VA awards $17.17M for patient bedroom upgrades, highlighting construction sector activity

Contract Overview

Contract Amount: $17,174,622 ($17.2M)

Contractor: Fdcd Joint Venture

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-10-20

End Date: 2026-09-30

Contract Duration: 1,806 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CLC PHASE 2 UPGRADE PATIENT BEDROOMS

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19104

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $17.2 million to FDCD JOINT VENTURE for work described as: CLC PHASE 2 UPGRADE PATIENT BEDROOMS Key points: 1. Contract awarded to FDCD JOINT VENTURE for facility upgrades. 2. Project duration is 1806 days, indicating a long-term commitment. 3. The contract type is Firm Fixed Price, offering cost certainty. 4. This award falls under Commercial and Institutional Building Construction. 5. The contract was awarded under Full and Open Competition after Exclusion of Sources. 6. The base value is $17.17 million, with potential for adjustments. 7. The project is located in Pennsylvania.

Value Assessment

Rating: good

The contract value of $17.17 million for patient bedroom upgrades appears reasonable for a project of this scope and duration. Benchmarking against similar VA construction projects for facility modernization would provide a more precise value-for-money assessment. The firm fixed-price structure suggests a degree of cost control, but the final cost will depend on the execution and any potential change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition after Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior relationships. The number of bids received (5) indicates some level of competition, but the exclusion of sources might limit the full potential for price discovery compared to a purely full and open competition.

Taxpayer Impact: The exclusion of sources, even with 5 bidders, could potentially lead to a higher price for taxpayers than if all capable contractors had been allowed to compete. However, the presence of multiple bidders still provides a competitive pressure that benefits taxpayers.

Public Impact

Benefits: Improved patient living conditions and facility infrastructure within VA healthcare settings. Services Delivered: Renovation and upgrade of patient bedrooms, likely including structural, electrical, and plumbing work. Geographic Impact: Primarily impacts the specific VA facility in Pennsylvania where the upgrades are being performed. Workforce Implications: Supports jobs in the construction sector, including skilled trades, project management, and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if change orders are extensive.
Risk of project delays impacting patient care continuity.
Ensuring compliance with all building codes and VA standards.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Long-term duration allows for thorough planning and execution.
Award to a joint venture may indicate capacity for complex projects.

Sector Analysis

The construction sector is a significant part of the federal contracting landscape, encompassing a wide range of projects from infrastructure to facility maintenance. This contract for patient bedroom upgrades falls within the commercial and institutional building construction sub-sector. Federal spending in this area is driven by the need to maintain and modernize government facilities, including healthcare centers. Comparable spending benchmarks would involve analyzing other VA facility renovation contracts or similar healthcare construction projects awarded by agencies like the General Services Administration (GSA).

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides. However, the prime contractor, FDCD JOINT VENTURE, may engage small businesses as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Veterans Affairs contracting officers and project managers. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Medical Facility Construction
Healthcare Infrastructure Modernization
Commercial Building Renovation Contracts
Federal Construction Projects

Risk Flags

Competition level may be limited due to exclusion of sources.
Potential for cost increases through change orders despite fixed-price contract.
Long project duration increases exposure to market fluctuations and unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $17.2 million to FDCD JOINT VENTURE. CLC PHASE 2 UPGRADE PATIENT BEDROOMS

Who is the contractor on this award?

The obligated recipient is FDCD JOINT VENTURE.

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 $17.2 million.

What is the period of performance?

Start: 2021-10-20. End: 2026-09-30.

What is the track record of FDCD JOINT VENTURE in completing similar VA construction projects?

Information regarding the specific track record of FDCD JOINT VENTURE on similar VA construction projects is not directly available in the provided data. A comprehensive assessment would require reviewing past performance evaluations, contract history, and any reported issues or successes on previous federal contracts awarded to this entity. Examining their portfolio of completed projects, particularly those involving healthcare facility renovations or upgrades, would offer insight into their capabilities and reliability. Understanding their experience with firm fixed-price contracts and projects of comparable scale is crucial for evaluating their suitability for this current award.

How does the awarded value compare to similar patient bedroom upgrade projects within the VA system?

Direct comparison of the $17.17 million award to similar VA patient bedroom upgrade projects requires access to a broader dataset of federal contracts. Factors such as the size of the facility, the scope of work (e.g., modernization of plumbing, electrical, finishes), and the specific location can significantly influence project costs. While the firm fixed-price nature provides some cost certainty, the ultimate value-for-money assessment depends on the detailed specifications of the work performed and the prevailing market rates for construction services in the project's geographic area. Benchmarking against projects with similar square footage, number of rooms renovated, and complexity of systems involved would be necessary for a robust comparison.

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

The primary risks associated with this contract include potential cost overruns due to unforeseen site conditions or scope creep, project delays impacting facility operations and patient care, and ensuring the quality of work meets VA standards. Mitigation strategies are likely embedded within the contract's firm fixed-price structure, which incentivizes the contractor to manage costs effectively. The long duration (1806 days) allows for phased execution and detailed planning, potentially reducing risks. The VA's oversight mechanisms, including contract administration and quality assurance, are critical for monitoring progress and addressing issues proactively. Specific risk mitigation plans would be detailed in the contract's statement of work and associated documentation.

What is the expected impact of these upgrades on patient care and facility operations?

These upgrades are expected to significantly enhance patient care by improving the living environment, potentially increasing comfort, safety, and privacy. Modernized bedrooms can incorporate updated medical gas systems, improved lighting, and better accessibility features, all contributing to a higher standard of care. From a facility operations perspective, the upgrades may lead to increased energy efficiency, reduced maintenance needs, and improved compliance with current healthcare regulations and building codes. The long-term nature of the project suggests a comprehensive overhaul aimed at modernizing the facility to meet future healthcare demands and enhance the overall patient experience.

How has federal spending on commercial and institutional building construction evolved over the past five years?

Federal spending on commercial and institutional building construction has generally seen fluctuations influenced by infrastructure initiatives, agency modernization needs, and overall economic conditions. While specific aggregate data for this category requires detailed analysis of federal procurement databases, trends often reflect government priorities. For instance, periods of increased focus on upgrading aging federal facilities, expanding healthcare infrastructure (especially post-pandemic), or investing in research and development facilities can drive spending in this sector. The Department of Veterans Affairs, in particular, consistently invests in its medical facilities, contributing a significant portion to this spending category. Analyzing historical spending patterns for the VA and similar agencies would reveal trends in construction investments.

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: SEALED BID

Solicitation ID: 36C24421B0017

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 408 E 4TH ST STE 308, BRIDGEPORT, PA, 19405

Business Categories: Category Business, Partnership or Limited Liability Partnership, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $17,174,622

Exercised Options: $17,174,622

Current Obligation: $17,174,622

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $5,983,182

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline