VA awards $34M contract for 65.9 acres of land in Florida

Contract Overview

Contract Amount: $34,000,000 ($34.0M)

Contractor: THE First American Corporation

Awarding Agency: Department of Veterans Affairs

Start Date: 2008-09-11

End Date: 2008-09-11

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 65.9 ACRES OF LAND FOR THE NEW VAMC

Place of Performance

Location: ORLANDO, ORANGE County, FLORIDA, 32827

State: Florida Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.0 million to THE FIRST AMERICAN CORPORATION for work described as: 65.9 ACRES OF LAND FOR THE NEW VAMC Key points: 1. Contract awarded for land acquisition to support a new Veterans Affairs Medical Center (VAMC). 2. The acquisition is for a significant land parcel, indicating a substantial future investment in healthcare infrastructure. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The fixed-price contract type aims to provide cost certainty for the government. 5. The land is located in Florida, potentially serving a growing veteran population in the region. 6. The specific use of the land is for a new VAMC, implying enhanced healthcare services for veterans.

Value Assessment

Rating: good

The contract value of $34 million for 65.9 acres of land appears reasonable for a significant real estate acquisition for a major federal facility. Benchmarking against commercial real estate transactions for large land parcels in Florida would provide a more precise valuation. However, given the strategic purpose of supporting a new VAMC, the price is likely influenced by location and development potential, which can command premium pricing. The fixed-price nature of the award suggests that the government has locked in the cost for this specific land purchase.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. With two bids received, the competition level suggests a moderate level of interest from potential offerors. While two bidders are better than one, a higher number of bids could have potentially led to more aggressive pricing and a wider range of solutions. The agency's decision to use full and open competition is generally positive for ensuring fair market value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and increasing the likelihood of securing the best value for the government's investment.

Public Impact

Veterans in Florida will benefit from the future development of a new VAMC, leading to improved access to healthcare services. The acquisition supports the expansion of healthcare infrastructure for the Department of Veterans Affairs. The geographic impact is concentrated in Florida, likely serving a specific region with a substantial veteran population. The contract does not directly imply immediate workforce implications, but the future VAMC construction and operation will create jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for future cost overruns if development plans for the VAMC exceed initial projections.
Dependence on the successful completion of the VAMC project to realize the full benefit of the land acquisition.

Positive Signals

Land acquisition secured through a competitive process, suggesting a fair market price was sought.
Fixed-price contract provides cost certainty for this specific land purchase.
Strategic acquisition for a critical healthcare facility, aligning with VA's mission.

Sector Analysis

This contract falls within the real estate and facilities sector, specifically for government land acquisition. The market for large land parcels suitable for major federal facilities can be specialized, with pricing influenced by zoning, environmental assessments, and proximity to infrastructure. Comparable spending benchmarks would involve analyzing recent large-scale land acquisitions by government agencies or major private developers for similar institutional purposes in the Florida region.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the direct impact on small businesses is limited to potential subcontracting opportunities during the future development of the VAMC. The primary focus of this land acquisition contract is on the real estate transaction itself, rather than direct small business engagement.

Oversight & Accountability

The Department of Veterans Affairs (VA) is responsible for overseeing this contract. As a significant land acquisition, it would likely be subject to internal VA procurement reviews and potentially oversight from the VA Office of Inspector General (OIG) if any irregularities or issues arise during the transaction or subsequent development. Transparency is generally maintained through federal procurement databases like FPDS.

Related Government Programs

Veterans Affairs Medical Centers
Federal Real Estate Acquisitions
Healthcare Infrastructure Development

Risk Flags

Potential for environmental remediation costs.
Uncertainty regarding future VAMC development costs and timelines.
Dependence on successful zoning and permitting for future construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.0 million to THE FIRST AMERICAN CORPORATION. 65.9 ACRES OF LAND FOR THE NEW VAMC

Who is the contractor on this award?

The obligated recipient is THE FIRST AMERICAN CORPORATION.

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 $34.0 million.

What is the period of performance?

Start: 2008-09-11. End: 2008-09-11.

What is the track record of The First American Corporation as a federal contractor?

The First American Corporation, as indicated by the data, is the contractor in this instance. Information regarding their specific track record as a federal contractor, including past performance on similar land acquisition or real estate services contracts with the government, would typically be available through federal procurement databases. A review of their contract history would reveal their experience, any past performance issues or commendations, and their ability to meet federal requirements. Without specific data on their federal contracting history beyond this award, it's difficult to assess their overall track record. However, their selection suggests they met the agency's pre-qualification criteria for this specific procurement.

How does the price per acre compare to market rates for similar land in Florida?

The contract value is $34,000,000 for 65.9 acres, which equates to approximately $515,933 per acre. To benchmark this value, one would need to analyze recent sales data for large commercial or institutional land parcels in the specific region of Florida where this acquisition is taking place. Factors such as zoning, accessibility, environmental status, and proximity to existing infrastructure significantly influence land prices. If this land is in a prime development area or offers unique advantages for a VAMC, the price per acre might be at the higher end of market rates. Conversely, if it's less developed or in a more remote location, it could be considered high. A detailed market analysis by a real estate appraiser would be necessary for a definitive comparison.

What are the primary risks associated with this land acquisition for the VA?

The primary risks associated with this land acquisition for the VA include potential environmental issues on the acquired land that may require costly remediation, unforeseen zoning or permitting challenges that could delay or halt future VAMC development, and the possibility that the land's suitability for a medical facility might be less than initially assessed, leading to increased construction costs or design compromises. Additionally, there's a risk of public opposition or community concerns regarding the VAMC's location or impact. The fixed-price nature of the land purchase mitigates direct cost overrun risk for the land itself, but risks related to the subsequent development phase remain significant.

What is the expected effectiveness of the future VAMC once built on this land?

The effectiveness of the future VAMC, once built on this land, is expected to be high in terms of improving healthcare access and quality for veterans in the designated Florida region. The acquisition of 65.9 acres suggests a substantial facility capable of offering a comprehensive range of medical services, potentially including specialized care, inpatient services, and outpatient clinics. Its effectiveness will be measured by factors such as reduced veteran wait times, improved health outcomes, patient satisfaction, and the ability to meet the growing healthcare demands of the veteran population. The strategic location and size are intended to ensure long-term service delivery capacity.

How does this land acquisition spending compare to historical VA real estate investments?

Historical spending data for VA real estate acquisitions would be necessary for a direct comparison. However, $34 million for nearly 66 acres represents a significant investment, indicative of a major infrastructure project. The VA has a continuous need for modernizing and expanding its healthcare facilities to serve the veteran population. This expenditure should be viewed in the context of the VA's overall capital investment strategy. Comparing this to the cost of other large land acquisitions or new VAMC constructions across different regions and time periods would provide a clearer picture of whether this represents a typical, high, or low investment relative to past projects.

What are the implications of awarding this contract to The First American Corporation for future VA projects?

The implications of awarding this contract to The First American Corporation depend on their performance. If they deliver the land acquisition successfully, on time, and within budget, it could strengthen their position for future VA real estate contracts. Positive past performance is a key factor in federal procurement decisions. Conversely, any issues or delays encountered during this transaction could negatively impact their prospects for future awards. The VA will likely evaluate their performance on this contract as part of their contractor performance assessment reporting system (CPARS), which influences future contracting opportunities.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Offices of Real Estate Agents and Brokers › Offices of Real Estate Agents and Brokers

Product/Service Code: PURCHASE OF STRUCTURES/FACILITIES › PURCHASE FACILITY NOT A BUILDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 FIRST AMERICAN WAY, SANTA ANA, CA, 46

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,000,000

Exercised Options: $34,000,000

Current Obligation: $34,000,000

Timeline