VA awards $5.2M elevator upgrade contract to Paramount Construction Group in Wyoming

Contract Overview

Contract Amount: $5,230,353 ($5.2M)

Contractor: Paramount Construction Group, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-04

End Date: 2026-10-20

Contract Duration: 320 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: UPGRADE ELEVATORS B7, 8, 64, 71N

Place of Performance

Location: SHERIDAN, SHERIDAN County, WYOMING, 82801

State: Wyoming Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.2 million to PARAMOUNT CONSTRUCTION GROUP, LLC for work described as: UPGRADE ELEVATORS B7, 8, 64, 71N Key points: 1. Contract awarded for essential building infrastructure upgrades. 2. Competition level indicates a potentially competitive bidding process. 3. Fixed-price contract type aims to control costs. 4. Project duration spans over a year, suggesting a significant scope. 5. Geographic focus on Wyoming may indicate regional needs. 6. No small business set-aside noted, potentially impacting smaller firms.

Value Assessment

Rating: good

The contract value of $5.2 million for elevator upgrades appears reasonable for a project of this scope and duration. Benchmarking against similar VA or other federal building modernization projects would provide a clearer picture of value for money. The firm fixed-price structure suggests an effort to contain costs, but the final cost will depend on the execution and any unforeseen issues during the upgrade process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while the competition was intended to be open, certain sources may have been excluded prior to the final award. The number of bidders is not specified, making it difficult to fully assess the level of competition and its impact on price discovery. Further details on the exclusion criteria would be beneficial.

Taxpayer Impact: The limited competition, despite being advertised as full and open, may have resulted in a less competitive price than a truly open process. Taxpayers may not have received the absolute lowest possible price.

Public Impact

Veterans and staff at VA facilities in Wyoming will benefit from improved elevator functionality and safety. The project will deliver essential upgrades to building infrastructure, enhancing accessibility and operational efficiency. The geographic impact is concentrated in Wyoming, addressing specific facility needs within the state. The contract will likely involve skilled labor in construction and elevator maintenance, potentially creating local jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the 'exclusion of sources' could hide potential anti-competitive practices.
Limited information on the number of bidders makes it hard to assess true market competition.
Fixed-price contracts can sometimes lead to disputes if scope changes or unforeseen issues arise.

Positive Signals

Awarding to a single contractor streamlines project management and accountability.
Firm fixed-price contract provides cost certainty for the government.
Project addresses critical infrastructure needs, ensuring continued facility operation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on elevator modernization. This is a critical sub-sector for maintaining the functionality and accessibility of federal buildings. The market for such services is competitive, with numerous firms specializing in building systems and upgrades. The $5.2 million award is a moderate-sized contract within this sector, reflecting the scope of upgrading multiple elevators across potentially several facilities.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this project are limited unless they are prime contractors who successfully bid or are selected as subcontractors by Paramount Construction Group. The impact on the small business ecosystem is neutral to potentially negative if small businesses were capable of performing the work but were not considered.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Veterans Affairs' contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified upgrades within the agreed-upon terms. Transparency could be enhanced by making the details of the 'exclusion of sources' and the number of bidders publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Modernization Projects
VA Facility Maintenance and Repair
Elevator and Escalator Maintenance Services
Construction Services for Government Facilities

Risk Flags

Potential for cost overruns if scope is not fully defined.
Risk of project delays impacting facility operations.
Uncertainty regarding the impact of 'exclusion of sources' on competition.
Dependence on contractor's technical expertise for successful upgrade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.2 million to PARAMOUNT CONSTRUCTION GROUP, LLC. UPGRADE ELEVATORS B7, 8, 64, 71N

Who is the contractor on this award?

The obligated recipient is PARAMOUNT CONSTRUCTION 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 $5.2 million.

What is the period of performance?

Start: 2025-12-04. End: 2026-10-20.

What is the track record of Paramount Construction Group, LLC with federal contracts, particularly with the Department of Veterans Affairs?

Information regarding Paramount Construction Group, LLC's specific track record with federal contracts, especially with the Department of Veterans Affairs, is not detailed in the provided data. A thorough analysis would require examining past performance evaluations, contract history, and any reported issues or successes on previous VA or other federal projects. This would help assess their capability and reliability in executing the current elevator upgrade contract. Without this data, it's difficult to gauge their experience level and suitability beyond the current award.

How does the awarded amount of $5.2 million compare to similar elevator upgrade projects within the VA or other federal agencies?

The $5.2 million award for elevator upgrades needs to be benchmarked against similar projects to assess its value. Factors such as the number of elevators, complexity of the upgrade (e.g., modernization vs. replacement), building type, and geographic location significantly influence costs. A comparison with other VA facilities or federal buildings of similar size and scope in comparable regions would reveal if this contract represents a fair market price or if it is potentially high or low. Without specific comparable project data, a definitive value assessment is challenging.

What are the specific risks associated with upgrading elevators in federal buildings, and how are they mitigated in this contract?

Risks in elevator upgrade projects include unforeseen structural issues, integration challenges with existing building systems, potential for extended downtime impacting facility operations, and cost overruns, especially in fixed-price contracts if scope isn't perfectly defined. This contract's firm fixed-price nature aims to mitigate cost overrun risks for the government, provided the scope is well-defined. The project duration of 320 days suggests a planned timeline for execution. Mitigation of operational downtime would depend on the contractor's phasing plan and coordination with the VA facility. Specific technical risks would be addressed through detailed engineering specifications and quality assurance processes.

What is the historical spending pattern for elevator maintenance and upgrades within the Department of Veterans Affairs?

Analyzing historical spending patterns for elevator maintenance and upgrades within the VA is crucial for understanding budget allocation and identifying trends. This includes examining annual expenditures on elevator services across different VA facilities and regions, the frequency and scale of upgrade projects, and the average cost per project. Such analysis would reveal if the $5.2 million award is consistent with past investments or represents a significant increase or decrease. It also helps in forecasting future needs and budgeting more effectively for infrastructure maintenance.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for the bidding process and potential cost savings?

The designation 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' implies that the solicitation was initially intended for all responsible sources, but certain sources were excluded before the final award decision. This exclusion could be based on various factors, such as pre-qualification requirements, past performance issues, or specific technical capabilities. While it aims for broad competition, the exclusion might limit the pool of bidders, potentially reducing the competitive pressure on pricing compared to a truly unrestricted full and open competition. The specific reasons for exclusion are key to understanding the impact on cost savings for taxpayers.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 230 HIGHPOINT DR, RIDGELAND, MS, 39157

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Sole Proprietorship, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $5,230,353

Exercised Options: $5,230,353

Current Obligation: $5,230,353

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C25924D0040

IDV Type: IDC

Timeline