VA awards $29.2M contract for flood wall construction at Manhattan campus, highlighting infrastructure needs

Contract Overview

Contract Amount: $29,238,549 ($29.2M)

Contractor: John Civetta & Sons Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-17

End Date: 2021-06-29

Contract Duration: 2,477 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE FLOOD PERIMETER WALL AT VAMC MANHATTAN CAMPUS NEW YORK, NY ''IGF::OT::IGF''

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10010

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29.2 million to JOHN CIVETTA & SONS INC for work described as: CONSTRUCTION OF THE FLOOD PERIMETER WALL AT VAMC MANHATTAN CAMPUS NEW YORK, NY ''IGF::OT::IGF'' Key points: 1. Contract addresses critical infrastructure vulnerability for a major VA facility. 2. Sole contractor, John Civetta & Sons Inc., secured the award. 3. Project duration significantly exceeded initial estimates, indicating potential scope changes or delays. 4. The contract type is Firm Fixed Price, which typically shifts risk to the contractor. 5. Geographic focus on New York City highlights the challenges of urban infrastructure projects. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract value of $29.2 million for flood perimeter wall construction appears within a reasonable range for a large-scale urban infrastructure project. However, the extended duration of the contract (over 6 years from award to completion) suggests potential for cost overruns or scope creep that may not be fully captured in the initial award amount. Benchmarking against similar VA infrastructure projects or large civil engineering contracts would provide a clearer picture of value for money, especially considering the specific site challenges in Manhattan.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of 6 bidders suggests a reasonably competitive environment for this type of specialized construction. However, without knowing the number of proposals received and the evaluation criteria, it's difficult to definitively assess the extent to which competition drove down prices. The fact that it was competed broadly is a positive sign for price discovery.

Taxpayer Impact: A competitive bidding process for infrastructure projects like this helps ensure that taxpayer dollars are used efficiently by encouraging contractors to offer their best pricing to win the award.

Public Impact

Veterans receiving care at the Manhattan campus will benefit from improved protection against flood damage. The project delivers essential civil engineering and construction services. The geographic impact is concentrated in New York City, specifically Manhattan. The project likely supported construction and engineering jobs within the New York region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration raises questions about initial planning and execution efficiency.
Lack of small business participation may limit opportunities for smaller firms in this sector.
Specific details on the final cost versus initial estimates are not readily available to assess true value.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract structure can provide cost certainty if managed effectively.
Addresses a critical infrastructure need for a vital healthcare facility.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically focusing on infrastructure resilience. The market for such projects is often driven by government funding for public works, defense installations, and critical infrastructure protection. Comparable spending benchmarks would typically involve large-scale civil projects like bridge construction, dam repairs, or other specialized protective structures, often requiring significant engineering expertise and regulatory compliance.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary contractor, John Civetta & Sons Inc., likely handled the majority of the work with its own resources or through larger subcontractors. The absence of small business participation goals means there were no direct mandates to involve smaller firms in this specific procurement, potentially limiting their opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' Office of Acquisition, Logistics, and Construction, as well as its Office of Inspector General. The Inspector General's office is responsible for auditing and investigating potential fraud, waste, and abuse in VA contracts. Transparency is generally maintained through contract award databases like FPDS, which provide basic details of the contract. However, detailed project management oversight and performance reviews are internal VA processes.

Related Government Programs

VA Major Construction Projects
Federal Flood Mitigation Programs
Civil Engineering and Infrastructure Contracts
Department of Veterans Affairs Capital Investments

Risk Flags

Extended contract duration
Potential for cost overruns due to project length
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29.2 million to JOHN CIVETTA & SONS INC. CONSTRUCTION OF THE FLOOD PERIMETER WALL AT VAMC MANHATTAN CAMPUS NEW YORK, NY ''IGF::OT::IGF''

Who is the contractor on this award?

The obligated recipient is JOHN CIVETTA & SONS 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 $29.2 million.

What is the period of performance?

Start: 2014-09-17. End: 2021-06-29.

What was the primary reason for the extended contract duration from award to completion?

The provided data indicates a significant duration between the contract award date (September 17, 2014) and the estimated completion date (June 29, 2021), spanning over six years. While the exact reasons for this extended timeline are not detailed in the summary data, common factors for such delays in large construction projects include unforeseen site conditions, design modifications, permitting issues, contractor performance challenges, or changes in project scope initiated by the government. For a flood perimeter wall at a busy urban medical center, complexities related to site access, utility coordination, and environmental regulations could also contribute to extended timelines. A thorough review of contract modifications and project progress reports would be necessary to pinpoint the specific causes.

How does the final cost compare to the initial award amount, and what does this suggest about value for money?

The provided data lists an award amount of $29,238,548.56. Without specific data on the final invoiced amount or any contract modifications that altered the total value, it's impossible to definitively compare the final cost to the initial award. If the final cost remained close to the award amount, it could suggest good cost control, especially given the project's duration. However, if the final cost significantly exceeded the award amount due to change orders or other adjustments, it would raise concerns about initial cost estimation accuracy and potentially diminish the perceived value for money. Further investigation into contract modifications and final payment records is required for a conclusive assessment.

What specific risks were identified during the procurement process for this flood wall construction?

The provided summary data does not explicitly detail the risk assessment conducted during the procurement phase. However, for a project of this nature—constructing a flood perimeter wall at a major urban medical facility—inherent risks likely included complex site conditions (e.g., underground utilities, soil stability), potential environmental impacts, coordination with numerous stakeholders (city agencies, hospital operations), and the possibility of extreme weather events impacting construction schedules. The selection of a Firm Fixed Price contract suggests the agency aimed to mitigate cost uncertainty by shifting financial risk to the contractor. The number of bidders (6) indicates that potential contractors found the project feasible enough to bid on, implying that identified risks were manageable within the market.

What is the track record of John Civetta & Sons Inc. with federal contracts, particularly with the Department of Veterans Affairs?

John Civetta & Sons Inc. has a history of performing federal contracts, including work with the Department of Veterans Affairs. While the provided data focuses on this specific contract, a broader analysis of their federal contracting history would reveal the types of projects they have undertaken, their performance ratings on past contracts (if available), and their experience with similar infrastructure or construction projects. Examining past performance can provide insights into their capabilities, reliability, and potential risks associated with awarding them future contracts. A review of contract databases and performance assessment reporting systems would be necessary to fully evaluate their track record.

How does this contract's spending compare to other VA infrastructure projects or similar flood mitigation efforts nationwide?

The $29.2 million award for the flood perimeter wall at the VAMC Manhattan Campus represents a significant investment in infrastructure resilience. To benchmark this spending, comparisons should be made with other large-scale construction projects undertaken by the VA or other federal agencies for critical facility protection. For instance, similar projects might include upgrades to other VA medical centers, construction of protective barriers at military installations, or civil works projects managed by the Army Corps of Engineers. The cost per linear foot or per square foot of protected area, adjusted for geographic location and specific site challenges (like urban density), would be a useful metric for comparison. Without such detailed comparative data, it's difficult to definitively state if this contract represents high or low spending relative to its purpose.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA101-14-R-0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1123 BRONX RIVER AVE, BRONX, NY, 10472

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $104,089,803

Exercised Options: $104,089,803

Current Obligation: $29,238,549

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline