VA Awards $6.87M Sewer Renovation Contract to Anchor-41 Construction LLC

Contract Overview

Contract Amount: $6,868,030 ($6.9M)

Contractor: Anchor-41 Construction LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-08-25

End Date: 2027-02-03

Contract Duration: 527 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATION AND UPGRADE OF SEWER SYSTEM

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $6.9 million to ANCHOR-41 CONSTRUCTION LLC for work described as: RENOVATION AND UPGRADE OF SEWER SYSTEM Key points: 1. Contract awarded for sewer system renovation and upgrade. 2. Anchor-41 Construction LLC is the contractor. 3. The contract is a definitive contract with a firm fixed price. 4. The project is located in California and has a duration of 527 days.

Value Assessment

Rating: fair

The contract value of $6.87 million for a sewer system renovation appears within a reasonable range for a project of this scope. Benchmarking against similar government contracts for water and sewer infrastructure would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and good value for the government.

Taxpayer Impact: The firm fixed price contract aims to control costs, but the final taxpayer impact depends on the efficiency of the contractor and the accuracy of the initial cost estimates.

Public Impact

Improved public health and environmental safety through upgraded sewer infrastructure. Potential for job creation within the construction sector in California. Ensures continued operational capacity for the Department of Veterans Affairs facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Contract duration extends over multiple fiscal years.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls under the construction sector, specifically water and sewer line construction. Spending in this area is crucial for maintaining public infrastructure and can vary significantly based on project scale and location.

Small Business Impact

The data indicates that small businesses were not directly involved in this contract, as the 'sb' field is false. Opportunities for small business subcontracting were not explicitly detailed in the provided information.

Oversight & Accountability

The award under full and open competition suggests a degree of oversight in the procurement process. Further review of the contract's performance and adherence to specifications would be necessary for a comprehensive oversight assessment.

Related Government Programs

Water and Sewer Line and Related Structures Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

No small business participation.
Contract duration spans over 1.5 years.
Potential for unforeseen site conditions in infrastructure projects.
Dependence on a single contractor for a critical utility system.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $6.9 million to ANCHOR-41 CONSTRUCTION LLC. RENOVATION AND UPGRADE OF SEWER SYSTEM

Who is the contractor on this award?

The obligated recipient is ANCHOR-41 CONSTRUCTION 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 $6.9 million.

What is the period of performance?

Start: 2025-08-25. End: 2027-02-03.

What is the historical cost performance of Anchor-41 Construction LLC on similar government contracts?

Analyzing Anchor-41 Construction LLC's past performance on comparable government projects is essential for assessing future value. This includes examining their track record for cost overruns, schedule adherence, and quality of work. A review of their contract history can reveal patterns of efficiency or potential risks, informing whether the current $6.87 million award represents a sound investment.

What are the specific risks associated with the renovation and upgrade of this particular sewer system?

Potential risks include unforeseen subsurface conditions (e.g., soil instability, existing utilities), environmental hazards during excavation, and potential disruptions to ongoing VA facility operations. The firm fixed price contract shifts some cost risk to the contractor, but delays due to unforeseen issues could still impact the schedule and potentially lead to change orders.

How effectively will this sewer system upgrade contribute to the long-term operational efficiency and resilience of the VA facility?

The effectiveness hinges on the thoroughness of the design and the quality of execution. A well-executed upgrade should significantly reduce the risk of future failures, minimize maintenance costs, and ensure compliance with environmental regulations. This contributes to the facility's operational continuity and reduces the likelihood of costly emergency repairs or service interruptions.

Industry Classification

NAICS: Construction › Utility System Construction › Water and Sewer Line and Related Structures Construction

Product/Service Code: UTILITIES AND HOUSEKEEPING › UTILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C26225R0083

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2297 KNOWLWOOD DR, HANFORD, CA, 93230

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Limited Liability Corporation, 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: $6,868,030

Exercised Options: $6,868,030

Current Obligation: $6,868,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline