VA Awards $2.45M Contract for Building Demolition and Parking Facility Construction in California

Contract Overview

Contract Amount: $2,447,050 ($2.4M)

Contractor: Fayzamerica LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-25

End Date: 2026-07-02

Contract Duration: 280 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: PROJECT 691-24-108 BUILDING 264 DEMOLITION AND CONSTRUCTION OF PARKING FACILITIES.

Place of Performance

Location: LOS ANGELES, LOS ANGELES County, CALIFORNIA, 90073

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.4 million to FAYZAMERICA LLC for work described as: PROJECT 691-24-108 BUILDING 264 DEMOLITION AND CONSTRUCTION OF PARKING FACILITIES. Key points: 1. Contract awarded to FAYZAMERICA LLC for a total of $2,447,050.39. 2. Project involves demolition and construction of parking facilities, indicating infrastructure development. 3. The contract is a firm-fixed-price definitive contract, providing cost certainty. 4. Awarded by the Department of Veterans Affairs, suggesting a focus on veteran facilities.

Value Assessment

Rating: fair

The contract value of $2.45M for demolition and parking facility construction appears within a reasonable range for such projects, though specific benchmarks are unavailable. The firm-fixed-price structure limits potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited competition approach. This method may impact price discovery and potentially lead to higher costs compared to a fully open competition.

Taxpayer Impact: The limited competition raises concerns about whether taxpayers received the best possible price for this infrastructure project.

Public Impact

Improved parking facilities at a VA site, potentially benefiting veterans and staff. Job creation in the construction sector within California. Infrastructure upgrade that could enhance the functionality of the VA facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of detailed cost breakdown

Positive Signals

Firm-fixed-price contract
Clear project scope (demolition and construction)

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs, facility upgrades, and development projects across government agencies.

Small Business Impact

The contract was not awarded to a small business, as indicated by 'sb': false. There is no information provided on subcontracting opportunities for small businesses on this project.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. The firm-fixed-price contract provides some accountability for the contractor to deliver within the agreed-upon price.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Limited competition
Potential for unforeseen site conditions impacting cost
Lack of small business participation noted
Contract duration of 280 days may be tight for demolition and construction

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.4 million to FAYZAMERICA LLC. PROJECT 691-24-108 BUILDING 264 DEMOLITION AND CONSTRUCTION OF PARKING FACILITIES.

Who is the contractor on this award?

The obligated recipient is FAYZAMERICA 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 $2.4 million.

What is the period of performance?

Start: 2025-09-25. End: 2026-07-02.

What is the justification for limiting competition on this project?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source or limited justification was likely used. Without further details, the specific reasons, such as unique capabilities of FAYZAMERICA LLC or urgent needs, remain unclear. This lack of transparency hinders a full assessment of the procurement process.

How does the awarded price compare to industry benchmarks for similar parking facility construction projects?

Direct comparison is difficult without more specific project details (e.g., square footage, number of parking spaces, complexity of demolition). However, the $2.45M value for a project spanning nearly two years suggests a significant investment. Further analysis would require detailed cost breakdowns and regional construction cost indices.

What are the potential risks associated with the firm-fixed-price contract for this demolition and construction project?

While firm-fixed-price contracts offer cost certainty, risks can arise if unforeseen conditions are encountered during demolition or construction (e.g., hazardous materials, unexpected site issues). If these issues are significant and not adequately addressed in the contract's contingency planning, they could lead to change orders or disputes, potentially impacting the final cost and schedule.

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: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C26225R0049

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 747 OHIO AVE UNIT A, LONG BEACH, CA, 90804

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, 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: $2,447,050

Exercised Options: $2,447,050

Current Obligation: $2,447,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline