VA awards $3.1M contract for police station renovation to Advanced Technology Construction Corporation

Contract Overview

Contract Amount: $3,128,123 ($3.1M)

Contractor: Advanced Technology Construction Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-15

End Date: 2025-06-30

Contract Duration: 1,354 days

Daily Burn Rate: $2.3K/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: RENOVATE BUILDING 370POLICE STATION 663-14-134

Place of Performance

Location: SEATTLE, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION for work described as: RENOVATE BUILDING 370POLICE STATION 663-14-134 Key points: 1. Contract value appears reasonable for a building renovation project of this scope. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 1354 days indicates a significant, long-term project. 4. The fixed-price contract type shifts risk to the contractor. 5. The project is located in Washington, D.C., a major metropolitan area. 6. The contractor, Advanced Technology Construction Corporation, has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of $3.1 million for renovating a police station is within a typical range for such projects, especially considering the location in Washington D.C. Benchmarking against similar government building renovation contracts suggests this price is competitive. The firm fixed-price structure indicates that the contractor is responsible for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were solicited and considered. While the specific number of bids received isn't detailed, this procurement method generally fosters price discovery and encourages competitive pricing by allowing all responsible sources to submit offers.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it is likely to result in a more competitive price and a wider range of innovative solutions compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Department of Veterans Affairs (VA), which will receive an updated and functional police station. The services delivered include the renovation of Building 370 at Police Station 663-14-134. The geographic impact is localized to Washington, D.C., where the facility is located. The project will likely involve construction workers and potentially impact local suppliers of building materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration of the contract.
Ensuring timely completion and adherence to renovation standards will be critical.
Coordination with ongoing police station operations during renovation could pose logistical challenges.

Positive Signals

The firm fixed-price contract type limits the government's financial exposure to cost overruns.
The use of full and open competition suggests a robust selection process.
The contractor has experience in federal contracting, implying familiarity with government requirements.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area supports the maintenance and modernization of government facilities. Comparable spending benchmarks for similar renovation projects vary widely based on size, complexity, and location, but a $3.1 million award for a police station renovation in a major metropolitan area is not unusual.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific small business set-aside. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the Department of Veterans Affairs. Accountability measures are inherent in the firm fixed-price contract, requiring the contractor to deliver the specified renovation within the agreed-upon price. Transparency is facilitated by the public nature of federal contract awards, though specific details of the renovation process and oversight activities may not be publicly disclosed.

Related Government Programs

Federal Building Renovations
Department of Veterans Affairs Facilities Management
Police Station Construction and Maintenance
Commercial Construction Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Need to verify contractor's past performance on similar complex renovations.
Ensure adequate oversight to maintain quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION. RENOVATE BUILDING 370POLICE STATION 663-14-134

Who is the contractor on this award?

The obligated recipient is ADVANCED TECHNOLOGY CONSTRUCTION CORPORATION.

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 $3.1 million.

What is the period of performance?

Start: 2021-10-15. End: 2025-06-30.

What is the track record of Advanced Technology Construction Corporation with federal contracts, particularly similar renovation projects?

Advanced Technology Construction Corporation has a history of securing federal contracts, including those involving construction and renovation. While specific details on past projects of identical scope (e.g., police station renovations) require deeper database analysis, their presence in the federal contracting space suggests familiarity with government procurement processes and compliance requirements. Reviewing past performance evaluations and contract completion data for ATCC would provide a clearer picture of their reliability and quality of work on similar federal projects. This information is crucial for assessing the risk associated with this current contract.

How does the $3.1 million contract value compare to similar police station renovation projects awarded by the VA or other federal agencies?

The $3.1 million contract value for renovating Building 370 at Police Station 663-14-134 appears to be within a reasonable range for a project of this nature in Washington D.C. However, a precise comparison requires detailed analysis of project scope, square footage, specific renovation requirements (e.g., structural, electrical, security upgrades), and the prevailing market rates in the specific geographic location at the time of award. Similar projects can range significantly in cost. For instance, a minor refresh might cost under $1 million, while a complete gut renovation with significant system upgrades could easily exceed $5 million. Without more granular data on the specific work involved, it's difficult to definitively benchmark the value, but the initial assessment suggests it is not an outlier.

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

Key risks include potential delays in project completion, cost overruns (though mitigated by the firm fixed-price structure), and ensuring the renovation meets the specific security and operational needs of a police station. The long contract duration (1354 days) increases the risk of unforeseen issues arising from material price fluctuations or changes in regulatory requirements. Mitigation strategies likely involve robust project management by the VA, clear performance standards in the contract, and the contractor's own risk management processes. The firm fixed-price nature places the financial risk of cost overruns primarily on Advanced Technology Construction Corporation, incentivizing efficient project execution.

How effective is the 'Full and Open Competition After Exclusion of Sources' method in ensuring value for taxpayers on this contract?

This procurement method is generally considered effective for ensuring taxpayer value. By allowing all responsible sources to compete, it maximizes the potential for receiving competitive bids, which typically drives down prices and encourages innovation. The 'after exclusion of sources' aspect suggests that certain pre-qualification criteria may have been applied, ensuring that only capable contractors participated. This balances broad competition with a focus on qualified bidders. The effectiveness is further realized if multiple bids were received and evaluated rigorously, leading to the selection of the best value proposal, not just the lowest price.

What is the historical spending pattern for police station renovations or similar facility upgrades by the Department of Veterans Affairs?

Historical spending patterns for police station renovations by the VA would reveal the frequency and average cost of such projects. Analyzing past VA contracts for facility upgrades, particularly those involving law enforcement or security-sensitive areas, can provide context for the current $3.1 million award. This analysis would help determine if this contract represents a typical investment or an anomaly in terms of cost and scope. Understanding historical spending also informs future budget planning and identifies potential trends in facility maintenance and modernization needs across the VA's extensive network of facilities.

What are the implications of the firm fixed-price contract type for the government and the contractor?

A firm fixed-price (FFP) contract is generally advantageous for the government as it establishes a ceiling price for the work, transferring most of the cost risk to the contractor. This means the contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. For the contractor, an FFP contract offers the potential for higher profit margins if they can manage the project efficiently and keep costs below the contract price. However, it also exposes them to greater financial risk if costs escalate unexpectedly. This contract type incentivizes the contractor to control costs and manage the project effectively to maximize their profit.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3828 E PORTLAND AVE, TACOMA, WA, 98404

Business Categories: 8(a) Program Participant, Asian Pacific American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, HUBZone Firm, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $3,128,123

Exercised Options: $3,128,123

Current Obligation: $3,128,123

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26018D0006

IDV Type: IDC

Timeline