qualifications, past performance, or capabilities deemed essential for this particular site preparation task. While this can ensure a higher quality pool of bidders, it inherently limits the number of potential offerors compared to truly unrestricted full and open competition. The effectiveness in ensuring competitive pricing depends heavily on how many qualified bidders remained after exclusions and the rigor of the evaluation process. If the exclusions were too broad, it could stifle competition and lead to higher prices. Conversely, if the exclusions were narrowly defined and several highly capable firms still competed, it could yield competitive pricing while ensuring project success.

What are the potential long-term implications for the VA's construction program in Louisiana based on this award?

This award to JUNOT GROUP, LLC for Fisher House site preparation in Louisiana could have several implications for the VA's broader construction program in the state. Firstly, it establishes or reinforces a relationship with a contractor capable of performing essential early-stage construction services. If the project is successful, it could lead to future opportunities for JUNOT GROUP, LLC on other VA projects in the region, potentially fostering specialized expertise within the contractor base. Secondly, the successful completion of this site preparation is critical for the timely delivery of the Fisher House facility, which directly impacts veteran family support services in Louisiana. Positive outcomes can enhance the VA's reputation and operational capacity in the state, while any significant issues could necessitate adjustments in future contracting strategies or contractor oversight.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › Site Preparation Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: TWO STEP

Solicitation ID: 36C25625R0108

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 70389 LA-1077, COVINGTON, LA, 70433

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, 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: $2,998,638

Exercised Options: $2,998,638

Current Obligation: $2,998,638

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline