VA awards $204K for A&E Design and Construction Repair of Weatherized Parking Structure Elevator

Contract Overview

Contract Amount: $204,402 ($204.4K)

Contractor: Spees LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-01-06

End Date: 2027-04-13

Contract Duration: 827 days

Daily Burn Rate: $247/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: A&E DESIGN AND CONSTRUCTION REPAIR AND WEATHERIZED PARKING STRUCTURE 211 ELEVATOR

Place of Performance

Location: SAN FRANCISCO, SAN FRANCISCO County, CALIFORNIA, 94121

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $204,402.08 to SPEES LLC for work described as: A&E DESIGN AND CONSTRUCTION REPAIR AND WEATHERIZED PARKING STRUCTURE 211 ELEVATOR Key points: 1. Contract awarded to SPEES LLC for essential infrastructure repair. 2. The contract duration is 827 days, indicating a medium-term project. 3. The contract type is Firm Fixed Price, providing cost certainty. 4. The award was made under full and open competition. 5. The North American Industry Classification System (NAICS) code is 541330 for Engineering Services. 6. The project is located in California, impacting local infrastructure. 7. This is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $204,402.08 appears reasonable for specialized engineering and construction repair services for a parking structure elevator. Without specific benchmarks for similar elevator repair projects in California, a direct comparison is difficult. However, the firm fixed-price nature of the contract suggests that the contractor has assessed the risks and costs, and the price reflects that assessment. The duration of the project (827 days) also provides a basis for evaluating the overall cost over time.

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 indicates that while the initial solicitation may have had some exclusions, the final award was made through a competitive process. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competition, which is beneficial for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The use of full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at the best possible price through market forces.

Public Impact

Veterans and staff at the facility will benefit from improved and reliable elevator access within the parking structure. The services delivered include specialized design and construction repair, ensuring the safety and functionality of critical infrastructure. The geographic impact is localized to the specific Department of Veterans Affairs facility in California where the parking structure is located. The project will likely involve skilled labor in engineering, construction, and elevator maintenance, potentially creating or sustaining jobs in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits a full assessment of competitive intensity.
The 'after exclusion of sources' clause warrants further investigation to understand any initial limitations on competition.
The specific nature of the 'weatherized parking structure' and elevator issues are not detailed, potentially masking underlying complexities.
The duration of the contract (827 days) could indicate potential for delays or scope creep if not managed effectively.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential infrastructure repair, addressing a clear need.
The contractor, SPEES LLC, has been awarded this contract, implying they met the necessary qualifications.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the broader construction and infrastructure industry. The market for specialized design and repair services for government facilities, particularly for unique structures like weatherized parking garages and their elevators, is often competitive but requires specific expertise. Spending in this area is driven by the need to maintain and upgrade aging federal infrastructure, ensuring safety and operational efficiency. Comparable spending benchmarks would typically involve analyzing other VA or federal contracts for similar elevator modernization or parking structure repair projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). SPEES LLC's size status is not explicitly provided, but the contract was awarded under full and open competition. This means that while small businesses were eligible to bid, there was no specific requirement for a portion of the work to be subcontracted to them. The impact on the small business ecosystem would depend on whether SPEES LLC itself is a small business or if they engage small business subcontractors, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. As a Delivery Order under a larger contract, the existing oversight mechanisms of the parent contract would likely apply. Transparency is facilitated by public contract databases, but detailed project-specific oversight reports or Inspector General involvement would typically be triggered by performance issues, cost overruns, or specific risk indicators. The effectiveness of oversight depends on the diligence of the VA's contract administration team.

Related Government Programs

Federal Building and Fire Safety Program
Department of Veterans Affairs Capital Asset Fund
General Services Administration (GSA) Public Buildings Service
Infrastructure Investment and Jobs Act projects

Risk Flags

Potential for unforeseen structural issues in parking garage.
Complexity of specialized elevator system repair.
Risk of delays due to material procurement or labor availability.
Extended project duration may increase management overhead.
Need for clear definition of 'weatherized' aspects requiring repair.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $204,402.08 to SPEES LLC. A&E DESIGN AND CONSTRUCTION REPAIR AND WEATHERIZED PARKING STRUCTURE 211 ELEVATOR

Who is the contractor on this award?

The obligated recipient is SPEES 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 $204,402.08.

What is the period of performance?

Start: 2025-01-06. End: 2027-04-13.

What is the track record of SPEES LLC in performing similar A&E design and construction repair services for the federal government?

A comprehensive review of SPEES LLC's track record would involve examining their past performance on federal contracts, particularly those involving elevator systems, parking structures, and weatherization. This would include looking at contract awards, completion history, any reported performance issues, and client feedback if publicly available. Without access to a detailed federal procurement database or past performance reviews, it is difficult to definitively assess their specific expertise and reliability for this project. However, being awarded this contract by the Department of Veterans Affairs suggests they met the minimum qualifications and demonstrated some level of capability.

How does the awarded amount of $204,402.08 compare to similar elevator repair and parking structure projects within the VA or other federal agencies?

Benchmarking this contract's value requires access to data on comparable projects. Factors influencing cost include the complexity of the elevator system, the extent of structural repairs needed for the parking structure, the specific 'weatherized' features requiring attention, and prevailing labor and material costs in California. A typical elevator modernization project can range widely, from tens of thousands for component upgrades to hundreds of thousands for full replacements. Parking structure repairs can also be substantial, depending on concrete degradation, waterproofing issues, and structural integrity. Without specific comparable project data, it's challenging to definitively state if $204K represents excellent or fair value, but it appears to be within a plausible range for specialized engineering and repair work.

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

Key risks include potential unforeseen structural issues within the parking garage, complexities in repairing or upgrading the specific elevator system, and the impact of weather on construction activities, especially given the 'weatherized' nature of the structure. Delays in material procurement or specialized labor availability could also pose risks. Mitigation strategies likely involve thorough initial site assessments by SPEES LLC, detailed design plans, a firm fixed-price contract to cap costs, and the VA's contract oversight to monitor progress and address issues promptly. The 827-day duration suggests a phased approach, which can help manage risks by addressing components sequentially.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers on this contract?

This contracting approach aims to balance the benefits of broad competition with the need to potentially exclude certain sources for specific, justifiable reasons (e.g., unique capabilities, national security). If the exclusions were minimal and well-justified, and a sufficient number of capable bidders still participated, it can lead to competitive pricing and good value. However, if the exclusions significantly limited the pool of potential bidders, it could potentially reduce competitive pressure and lead to higher costs for taxpayers. The effectiveness hinges on the justification for exclusions and the actual level of competition achieved among the remaining eligible sources.

What is the historical spending pattern for A&E design and construction repair services by the Department of Veterans Affairs?

The Department of Veterans Affairs consistently spends significant amounts on A&E design and construction repair services to maintain and upgrade its vast network of healthcare facilities and administrative buildings. Historical spending data would reveal trends in contract awards for infrastructure maintenance, renovations, and new construction. This specific contract for an elevator and parking structure repair fits within the VA's ongoing capital asset management and facility modernization efforts. Analyzing broader VA spending patterns would show the proportion allocated to engineering services versus direct construction, and the typical contract values for projects of similar scope and complexity.

What are the implications of the 827-day duration for project management and potential cost overruns?

An 827-day duration (approximately 2.27 years) for a $204K project is relatively long, suggesting either a complex scope of work, a phased approach to minimize disruption, or potentially a slower pace of execution. For project management, this extended timeline requires sustained oversight to ensure progress, maintain quality, and prevent scope creep. From a cost perspective, while the contract is Firm Fixed Price, a longer duration increases the risk of unforeseen economic factors (e.g., inflation impacting materials not yet procured) or the need for contract modifications if the scope genuinely expands. Effective management is crucial to prevent the extended timeline from indirectly leading to increased overall costs or delays.

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: 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

Parent Company: Spees-Hernandez JV LLC

Address: 23830 PACIFIC HWY S STE 203, KENT, WA, 98032

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

Financial Breakdown

Contract Ceiling: $204,402

Exercised Options: $204,402

Current Obligation: $204,402

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C26123D0036

IDV Type: IDC

Timeline