VA's $28.3M parking garage contract awarded to Carter Concrete Structures, Inc. for San Juan VAMC

Contract Overview

Contract Amount: $28,324,742 ($28.3M)

Contractor: Carter Concrete Structures, Inc.

Awarding Agency: Department of Veterans Affairs

Start Date: 2012-03-06

End Date: 2015-12-31

Contract Duration: 1,395 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD PARKING GARAGE AT SAN JUAN VAMC

Place of Performance

Location: BAYAMON, BAYAMON County, PUERTO RICO, 00961

Plain-Language Summary

Department of Veterans Affairs obligated $28.3 million to CARTER CONCRETE STRUCTURES, INC. for work described as: DESIGN BUILD PARKING GARAGE AT SAN JUAN VAMC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, which shifts cost risk to the contractor. 3. Project duration of 1395 days indicates a significant construction timeline. 4. The contract was awarded by the Department of Veterans Affairs, aligning with its mission to support veterans. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded in Puerto Rico, indicating a specific geographic focus.

Value Assessment

Rating: fair

The contract value of $28.3 million for a parking garage at a VAMC is a substantial investment. Without specific benchmarks for similar VAMC construction projects or detailed cost breakdowns, a precise value-for-money assessment is challenging. However, the firm-fixed-price nature of the contract suggests that the initial price was determined through negotiation and competition, aiming for a defined cost. Further analysis would require comparing the cost per parking space or per square foot to industry standards for institutional construction in Puerto Rico.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the 'after exclusion of sources' clause suggests that certain potential bidders may have been excluded prior to the main solicitation. The number of bids received (12) is a positive indicator of competition. A higher number of bids generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of the bidding process, with 12 bidders, likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are veterans and staff at the San Juan VAMC, who will gain improved parking facilities. The project delivers essential infrastructure to support the operations of a major healthcare facility. The geographic impact is localized to San Juan, Puerto Rico, addressing a specific need at that VAMC. The construction project likely created temporary employment opportunities in the local workforce during its execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or construction challenges arise, despite the fixed-price nature.
The 'after exclusion of sources' clause warrants scrutiny to ensure fair competition was maintained.
Long project duration could lead to potential delays impacting facility access.
Dependence on a single contractor for a large-scale construction project carries inherent performance risks.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Awarded through a competitive process with 12 bids, indicating market interest.
The project addresses a clear infrastructure need for a VA medical center.
The contractor, Carter Concrete Structures, Inc., has experience in concrete construction.

Sector Analysis

The construction sector, particularly institutional building construction, is characterized by large-scale projects requiring specialized expertise and significant capital investment. This contract fits within the broader federal spending on infrastructure and facilities management. Comparable spending benchmarks would involve analyzing the cost per square foot or per parking space for similar government or private sector projects in the region. The Department of Veterans Affairs is a significant investor in healthcare infrastructure.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside criterion (ss: false, sb: false). This suggests that the primary focus was on securing the best value through open competition. There is no explicit information on subcontracting plans for small businesses within this data. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified outcome within the agreed price. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract lifecycle.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Design-Build Contracts
Commercial Building Construction

Risk Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long project duration increases risk of delays and cost escalation (though mitigated by FFP).
Geographic location in Puerto Rico may present logistical challenges.
Performance risk associated with large-scale construction projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.3 million to CARTER CONCRETE STRUCTURES, INC.. DESIGN BUILD PARKING GARAGE AT SAN JUAN VAMC

Who is the contractor on this award?

The obligated recipient is CARTER CONCRETE STRUCTURES, INC..

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 $28.3 million.

What is the period of performance?

Start: 2012-03-06. End: 2015-12-31.

What is the track record of Carter Concrete Structures, Inc. on federal contracts?

Carter Concrete Structures, Inc. has a history of federal contract awards, primarily within the Department of Defense and the Department of Veterans Affairs. Their awards often fall within the construction and engineering services categories. Analyzing their past performance ratings, any contract modifications, and the types of projects they have completed provides insight into their capabilities and reliability. A review of their award history might reveal patterns in project size, complexity, and geographic location, helping to contextualize their ability to successfully execute the San Juan VAMC parking garage project. Specific details on past performance metrics would require deeper database analysis beyond the provided summary.

How does the cost per parking space compare to industry benchmarks?

To benchmark the value, we would need to determine the total cost per parking space. The contract value is $28,324,742.47. Assuming the garage provides a significant number of spaces (e.g., 500-1000), the cost per space could range from approximately $28,000 to $56,000. Industry benchmarks for parking garage construction can vary widely based on location, materials, and complexity, but costs often range from $20,000 to $50,000 per space in urban or specialized environments. Without the exact number of spaces or detailed cost breakdowns (e.g., square footage, site preparation costs), a precise comparison is difficult. However, the upper end of this estimated range might warrant further investigation into cost efficiencies.

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

The primary risks with a firm-fixed-price (FFP) contract, while generally favorable for the government in terms of cost certainty, lie in potential contractor performance issues or unforeseen circumstances. If Carter Concrete Structures, Inc. encounters significant cost overruns due to poor estimation, inefficient execution, or unexpected site conditions, they bear the financial burden. This could incentivize them to cut corners on quality or safety, although contract specifications and oversight aim to prevent this. Another risk is contractor default or failure to perform, which could lead to significant delays and the need to re-procure services. The 'after exclusion of sources' clause also introduces a risk that the competition may not have been as robust as 'full and open' competition without exclusions.

How effective has the VA been in managing large construction projects in Puerto Rico?

The effectiveness of the VA in managing large construction projects in Puerto Rico can be assessed by examining past project performance, including adherence to schedules and budgets, and the quality of delivered facilities. Puerto Rico's unique logistical challenges, including potential supply chain disruptions and labor availability, can add complexity to construction management. Historical data on VA projects in the region, including any reported issues or successes, would provide context. This specific contract's duration (1395 days) suggests a substantial project, and its successful completion within the fixed price would be a key indicator of effective management for this particular instance.

What is the historical spending trend for similar construction projects by the VA?

Analyzing historical spending trends for similar VA construction projects involves looking at the aggregate value and volume of contracts awarded for medical facility upgrades, new construction, and infrastructure development over several fiscal years. This includes examining spending patterns by geographic region and by contract type (e.g., design-build, fixed-price). Understanding these trends helps establish a baseline for what constitutes 'typical' spending and can highlight any outliers or significant shifts in VA's capital investment strategy. For instance, a surge in spending on healthcare infrastructure might indicate a strategic initiative or a response to aging facilities.

What does the 'after exclusion of sources' clause imply for competition?

The 'after exclusion of sources' clause in a 'Full and Open Competition' award indicates that while the solicitation was intended to be open, certain potential sources were deliberately excluded before the main bidding process. This exclusion could be based on various factors, such as pre-qualification requirements, specific technical capabilities, or past performance issues. While it aims to ensure that only qualified bidders participate, it inherently limits the pool of competition compared to a truly unrestricted 'full and open' process. The implication for taxpayers is that the price achieved might be less competitive than if all potential sources had been allowed to bid, although the 12 bids received suggest a reasonably competitive outcome.

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: VA-101-11-RP-0132

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1960 PARKER CT STE C, STONE MOUNTAIN, GA, 30087

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $28,325,042

Exercised Options: $28,325,042

Current Obligation: $28,324,742

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline