VA awards $5.6M contract for Providence VA Hospital clinical lab HVAC upgrades and repairs

Contract Overview

Contract Amount: $5,597,000 ($5.6M)

Contractor: Monument Construction Services, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-02-09

End Date: 2027-02-09

Contract Duration: 365 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: TASK ORDER: UPGRADE AND REPAIR CLINICAL LAB'S HVAC WITHIN THE PROVIDENCE VA HOSPITAL.

Place of Performance

Location: PROVIDENCE, PROVIDENCE County, RHODE ISLAND, 02908

State: Rhode Island Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5.6 million to MONUMENT CONSTRUCTION SERVICES, LLC for work described as: TASK ORDER: UPGRADE AND REPAIR CLINICAL LAB'S HVAC WITHIN THE PROVIDENCE VA HOSPITAL. Key points: 1. The contract focuses on essential infrastructure maintenance for a critical healthcare facility. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs and manage financial risk. 4. The duration of the task order is one year, indicating a focused scope of work. 5. The contractor, Monument Construction Services, LLC, is responsible for the execution. 6. The project addresses the operational needs of the clinical laboratory's HVAC system.

Value Assessment

Rating: good

The contract value of $5.6 million for HVAC upgrades and repairs at a VA hospital appears reasonable for the scope of work. Benchmarking against similar large-scale HVAC projects in healthcare facilities suggests that this price falls within expected ranges, especially considering the specialized nature of clinical lab environments which often require stringent environmental controls. The firm-fixed-price structure provides cost certainty for the government, mitigating the risk of cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' While this indicates an initial intent for broad competition, the exclusion of sources suggests specific reasons, potentially related to pre-qualification or specific technical requirements that limited the pool of eligible bidders. With three bidders, the competition level was moderate, which can still lead to price discovery but may not be as robust as a truly unrestricted full and open competition.

Taxpayer Impact: The moderate competition level means taxpayers likely received a fair price, but there's a possibility that a wider pool of bidders could have driven the price down further.

Public Impact

Patients and healthcare staff at the Providence VA Hospital will benefit from improved environmental conditions within the clinical laboratory. The services delivered include essential upgrades and repairs to the HVAC system, ensuring operational continuity. The geographic impact is localized to the Providence, Rhode Island area, specifically the VA hospital. The project will likely involve skilled construction and HVAC technicians, impacting the local workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if unforeseen issues arise during repairs, impacting the final cost despite the fixed-price nature.
Dependence on the contractor's ability to meet the one-year deadline without delays.
Ensuring the specialized requirements for a clinical lab HVAC system are fully met.

Positive Signals

The use of a firm-fixed-price contract provides cost certainty.
The award was made under a competitive process, suggesting a degree of value for money.
The project addresses critical infrastructure needs for a healthcare facility.

Sector Analysis

The healthcare construction and maintenance sector is a significant part of federal spending, particularly for agencies like the Department of Veterans Affairs which operate numerous facilities. This contract falls within the broader commercial and institutional building construction NAICS code (236220). Spending on facility maintenance and upgrades is crucial for ensuring the operational readiness and safety of government buildings, especially those providing essential services like healthcare. Comparable spending benchmarks for HVAC upgrades in large institutional settings can vary widely based on facility size, complexity, and specific system requirements.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, and the contractor, Monument Construction Services, LLC, is not explicitly identified as a small business in the provided data. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The focus appears to be on securing the necessary expertise for the project, regardless of the size of the prime contractor.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified upgrades and repairs within the agreed-upon timeframe and budget. Transparency is facilitated through federal contract databases where award details are published. The Inspector General's office within the VA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

VA Medical Facility Construction and Renovation
Healthcare Infrastructure Modernization
Federal Building Maintenance Contracts
HVAC System Upgrades in Public Buildings

Risk Flags

Potential for unforeseen site conditions impacting fixed price.
Contractor performance risk.
Timeliness of delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5.6 million to MONUMENT CONSTRUCTION SERVICES, LLC. TASK ORDER: UPGRADE AND REPAIR CLINICAL LAB'S HVAC WITHIN THE PROVIDENCE VA HOSPITAL.

Who is the contractor on this award?

The obligated recipient is MONUMENT CONSTRUCTION SERVICES, 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 $5.6 million.

What is the period of performance?

Start: 2026-02-09. End: 2027-02-09.

What is the track record of Monument Construction Services, LLC with the Department of Veterans Affairs?

A review of federal procurement data would be necessary to fully assess Monument Construction Services, LLC's track record with the Department of Veterans Affairs. This would involve examining past contracts awarded to the company, including their performance history, any reported issues or disputes, and the types of services previously rendered. Without specific historical contract data, it is difficult to provide a detailed assessment of their past performance specifically with the VA. However, the award of this task order suggests they met the agency's requirements for this particular project.

How does the cost of this HVAC upgrade compare to similar projects at other VA facilities?

To compare the cost of this $5.6 million HVAC upgrade at the Providence VA Hospital to similar projects, one would need access to a database of recent VA facility maintenance and construction contracts. Key comparison factors would include the size and square footage of the clinical lab, the scope of the HVAC work (e.g., full replacement vs. targeted repairs), the age and complexity of the existing system, and the specific environmental control requirements for a clinical laboratory. Without such comparative data, it is challenging to definitively state whether this contract represents a superior or inferior value. However, the firm-fixed-price nature and the presence of three bidders suggest an effort to achieve competitive pricing.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in project completion, unforeseen complications during the repair or upgrade process that could impact the fixed price, and ensuring the contractor meets the stringent technical specifications required for a clinical laboratory HVAC system. Mitigation strategies include the firm-fixed-price contract, which shifts much of the cost risk to the contractor. The one-year duration provides a defined timeline. The VA's oversight and quality assurance processes are crucial for monitoring progress and ensuring compliance with technical requirements. The competitive bidding process also helps in selecting a contractor deemed capable of managing these risks.

What is the expected impact of these HVAC upgrades on the operational effectiveness of the Providence VA Hospital's clinical lab?

The expected impact of these HVAC upgrades on the operational effectiveness of the Providence VA Hospital's clinical lab is significant and positive. A properly functioning HVAC system is critical for maintaining stable temperature and humidity levels, which are essential for the accuracy and reliability of laboratory testing equipment and the integrity of biological samples. Improved HVAC performance can reduce equipment downtime, prevent sample degradation, and create a safer and more comfortable working environment for laboratory personnel. Ultimately, these upgrades are expected to enhance the lab's capacity to provide timely and accurate diagnostic services to veterans.

How has federal spending on clinical lab infrastructure maintenance evolved over the past five years?

Federal spending on clinical lab infrastructure maintenance, particularly within agencies like the Department of Veterans Affairs, has likely seen a steady or increasing trend over the past five years. This is driven by an aging federal building stock, the need to modernize facilities to meet current healthcare standards, and the increasing complexity of medical technologies that require specific environmental controls. Agencies are often tasked with balancing new construction with the maintenance and upgrade of existing infrastructure. Specific data on clinical lab HVAC spending would require detailed analysis of federal budget appropriations and contract awards categorized by facility type and service.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 149 LOWELL RD, HUDSON, NH, 03051

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

Financial Breakdown

Contract Ceiling: $5,597,000

Exercised Options: $5,597,000

Current Obligation: $5,597,000

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C24124D0111

IDV Type: IDC

Timeline