Advon Corporation awarded $13.5M contract for VA clinic construction in South Carolina

Contract Overview

Contract Amount: $13,523,088 ($13.5M)

Contractor: Advon Corporation

Awarding Agency: Department of Defense

Start Date: 2024-07-19

End Date: 2027-01-15

Contract Duration: 910 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF VA CLINIC AT JBC

Place of Performance

Location: CHARLESTON AFB, CHARLESTON County, SOUTH CAROLINA, 29404

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to ADVON CORPORATION for work described as: CONSTRUCTION OF VA CLINIC AT JBC Key points: 1. Contract value appears reasonable for a new clinic construction project of this scale. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor. 4. Project duration of 910 days indicates a significant construction undertaking. 5. The project is situated in South Carolina, potentially benefiting the local economy and workforce. 6. The contract is a delivery order under a larger contract vehicle, implying pre-negotiated terms.

Value Assessment

Rating: good

The contract value of $13.5 million for the construction of a VA clinic is within a reasonable range for similar federal healthcare facility projects. Benchmarking against other institutional building constructions of comparable size and complexity suggests that the pricing is likely competitive, especially given the full and open competition. The firm-fixed-price structure further supports value by locking in costs for the government, provided the contractor can manage their expenses effectively.

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,' which indicates that while the competition was broad, specific sources may have been excluded based on pre-defined criteria. The presence of 4 bidders suggests a healthy level of interest and competition for this project. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: The broad competition for this construction project is beneficial for taxpayers as it likely drove down the final contract price through multiple bids. It ensures that the government is not limited to a few potential contractors, increasing the chances of securing the best value.

Public Impact

Veterans in the JBC area will benefit from improved access to healthcare services with the new clinic. The construction project will create jobs in the local South Carolina economy during its development phase. The delivery of a new VA clinic signifies an expansion of healthcare infrastructure for the Department of Veterans Affairs. The project's completion will enhance the VA's capacity to serve the veteran population in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, despite the fixed-price contract.
Risk of schedule delays due to contractor performance or external factors impacting construction.
Ensuring the quality of construction meets VA standards and patient safety requirements.
Dependency on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm-fixed-price contract mitigates budget uncertainty for the government.
Full and open competition suggests a robust selection process.
The contractor, Advon Corporation, has experience in federal construction projects.
The project duration is clearly defined, allowing for structured oversight.

Sector Analysis

The construction sector, particularly for institutional and healthcare facilities, is a significant area of federal spending. This contract falls under Commercial and Institutional Building Construction (NAICS 236220). The market for such projects is competitive, with numerous firms capable of undertaking large-scale builds. Federal agencies like the VA often rely on these types of contracts to expand or modernize their infrastructure, ensuring adequate facilities for service delivery.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While there is no direct indication of small business subcontracting requirements in the provided data, large federal construction projects often include provisions for small business participation. The prime contractor, Advon Corporation, may engage small businesses for specialized construction services, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices, as they awarded the delivery order. The firm-fixed-price nature of the contract implies that the government's primary oversight will focus on ensuring adherence to the contract scope, schedule, and quality standards. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General involvement would typically be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

VA Healthcare Infrastructure Projects
Department of Defense Construction Contracts
Federal Building Construction
Commercial and Institutional Building Construction

Risk Flags

Potential for cost overruns due to fixed-price nature.
Schedule adherence risk.
Quality assurance of construction.
Contractor performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to ADVON CORPORATION. CONSTRUCTION OF VA CLINIC AT JBC

Who is the contractor on this award?

The obligated recipient is ADVON CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2024-07-19. End: 2027-01-15.

What is Advon Corporation's track record with federal construction contracts, particularly for healthcare facilities?

Advon Corporation has a history of performing federal construction contracts. While specific details on their healthcare facility construction experience require deeper database analysis, their involvement in projects for agencies like the Department of Defense suggests a capacity for large-scale government builds. Reviewing past performance evaluations and contract awards for Advon Corporation would provide a clearer picture of their reliability, quality of work, and adherence to schedules on similar projects. Understanding their experience with VA-specific requirements, such as infection control and specialized medical equipment integration, would be crucial for assessing their suitability for this clinic construction.

How does the $13.5 million contract value compare to similar VA clinic construction projects?

The $13.5 million contract value for the construction of a VA clinic in South Carolina appears to be within a reasonable range when benchmarked against similar federal healthcare facility projects. Factors influencing cost include project size, complexity, location, and specific medical equipment requirements. Without detailed project specifications, a precise comparison is difficult. However, for a new clinic facility, this figure suggests a mid-to-large scale project. Further analysis would involve comparing square footage, number of patient rooms, and specialized service areas against other VA clinic constructions awarded over the past few years to confirm if the pricing is competitive or deviates significantly.

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

The primary risks associated with this firm-fixed-price construction contract, despite its benefit of cost certainty for the government, lie with the contractor, Advon Corporation. These risks include potential cost overruns if the contractor underestimates material, labor, or subcontractor costs, or if unforeseen site conditions (e.g., hazardous materials, unexpected soil issues) are encountered. Schedule delays are another significant risk, stemming from poor project management, labor shortages, supply chain disruptions, or weather impacts. The government's risk is primarily related to ensuring the contractor delivers the project according to the specified quality standards and within the agreed-upon scope, as the contractor bears the financial burden of cost overruns.

What is the expected impact of this new VA clinic on healthcare access for veterans in the region?

The construction of this new VA clinic is expected to significantly improve healthcare access for veterans in the JBC area and surrounding regions of South Carolina. By providing a dedicated, modern facility, it will likely reduce wait times for appointments, offer a wider range of services closer to home, and potentially alleviate strain on existing VA facilities. This increased capacity and accessibility are crucial for ensuring veterans receive timely and comprehensive medical care, contributing to their overall well-being and health outcomes. The new clinic represents a direct investment in veteran healthcare infrastructure.

How has federal spending on VA clinic construction trended in recent years?

Federal spending on VA clinic construction has generally trended upwards in recent years, driven by the VA's commitment to modernizing its infrastructure and expanding healthcare access for a growing veteran population. Increased appropriations have been allocated to build new facilities, renovate existing ones, and enhance telehealth capabilities. This trend reflects a strategic effort to meet the evolving healthcare needs of veterans, particularly in underserved areas. Analyzing historical spending data would reveal specific investment patterns and priorities within the VA's capital infrastructure budget.

What does the 'Delivery Order' designation imply for this contract?

The 'Delivery Order' designation indicates that this contract is a task order issued under a previously awarded indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the basic terms, conditions, and pricing structure were likely negotiated and established when the parent contract was awarded. The government then uses delivery orders to procure specific goods or services as needed. For this VA clinic construction, it suggests that Advon Corporation was pre-qualified under a broader construction services contract, and this order represents a specific project assignment within that framework. This approach can streamline the procurement process for recurring needs.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912HP22R4001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2882 REMINGTON GREEN LN, TALLAHASSEE, FL, 32308

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: $13,523,088

Exercised Options: $13,523,088

Current Obligation: $13,523,088

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912HP23D4000

IDV Type: IDC

Timeline