VA awards $32.5M construction contract for Jefferson Barracks facility, completed on time and within budget

Contract Overview

Contract Amount: $32,557,051 ($32.6M)

Contractor: Poettker Construction CO.

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-29

End Date: 2018-11-30

Contract Duration: 854 days

Daily Burn Rate: $38.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF ENGINEERING WAREHOUSE BUILDING, VAMC JEFFERSON BARRACKS DIVISION, ST. LOUIS, MO

Place of Performance

Location: SAINT LOUIS, SAINT LOUIS CITY County, MISSOURI, 63125

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.6 million to POETTKER CONSTRUCTION CO. for work described as: IGF::OT::IGF ENGINEERING WAREHOUSE BUILDING, VAMC JEFFERSON BARRACKS DIVISION, ST. LOUIS, MO Key points: 1. Contract achieved its objectives with no reported cost overruns. 2. The project was awarded through full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type likely mitigated cost escalation risks for the government. 4. Project duration was 854 days, indicating a substantial construction undertaking. 5. The contract was awarded to a single vendor, Poettker Construction Co. 6. The Department of Veterans Affairs managed this significant infrastructure project.

Value Assessment

Rating: good

The contract value of $32.5 million for a commercial and institutional building construction project appears reasonable given the scope and duration. Benchmarking against similar VA construction projects of this scale would provide a more precise value-for-money assessment. However, the absence of cost overruns suggests effective project management and pricing by the contractor.

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 bids. The presence of 3 bids suggests a moderate level of competition for this project. While not an exhaustive number of bidders, it provides a basis for price discovery and selection of a qualified contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality services.

Public Impact

Veterans in the St. Louis region will benefit from improved facilities at the VAMC Jefferson Barracks Division. The contract delivered a new warehouse building, enhancing operational capacity for the VA. The project's geographic impact is localized to St. Louis, Missouri. The construction activities likely supported local jobs in the construction sector during the project's execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (3) could indicate potential barriers to entry or specific qualification requirements.
Lack of detailed performance metrics makes it difficult to assess contractor efficiency beyond on-time and on-budget completion.

Positive Signals

Project completed within the scheduled timeframe.
Project completed without exceeding the awarded contract value.
Awarded through full and open competition, promoting a fair marketplace.
Firm Fixed Price contract type limits government financial risk.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. The Department of Veterans Affairs is a major federal entity with substantial real property needs, frequently engaging in construction and renovation projects to maintain and expand its healthcare facilities. Spending in this sector is influenced by infrastructure needs, modernization efforts, and healthcare delivery demands.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside or requirement for this particular award (ss: false, sb: false). Therefore, the direct impact on small businesses through subcontracting opportunities is not explicitly detailed in this record. Further investigation into the prime contractor's subcontracting plan would be necessary to assess any indirect benefits to the small business ecosystem.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for its construction projects, including contract administration and quality assurance. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract. Transparency is generally maintained through contract award databases and public reporting, though specific project-level performance details may vary.

Related Government Programs

VA Medical Facility Construction
Federal Building and Infrastructure Projects
Warehouse and Logistics Facility Construction
Department of Veterans Affairs Capital Investments

Risk Flags

Limited number of bidders
Potential for cost overruns in large construction projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.6 million to POETTKER CONSTRUCTION CO.. IGF::OT::IGF ENGINEERING WAREHOUSE BUILDING, VAMC JEFFERSON BARRACKS DIVISION, ST. LOUIS, MO

Who is the contractor on this award?

The obligated recipient is POETTKER CONSTRUCTION CO..

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 $32.6 million.

What is the period of performance?

Start: 2016-07-29. End: 2018-11-30.

What was the specific purpose and scope of the IGF Engineering Warehouse Building at VAMC Jefferson Barracks?

The IGF Engineering Warehouse Building at the VAMC Jefferson Barracks Division in St. Louis, MO, was constructed to provide essential storage and operational support facilities for the medical center. While specific inventory or engineering functions are not detailed in the award data, such facilities typically house medical supplies, equipment, maintenance materials, and administrative resources necessary for the seamless operation of a large healthcare campus. The project aimed to consolidate or modernize existing warehousing capabilities, ensuring efficient logistics and readiness for the facility's healthcare mission.

How does the $32.5 million cost compare to similar VA warehouse construction projects?

Benchmarking the $32.5 million cost requires comparison with similar-sized warehouse or institutional building projects undertaken by the VA or other federal agencies within the same timeframe. Factors such as square footage, specific construction materials, site preparation complexity, and regional labor costs significantly influence project expenses. Without detailed project specifications (e.g., building size, specific features), a precise comparison is challenging. However, for a substantial facility delivered over approximately two years, this figure suggests a potentially competitive price, especially given the successful completion without cost overruns.

What were the key risks associated with this firm fixed-price construction contract, and how were they managed?

The primary risk in a Firm Fixed Price (FFP) contract is the potential for the contractor to incur losses if costs exceed the agreed-upon price. For the government, the risk is paying a potentially higher price than necessary if competition was weak or if the contractor included excessive contingency. For this project, the risk of cost escalation was largely borne by Poettker Construction Co. Effective management likely involved a well-defined scope of work, thorough pre-award cost analysis, and robust contract administration to ensure compliance with specifications. The successful completion on budget indicates that these risks were adequately anticipated and managed by both parties.

What does the completion of this project signify for the operational capacity of VAMC Jefferson Barracks?

The completion of the IGF Engineering Warehouse Building signifies an enhancement of the operational capacity for the VAMC Jefferson Barracks. A modern, dedicated warehouse facility improves the efficiency of supply chain management, ensuring that medical supplies, equipment, and other essential materials are readily available. This can lead to better patient care by reducing delays in obtaining necessary resources and improving inventory control. It also provides a secure and organized space for engineering and maintenance operations, contributing to the overall reliability and functionality of the medical center.

Were there any notable challenges or successes during the 854-day performance period of this contract?

The provided data highlights the success of completing the project on time and within budget, which are significant achievements in federal construction. Specific challenges encountered during the 854-day performance period are not detailed. However, typical construction projects of this magnitude can face hurdles such as unforeseen site conditions, weather delays, material availability issues, or labor shortages. The contractor's ability to navigate these potential challenges and deliver the project successfully suggests strong project management, effective coordination with subcontractors, and proactive problem-solving.

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-0235

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 380 S GERMANTOWN RD, BREESE, IL, 62230

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $32,557,051

Exercised Options: $32,557,051

Current Obligation: $32,557,051

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline