VA Awards $20M Contract for New Parking Structure in California to R.T. Contractor Corp

Contract Overview

Contract Amount: $19,933,976 ($19.9M)

Contractor: R.T Contractor Corp.

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-09-12

End Date: 2026-06-10

Contract Duration: 636 days

Daily Burn Rate: $31.3K/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: CONSTRUCT NEW PARKING STRUCTURE

Place of Performance

Location: LOMA LINDA, SAN BERNARDINO County, CALIFORNIA, 92357

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $19.9 million to R.T CONTRACTOR CORP. for work described as: CONSTRUCT NEW PARKING STRUCTURE Key points: 1. Contract awarded to R.T. Contractor Corp. for $19.9M. 2. Project involves construction of a new parking structure. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract is a Firm Fixed Price type. 5. The project duration is 636 days.

Value Assessment

Rating: fair

The contract value of $19.9M for a parking structure appears within a reasonable range for a project of this scale. However, without specific details on size, materials, and location within California, a precise benchmark is difficult. The 'fair' rating reflects potential for cost efficiencies given the fixed-price nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests that while the competition was intended to be broad, certain sources were excluded, potentially limiting the competitive landscape and price discovery. This could lead to less optimal pricing compared to truly unrestricted full and open competition.

Taxpayer Impact: Taxpayer funds are being used for this construction project. The effectiveness of the competition method in securing the best price will directly impact the overall value for taxpayers.

Public Impact

Improved parking facilities for veterans and staff at a VA facility. Potential for job creation during the construction phase. Impact on local traffic and infrastructure during construction. Long-term benefit of enhanced accessibility and convenience.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Potential for cost overruns if scope is not tightly managed.
Construction delays impacting facility usability.

Positive Signals

Addresses a clear need for parking infrastructure.
Firm Fixed Price contract provides cost certainty.
Defined project timeline.

Sector Analysis

Commercial and Institutional Building Construction is a significant sector. Spending benchmarks vary widely based on project complexity, location, and specific building type. This $19.9M project falls into a mid-to-large scale for a parking structure, requiring careful cost management.

Small Business Impact

The data does not indicate if small businesses were involved as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Contract clauses and performance monitoring will be crucial to ensure timely completion and adherence to specifications, safeguarding taxpayer investment.

Related Government Programs

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

Risk Flags

Potential for reduced competition impacting price.
Risk of construction delays affecting usability.
Scope creep leading to cost overruns.
Ensuring long-term durability and maintenance cost-effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $19.9 million to R.T CONTRACTOR CORP.. CONSTRUCT NEW PARKING STRUCTURE

Who is the contractor on this award?

The obligated recipient is R.T CONTRACTOR CORP..

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 $19.9 million.

What is the period of performance?

Start: 2024-09-12. End: 2026-06-10.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security requirements are necessary, and only a subset of potential bidders can meet them. This limitation can reduce the number of competing bids, potentially leading to a higher final price than if all potential sources were allowed to compete. Understanding the rationale behind the exclusion is key to assessing if the price reflects fair market value under the circumstances.

What are the key performance indicators (KPIs) for this parking structure project, and how will their achievement be measured to ensure effectiveness and value for money?

Key performance indicators would likely include on-time completion, adherence to budget, structural integrity, compliance with building codes, and user satisfaction post-construction. Effectiveness will be measured by the structure's ability to meet the projected parking demand, reduce congestion, and provide safe, accessible parking. The VA's project management team will monitor progress against these KPIs throughout the project lifecycle.

Given the $19.9M contract value and a 636-day duration, what is the projected cost per day, and how does this compare to industry averages for similar construction projects?

The projected cost per day is approximately $31,343 ($19,933,975.77 / 636 days). Comparing this to industry averages requires detailed project specifications (size, materials, location). However, for a large parking structure, this daily burn rate is not inherently alarming but warrants scrutiny against comparable projects in California to ensure cost-efficiency and identify potential areas for savings or overspending.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SEALED BID

Solicitation ID: 36C77623B0072

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11531 SALINAZ AVE, GARDEN GROVE, CA, 92843

Business Categories: Asian Pacific American Owned Business, Category Business, Community Developed Corporation Owned Firm, Corporate Entity Not Tax Exempt, Minority Owned Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,933,976

Exercised Options: $19,933,976

Current Obligation: $19,933,976

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline