VA awards $31.5M construction contract to FOX-ESA JV LLC for facility upgrades

Contract Overview

Contract Amount: $31,464,927 ($31.5M)

Contractor: Fox-Esa JV LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-19

End Date: 2027-03-20

Contract Duration: 547 days

Daily Burn Rate: $57.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, PROJECT MANAGEMENT, MATERIALS, TOOLS, SUPPLIES, AND EQUIPMENT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS TO COMPLETE THE WORK NECESSARY FOR PROJECT #529-22-700

Place of Performance

Location: BUTLER, BUTLER County, PENNSYLVANIA, 16001

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $31.5 million to FOX-ESA JV LLC for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, PROJECT MANAGEMENT, MATERIALS, TOOLS, SUPPLIES, AND EQUIPMENT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS TO COMPLETE THE WORK NECESSARY FOR PROJECT #529-22-700 Key points: 1. Contract value represents a significant investment in infrastructure modernization. 2. Competition dynamics suggest a potentially competitive bidding process for this project. 3. Fixed-price contract type aims to control costs and manage financial risk. 4. Project duration of 547 days indicates a substantial scope of work. 5. Geographic focus on Pennsylvania highlights regional infrastructure development. 6. Contract awarded to a joint venture, potentially leveraging specialized expertise.

Value Assessment

Rating: good

The contract value of $31.5 million for commercial and institutional building construction appears reasonable given the project's scope and duration. Benchmarking against similar VA construction projects of comparable size and complexity would provide a more precise assessment of value for money. The firm-fixed-price structure suggests an expectation of well-defined requirements and a focus on cost control by the contractor.

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 multiple bidders were likely considered. The presence of 4 bids suggests a moderate level of competition. While not a completely open solicitation, this approach aims to ensure a fair selection process and potentially competitive pricing.

Taxpayer Impact: The competitive bidding process, even with some exclusions, is intended to secure the best possible price for taxpayers by encouraging multiple firms to offer their services.

Public Impact

Veterans will benefit from improved healthcare facilities. Construction services will be delivered, enhancing the VA's infrastructure. The project's geographic impact is concentrated in Pennsylvania. The construction work will likely create or sustain jobs in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial specifications are not fully detailed.
Risk of delays due to unforeseen site conditions common in construction.
Ensuring timely delivery of specialized materials could be a challenge.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Joint venture structure may bring diverse expertise to the project.
Clear project duration provides a defined timeline for completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for government construction, particularly for agencies like the VA, is substantial, driven by the need to maintain and upgrade aging facilities. This project aligns with ongoing efforts to modernize federal infrastructure and improve service delivery capabilities.

Small Business Impact

The data does not indicate a specific small business set-aside for this contract, nor does it mention subcontracting plans. Further analysis would be needed to determine if small businesses will have opportunities to participate in this project, either as prime contractors or subcontractors.

Oversight & Accountability

Oversight will likely be managed by the Department of Veterans Affairs contracting and project management teams. Accountability measures are inherent in the firm-fixed-price contract, requiring the contractor to deliver the specified work within the agreed-upon cost. Transparency is generally maintained through contract award databases and public reporting, though specific oversight details are not provided.

Related Government Programs

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

Risk Flags

Potential for cost overruns if contractor underestimates project complexity.
Risk of schedule delays due to unforeseen site conditions or material availability.
Need for robust government oversight to ensure quality and adherence to specifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $31.5 million to FOX-ESA JV LLC. THE CONTRACTOR SHALL PROVIDE ALL LABOR, PROJECT MANAGEMENT, MATERIALS, TOOLS, SUPPLIES, AND EQUIPMENT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS TO COMPLETE THE WORK NECESSARY FOR PROJECT #529-22-700

Who is the contractor on this award?

The obligated recipient is FOX-ESA JV 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 $31.5 million.

What is the period of performance?

Start: 2025-09-19. End: 2027-03-20.

What is the track record of FOX-ESA JV LLC in completing similar VA construction projects?

Information regarding the specific track record of FOX-ESA JV LLC on similar Department of Veterans Affairs (VA) construction projects is not directly available in the provided data. To assess their suitability, a review of past performance, including project completion times, adherence to budget, quality of work, and any past disputes or claims on federal contracts, would be necessary. Examining their portfolio of completed projects, particularly those involving healthcare facilities or complex renovations, would offer valuable insights into their capabilities and reliability for this specific contract.

How does the awarded amount compare to the estimated cost or budget for Project #529-22-700?

The provided data indicates the awarded amount for Project #529-22-700 is $31,464,927. However, the estimated cost or the government's independent government cost estimate (IGCE) for this project is not included. Without this benchmark, it is difficult to definitively assess whether the awarded price represents exceptional value, is within expectations, or potentially exceeds the anticipated budget. A comparison to the IGCE would be crucial for a thorough value-for-money analysis.

What are the primary risks associated with the firm-fixed-price contract type for this project?

The primary risk associated with a firm-fixed-price (FFP) contract for a construction project like this lies with the contractor. FOX-ESA JV LLC assumes the risk of cost overruns. If the project's costs exceed the agreed-upon price due to unforeseen circumstances, material price increases, or labor shortages, the contractor will absorb those additional expenses. For the government, the main risk is that the contractor might cut corners on quality or scope to maintain profitability if they underestimated costs, although contract specifications and oversight are designed to prevent this.

What specific facility upgrades or improvements does Project #529-22-700 entail?

The provided data for Project #529-22-700 is limited and primarily includes contract award details such as the contractor, award amount, and dates. It specifies that the contract is for 'Commercial and Institutional Building Construction' and requires the contractor to 'PROVIDE ALL LABOR, PROJECT MANAGEMENT, MATERIALS, TOOLS, SUPPLIES, AND EQUIPMENT AS REQUIRED BY THE DRAWINGS AND SPECIFICATIONS TO COMPLETE THE WORK.' However, the specific nature of the facility upgrades or improvements (e.g., HVAC, electrical, structural, modernization) is not detailed in this summary. A review of the contract's statement of work or associated drawings and specifications would be necessary to understand the precise scope of work.

How has VA spending on construction projects in Pennsylvania trended over the last five years?

Analyzing the trend of VA spending on construction projects specifically in Pennsylvania over the last five years requires access to historical contract award data beyond the scope of this single contract. General trends for VA construction spending nationally show consistent investment in facility maintenance, modernization, and new construction to support healthcare services. Pennsylvania, with its significant veteran population and numerous VA facilities, likely represents a consistent area of investment. However, specific year-over-year spending figures for construction contracts awarded by the VA within Pennsylvania would need to be extracted from federal procurement databases like FPDS or USASpending.

What is the significance of the 'PA' contract status code?

The contract status code 'PA' typically signifies 'Procurement Automated' or indicates that the contract was processed through an automated procurement system. This suggests that the award and administration of the contract likely utilized electronic systems for efficiency. In the context of federal contracting, such codes help agencies track the administrative processes involved in contract awards and management, often reflecting modern, streamlined procurement procedures.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C77625R0057

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8685 N PALAFOX ST, PENSACOLA, FL, 32534

Business Categories: Category Business, Limited Liability Corporation, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $31,464,927

Exercised Options: $31,464,927

Current Obligation: $31,464,927

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline