HCA Signed PCAC S30 - Cancellation of Bids - IFB - J.pdf
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- Solicitation number
- 36C77623B0049
About this file
This memorandum from a contracting officer at the Department of Veterans Affairs documents the cancellation of Invitation for Bid 36C77623B0049 for the Joliet VA Community Based Outpatient Clinic parking expansion construction project. The solicitation received two bids but both exceeded the $20 million statutory limit for minor VA construction projects. The independent government cost estimate for the project was $12,029,322 but available funding after design, engineering, and contingency costs was only approximately $12,520,137. As the bids received exceeded available funding and the statutory limit, no award could be made. The contracting officer recommended cancelling the solicitation in its entirety with no intention to issue a new solicitation until project specifications, drawings, and cost estimate are updated by the architect-engineer firm.
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Text version
Department of MEMORANDUM
Veterans Affairs
Date: September 20, 2023
From: Maria Rodeffer, Contracting Officer, Program Contracting Activity Central (PCAC)
Subj: Cancellation of Bids Memorandum - Record of CO Decision to Cancel Invitation for Bid After Opening 36C77623B0049 “Joliet CBOC Parking Expansion (Minor) Construction” – Joliet VA Community Based Outpatient Clinic
Thru: Director of Contracting, Program Contracting Activity Central (PCAC)
To: Head of Contracting Activity (HCA), Regional Procurement Office Central (RPO)
Cancellation Determination
In accordance with FAR 14.404-1(c)(10), the Veterans Health Administration (VHA), Program Contracting Activity Central (PCAC) is seeking HCA approval to cancel the subject Invitation for Bid (IFB). The following information outlines the explanation as to why no award can be made:
1. VHA PCAC received a procurement package from the Joliet CBOC that included a complete set of construction documents developed by the Architect-Engineer (A-E) firm, Virtual Energy Solutions, Inc. Subsequently, the Contracting Officer (CO) determined to use the procedures outlined in FAR Part 14 as all of the conditions outlined in FAR Paragraph 6.401
(a) were met. The invitation included only a base bid.
2. Invitation for Bid 36C77623B0049 was initially posted to SAM.gov on June 24, 2023. There was a total of five (5) amendments posted for this solicitation. Amendment 0004 extended the bid due date to August 2, 2023, at 1:00 PM (CT). A total of two (2) bids were received on August 2, 2023, at 1:00 PM (CT) and a public opening of bids was facilitated, on this date, at 1:30 PM (CT) by the CO Maria Rodeffer and the Supervisory Contract Specialist, Michael Mullen.
3. A detailed Independent Government Cost Estimate (IGCE) was developed by the A-E. The Contracting Officer’s Representative (COR), Aaron Walsh, concurred with their assessment by signing the IGCE. The total IGCE value concerning construction is $12,029,322.00. The full estimate is available for viewing (see Attachment 1 – IGCE – Joliet 578-371).
4. A total of two (2) bids were received in response to the solicitation. The lowest bid received, in the amount of $20,620,000.00, (see Attachment 2 - Abstract of Bids – Joliet) was submitted from Troop Contracting Inc. In accordance with 38 U.S.C. 8104, Contracting Officer’s shall not award contracts for minor construction projects in excess of the major construction statutory limit for a VA major medical facility project. This amount is currently defined as $20,000,000, which is inclusive of all construction, design and contingency costs.
As relevant here, the available funding after design, engineering and contingency was approximately $12,520,137 (see Attachment 3 – Minor Project 578-371 CLI Request).
Both offers received exceeded $20M. Based on the initial bids received, no award could be made as the award would cause the total project costs to exceed $20M, which would exceed the aforementioned major construction statutory limit.
5. After the conclusion of the bid opening, the abstract of bids was send to the COR via email correspondence. The Joliet CBOC was informed that no award can be made as all bids exceed the statutory minor limit. The COR confirmed that they understood the solicitation must be cancelled. On July 28, 2023, they provided their confirmation concerning the cancellation of this solicitation (see Attachment 4 - Cancellation Confirmation - Joliet).
Pursuant to FAR paragraph 14.404-1(c)(10), it is recommended to cancel the subject IFB in its entirety. This cancellation is the result of the issues mentioned above. At this present time, the Government has no intention to issue a new solicitation for this project until the specifications, drawings, and IGCE are updated by the A-E. Once the redesigns are complete, the CO will conduct additional market research to determine the procurement strategy.
Prepared by Contract Specialist Kelly Han
Maria Rodeffer Contracting Officer, VHA PCAC
Richard Dahmen Director of Contracting, VHA PCAC
Gerald F. Jacobs Acting Executive Director Regional Procurement Office-Central (VHA)
Referenced Attachments:
Attachment 1 - IGCE – Joliet 578-371 Attachment 2 - Abstract of Bids – Joliet Attachment 3 - Minor Project 578-371 CLI Request Attachment 4 - Cancellation Confirmation - Joliet
Supporting Attachments/Additional Information:
SOLICITATION - 36C77623B0049 - Joliet Parking Expansion
RICHARD
DAHMEN
Digitally signed by
RICHARD DAHMEN
Date: 2023.09.27 14:56:26 -04'00'
GERALD JACOBS
Digitally signed by GERALD
JACOBS
Date: 2023.10.11 15:32:41 -05'00'
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