VA awards $9M construction contract to JV6 Contracting LLC for Joliet CBOC site improvements

Contract Overview

Contract Amount: $9,022,991 ($9.0M)

Contractor: JV6 Contracting LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-07-18

End Date: 2026-01-24

Contract Duration: 555 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MINOR CONSTRUCTION PROJECT TO DEMOLISH & REMOVE REMNANT STRUCTURE LEFT BEHIND FROM THE SILVER CROSS HOSPITAL DEMO, REPAIR THE NORTH WALL, REPLACE THE ROOF,& DEVELOP THE LAND NORTH OF THE JOLIET CBOC PARKING EXPANSION

Place of Performance

Location: DES PLAINES, COOK County, ILLINOIS, 60018

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.0 million to JV6 CONTRACTING LLC for work described as: MINOR CONSTRUCTION PROJECT TO DEMOLISH & REMOVE REMNANT STRUCTURE LEFT BEHIND FROM THE SILVER CROSS HOSPITAL DEMO, REPAIR THE NORTH WALL, REPLACE THE ROOF,& DEVELOP THE LAND NORTH OF THE JOLIET CBOC PARKING EXPANSION Key points: 1. Contract addresses essential site remediation and infrastructure repair. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of 555 days indicates a substantial project scope. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The project is located in Illinois, potentially benefiting the local economy. 6. This award falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: good

The contract value of $9.02 million for demolition, repair, and land development appears reasonable given the scope of work. While direct comparisons are difficult without specific project details, the fixed-price nature of the contract provides cost certainty. The award to JV6 Contracting LLC, a single entity, suggests they were deemed the best value through the competitive process. Further benchmarking against similar-sized construction projects for federal facilities would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. Six bids were received, demonstrating a healthy level of interest and competition for this project. This competitive environment is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: The competitive bidding process for this contract is beneficial for taxpayers, as it likely drove down the final price through multiple offers. The inclusion of six bidders suggests that the market is responsive to VA construction opportunities.

Public Impact

The Department of Veterans Affairs benefits from improved infrastructure at the Joliet CBOC. The project involves demolition of remnant structures, roof replacement, and land development, enhancing the facility's usability. The geographic impact is localized to Joliet, Illinois, potentially creating local construction jobs. The contract supports the operational needs of the VA healthcare system. The project ensures the site is safe and functional for veterans and staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays if unforeseen site conditions are encountered during demolition.
Ensuring compliance with all environmental regulations during demolition and construction.
Managing the coordination between different phases of the project (demolition, repair, development).

Positive Signals

Fixed-price contract provides cost predictability.
Full and open competition suggests a robust bidding process.
The project addresses necessary infrastructure improvements for a VA facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal spending in this area supports the maintenance and development of government facilities. The market for such construction services is competitive, with numerous firms capable of undertaking projects of this scale. Benchmarking against similar VA or other federal agency construction projects would provide context on typical cost structures and timelines.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. However, the prime contractor, JV6 Contracting LLC, may engage small businesses for subcontracting opportunities. The extent of small business participation will depend on the prime contractor's subcontracting plan and the availability of qualified small businesses for specialized construction tasks.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would include regular progress reviews, site inspections, and adherence to contract terms and conditions. Accountability is ensured through the firm-fixed-price structure, which incentivizes the contractor to complete the work within budget. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

VA Capital Asset and Business Process Realignment
Federal Buildings Fund
Military Construction

Risk Flags

Potential for unforeseen site conditions.
Environmental compliance risks.
Schedule delays due to weather or coordination issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.0 million to JV6 CONTRACTING LLC. MINOR CONSTRUCTION PROJECT TO DEMOLISH & REMOVE REMNANT STRUCTURE LEFT BEHIND FROM THE SILVER CROSS HOSPITAL DEMO, REPAIR THE NORTH WALL, REPLACE THE ROOF,& DEVELOP THE LAND NORTH OF THE JOLIET CBOC PARKING EXPANSION

Who is the contractor on this award?

The obligated recipient is JV6 CONTRACTING 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: 2024-07-18. End: 2026-01-24.

What is the track record of JV6 Contracting LLC on federal contracts?

Information on JV6 Contracting LLC's specific track record with federal contracts is not detailed in the provided data. A thorough review would require accessing federal procurement databases like SAM.gov or FPDS to examine past performance, contract values, agencies served, and any reported issues or awards. Understanding their history with similar construction projects, particularly for government entities, would be crucial for assessing their capability and reliability in executing this $9 million VA project. Without this historical data, it's difficult to definitively gauge their experience and past performance.

How does the $9.02 million cost compare to similar VA construction projects?

Benchmarking the $9.02 million cost against similar VA construction projects requires access to a broader dataset of comparable contracts. Factors such as project scope (demolition, repair, new development), location, facility type, and specific site conditions significantly influence costs. For instance, a complex demolition in an urban area might be more expensive than a straightforward repair. Without specific details on comparable projects, it's challenging to definitively state if this contract represents excellent, fair, or questionable value. However, the use of full and open competition suggests that the pricing was vetted against multiple market participants.

What are the primary risks associated with this demolition and construction project?

The primary risks associated with this demolition and construction project include unforeseen site conditions during demolition (e.g., hazardous materials, unexpected structural elements), potential environmental hazards and compliance issues, weather-related delays impacting the schedule, and potential cost escalations if the fixed-price contract doesn't adequately account for all contingencies. Coordination challenges between the demolition, repair, and land development phases could also lead to inefficiencies or delays. Ensuring the contractor has robust safety protocols and quality control measures in place is critical to mitigating these risks.

How effective is the 'Full and Open Competition After Exclusion of Sources' in ensuring value?

The 'Full and Open Competition After Exclusion of Sources' aims to balance broad competition with specific requirements. While 'full and open' suggests a wide solicitation, the 'exclusion of sources' implies that certain types of contractors or specific entities were not eligible, possibly due to pre-qualification requirements or specific technical needs. This approach can ensure that bidders possess necessary qualifications, potentially leading to higher quality outcomes. However, if the exclusion criteria are too narrow, it could limit competition and potentially lead to higher prices than a truly unrestricted full and open competition. The fact that six bids were received indicates that the exclusion criteria did not unduly stifle competition in this instance.

What is the historical spending pattern for similar construction projects at the Joliet CBOC or similar VA facilities?

Historical spending patterns for similar construction projects at the Joliet CBOC or comparable VA facilities are not detailed in the provided data. To assess this, one would need to analyze past VA contract awards for construction and renovation projects at similar outpatient clinics or medical facilities. This analysis would involve looking at the frequency, value, and types of construction work performed over several years. Understanding these patterns can help identify trends in project costs, identify potential cost efficiencies or inefficiencies, and provide a baseline for evaluating the current $9.02 million award in a long-term context.

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: 36C77624C0113

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2860 S RIVER RD, DES PLAINES, IL, 60018

Business Categories: Category Business, Hispanic American Owned Business, Limited Liability Corporation, Minority Owned Business, 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: $24,816,728

Exercised Options: $24,816,728

Current Obligation: $9,022,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline