VA awards $717K contract for CM services at OKC VAHCS to SJS Executives, LLC

Contract Overview

Contract Amount: $716,953 ($717.0K)

Contractor: SJS Executives, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-30

End Date: 2025-09-29

Contract Duration: 730 days

Daily Burn Rate: $982/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: BASE YEAR CM SERVICES OKC VAHCS

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73104

State: Oklahoma Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $716,952.57 to SJS EXECUTIVES, LLC for work described as: BASE YEAR CM SERVICES OKC VAHCS Key points: 1. Contract awarded to SJS Executives, LLC for construction management services. 2. The contract has a base year value of approximately $717K. 3. Services are to be performed at the Oklahoma City VA Health Care System (OKC VAHCS). 4. The contract was competed under simplified acquisition procedures. 5. The award is a firm-fixed-price purchase order. 6. The contract duration is 730 days, ending September 29, 2025.

Value Assessment

Rating: fair

The contract value of $717K for construction management services over two years appears to be within a reasonable range for a facility of this nature. Benchmarking against similar contracts for CM services at VA facilities would provide a clearer picture of value for money. The firm-fixed-price structure suggests that cost overruns are primarily the contractor's responsibility, which is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a limited number of bidders. While the data indicates 12 bids were received, the specific competition dynamics within SAP can vary. The limited nature of SAP competition may not always yield the most competitive pricing compared to full and open competition, but it is designed for efficiency in acquiring goods and services below certain thresholds.

Taxpayer Impact: For taxpayers, competition under SAP aims to balance efficiency with reasonable pricing. While not as broad as full and open competition, the receipt of 12 bids suggests some level of market interest and potential for price discovery.

Public Impact

Veterans receiving services at the OKC VAHCS will benefit from improved facility management and potentially enhanced infrastructure. The contract supports the delivery of essential construction management services for the Department of Veterans Affairs. The geographic impact is focused on Oklahoma City, Oklahoma. The contract supports the healthcare infrastructure for veterans in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to SAP procedures.
Reliance on a single contractor for critical CM services.

Positive Signals

Firm-fixed-price contract limits cost escalation risk for the government.
Awarded to a specific LLC, indicating a focused business relationship.
Contract duration of two years provides stability for project execution.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and design services. The construction management aspect is crucial for overseeing facility upgrades and maintenance within the healthcare sector. Spending in this area is vital for maintaining and improving healthcare infrastructure, with government contracts often representing a significant portion of the market for specialized engineering and management services.

Small Business Impact

The provided data does not indicate if this contract was a small business set-aside or if subcontracting opportunities for small businesses are a requirement. Further analysis would be needed to determine the impact on the small business ecosystem. Without specific set-aside information, it's difficult to assess the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Veterans Affairs. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver services within the agreed-upon scope and price. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

VA Healthcare Construction Projects
Federal Engineering Services Contracts
Department of Veterans Affairs Facility Management

Risk Flags

Potential for limited competition under SAP.
Contractor performance history needs thorough review.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $716,952.57 to SJS EXECUTIVES, LLC. BASE YEAR CM SERVICES OKC VAHCS

Who is the contractor on this award?

The obligated recipient is SJS EXECUTIVES, 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 $716,952.57.

What is the period of performance?

Start: 2023-09-30. End: 2025-09-29.

What is the track record of SJS Executives, LLC in performing similar construction management services for the federal government?

A review of federal contract databases indicates that SJS Executives, LLC has been awarded contracts for various services, including some related to construction and project management. To fully assess their track record for this specific type of CM services at a VA facility, a deeper dive into past performance evaluations, any reported issues or successes on similar projects, and the scale of their previous engagements would be necessary. Understanding their experience with healthcare facilities specifically would also be beneficial for evaluating their suitability for the OKC VAHCS contract.

How does the awarded amount of $716,952.57 compare to the average cost of similar construction management contracts at VA medical centers?

Benchmarking this contract's value requires comparing it to similar construction management contracts awarded by the Department of Veterans Affairs for facilities of comparable size and complexity. Without access to a comprehensive database of recent VA CM contracts, a precise comparison is difficult. However, for a two-year engagement involving CM services at a medical center, a base year cost of approximately $717K is not inherently excessive, but it warrants comparison with similar awards to ensure fair market value is being obtained. Factors like the scope of work, specific services required (e.g., renovation oversight, new construction support), and geographic location can influence pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential performance issues by the contractor, scope creep, and unforeseen site conditions impacting project timelines or costs. The firm-fixed-price (FFP) nature of the contract mitigates cost overrun risk for the government, as SJS Executives, LLC would bear the brunt of unexpected expenses. Mitigation strategies likely involve clear performance standards outlined in the contract, regular progress reviews by VA project managers, and a defined change order process. The contractor's experience and the limited competition under SAP are also factors to consider in the overall risk assessment.

How effective is the Simplified Acquisition Procedures (SAP) competition in ensuring competitive pricing for engineering services?

Simplified Acquisition Procedures (SAP) are designed for efficiency in procuring goods and services below certain dollar thresholds (currently $250,000, though some exceptions apply). While SAP aims to streamline the acquisition process, its competitive landscape is generally more limited than full and open competition. The fact that 12 bids were received suggests a reasonable level of interest within the SAP framework for this particular requirement. However, the pricing achieved under SAP may not always reflect the lowest possible price achievable through broader market solicitation. The effectiveness is a balance between speed, administrative ease, and achieving competitive pricing.

What is the historical spending trend for construction management services at the OKC VAHCS or similar VA facilities?

Analyzing historical spending for CM services at the OKC VAHCS or comparable VA facilities would provide valuable context. Without specific historical data for this location, it's difficult to establish a trend. Generally, spending on facility maintenance, upgrades, and construction management fluctuates based on infrastructure needs, budget allocations, and the lifecycle of medical facilities. A consistent pattern of awarding CM contracts suggests ongoing investment in facility upkeep and improvement. Understanding past spending levels can help identify if the current award represents an increase, decrease, or stable level of investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25923Q0642

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2652 EXCALIBUR CT, VIRGINIA BEACH, VA, 23454

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $1,681,006

Exercised Options: $716,953

Current Obligation: $716,953

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline