VA awards $110.7M contract to S. J. Amoroso Construction for commercial building, utilizing full and open competition

Contract Overview

Contract Amount: $110,710,165 ($110.7M)

Contractor: S. J. Amoroso Construction CO., LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-13

End Date: 2022-11-09

Contract Duration: 2,310 days

Daily Burn Rate: $47.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CT::IGF

Place of Performance

Location: PALO ALTO, SANTA CLARA County, CALIFORNIA, 94304

State: California Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $110.7 million to S. J. AMOROSO CONSTRUCTION CO., LLC for work described as: IGF::CT::IGF Key points: 1. The contract value of $110.7 million is substantial for commercial construction. 2. Full and open competition suggests a competitive bidding process. 3. The contract duration of 2310 days (over 6 years) indicates a long-term project. 4. The award to a single contractor, S. J. Amoroso Construction Co., LLC, warrants scrutiny for potential concentration.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty. Benchmarking against similar large-scale commercial construction projects would be necessary to fully assess pricing, but the value suggests a significant undertaking.

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 had the opportunity to submit proposals. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best overall value for government projects.

Public Impact

Veterans will benefit from improved facilities, though specific project details are not provided. The significant contract value could stimulate economic activity in the construction sector. The long contract duration implies a sustained need for the services provided.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or cost overruns if not managed effectively.
Reliance on a single contractor for over six years may limit flexibility and future competitive opportunities.

Positive Signals

Full and open competition is a positive signal for fair pricing.
Firm fixed price contract type offers cost predictability.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector is driven by infrastructure needs and facility upgrades across various government agencies. Benchmarks for similar large-scale construction contracts can vary widely based on project scope and location.

Small Business Impact

The data indicates the award went to S. J. Amoroso Construction Co., LLC, a specific company. There is no explicit information on whether small businesses were subcontracted or involved in the bidding process, which would require further investigation.

Oversight & Accountability

The contract's long duration and significant value necessitate robust oversight from the Department of Veterans Affairs to ensure project milestones are met, costs remain controlled, and the contractor adheres to the terms of the firm fixed price agreement.

Related Government Programs

Commercial and Institutional Building Construction
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration increases risk of cost escalation and scope creep.
Potential for contractor lock-in due to extended engagement.
Lack of detail on small business participation.
Need for robust oversight to ensure project delivery and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $110.7 million to S. J. AMOROSO CONSTRUCTION CO., LLC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is S. J. AMOROSO CONSTRUCTION CO., 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 $110.7 million.

What is the period of performance?

Start: 2016-07-13. End: 2022-11-09.

What specific facilities or improvements does this $110.7 million contract cover for the Department of Veterans Affairs, and how do these align with veteran healthcare or operational needs?

The contract is for commercial and institutional building construction, but the specific nature of the facilities or improvements is not detailed in the provided data. Understanding the project's scope, such as new construction, renovation, or specific upgrades to healthcare facilities, is crucial to assessing its direct impact on veteran services and operational efficiency. Further information would be needed to connect the spending directly to veteran benefits or facility modernization.

Given the firm fixed price and long duration, what mechanisms are in place to manage potential cost increases or scope creep, and how effective have similar VA contracts been in controlling these risk

While a firm fixed price contract aims to cap costs, long durations (2310 days) inherently increase the risk of scope creep and unforeseen challenges. The VA likely has contract clauses for change orders and performance monitoring. However, the effectiveness hinges on diligent oversight, clear communication, and adherence to the original scope. Historical data on similar long-term VA construction contracts would be needed to assess the typical success rate in mitigating these risks.

How does the $110.7 million award to S. J. Amoroso Construction Co., LLC compare to typical spending for similar large-scale commercial construction projects within the federal government, and does th

The $110.7 million value is substantial for a single commercial construction contract, suggesting a large-scale project. Full and open competition is designed to solicit the best value by encouraging multiple bids. Without specific project details and comparable contract data across agencies, it's difficult to definitively benchmark this price. However, the competitive process itself is a positive indicator for achieving value for taxpayer money in this significant investment.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: VA101-15-R-0123

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 390 BRIDGE PKWY, REDWOOD CITY, CA, 94065

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

Financial Breakdown

Contract Ceiling: $110,710,165

Exercised Options: $110,710,165

Current Obligation: $110,710,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline