VA awards $3M contract for McClellan Park building renovation, highlighting construction sector activity in California

Contract Overview

Contract Amount: $3,074,359 ($3.1M)

Contractor: V. Lopez JR. & Sons General Engineering Contractors, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-24

End Date: 2022-06-04

Contract Duration: 984 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION OF BUILDING 209 ADMINISTRATION BUILDING AT MCCLELLAN PARK AS PART OF VA NORTHERN CALIFORNIA HEALTHCARE SYSTEM

Place of Performance

Location: MATHER, SACRAMENTO County, CALIFORNIA, 95655

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $3.1 million to V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC for work described as: RENOVATION OF BUILDING 209 ADMINISTRATION BUILDING AT MCCLELLAN PARK AS PART OF VA NORTHERN CALIFORNIA HEALTHCARE SYSTEM Key points: 1. Contract value of $3.07 million for building renovation. 2. Awarded to V. Lopez Jr. & Sons General Engineering Contractors, Inc. 3. Part of the VA Northern California Healthcare System's infrastructure improvements. 4. Contract type is Firm Fixed Price, indicating predictable costs. 5. Duration of 984 days suggests a substantial renovation scope. 6. Located in McClellan Park, California, a significant hub for federal facilities.

Value Assessment

Rating: good

The contract value of $3.07 million for the renovation of Building 209 at McClellan Park appears reasonable for a project of this scope. While direct comparisons are difficult without detailed project specifications, similar large-scale commercial and institutional building construction projects managed by the VA or other federal agencies often fall within a similar cost range. The firm fixed-price nature of the contract helps in managing cost predictability. Benchmarking against industry standards for commercial building renovations of this size would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was generally open, specific sources may have been excluded for defined reasons. The presence of 3 bids suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing, but even with three, the agency likely received a range of proposals to evaluate for best value.

Taxpayer Impact: The use of full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging multiple firms to vie for the contract, potentially driving down costs and ensuring a fair market price is achieved.

Public Impact

Veterans in Northern California will benefit from improved healthcare facilities. The renovation will enhance the operational capacity and safety of the VA Northern California Healthcare System. The project's geographic impact is concentrated in McClellan Park, California. Local construction workforce may see employment opportunities during the renovation period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep or unforeseen issues in a renovation project of this duration.
Dependence on the contractor's ability to manage complex construction timelines and potential delays.
Ensuring compliance with all VA facility standards and building codes throughout the renovation.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Awarded to a contractor with general engineering and construction experience.
Project is part of a larger healthcare system improvement initiative, indicating strategic planning.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The federal government is a significant consumer of construction services, particularly for maintaining and upgrading its vast portfolio of facilities. Spending in this sector is influenced by infrastructure needs, modernization efforts, and agency budgets. Comparable spending benchmarks would involve looking at other large-scale renovation or construction projects awarded by federal agencies for similar types of buildings.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, V. Lopez Jr. & Sons General Engineering Contractors, Inc., is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this award. The lack of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified renovation within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and public reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract performance.

Related Government Programs

VA Healthcare Infrastructure Projects
Federal Building Renovations
Commercial Construction Contracts
Department of Veterans Affairs Procurement

Risk Flags

Potential for delays in construction projects of this duration.
Risk of unforeseen conditions in building renovations.
Ensuring adequate competition despite exclusion of sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $3.1 million to V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC. RENOVATION OF BUILDING 209 ADMINISTRATION BUILDING AT MCCLELLAN PARK AS PART OF VA NORTHERN CALIFORNIA HEALTHCARE SYSTEM

Who is the contractor on this award?

The obligated recipient is V. LOPEZ JR. & SONS GENERAL ENGINEERING CONTRACTORS, INC.

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: 2019-09-24. End: 2022-06-04.

What is the track record of V. Lopez Jr. & Sons General Engineering Contractors, Inc. with federal contracts, particularly with the VA?

A review of federal procurement data would be necessary to fully assess the track record of V. Lopez Jr. & Sons General Engineering Contractors, Inc. This would involve examining past contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. Understanding their experience with similar renovation projects, especially for healthcare facilities, would provide crucial context for their ability to successfully execute this $3.07 million contract. Without specific historical data, it's difficult to definitively gauge their reliability and past performance.

How does the $3.07 million cost compare to similar VA building renovation projects?

Benchmarking this $3.07 million contract against similar VA building renovation projects requires access to detailed project scopes and cost breakdowns. Factors such as square footage, complexity of work (e.g., structural, MEP, finishes), and location significantly influence costs. Generally, renovation costs can vary widely. A preliminary assessment suggests the value is within a plausible range for a substantial building renovation. However, a more precise comparison would involve analyzing cost-per-square-foot data from comparable federal projects, adjusted for regional economic factors and the specific nature of the renovation work.

What are the primary risks associated with this specific building renovation contract?

The primary risks associated with this renovation contract include potential construction delays due to unforeseen site conditions, material availability issues, or labor shortages, which are common in projects of this duration (984 days). Another risk is the possibility of scope creep, where additional work beyond the original specifications is requested or required, potentially impacting cost and schedule if not managed carefully. Ensuring the contractor adheres to the firm fixed-price agreement while meeting all VA quality and safety standards presents an ongoing management risk. Finally, the effectiveness of the 'Full and Open Competition After Exclusion of Sources' in achieving optimal pricing and contractor selection is a potential risk if the exclusion criteria were overly restrictive.

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

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring value for money is nuanced. While 'full and open' competition is generally preferred for maximizing competition and achieving competitive pricing, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately not considered. If the exclusion was based on legitimate, well-defined criteria (e.g., specific technical capabilities, past performance issues with certain firms), it could still lead to good value by focusing the competition on qualified entities. However, if the exclusion was overly broad or poorly justified, it could limit competition and potentially lead to higher prices than a truly unrestricted competition might have yielded. The presence of three bids suggests some level of competition was maintained.

What is the historical spending trend for building renovations at McClellan Park or similar VA facilities?

Analyzing historical spending trends for building renovations at McClellan Park or similar VA facilities would require accessing detailed historical contract data from the VA. This would involve looking at the frequency, size, and types of renovation contracts awarded over several fiscal years. Trends might indicate whether spending in this area is increasing, decreasing, or remaining stable, and whether projects are typically awarded through full and open competition or other methods. Understanding these patterns can help contextualize the current $3.07 million award and inform future budget planning and procurement strategies for infrastructure maintenance and upgrades.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C26119B0017

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 200 E FESLER ST STE 101, SANTA MARIA, CA, 93454

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, 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: $3,074,359

Exercised Options: $3,074,359

Current Obligation: $3,074,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline