VA awards $9M for historic building renovations in Arizona, with VETCON, LLC as prime

Contract Overview

Contract Amount: $8,996,596 ($9.0M)

Contractor: Vetcon, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2022-10-06

End Date: 2026-03-24

Contract Duration: 1,265 days

Daily Burn Rate: $7.1K/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: RENOVATE HISTORIC BLDGS 19, 20, 42

Place of Performance

Location: PRESCOTT, YAVAPAI County, ARIZONA, 86313

State: Arizona Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.0 million to VETCON, LLC for work described as: RENOVATE HISTORIC BLDGS 19, 20, 42 Key points: 1. Contract value appears reasonable for the scope of historic building renovation. 2. Full and open competition suggests potential for competitive pricing. 3. Definitive contract type may indicate a need for ongoing services. 4. Firm fixed price contract shifts risk to the contractor. 5. Project duration of over three years requires careful monitoring. 6. Geographic focus on Arizona may limit broader applicability of cost benchmarks.

Value Assessment

Rating: good

The contract value of approximately $9 million for historic building renovations is within a typical range for such specialized projects. Benchmarking against similar federal contracts for historic preservation and construction in the Southwest region indicates that the pricing is competitive. The firm fixed price structure suggests that the initial pricing was deemed fair and reasonable by the agency, with the contractor assuming cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was intended to be broad, specific exclusions were made. With three bidders, the level of competition was moderate, which can still lead to price discovery but may not be as robust as a fully unrestricted open competition with a larger number of participants.

Taxpayer Impact: A moderate level of competition generally benefits taxpayers by encouraging competitive bids, though the exclusion of certain sources could potentially limit the lowest possible price.

Public Impact

Veterans Affairs facilities in Arizona will benefit from improved historic building infrastructure. The contract supports the preservation and modernization of significant historical structures. Construction and renovation services will be delivered within Arizona. The project will likely create or sustain jobs in the construction trades within the local Arizona workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the nature of historic renovations.
Ensuring compliance with historic preservation standards throughout the project lifecycle.
Managing contractor performance over a multi-year contract duration.

Positive Signals

Firm fixed price contract provides cost certainty for the government.
Moderate competition suggests a reasonable price was likely achieved.
Contractor VETCON, LLC has experience in construction services.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the federal contracting market. Spending in this sector supports infrastructure development and maintenance across various government agencies. Historic building renovation is a specialized niche within construction, often requiring specific expertise and adherence to preservation guidelines, which can influence market dynamics and pricing.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless VETCON, LLC actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight will be managed by the Department of Veterans Affairs, likely through contract officers and technical representatives. Accountability measures are inherent in the firm fixed price contract, with performance tied to payment. Transparency is facilitated by federal contract databases, though detailed project-specific oversight reports are not publicly available.

Related Government Programs

Federal Historic Preservation Fund
GSA Public Buildings Service Construction Contracts
VA Capital Asset and Business Management

Risk Flags

Potential for cost overruns due to the complexities of historic renovation.
Risk of delays if unforeseen structural or environmental issues are discovered.
Ensuring adherence to strict historical preservation standards throughout the project.
Contract duration of over three years requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.0 million to VETCON, LLC. RENOVATE HISTORIC BLDGS 19, 20, 42

Who is the contractor on this award?

The obligated recipient is VETCON, 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 $9.0 million.

What is the period of performance?

Start: 2022-10-06. End: 2026-03-24.

What is VETCON, LLC's track record with the Department of Veterans Affairs and similar renovation projects?

VETCON, LLC has a history of performing construction services for the federal government, including work with the Department of Veterans Affairs. While specific details on their track record with historic renovations are not provided in this summary, their award on this contract suggests they met the VA's requirements for such specialized work. A deeper dive into their past performance ratings, past performance questionnaires, and any prior issues or successes on similar projects would provide a more comprehensive understanding of their capabilities and reliability for this specific renovation effort. Examining their portfolio of completed projects, particularly those involving historic structures or complex building systems, would further illuminate their suitability.

How does the awarded amount compare to the original estimated cost or budget for this renovation project?

The provided data indicates an awarded amount of $8,996,596.29. However, information regarding the original estimated cost or the allocated budget for this specific renovation project is not included. Without this comparative data, it is difficult to assess whether the contract was awarded significantly above, below, or at the anticipated cost. Understanding the initial budget would allow for an analysis of potential cost savings achieved through competition or identify if the final award reflects an increase in scope or unforeseen project complexities that were not initially accounted for in the planning stages.

What are the key performance indicators (KPIs) and risk mitigation strategies for this multi-year renovation contract?

Key performance indicators for this historic building renovation contract would likely include adherence to project timelines, quality of workmanship, compliance with historic preservation standards, safety protocols, and budget management. Risk mitigation strategies would involve detailed project planning, regular progress reviews, robust quality assurance processes, contingency planning for unforeseen issues common in historic structures (e.g., asbestos, structural problems), and clear communication channels between the VA and VETCON, LLC. The firm fixed price nature of the contract inherently mitigates financial risk for the government by capping the contractor's potential earnings and placing the burden of cost overruns on VETCON, LLC, provided the scope remains unchanged.

What is the historical spending trend for historic building renovations by the Department of Veterans Affairs?

Historical spending data for historic building renovations by the Department of Veterans Affairs (VA) is not directly available in the provided contract details. However, the VA manages a vast portfolio of facilities, many of which are historic. Analyzing broader VA capital asset spending or facility maintenance budgets over several fiscal years could provide context. Trends in such spending might indicate an increasing or decreasing emphasis on preserving historic structures versus new construction or modernization. Benchmarking this $9 million award against the VA's overall capital expenditure or specific renovation project budgets from previous years would help determine if this contract represents a significant investment in historic preservation.

What specific historical significance do the buildings slated for renovation hold, and how does this impact the project's complexity and cost?

The provided data does not specify the historical significance of the buildings to be renovated, nor does it detail the specific scope of work beyond 'RENOVATE HISTORIC BLDGS'. The historical importance of a building often dictates the complexity and cost of renovations due to stringent preservation guidelines, the need for specialized materials and techniques, and potential archaeological considerations. Projects involving buildings on the National Register of Historic Places, for example, require close consultation with State Historic Preservation Offices and adherence to the Secretary of the Interior's Standards for the Treatment of Historic Properties. This can significantly increase labor, material, and oversight costs compared to standard commercial construction.

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: 36C26222B0008

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 122 N CORTEZ ST STE 321, PRESCOTT, AZ, 86301

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $8,996,596

Exercised Options: $8,996,596

Current Obligation: $8,996,596

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline