VA awards $24.4M for Manhattan VAMC construction, a firm-fixed-price contract for building

Contract Overview

Contract Amount: $24,364,242 ($24.4M)

Contractor: Calcedo Construction Corp.

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-05-28

End Date: 2020-04-10

Contract Duration: 1,779 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONSTRUCTION FOR THE GROUND FLOOR PHASE 2B AT VETERAN AFFAIRS MEDICAL CENTER MANHATTAN CAMPUS NEW YROK

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 $24.4 million to CALCEDO CONSTRUCTION CORP. for work described as: IGF::OT::IGF CONSTRUCTION FOR THE GROUND FLOOR PHASE 2B AT VETERAN AFFAIRS MEDICAL CENTER MANHATTAN CAMPUS NEW YROK Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is firm-fixed-price, which shifts cost risk to the contractor. 3. The duration of the contract was 1779 days, indicating a significant project timeline. 4. The project involves commercial and institutional building construction. 5. The award was made by the Department of Veterans Affairs. 6. The contractor is Calcedo Construction Corp.

Value Assessment

Rating: fair

The contract value of $24.4 million for a multi-year construction project at a major medical center appears within a reasonable range for such endeavors. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar VA medical center construction projects of comparable size and complexity would be necessary for a more definitive evaluation of pricing and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 2 bids suggests a moderate level of competition for this project. While two bidders participated, further information on the number of solicitations issued and the extent of outreach would provide a clearer picture of the true competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

Veterans receiving improved facilities at the Manhattan VAMC. Enhanced healthcare infrastructure for the New York region. Potential job creation in the construction sector in New York. Support for the Department of Veterans Affairs' mission to provide healthcare services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extended construction period.
Risk of delays impacting the delivery of improved medical facilities.
Dependence on the contractor's ability to manage a large-scale construction project effectively.

Positive Signals

Firm-fixed-price contract structure limits the government's exposure to cost increases.
Awarded through full and open competition, suggesting a potentially competitive price.
Long contract duration allows for thorough project execution and quality control.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The Department of Veterans Affairs is a significant federal entity that regularly procures construction services for its extensive network of medical centers and facilities. Spending in this area is driven by the need to maintain, upgrade, and expand healthcare infrastructure to serve the veteran population. Comparable spending benchmarks would involve analyzing other large-scale construction contracts awarded by federal agencies for similar institutional facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for subcontracting opportunities. Further investigation into subcontracting goals or achievements would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs' contracting officers and project managers. Accountability measures would include adherence to contract terms, performance milestones, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Commercial Construction Contracts
Department of Veterans Affairs Procurement

Risk Flags

Long contract duration may increase risk of cost escalation for contractor.
Limited competition (2 bidders) could impact price discovery.
Lack of small business set-aside or subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $24.4 million to CALCEDO CONSTRUCTION CORP.. IGF::OT::IGF CONSTRUCTION FOR THE GROUND FLOOR PHASE 2B AT VETERAN AFFAIRS MEDICAL CENTER MANHATTAN CAMPUS NEW YROK

Who is the contractor on this award?

The obligated recipient is CALCEDO CONSTRUCTION CORP..

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 $24.4 million.

What is the period of performance?

Start: 2015-05-28. End: 2020-04-10.

What was the specific scope of work for the Ground Floor Phase 2B at the VA Medical Center Manhattan Campus?

The provided data does not detail the specific scope of work for 'Ground Floor Phase 2B' at the VA Medical Center Manhattan Campus. This phase likely involved construction, renovation, or upgrades to the ground floor of the facility. To understand the full scope, one would need to consult the original contract solicitation documents (e.g., the Statement of Work or Performance Work Statement) which would outline the precise tasks, deliverables, and specifications required from Calcedo Construction Corp. This could include structural work, utility installations, finishing, or specialized medical facility components.

How does the $24.4 million award compare to other VA construction projects of similar size and scope?

Benchmarking the $24.4 million award requires comparing it to similar projects within the Department of Veterans Affairs. Factors such as the size of the facility (square footage), the complexity of the work (e.g., new construction vs. renovation, specialized medical equipment integration), geographic location (labor and material costs vary), and the duration of the project are critical. Without access to a database of comparable VA construction contracts, it's difficult to definitively state if this award represents excellent, fair, or questionable value. However, for a significant phase of construction at a major urban medical center, a multi-million dollar figure is not inherently unusual, but detailed cost analysis against similar projects is needed for a robust comparison.

What are the potential risks associated with a firm-fixed-price contract for a project spanning nearly five years?

A firm-fixed-price (FFP) contract shifts the majority of cost risk to the contractor. For a project spanning 1779 days (nearly five years), the primary risk for the contractor is underestimating costs due to inflation, unforeseen site conditions, or changes in material prices over the extended period. If the contractor miscalculates, they could incur significant losses. For the government, the risk is less about cost overruns (as the price is fixed) and more about potential contractor performance issues if they are losing money. This could lead to delays, quality compromises, or even contractor default, though FFP contracts are generally preferred for price certainty.

What was the historical spending pattern for construction at the VA Medical Center Manhattan Campus prior to this award?

The provided data does not include historical spending patterns for construction at the VA Medical Center Manhattan Campus. To analyze this, one would need to access historical contract databases (like FPDS or USASpending) and filter for contracts awarded to this specific facility or for construction services within the Manhattan VAMC. Examining past awards would reveal the frequency, value, and types of construction projects undertaken, providing context for the $24.4 million award. It would also help identify if this represents a significant increase or a continuation of established spending levels for facility upgrades and maintenance.

What is the track record of Calcedo Construction Corp. in handling large federal construction contracts?

The provided data identifies Calcedo Construction Corp. as the contractor but does not offer details on their track record with federal contracts. To assess their experience, one would need to research their past performance on similar government projects, looking at contract values, project types, timeliness of completion, and any past performance evaluations or disputes. A history of successfully completing large, complex federal construction projects would indicate a lower risk associated with this award. Conversely, a lack of experience or a history of performance issues would raise concerns about the contractor's suitability for this significant undertaking.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA101-15-R-0062

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10 MIDLAND AVE STE 1, PORT CHESTER, NY, 10573

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

Financial Breakdown

Contract Ceiling: $24,364,242

Exercised Options: $24,364,242

Current Obligation: $24,364,242

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline